Productivity/Quality Workshop

1
Developing Performance Indicators
2
Lord Kelvin - - -

• When you measure what you are speaking about and
  express it in numbers, you know something about
  it, but when you cannot express it in numbers
  your knowledge about it is of a meager and
  unsatisfactory kind.

Our Hero
3
Data - Feedback Circuit
Input
Output
V
v
Amplifier
t
t
Feedback
4
Business Process Data

• Obtaining Voice of Customer Data
• Reactive (Complaints, Returns, Defects, Web Site
  Comments, etc.)
• Proactive (Interviews, Focus Groups, Surveys,
  Mystery Shopper, etc.)

5
Interview Guide Obtaining Requirements
6
CTQs Defined
7
Quality Components
BIG QUALITY
Product or service features, attributes,
dimensions, characteristics relating to the
function of the product or service, reliability,
availability, taste, effectiveness, - also rework
or scrap
LITTLE QUALITY
COST
Cost to manufacture, transport, distribute,
inventory, sales price, cost to consumer (initial
plus life cycle)
DELIVERY
Production volumes, lead times,
turn-around-times, setup times, delivery time,
delays
Problems occurring after purchase, failures,
parts availability, service, warranties,
maintainability, customer required maintenance,
product liability, and safety
SERVICE SAFETY
CORPORATE RESPONSIBILITY
Problems arising from pollution, damage to
society or the environment, disposal
8
Cause Effect (Ishikawa) Diagram




Methods
Materials
Machines
Quality Characteristic

Process Variables (Causes)


CTQ (Effect)



People
Information
Environment
9
Measurement System - Variation
INSTRUMENT
OBSERVER
EVENT
Issues Accuracy, Precision, Repeatability,
Reproducibility, Linearity, Drift, Calibration
Frequency, . . .
10
Summary Selecting Indicators
Identify Product or Process Associated with
Problem
Voice of the Customer
Complaints
Problems
Costs
Strategy
Identify the Product/Process Key
Characteristic(s)/CTQs
Determine a Measure and Associated Data
Collection Plan
Problem Area Selected for Attention
Collect CTQ Data