What is Quality ?

Usual Responses Inspection Responsibility of the Quality Control Department Measurement Activity Statistics Technical Activity Support Function

Four Phases of MoQ Portion

Phase 1 History of Quality Phase 2 Foundations for the Management of Quality Phase 3 Tools for Implementation of Quality Phase 4 New Trends in Management of Quality

Four Phases of MoQ Portion

Phase 1 History of Quality
Definitions of Quality Evolution of Managing for Quality as a Science : QC,CWQC,TQC,TQM Definition of TQM

Phase 2 Foundations for the Management of Quality

Works of the Quality Pioneers : Dr. W. Edwards Deming Demings System of Profound Knowledge Demings 14 points and Dr. Joseph M. Juran The Juran Trilogy , Cost of Quality

Phase 3 Tools for Implementation of Quality

Application of the 7 QC Tools and Management Tools ( including FMEA , Poka Yoke )

Phase 4 New Trends in Management of Quality

ISO 9000 Implementation Status of TQM in India

Evolution of Quality
The first ever article on Quality as we know it today : The Control of Quality in Manufacturing 1917 by George S. Radford
The first ever book on Quality as we know it today : The Control of Quality in Manufacturing 1922 by George S. Radford The Second Book : The most seminal book Economic Control of Quality of Manufactured Product 1931 by Walter A. Shewhart

The second book by Shewhart : Statistical Methods from the Viewpoint of Quality Control 1938 edited by W. Edwards Deming

Evolution of Quality 1900s Inspection 1920s Process Control 1950s Process Improvement 1960s Organisational ( Systems ) Improvement 1970s Business Improvement 1980s Business Excellence 1990s Customer Value Excellence 2000 Environmental Excellence
Many now associate Continual Improvement of Quality with Meaningful Sustainable Development

Different Definitions of Quality

Quality is conformance to requirements - Phillip B. Crosby Quality is defined as fitness for purpose . To be fit for purpose , the product/service must have features that satisfy customer needs and must be delivered free of deficiencies. - Joseph M. Juran The total composite product and service characteristics of marketing , engineering , manufacture , and maintenance through which the product and the service in use will meet the expectations of the customer - Armand V. Feigenbaum A product or a service possesses Quality if it helps someone live better materially and /or otherwise and enjoys a large and sustainable market - W. Edwards Deming ...degree to which a set of inherent characteristics fulfils requirements - ISO 9000 : 2008

Quality Management
A people focussed management system that aims at continual increase in customer satisfaction at continually lower cost , working horizontally across functions and departments , involving all employees and processes , top to bottom , extending forwards and backwards to include the Supply chain as well as the Customer chain .

Customer
Quality of Design / Redesign Quality of Performance

Purpose Creating Customer Value

Design

Quality of Conformance

Product / Service

Fundamental Quality Management

Deming : The Early Years

Influence of Walter Shewhart 1920s Shewhart enlists the 2 types of mistakes and develops the Control Theory to reduce effects of these mistakes Deming organises a landmark seminar in 1938 on Statistics at NYU where Shewhart delivers his 4 day lecture on his Control Theory Application of this theory to 1940 US census by Deming results in savings to the tune of $200 million Improvement in productivity during the war in America using Shewharts Control Chart Sent to lead the 1947 census taking in Japan

Deming : The Later Years

American Response to the use of the Control Chart ( 1942 44 ) and afterward Japanese experience 1950 onwards How the West finally took notice 1980 onwards Teachings between 1979 1987 Teachings between 1989 1993

Deming in Japan 1947 to 1950

The marketplace is now global. Basis for trade between countries will be defined by Quality The customer is all-important. Seek to cultivate long-term relations with your customers. Seek to continuously understand consumer needs when designing products. Quality is determined by managers. The Quality of products and services must reflect consumer needs. Products must be uniform, be consistent, and perform dependably. The Quality of the product cannot be better than the intentions and specifications of management. Quality results from the way managers lead. Production is a system. The supplier is your partner. Make the supplier a partner and an integral part of the system. The customer is also part of the system, the most important part of the system. The chain reaction. If you improve your processes and product, your costs will decrease and you will capture the market with better Quality and lower prices, thus allowing you to stay in business and provide jobs and more jobs. Japan must see itself as a system. There must be trust and cooperation throughout all of industry along with government , education and healthcare in Japan. A common commitment to cooperation must sweep through Japan like a Prairie fire

Design and Re - design

Consumer Feedback

Receipt and Test of Materials

Distribution

Suppliers of Materials and Equipment

Production

Assembly

Inspection

Tests of Processes , Machines , Methods , Costs

Customers

Production Viewed as a System

I believe this Diagram made the difference in Japan.the greatest way I accomplished anything there was through this diagram W. Edwards Deming

Improve Quality

Costs Decrease because of less rework , fewer mistakes , fewer delays , snags ; better use of machine time and materials

Productivity Improves

Expand the Market with better Quality , Lower Price , Diversification , Innovation

Stay in Business

Provide Jobs and more Jobs

And so on

Improve Quality further

Deming Chain Reaction 1950 ( revised 1988 )

THE DEMING PRIZE ESTABLISHED IN 1950 BY THE JAPANESE UNION OF SCIENTISTS AND ENGINEERS Peace and happiness through prosperity was in fact at the root of my thoughts when in 1950, in Japan, I wrote the following inscription on the medal for the Deming Prize, given annually by the Deming Prize Committee to a company that has successfully and effectively advanced the Quality of their systems : The right Quality and Uniformity are the foundations of Commerce, Prosperity, and Peace. Quality brings commerce. It brings people together from different parts of the world, makes friends, and brings respect. ... Quality does not stand still, however. Invention and design of new products are essential parts of Quality. Design, manufacture, marketing, service, testing, all go on forever in a cycle.

Demings view of Quality

Begins with meeting real needs of customers ( in use ) High degree of Uniformity , predictability Beyond mere conformance ( to requirements / specifications ) Joy in Ownership through Joy in Work

Four prongs of Quality

Innovation in products and services Innovation in process Improvement of existing products and services Improvement of existing processes

Quality aimed at , to meet the needs of the consumer , must be stated in terms of specified Quality characteristics that can be measured . It is necessary to predict what Quality characteristics of a product will produce satisfaction in use . Quality , however , to the consumer , is not a set of specifications . The Quality of any product is interaction between the product , the user , his expectations , and the service that he can get in case the product fails or requires maintenance . The needs of the consumer are in continual change . So are materials , methods of manufacture , and products . Quality of a product does not necessarily mean high Quality . It means continual improvement of the process , so that the consumer may depend on the uniformity of the product and purchase it at low cost . ..W. Edwards Deming 1980

A Managers Job
People are the most important part of a System . They must work in a System to create value for the Customer . The Managers Job is to work on the System and continually improve it with help from the people and the Customer

System of Profound Knowledge

Culmination of Dr. Demings philosophy A Theory of Management founded in four different but deeply interconnected sciences Systems Theory Human Psychology Statistical Thinking and Methods Learning how we learn and Improve

A tool for the quest of wisdom

System of Profound Knowledge

A different view of events and happenings around us Not as incidences rather as outcomes Not isolated rather deeply connected

Helps us get the complete picture

A lens with which we view the landscape To see things we normally wouldnt see

Appreciation for a System

Understanding Variation

Understanding a Theory of Knowledge

Understanding Psychology

What Is A System?
A System is a Network of Interdependent components that work together to achieve the Aim of the System . Every System must have an Aim , Without an Aim there is no System

The Three most important words are Network Interdependent Aim

System Thinking
Cause and Effect are not closely related in time or space Outputs are a result of a myriad of inputs Inputs affect each other also The extent to which inputs affect each other need to be determined Effect of environment on the inputs need to be studied Effect of the inputs on the environment need to be studied

System Thinking
Important points about a system : Should have an aim . Without an aim there is no system ( as before ) Aim is for all the components to gain over the long term Aim is to make life better for everyone impacted by the System

System Thinking
Pattern Relationships that determine the Systems Characteristics
Structure The Physical Layout of the System

Processes Activities that take place in the Structure

Meaning The Purpose of existence of the system

Appreciation for a System

Understanding Variation

Understanding a Theory of Knowledge

Understanding Psychology

Questioning
Improvement Hypothesis

Experimenting

Verification

Exploration

Confirming

System of Learning

Appreciation for a System

Understanding Variation

Understanding a Theory of Knowledge

Understanding Psychology

Appreciation for a System

Understanding that cause and effect are not closely related in time and space Understanding that outputs are the results of a myriad of inputs . Understanding the importance of a common aim or purpose for the system.

Understanding a Theory of Knowledge

Understanding the importance of theory to interpret observations ( experience ) . Understanding the importance of theory and practice . Understanding how to learn faster .

Understanding Variation
Awareness of the distinction between Common and Special Causes of Variation and how to interpret Control Charts Learning how to think statistically Understanding that reducing variation is synonymous to increasing Quality .

Psychology
Understanding that people are inherently good they want to do a good job . Understanding that people learn differently , and hence think differently . Working on peoples learning processes rather than exhorting them would be better . Understanding that ranking destroys people .

Peter Scholtes portrayal of Dr. Demings System of Profound Knowledge

Viewing an event with Theory 1

Viewing an event with Theories 1 & 2

Viewing an event with Theories 1 , 2 & 3

The true picture What was your guess ?

Demings 14 points for management.

Important points to keep in mind: Not his philosophy but 14 consequences of his philosophy Not a list of instructions, techniques, check list or prescription. Vehicles for opening up the mind to new thinking radically different ways of managing. Lay the foundation for the transformation a change of magnitude never imagined

"The 14 points all have one aim : to make it possible for people to work with joy."

Demings 14 points for management.

Point 1

Appreciation for aand System Create a statement of the aim purpose of the organisational system. Understanding Variation It must bring out the long term vision of the Understanding Psychology organisation preferably stating how it intends to stay in business through creating Understanding a in Theory value for all those impacted any way . of Knowledge

Demings 14 points for management.

Appreciation forofa System Adopt the new philosophy win win where everybody wins . Understanding Variation Teach and practise this philosophy with all customers , suppliers and competitors . Understanding Psychology Focus on expanding the market rather than capturing it . Understanding a Theory of Knowledge

Point 2

Demings 14 points for management.

Appreciation fortoa System Use the system of inspection understand the gaps in how you perceive a Customer requirement and how the Customer actually Understanding Variation perceives it . Understanding Try to reduce these gaps by first trying to understand customer requirements thoroughly then deploy this learning throughout the Psychology organisation . Understanding a Theory of Design Quality in . Knowledge

Point 3

Demings 14 points for management.

Work towards having an arms relationship Appreciation for-around a System with your suppliers . Invest in them through education and training so Understanding Variation they can contribute effectively towards the organisation . Understanding When purchasing , do not focus on price alone Psychology without a measure of Quality . Reduce Variation by practising co-operation with Understanding a Theory of your suppliers . Knowledge
Point 4

Demings 14 points for management.

Appreciation for a System Point 5 Look for better ways of understanding and Understanding Variation analysing the processes/systems you work in . Keep improving and innovating continually . Understanding Psychology Systemise this philosophy . Find out problems before they find you out . of Understanding a Theory Knowledge

Demings 14 points for management.

Point 6

Training must not only focus the job is Appreciation for on ahow System done but also the purpose of the job being carried out . Understanding Variation Everyone must know how they are contributing to the entire system . Training must also aim at Understanding Psychology creating learners . This forms the basis for continual improvement Understanding a Theory of and motivates intrinsically . Knowledge

Demings 14 points for management.

Point 7

Create Leaders . Managers are no longer just Appreciation for a System planners/instruction-givers . They must be leaders . Understanding Variation People are the most important part of a System . They must work in a System to create value for the Understanding Psychology Customer . The Managers Job is to work on the System and continually improve it with help from Understanding a Theory of the people and the Customer by leading people , coaching them and counselling them in a nonKnowledge judgmental manner .

Demings 14 points for management.

Appreciation for a System Create a climate of openness , trust and two-way communication . Understanding Variation People must not be afraid to voice their problems Understanding Psychology / constraints they are facing that prevent them from doing a better job . Understanding a Theory of Knowledge

Point 8

Demings 14 points for management.

Point 9

Appreciation for Encourage systems thinking in a the System organisation where everybody focuses on creating value for the customer and not just meeting Understanding Variation departmental/sectional objectives . Understanding Psychology Optimise the efforts of everyone do not maximise individual efforts . Understanding a Theory of Knowledge

Demings 14 points for management.

Point 10

Do not create a superficial leadership culture by Appreciation for a System using impressive-sounding but shallow slogans, posters and exhortations and arbitrary numerical Understanding Variation targets. A genuine leadership culture focuses on improving Understanding the work environment so that Psychology people are intrinsically motivated to do productive work and, if useful, create their own slogans and posters . of Understanding a Theory Knowledge

Demings 14 points for management.

Point 11

Appreciation for a System Do not attempt to manage the organisational systems and processes solely by irrelevant and arbitrary measures such as quotas and targets . These are merely single Understanding Variation dimensional aspects of very multi-dimensional entities Instead, encourage systems thinking i.e. understanding Understanding Psychology and establishing interdependencies between the different parts of the system and thus looking beyond the blinkered view presented by quotas, numerical targets and Understanding a Theory of objectives. Knowledge

Demings 14 points for management.

Appreciation for a System Develop a sense of ownership in every employee working in the system so that Understanding Variation s/he could take pride and joy in the work they do . Understanding Psychology Understanding Theory They must feel one witha their work thusof creating results themselves . Knowledge

Point 12

Demings 14 points for management.

Point 13

Encourage learning . Develop learners . Appreciation for a System People are the only living parts of an organisation . For an organisation to grow fast Understanding Variation and move in the right direction , it is essential that people are growing and learning . Understanding Psychology Pay is not as much a motivator as learning is . Continual learning leads to a Continual Understanding Theory of innovation and improvement . Knowledge

Demings 14 points for management.

Point 14

Create a structure and a system in the Appreciation for a System organisation that embodies all of the above principles . Understanding Variation Nurture relationships . Extend the boundaries of the organisation to include Understanding Psychology all those impacted . Understanding a Theory of This will result in long term profits beyond measures and long term survival . Knowledge

Create a constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

Appreciation for a System

Adopt the new philosophy of win win. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. a)Eliminate work standards (quotas) on the factory floor. Substitute leadership. b)Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

Eliminate slogans, exhortations, and targets for the work force demanding zero defects and new levels of productivity.

Knowledge of Psychology
Adopt and institute leadership. The aim of leadership should be to help people and machines do a better job.

Remove barriers that rob people of pride of workmanship.

Cease dependence on mass inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

Institute training on the job.

Knowledge of Variation
Institute a vigorous programme of education and selfimprovement.

Drive out fear so that everyone can work effectively for the company.

A Theory of Knowledge
Take action to accomplish the transformation.

Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

End the practice of awarding business on the basis of price tag alone. Instead, minimise total cost. Move toward a single supplier for any one item, in a long-term relationship of loyalty and trust.

Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

The Product . Your own tests of the Product in the laboratory and in simulations of use .Test of the Product in service .

Training of Customer . Instructions for use . Training of Repairmen . Service . Replacement of Defective Parts . Availability of Parts . Advertising and Warranty : What did you lead the Customer to expect ? What did your Competitor lead him to expect ?

The Customer and the way he uses the Product . The way he installs it and maintains it . For many products , what the Customer will think about your Product a year , three years , five years from now is important .

The Three Corners of Quality

1. Idea for placing importance on Quality 2. Responsibility for Quality 3. Research 4. Standards for Designing and Improvement of Products 5. Economy of Manufacturing 6. Inspection of Products 7. Expansion of Sales Channels 8. Improvement

1.Design the Product (with appropriate Tests)

Customer

2.Make it, test it in the Production Line and in the Laboratory

3. Put it on the Market

THE DEMING WHEEL manufacturer the user and the non user

Act - Adopt the change , or abandon it , or run through the cycle again

Plan a change or a test aimed at improvement

Study the results . What went wrong? What did we learn?

Do - Carry out the change or test ( preferably on a small scale )

Impact Products Processes Viewed as Customer

Traditional view of quality Manufactured Goods Manufacturing or visible processes A technological opportunity Clients who buy products Conformance to specifications, procedures, standards Departmental The Quality Manager

Enlightened view of Quality All products and services whether for sale or not All processes A Business opportunity All those impacted Responsiveness to Customer needs, extent to which Customer value is created Companywide Top Management

Evaluation

Improvement Initiatives led by

Freedom from Deficiencies

Less Waste , Less Scrap Less Warranty Costs

Features that lead to Customer Satisfaction

Less Cycle Time Increased Demand Increased Market Share

Lower Costs

Increased Price

Increase in Profits

Freedom from Deficiencies Reduction in errors Reduction in wastes Reduction in failures at the Customers end ( field failures ) Reduction in inspection and tests Reduction in Response times Increase in yield and capacity Increase in delivery performance

Features that enhance Customer satisfaction Increased Customer Base Increased Market Share Premium Price

The Juran Trilogy

20
% of Defects
Quality Planning
Sporadic Spike

10

Determining the Cost of Quality , Where are we right now ? What do we need to develop ?

15

Original Zone of Quality Control

Quality Control

Quality Improvement

Time
Lessons Learned

New Zone of Quality Control

Revenue : All the money that a company takes in , in any given year Costs : All the items which use or take a companys cash to run the business

Assets : Company owned items which can be converted into cash

Revenue Return on Assets =

minus

Costs

Assets

Cost of Quality = Cost of Conformance + Cost of Non Conformance + Cost of Lost Opportunities

Cost of Conformance = Cost of Prevention + Cost of Appraisal

Cost of Non Conformance = Cost of Internal Failure + Cost of External Failure +

Cost of Exceeding Requirements

Cost of Lost Opportunities = Cost of Lost Opportunities

Costs of Prevention

Cost of activities that prevent failure from happening Planning for Quality TPM Process Design Process Control Quality Audits Supplier Evaluation Training for Quality

Cost of Appraisal

Cost incurred to determine conformance with Customer requirements after the work has been completed Inspection and Tests ( Incoming , Inprocess and Final stages ) Document Reviews Accounts Reconciliation Maintaining accuracy of Test Equipment Reconciliation of Stocks , Equipment , etc

Cost of Internal Failure Cost of correcting products or services which do not conform to internal customer requirements or are identified prior to delivery as not meeting the requirements of external customers

Failure to meet Customer Requirements and Needs Scrap Rework Missing Information Failure Analysis 100 % Sorting Reinspection , retests Changing Processes Redesign of Hardware and Software Downgrading

Cost of Internal Failure Cost of Inefficient Processes

Variability in Product Characteristics Unplanned Downtime of equipment Inventory Shrinkage Non value added activities

Costs of External Failure Costs to correct products or services after delivery to the Customer Warranty Charges Complaint Adjustments Returned Material Allowances Penalties Rework Cost of Exceeding Requirements Cost of providing Information or Services which are not necessary or for which no requirements have been established

Cost of Lost Opportunities Lost Profits due to the company not satisfying or being able to satisfy , the requirements of external customers

Evolution of the Cost of Quality over time LO LO

LO
NC NC NC

Implementation of the Quality Initiative through time

Quality Planning
Quality Goals
Translate Needs

Identify Customers

APPLYIdentify Needs MEASUREMENTS Establish Measures Develop Product THROUGHOUT Develop Process Optimise Process
Transfer to Operations

Quality Planning
1. Define the Project What do we need to build ? 2. Identify the Customers . Who will be impacted by our efforts ? 3. Discover Customer Needs . What benefit do the Customers want ? 4. Develop the Product / Service . What Product features will create that benefit ? 5. Develop the Processes . How will we produce the product features? 6. Develop Controls / Transfer to Operations . How do we ensure it works as designed ?

Spreadsheets in Quality Planning

Customer Needs

Customers

Product Features Customer Needs

Understanding Matrix

I
Design Matrix

Process Features

Product Features

Process Controls
Process Features

Process Matrix

Operations Matrix

Concept Initiation / Approval Programme Approval

PLAN AND PRODUCT DESIGN AND PROCESS DESIGN AND DEFINE DEVELOPMENT DEVELOPMENT PROGRAMME VERIFICATION VERIFICATION

PRODUCT QUALITY PLANNING TIMING CHART

Prototype Pilot Launch

Planning

Planning

Product Design and Development

Process Design and Development

Product and Process Validation

Production

Feedback Assessment and Corrective Action

PRODUCT AND PROCESS VALIDATION

FEEDBACK ASSESSMENT AND CORRECTIVE ACTION

The Control Pyramid

Informational Controls Supervisory Control Operator Control

Automatic Controls
Error Proofing

What Control means to different people

Control Subjects
Operator Control Product Specifications Process Parameters Product Completeness Product Usability Product Costing Product Saleability Mechanism Tools , Gauges , Fixtures , Templates , Check Lists Tests , Checks , Capabilities of Products / Processes Decisions Extent of Conformance

Supervisory Control

Extent of Performance

Managerial Control

Feedbacks , Field Intelligence , Extent of Sales , Profits Customer Surveys

Choose the control subject What do we want to regulate ?

A Negative Approach : A Control Subject emerges out of a Bitter Experience or Catastrophic Failure
A Positive Approach : ( A Deliberate Effort to unearth Control Subjects moving up the Control Pyramid ) Highly Repetitive Activities ( Fool Proofing and / or Automation ) Effect of failures are obvious and localised and losses occurring are minor ( Operator Control ) Coordination , Discipline , Fluidity of Operations , High Risk Factors ( Supervisory Control ) Matters of Company Performance , Hierarchal or Geographic factors , Extensive Analysis , Great Risks ( Informational

Establish Measures How can these be expressed in terms of units , ratios , indexes etc. ? Create a Sensor How can these measures be captured in a timely manner ? Establish Standards What are the instances which will warrant concern ( indicators ) ? indicate normalcy ? Measure continual performance ( frequency ) Decide where , who , when and how to measure actual performance Compare to Established Standards Decide on who does this and how this is to be done Take action on the difference Is the difference pronounced so as to precipitate a systemic change , process change , task change , etc ?

Process 5 Actuator

Sensor 2

Goal 3 Umpire

1 Sensor plugged into the Process to evaluate actual performance

2 Sensor reports performance to the Umpire

3 Umpire compares performance to Goal 4 Umpire reports difference to the Actuator

5 Actuator alters process to bring output in line with goals

Set standards for Control and Improvement

Information on value delivered and unmet Customer needs

Communicate Standards

Input

Transformation

Output Rework Control

Customer Value ( other stakeholders )

A S

P D

Feed back information on performance , study relationships among measures of performance throughout the system , and take action to improve

Frequency Location of Criteria Control Nomina Measur Uni Senso of Action Measuremen for Subject l e t r measuremen taken t action t

1. 2. 3. 4. 5. 6. 7.

8.

Form a Quality Council Analyse the Symptoms Theorise as to the causes Test the Theories Establish the causes Stimulate the establishment of a remedy Test the Remedy under Operating conditions Establish controls to hold the gains

1 5 : The Diagnostic Journey 6 8 : The Remedial Journey

 Breakthrough in Results

Demonstrated Control at the new level

Breakthrough in Attitude Breakthrough in Organisation

Holding the Gains Mission Statement and Team Charter Remedial Journey Breakthrough in Cultural Patterns Identified Root Causes Diagnostic Journey

Juran on Quality Improvement

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

The Progression from Philosophy to Action

QC Tools and Management Tools Methods SPC , QFD , DOE , QIT Frameworks Just in Time , ISO 9000 , Baldrige Criteria Structure and Approach Joseph M. Juran Philosophy W. Edwards Deming

Demings contribution to the Field of Statistics

Distinguishing between Enumerative and Analytical Studies Enumerative Number crunching exercises data collection , assimilation and presentation Analytical Application of the Control Theory , Scientific Method and Subject Matter Knowledge to understand the situations which led to the data being generated in other words study of the

Common & Special Cause Variation Common Causes Variation Variation that exists in a system due to inherent properties of the system itself ( its design ) or the way its managed... Special Cause Variation Variation that exists in a system due to some external factors factors not a part of the system but alien to it...

Conventional Data Interpretation

Common approaches are : comparison to specifications or managing by the last data point Common Traps in use of Figures alone : Too little attention to matters for which figures are not available. Forcing wrong figures (due to fear). Misuse and abuse of figures

Data presentation
Shewharts Rule One when presenting Data : Data should always be presented in such a way that preserves the evidence in the data for all the predictions that might be made from these data .
In short the following questions need to be asked :

Who collected the data ? How were the data collected ? When were the data collected ? Where were the data collected ? What do these values represent ? And if the data are computed values , how were the values computed from the raw inputs ? Has there been a change in formula over time ?

Data presentation
Shewharts Rule Two when presenting data Whenever an average , range or histogram is used to summarise data , the summary should not mislead the user into taking any action that the user would not take if the data were presented in a time series . In short : No comparisons must be made between pairs of values except as a part of a broader comparison . Use time Series graphs to present values in their context .

Shewharts control chart approach

Control chart : a time series graph with a central line (average), UCL & LCL Shewhart gave a simple practical way of calculating limits Focus on process instead of each value hence yields insight and understanding.

Shewharts control chart approach

The Control Chart is an Operational Definition of a process in a state of Statistical Control Not based on laws of probability Not a test of Statistical significance Empirical laws laid down by Shewhart on May 16th 1924 that have stood the test of time

Control Charts: Some Relevant Points

Different types of charts for different situations but XmR & XbarR are most used. Unstable processes : unpredictable changes; no significant changes in stable processes.

Control Chart The methodology

A) The XmR chart.
Useful for one at a time data Can be used with 15 20 observations Can also be used with 7 observations but to interpret with care !!

Control Chart The methodology

A) The XmR chart (continued).
For X chart (individual values).
Upper Natural Process Limit=Xbar+2.66*Rbar. Lower Natural Process Limit=Xbar-2.66*Rbar.

16.0 16.2 15.7 16.1 16.4 15.9

15.8 16.4 16.1 15.7 15.9 16.1

15.7 16.5 15.5 16.0 16.3 15.6

15.9 16.2 15.1 16.0 16.2 15.8

16.2 16.0 16.0 15.5 16.6 15.8

16.84

15.97

15.11

Control Chart The methodology

The XbarR chart For Xbar chart Make Subgroups Calculate Average and Range for each sub group Calculate grand average of average ( X double bar ) and range ( R bar ) Upper Natural Process Limit=Xdbar+A2*Rbar. Lower Natural Process Limit=Xdbar-A2*Rbar.

7 4 6 9 7 5 6 8 5
10

10 2 3 8 8 5 3 4 5
9

11 5 8 12 6 8 6 6 6
12

A2 for n = 3 is 1.02

6 7
4

12 9
6

10 10
7

6 5 4 7 15 7

5 7 4 4 18 5

5 7 3 8 19 3

10.14

7.08

4.02

Control Chart used where the Sample size is the Same

nP Chart

UCL = nP + 3

LCL = nP - 3

nP = Average Number of Rejections

P = Overall Proportion of Rejects

Example A lot of 50 pieces were being produced per worker per day in a factory . The following rejects were observed every day for each worker . Draw a Control Chart and state your conclusions .
Workers
1 Worker 1 9 2 11 Day 3 7 4 8

Worker 2
Worker 3 Worker 4 Worker 5 Worker 6

6
12 11 14 4

11
7 10 8 11

11
5 13 9 12

9
5 9 11 12

nP = Average Rejections = Total number of Rejections / Total number of attempts = 225 / 24 = 9.38
P = Overall Proportion of Rejects = Total number of Rejections / total number produced = 225 / 24*50 = 225 / 1200 = 0.188

Now UCL = nP + 3
= 9.38 + 3 = 9.38 + 3(2.76) LCL = nP - 3 = 9.38 - 3

= 9.38 - 3(2.76)
= 9.38 - 8.27 = 1.11

= 9.38 + 8.27
= 17.66

Control Chart used where the Bulk Sample is the Same c Chart
c = Average Number of Blemishes UCL = c + 3 LCL = c - 3

An officer from the NHAI provided the following data for the number of potholes found for every 10 kilometres over a stretch of 150 kilometres on the Mumbai Nasik Highway . Draw a c Chart and state your conclusions

Sample Potholes

1 2

2 4

3 1

4 1

5 4

6 5

7 2

8 1

9 2

10 3

11 4

12 3

13 5

14 2

15 1

c = Average Number of Blemishes = Total number of blemishes / Total number of Samples

= 40 / 15 = 2.667

UCL = c + 3 = 2.667 + 3 = 2.667 + 4.889

LCL = c - 3 = 2.667 - 3
= 2.667 4.889 = -2.222 LCL = 0

= 7.567

Total Rejection Percentage

Percentage of Shifting

Total Rejection Percentage

Percentage of Shifting

Total Rejection Percentage

Percentage of Shifting

Welder No. 6 in need of attention . Upon examination it was found that his eyes needed treatment

XmR chart for failures of Lube Oil System on Load Box/Road Trial for rebuilt locomotives of DCW/PTA (Limits are calculated based on values from Jan 2004-Dec 2005)

Use of Beta Blocker 2 Use of Beta Blocker 1

The following data were collected by an Production Manager in a Fertiliser Company . The data represent pH values of a certain chemical used to make the fertiliser . Compute the Control Limits of the process if the XmR method is used . If the Specification Limits are set at 9 4.5 , what will be the values of Cp , Cpl and Cpu ? Suppose the Manager wants to implement the Six Sigma approach in this process , what will the limits become ? The Flow of the data collected is from left to right .

8.7
8.5

9.6
8.4

12.6
8.9 9.0

9.5
10.6 9.3

11.3 9.9

7.8
10.4 8.8

10.2
9.2 9.1

8.3
9.4

8.6
9.6

10.3 10.1

What are the instances in a Control Chart that warrant attention? One point outside the control limits Seven points in a row all above / below average Seven points in a row all increasing / decreasing. THE CONTROL CHART IS NO SUBSTITUTE FOR THE BRAIN

Benefits of Control Charts

For all levels worker to CEO Prediction of performance Assessing effect of improvements Common language Local or management action Immense benefits by use at top levels

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Cost of Quality Example The following costs were recorded in an organisation . Arrange them under different heads of the Cost of Quality as appropriate .
Defective Stock Returned from Customer Rs 1,50,000 Repairs to Product Rs 4,50,000 Collect Scrap Rs 10,000 Waste Scrap Rs 2,00,000 Consumer Adjustments Rs 6,00,000 Downgrading Products Rs 1,00,000 Incoming Inspection Rs 1,00,000 Laboratory Testing Rs 1,75,000 Spot Check Inspection Rs 3,50,000 Local Plant Training Rs 5,00,000 Corporate Training Rs 2,00,000

Solution Cost of Non conformance External Failure Defective Stock Returned from Customer Rs 1,50,000 Repairs to Product Rs 4,50,000 Consumer Adjustments Rs 6,00,000 Internal Failure Downgrading Products Rs 1,00,000 Collect Scrap Rs 10,000 Waste Scrap Rs 2,00,000 Cost of Conformance Appraisal Incoming Inspection Rs 1,00,000 Laboratory Testing Rs 1,75,000 Spot Check Inspection Rs 3,50,000 Prevention Local Plant Training Rs 5,00,000 Corporate Training Rs 2,00,000

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

Scatter Plots of Data with Various Correlation Coefficients

A Manager in Britannia wanted to find out the relationship between heat and compressed air pressure for the process of curing cookies . He decided to investigate this using a Scatter Plot . He gathered the following data . Draw a Scatter plot for him and state your conclusions .
Heat ( Temp) 22.6 21.5 23.3 24.5 24.4 25.1 20.4 22.7 24.3 21.7 22.2 21.0 Pressure 85 111 79 73 79 68 113 90 85 95 110 110 Heat ( Temp) 22.1 20.5 22.3 22.5 23.2 22.6 22.6 22.6 24.6 22.9 22.8 22.4 Pressure 107 119 103 91 90 86 98 104 81 94 96 91

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

Cause Twig

Cause Twig-let

Cause Branch EFFECT

Bad Quality Pipe Doesnt close properly Washer of wrong size

Wrong size of tap with respect to pipe

Wrong dimensions of diameter given

Tap Leaking

Tap closed too tight

People not aware of problem

Threads of tap damaged

Tap does not rotate properly

Bad Quality tap

Potatoes washed , peeled , steamed , and mashed to form paste

Chillies , onion , garlic cut to small pieces and added

Salt , spices added for taste

Potato Wada Ready

All ingredients mixed together and paste put in oil for frying

Gram ground , and batter prepared Oil boiled and kept ready for frying

The following components of Product Quality were listed under the different heads by a Quality Circle in an organisation implementing TQM . Draw a Cause and Effect Diagram to indicate the same . Production : Testability , Repairability , Producibility Environment : Toxicity , Flammability , Disposability Time : Availability , Durability , Dependability , Reliability , Maintainability Physical : Appearance , Size , Weight Sensory : Odour , Taste , Touch Use : Transportability , Accessibility , Functionality , Portability , Adaptability , Operability

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

Shifting

103660 103660

71%

Open Underlayer
Thread Break

18367
10405

122027
132432

84%
91%

Loose Stitches
Wrong Stitches

8990
2822

141422
144244

97%
99%

Needle Breakages
Total

1583
145827

145827

100%

A manager of Pizza Hut collects data concerning customer complaints about delivery and Quality of the Pizza being delivered Problem Frequency Topping stuck to box lid 17 Pizza is cold 35 Wrong topping or combination 09 Wrong style of crust 06 Wrong size 04 Pizza is partially eaten 03 Pizza never showed up 06 Use a Pareto chart to identify the vital few" delivery problems.

The following data as reasons for a damaged automobile were collected by the ARAI to be given to the Automobile Industry to facilitate designing of the Automobile . Draw a Cause-and-Effect Diagram and a Pareto Diagram for the same and state your conclusions .

Driver Error : Reckless Driving , Poor Judgment , Poor Reflexes , Poor Training Mechanical Failure : Stuck Accelerator , Ceased Engine , Brake Failure Slippery Road : Oil , Water Flat Tyre : Nails , Blow out
Reckless Driving : 15 Poor Judgment : 11 Poor Reflexes : 25 Poor Training : 14 Stuck Accelerator : 5 Ceased Engine : 6 Brake Failure : 9 Water on Road : 4 Nails on Road : 7 Blow Out : 2 Oil on Road : 2

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

Carelessness Watch not properly set

Clutch wire broken

Too many gear changes

Traffic Jam

Left house late

Late coming to College

Bad Roads

Tyre Punctured

Too many potholes

Stepney also punctured

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

A A1
a1 a2 a3

A2
a4 a5

b1

B1
B B2

b2

b3

b4

Interrelationships

Counterpart Characteristics

Voice of the Customer

Relationships between Attributes and Counterpart Characteristics

Priorities of Characteristics

Competitive Evaluation

Attributes

Priority

Design Attributes

Features

Process Steps

Operational Conditions Quality Plan

House of Quality

Design Matrix

Process Matrix Operational Matrix Control Matrix

Project Definition and Organisation

1. List and Prioritise Problems 2. Define Project and Teams 3. Analyse Symptoms

Diagnostic Journey

4. Formulate Theories of Causes 5. Test Theories 6. Identify Root Causes 7. Consider Alternative Solutions 8. Design Solutions and Controls

Remedial Journey

9. Address Resistance to Change 10. Implement Solutions and Controls

Holding the Gains

11. Check Performance 12. Monitor Control Systems

Juran on Quality Improvement

Quality Tools

Management Tools

Flow Diagram
Pareto Charts Cause & Effect Diagrams

Inter relationship Diagram

Matrix Charts Failure Modes and Effects Analysis

Run Charts Control Charts

Scatter Diagram

Flow Diagram ( Cost of Quality )

( 5 Why )

Three Ways to Reduce Variation and Improve Quality

Control the Process : Eliminate Special Cause Variation

Improve the System : Reduce effect of Common Cause Variation

Quality Improvement

Anticipate Variation : Design Robust Processes and Products

Robustness An Underused Concept

Reduce the effects of uncontrollable variation in

Product design Process design

Management practices Anticipate variation and reduce its effects

Robust Products are Designed in Anticipation of Customer Use

User-friendly computers and software
Low maintenance automobiles Speed Breakers Instruments for home use

Product and Process Robustness

Product Performance is insensitive to variations in conditions of manufacture, distribution, use and disposal.
Process Performance is insensitive to uncontrollable variations in process Inputs Transformations activities steps External factors

Process Robustness Analysis

Identify Those Uncontrollable Factors that Affect Process Performance Weather Customer Use of Products Employee Knowledge, Skills, Experience, Work Habit

Age of Equipment ( Can be controlled through TPM )

Design the Process to be Insensitive to the Uncontrollable Variations in the Factors

Robustness in Management
Develop strategies that are insensitive to economic trends and cycles

Design a project system that is insensitive to Personnel changes Changes in project scope
Variation in business conditions Respond to differing employee needs Adopt flexible work hours Provide customised benefits Enable personnel to adapt to changing business needs

Why FMEA ?
Helps to recognise and evaluate the potential failure of a product / process and its effects Helps to identify actions which could eliminate or reduce the chance of a potential failure occurring Helps to document the process better

Definition of FMEA
FMEA is an Analytical Technique utilised as a means to assure that , to the extent possible , Potential Failure Modes and their associated causes / mechanisms have been considered and addressed .

Important Terms
Analytical Technique Method of analysing and understanding Potential Failure Mode The manner in which a Component , Subsystem or System could potentially fail to meet the design / process intent

Causes / Mechanisms Indication of Design / Process weakness , the consequence of which is the Failure Mode

Purpose of FMEA
FMEA seeks to :

Identify the possible failure modes and mechanisms Effects or Consequences that Failure Modes may have on performance Methods of detecting the identified Failure Modes Subsequent possible means for Prevention
The net results of an FMEA study are action plans for elimination or possible mitigation of the Failure Modes

Two types of FMEA

Design FMEA Primarily used when designing / formulating Process FMEA Primarily used when creating a process

Features of Design FMEA

Aiding in the objective evaluation of Design requirements and Design alternatives. Increasing the probability that Potential Failure modes and their effects on System and End Use have been considered in the Design / Development Process. Developing a list of Potential Failure modes ranked according to their effect on the Customer thus establishing a priority system for design improvements and development testing. Providing future reference to aid an analysing field concerns , design changes and developing advanced designs.

Features of Process FMEA

Identifies potential product related process failure modes. Identifies the potential manufacturing or assembly process variables on which to focus controls for occurrence,reduction or detection of the failure conditions. Documents the results of the manufacturing or assembly process.

The First Step

Draw a Block Diagram of the System , Subsystem or Component being analysed A Block Diagram indicates the flow of inputs into the Block , the function performed in the Block and the outputs from the Block the Primary relationship between the items covered in the analysis establishes a logical order to the analysis

The Second Step

Describe the function of each component/step in the process Determine the failure modes of each component or operation . Failure Modes refer to the ways in which the component/process fails to perform its intended function

Identify the failure mechanisms for each failure . Failure Mechanisms refer to the root causes of failure or the sequence of events that lead to the failure Identify the current controls which address/detect these causes . Controls must be established to preempt causes

The Second Step

* Controls are of two types : Design Controls these are features of the product itself that prevent or pre-empt the failure Process Controls these are various checks/indicators built into the process steps that prevent the failure Determine the severity of the failure ( refer guidelines here ) Determine the occurrence of the failure ( refer guidelines here ) Determine extent to which the prevention/detection methods are effective ( refer guidelines here ) Calculate the Risk Priority Number ( RPN ) accordingly Determine Corrective Action to be taken

The Third Step

Carry out the Corrective / Preventive Action Determine the new Risk Priority Number ( RPN ) Document your findings in a systematic manner ( refer suggested format )

Critical Safety hazard

Causes or can cause injury or death. Requires immediate attention. System is non-operational Requires attention in the near future or as soon as possible. System performance is degraded but operation can continue No immediate effect on system performance

Major

Minor

Insignificant

1 2 3 4 5 6 7

None Very minor Minor Very low Low Moderate

Effect will be undetected by customer or regarded as insignificant. A few customers may notice effect and may be annoyed. Average customer will notice effect. Effect recognized by most customers.
Product is operable, however performance of comfort or convenience items is reduced. Products operable, however comfort or convenience items are inoperable.

High

Product is operable at reduced level of performance. High degree of customer dissatisfaction.

Loss of primary function renders product inoperable. Intolerable effects apparent to customer. May violate non-safety related governmental regulations. Repairs lengthy and costly.

Very high Hazardous with warning

Hazardous without warning

Unsafe operation with warning before failure or non-conformance with government regulations. Risk of injury or fatality. Unsafe operation without warning before failure or non conformance with government regulations. Risk of injury or fatality.

10

1 2

Unlikely Low

1 in 1.5 million (= .0001%) 1 in 150, 000 (= .001%)

3
4 5 6 7

1 in 15, 000 (= .01%)

1 in 2,000 (0.05%) 1 in 400 (0.25%) 1 in 80 (1.25%)

Moderate

8
9 10

High

1 in 20 (5%)

1 in 8 (12.5%)
1 in 3 (33%) 1 in 2 (50%)

Very high

1 Excellent
2 Very High

Control Mechanisms are Errorproofed

Controls Effective under all conditions

3 High Controls Effective under most conditions

4 Moderately High 5 Moderate 6 Low 7 Very Low 8 Poor 9 Very Poor 10 Ineffective

Controls Effective under only certain conditions Controls Ineffective but causes might be detected Controls Ineffective and causes might be rarely detected

Mistake proofing
Mistake proofing is a scientific technique for improvement of operating systems including materials, machines and methods with an aim of preventing problems due to human error. The term error means a sporadic deviation from standard procedures resulting from loss of memory, perception or motion.

Defect Vs errors

It is important to understand that defects and errors are not the same thing. A defect is the result of an error, or an error is the cause of defects as explained below.

Cause
Error

Result
Defect

Prevention of defects

Cause Work Procedure Machine or human error

Intermediate result Take corrective action

End result

Detect error

zero defect

Modify work procedure to prevent such errors

Analyse for preventive action

Types of Error
Error in memory of PLAN : Error of forgetting the contents operations required or restricted in standard procedures.

Error in memory of EXECUTION : Errors of forgetting the sequence of operations having been finished.
Error in perception of TYPE : Error of selecting the wrong object in type or quantity. Error in perception of MOVEMENT : Error of misunderstanding/misjudging the position, direction or other characteristics of the objects. Error in motion of HOLDING : Error in gripping the object

Error in motion of CHANGING : Errors of failing to change the position , direction , or other characteristics of object .

Human error provoking situations

Complex design Too many parts Too many steps Too many adjustments Repetitions

Examples of mistake proofing

Finger print ID lock is an excellent example of mistake proofing. There's no need to fumble for your keys in the dark any more. The Fingerprint ID Door Lock is a cylindrical lock combined with a security bolt that will let you into the house using just your finger. It reads your unique fingerprint and only allows entry to prints it recognises.

Examples of mistake proofing

Gas pumps are equipped with hose couplings that break away and quickly shutoff the flow of petrol.

Examples of mistake proofing

Automobiles controls have a mistake proofing device to ensure that the key in the on position before allowing the driver to shift out of park ( for automatic gears ).The keys can not be removed until the car is in park.

Examples of mistake proofing

3.5 inch diskette can not be inserted unless diskette is oriented correctly.This is as far as diskette can be inserted upside-down. The beveled corner of the diskette pushes a stop in the disk drive out of the way allowing diskette to be inserted.This feature,along with the fact that the diskette is not square,prohibit incorrect orientation.

Examples of mistake proofing

Electronic car locks can have three mistake proofing devices: Ensures that no door is left unlocked. Door automatically locks when car exceeds a predetermined speed Lock wont operate when door is open and engine is running.

Examples of mistake proofing

New lawn mowers are required to have a safety bar on the handle that must be pulled back in order to start the engine.If you let go of the safety bar,the mowers blade stops in 3 seconds or less.This is an adaptation of thedead man switch from railroad locomotives.

Examples of mistake proofing

Retail stores use electronic article surveillance to ensure that no one walks away without making payment.

Evolution of Quality Standards

1942 1945 1959 1963 1968 : MIL STDs : MIL Q 9858 : MIL Q 9858 A : AQAP 1 / 4 / 9

1970 1979
1987

: DEF / STD 05 8 : BS 5750

: ISO 9000 series

ISO 9000 : 1987 ISO 9001 : 1987 ISO 9002 : 1987 ISO 9003 : 1987

Revised to ISO 9000 : 1994 ISO 9001 : 1994 ISO 9002 : 1994 ISO 9003 : 1994
QS 9000 : 1995 ISO 9001 : 1994 + additional requirements QS 9000 : 1998 ISO 9001 : 1994 + additional requirements ( second revision )

ISO / TS 16949 : 1999 = QS 9000 adopted by the ISO based on ISO 9001 : 1994 ISO / TS 16949 : 2002 = QS 9000 reworded by the ISO based on ISO 9001 : 2000

Act
How do we improve next time?

Plan
What do we do? How do we do it?

PLAN DO

Check (Study)
Did things happen according to plan?

establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organisation's policies implement the processes monitor and measure processes and product against policies, objectives and requirements for the product and report the results take actions to continually improve process performance

Do
Do what was planned

CHECK (STUDY)
ACT

The Methodology known as Plan Do Check ( Study ) Act [ PDC(S)A ] can be applied to all processes . PDC(S)A is briefly described as above

Quality Management Principles

Customer Focus Leadership Involvement Of People Process Approach System Approach To Management Continual Improvement Factual Approach To Decision Making Mutually Beneficial Supplier Relationships

CUSTOMER FOCUS
SYSTEM APPROACH TO MANAGEMENT PROCESS APPROACH LEADERSHIP

CONTINUAL IMPROVEMENT
INVOLVEMENT OF PEOPLE FACTUAL APPROACH TO DECISION MAKING

MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

Continual Improvement of the Quality Management System

Management Responsibility

Resource Management

Measurement , Analysis and Improvement

Input

Product and / or Service realisation

Output

Product and / or Service

Quality Management System

Value Adding Activities Information Flow

Model of a Process Based Quality Management System

Customer Satisfaction

Customer Requirements

Quality Management Principles

A quality management principle is a comprehensive and fundamental rule or belief, for leading and operating an organisation, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stakeholders.

Principle 1 Customer-Focused Organisation

Organisations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations.
Assure conformance to defined customer requirements. Understand current and future customers needs and expectations. Measure customer satisfaction and act on it.

Principle 2 Leadership Leaders establish unity of purpose and direction of the organisation. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation's objectives.
Set policy and verifiable objectives, deploy policy, provide resources and establish an environment for Quality.
Establish vision, direction and shared values. Set challenging targets and goals and implement strategies to achieve them. Coach, facilitate, and empower people.

Principle 3 Involvement of People People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit.
Establish competency levels, train & qualify personnel. Provide clear authority and responsibility. Create personal ownership of an organisations targets and goals, by using its peoples knowledge and experience, and through training achieve involvement in operational decisions and process improvement.

Principle 4 Process Approach A desired result is achieved more efficiently when related resources and activities are managed as a process.
Establish, control and maintain documented processes. Explicitly identify internal/external customers and suppliers of processes. Focus on the use of resources in process activities, leading to effective use of people, equipment, methods and materials.

Principle 5 System Approach to Management Identifying, understanding and managing interrelated processes as a system contributes to the organisation's effectiveness and efficiency in achieving its objectives .
Establish and maintain a suitable and effective documented Quality System. Identify a set of processes in a system. Understand their interdependencies. Align the processes with the organisations goals and targets. Measure results against key objectives.

Principle 6 Continual Improvement Continual improvement of the organisation's overall performance should be a permanent objective of the organisation .
Through management review, internal/external audits and corrective/preventive actions, continually improve the effectiveness of the Quality System. Set realistic and challenging improvement goals, provide resources and give people the tools, opportunities and encouragement to contribute to the continual improvement of the processes.

Principle 7 Factual approach to decision making

Effective decisions are based on the analysis of data and information.

Management decisions and actions on the Quality System are based on the analysis of the factual data and information gained from reports on audits, corrective action, nonconforming product, customer complaints and other sources. Decisions and actions are based on the analyses of data and information to maximise productivity and to minimise waste and rework. Effort is placed on minimising cost, improving performance and market share through the use of suitable management tools and technology.

Principle 8 Mutually beneficial supplier relationships

An organisation and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value
Adequately define and document requirements to be met by subcontractors. Review and evaluate their performance to control the supply of quality products and services. Establish strategic alliances or partnerships, ensuring early involvement and participation defining requirements for joint development and improvement of products, processes and systems. Develop mutual trust, respect and commitment to customer satisfaction and continual improvement.

Continual Improvement of the Quality Management System

Management Responsibility

Resource Management

Measurement , Analysis and Improvement

Input

Product and / or Service realisation

Output

Product and / or Service

Quality Management System

Value Adding Activities Information Flow

Model of a Process Based Quality Management System

Customer Satisfaction

Customer Requirements

 Organise around outcomes, not tasks. This principle suggests that a single person perform all the steps in a process and that person's job be designed around the outcome or objective rather than a single task. Have those who use the output of the process oversee the process. Include information-processing work into the real work that produces the information. Capture information once and at the source. Put the decision point where the work is performed, and build control into the process. Link parallel activities instead of integrating their results. This principle means to forge links between parallel functions and to coordinate them while their activities are in process rather than after they are completed. Treat geographically dispersed resources as though they were centralised. "Reengineering Work: Don't Automate, Obliterate" by Michael Hammer Harvard Business Review, July-August 1990, pp104-112.

Business Process Reengineering

Can several jobs be combined into one? Can workers make decisions that were previously reserved for managers? Can the steps in the process be performed in a more natural order? Can processes be designed to be more flexible, and thus to handle more contingencies? Can work be performed where it makes the most sense?

Business Process Reengineering is the fundamental rethinking and radical redesign of Business Processes to achieve dramatic improvements in critical contemporary measures of performance such as cost , Quality , service and speed... Michael Hammer and James Champy 1993

Fundamental = Basic Radical Redesign = Roots Up

Processes = Set of tasks that add value

Dramatic = Quantum Leap

Improvement

Innovation

Level of Change
Starting Point

Incremental
Existing Process

Radical
Clean Slate One-time Long

Frequency of Change One-time / Continuous Time Required Short

Risk
Primary Enabler

Moderate
Statistical Control

High
Information Technology

What is Value ?
Value is not just offering a Product or a Service Value is providing a solution to Customers problems Its the organisations processes that create value for its customers

Business success comes from superior process performance

Superior process performance is achieved by Superior process design The right people The right environment

Every Process has three types of tasks Value Added tasks Non Value added tasks Wastes Wastes have to be eliminated Value added tasks are not eliminated only improved Non Value added tasks are the binding glue for the different value added tasks Non Value added tasks often cause : Errors Delays Rigidity Reengineering involves reorganising value added tasks in such a way that non value tasks are automatically weeded out

Peter Drucker once said : It is the age of the Knowledge Worker i.e. Manager.. .we see now that this definition of the Manager is limited and ineffective

WORKER
Has a Job Is trained to perform an activity Refers to her / is Boss in case of problems

PROFESSIONAL
Has a Career Learns whatever it takes to get the job done

Solves problems him / herself

In this paradigm authority is In this paradigm knowledge is respected respected

Work is Supervised Reflects on her / is own work

A worker is focussed on three factors :

Boss Activity Task The ultimate goal is :

To please the Boss To take orders To keep busy performing the task the Boss has assigned . Someone who does what s/he is told

A professional is focussed on three factors :

Customer Process Result

The ultimate goal is :

To create value for the CUSTOMER To produce the RESULT that ultimately creates value To perform the entire PROCESS that yields the result Someone who does what it takes

Conventional Organisations
Functional departments Simple tasks (division of labour) Controlled people (by management) Training of employees Protective organisational culture Managers supervise and control Hierarchical organisational structure Executives as scorekeepers Separation of duties and functions Linear and sequential processes Mass production Working in the office; extensive checks and controls

Reengineered Organisation
Process teams Multidimensional work Empowered employees Education of employees Productive organisational structure Managers coach and advise Horizontal (flat) structure Executives as leaders Cross-functional teams Parallel processes, concurrent processes Mass customisation Working everywhere; minimum checks and controls

The Usual Suspects

Reorganising Restructuring Automating Outsourcing Acquiring Downsizing