Professional Documents
Culture Documents
Evolution of Quality
• 1901 - Sir John Wolfe-Barry (the man who designed London's
Tower Bridge) instigated the Council of the Institution of Civil
Engineers to form a committee to consider standardizing iron
and steel sections .
• 1924 - Walter A. Shewhart developed the control charts, and
principles of statistical process control.
• 1950 :1960 – Deming, Juran, Japan
• Inspection > QC > SPC > QA > TQM > Business Excellence
3
Quality Gurus
Edwards
Joseph Juran : Philip Crosby :
Deming : 14
Quality Trilogy Four Absolutes
points
Three
Quality Gurus
W. Edwards Deming
• 1928 - Ph.D. in Mathematical Physics
• 1920’s, 30’s - Western Electric.
• 1946-1993 Professor of Statistics
• 1950 – Taught Quality Control
• 1951 Deming Prize for high level of
achievement in quality practices
• 1980 NBC “If Japan Can…Why Can’t
We?” US discovers
6
W. Edwards Deming
1. Create Constancy of
Purpose
1
Create constancy of purpose
toward improvement of
product and service, with the Create
aim to become competitive Constancy of
and to stay in business and Purpose
to provide jobs. Create
• Long term view Constancy
• Customer focus of
• Invest in innovation, training,
research Purpose
• Improve competitive position
9
3. Cease Dependence on
Mass Inspection
3
Cease dependence on
inspection to achieve
quality. Eliminate the need Create
for inspection on a mass Constancy of
Cease
Purpose
basis by building quality
Dependence
into the product in the first on
place. Mass
• Inspection is too late Inspection
• Build quality in processes
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5. Improve Constantly
and Forever
5
Improve constantly and
forever the system of
production and service, to Create
improve quality and Constancy of
Purpose
productivity, and thus
Improve
constantly decrease costs. Constantly
• Reduce causes of variation and Forever
• Engage all employees
• PDCA approach
12
6. Institute Training on
the Job.
6
Institute training on the job.
• People want to do a good job
• They need training to know Create
how to do a good job Constancy of
• Invest in their future Purpose
• Training should include tools Institute
for Modern
• Identify improvement Methods of
opportunities
• Solving quality problems
Training
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7. Institute Leadership
7
Institute leadership. The
aim of supervision should
be to help people and Create
machines and gadgets to Constancy of
Purpose
do a better job.
• Supervisors need to Institute
understand processes. Leadership
• Good supervisors are
coaches, not policemen.
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9. Break Down Barriers
Break down barriers
9
between departments.
People in research, design,
sales, and production must Create
work as a team to foresee Constancy of
problems of production and Purpose
use that may be encountered Break
with the product or service. Down
• Build the concept of internal
customers. Barriers
• Common vision
• Cross functional teams
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17
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12. Remove Barriers to
Pride in Workmanship
a) Remove barriers that rob
the hourly worker(s) of
their right to pride of
workmanship. Create
b) Remove barriers that rob Constancy of
people in management Purpose
and in engineering of their Remove
right to pride of Barriers to
workmanship.
Pride in
• Don’t make your people Workmanship
compete against each other
• Abolish annual merit rating
19
13 Education &
Retraining
Institute a vigorous
program of education
Create
and self-improvement. Constancy of
• Encourage workers to Purpose
learn new skills to face Education
future challenges. &
Retraining
20
21
Quality Gurus
Edwards
Joseph Juran : Philip Crosby :
Deming : 14
Quality Trilogy Four Absolutes
points
22
Joseph Juran
23
Joseph Juran
24
10 Steps of Quality Improvement
25
26
Quality Gurus
Edwards
Joseph Juran : Philip Crosby :
Deming : 14
Quality Trilogy Four Absolutes
points
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Philip Crosby
28
Philip Crosby
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Four Absolutes of
Quality
1. The definition of quality is
conformance to requirements
(requirements meaning both the
product and the customer's Create
requirements) Constancy of
2. The system of quality is Purpose
prevention Four
3. The performance standard is Absolutes
zero defects (relative to of
requirements)
Quality
4. The measurement of quality is
the price of non-conformance.
30
1. The definition of quality is
conformance to requirements
• Quality means conformance,
1
not elegance or goodness
• “Do It Right the First Time
(DIRFT)” Create
• Management has 3 tasks Constancy
The of
related to this: Purpose
definition of
• Clearly establish requirements
• Supply means to meet quality is
requirements conformance
• Spend time helping employees to
meet requirements
requirements
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3. The performance
standard is zero defects
• Not a “motivational” program.
3
It is a management standard
tells people what is expected of
them. Create
• Employees perform to the Constancy
The of
standards of the leaders. Purpose
performance
• Mistakes caused by two
factors: standard
• Lack of knowledge. Knowledge is
can be measured in deficiencies
corrected through tried-and- zero
true means. defects
• Lack of attention. Must be
corrected by the person himself
or herself. An attitude problem.
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4. The measurement of quality is
the price of non-conformance
• Traditional quality
4
measurements are technical in
nature, however, they need to
be converted to numbers that Create
management understands. The of
Constancy
• Price of Conformance. All measurement
expenses necessary to make Purpose
things right. Quality functions, of quality
prevention efforts, quality
education. is the
• Price of Non-conformance. All price of
expenses involved in doing
things wrong. Cost of fixing non-
problems, correcting orders, conformance
correcting products,
warranties.
34
35
Lean
Six Sigma
Continuous
Improvement Theory of Constraints
Tools
Statistical Process Control
36
The Machine That
Changed the World by
Mass Production - Ford James P. Womack, Daniel
• Walter Shewhart Roos, and Daniel T. Jones
1910 1990
History of
Lean 1950s
37
Lean Philosophy
• Value - specify what creates value from
the customer’s perspective.
• The value stream – identify all the steps
along the process chain.
• Flow - make the value process flow.
• Pull - make only what is needed by the
customer (short term response to the
customer’s rate of demand).
• Perfection - strive for perfection by
continually attempting to produce exactly
what the customer wants.
38
• Reduce Waste
• Improved Quality/Customer Satisfaction
• Reduced Inventory
Lean • Reduced Cycle Time
Benefits • Flexible Manufacturing
• Safe Workplace Environment
• Improved Employee Morale
39
Other Companies Adopt
Six Sigma – AlliedSignal,
GE, Dow Chemical,
Control Charts Dupont, Honeywell,
• Walter Shewhart Whirlpool, IBM
Six Sigma
History 1987
40
1 2 3 4
Know What’s Reduce Defects Centre Around Reduce
Important to the (DPMO) Target (Mean) Variation
Customer (CTQ) (Standard
Deviation)
41
42
• The theory of constraints (TOC) was
introduced by Eliyahu M. Goldratt in his 1984
book titled The Goal.
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44
Identify
Exploit
Theory of Subordinate
Elevate
Repeat
45
• Six Sigma is based on SPC
Statistical • Quality Control tool to control processes
based on facts and data.
Process • Common Cause vs Special Causes
Control • Control Charts are used in SPC
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48
2022 – Changes in the BoK – 1A
The number of questions from Section 1 has been
changed from 18 to 17.
Theory of Constraints has been removed from the BoK.
49
50
• Activities to
• set priorities,
• focus energy and resources,
Strategic • ensure that employees and other
Planning stakeholders are working toward common
goals,
• establish agreement around intended
outcomes/ results,
• assess and adjust the organization's direction
in response to a changing environment.
51
Strategic • Vision (the dream)
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• Benchmarking
Techniques
• Stakeholder identification and analysis
for QMS • Performance measurement tools
Deployment • Project Management
54
• The process of comparing
• one's business processes and performance
metrics
Benchmarking to
• industry bests and best practices from
other companies.
55
Process benchmarking
Performance benchmarking
Benchmarking • Features of products and services
e.g. mileage, download speed
Strategic benchmarking
56
Internal Benchmarking
57
• What function to benchmark (D)
• What is the current performance level (M)
• Select the Best-in-Class (M)
Benchmarking • Compare (A)
Process • Agree on actions to achieve or beat the Best-
in-Class and Implement (I)
• Monitor (C )
• Re-do
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• Management support
• Alignment with the strategy
Benchmarking • Lack of Resources
Challenges • Right team
• A suitable and willing partner
• Willingness to change
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Stakeholders
Owner, Managers
Suppliers, Customers
Employees, Partners
Local Community,
Associations, Media
Public
60
4.2 Understanding the needs and
expectations of interested parties
Due to their effect or potential effect on the
organization’s ability to consistently provide
Interested products and services that meet customer
and applicable statutory and regulatory
Parties requirements, the organization shall
determine:
(ISO 9001:2015) a) the interested parties that are relevant to the
quality management system;
b) the requirements of these interested parties
that are relevant to the quality management
system.
The organization shall monitor and review
information about these interested parties
and their relevant requirements.
61
Stakeholder Analysis
Manage closely
Keep Satisfied
LATENTS KEY PLAYERS
INTEREST
APETHETICS DEFENDERS
POWER
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• By Robert S.Kaplan and David P. Norton
• Four perspectives
Balanced • Financial
Scorecard • Customer
• Internal Business Processes
• Learning and Growth
64
Balanced Scorecard
## ##
Financial Customer
## ##
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• Gantt Chart
Project • Critical Path Method (CPM)
Management • Program Evaluation and Review Techniques
(PERT)
Tools • Resource Allocation
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Gantt
Chart
69
Gantt Chart
70
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• Float
Activity • float or slack is the amount of time that a
task in a project network can be delayed
Network without causing a delay
• Critical Path
Diagram • An activity on critical path has "zero free
float"
73
A 2
B 4 A
C 1 A
D 2 B
E 7 B, C
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Program Evaluation and Review Techniques (PERT)
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• Resource levelling
• Crashing and compressing schedule
• Crashing involves adding resources to get the
Resource activity done on or before time.
• Compressing (or fast tracking) involves
Allocation performing activities in parallel.
https://www.pmi.org/learning/library/performing-crash-analysis-alternative-cost-
schedule-6750
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Quality • Information Management System related to
Quality Management to collect, stored,
Information analyze and report data
System • Data centric approach of Quality Management
(QIS)
79
• Design reviews
• Audits
Quality • Non conformance
Management • Repair, Returns
Data • Customer surveys
• Test reports, test certificates, performance
data
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2022 – Changes in the BoK – 1B
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$2,000 Net Present Value
Year 01 Year 02 Year 03 Year 04 Year 05
$2,500
𝐶 Cost of Capital = 10%
−𝐶
Net Present Value (NPV) = 1+𝑟
2500
Net Present Value (NPV) = − 2000 = −447.70
1 + 0.10
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RACI
Describes the participation by various roles in completing
tasks.
Responsible: Those who do the work to achieve the task
Accountable: The one ultimately answerable for the correct and
thorough completion of the deliverable or task
Consulted: Those whose opinions are sought, typically subject
matter experts
Informed: Those who are kept up-to-date on progress
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RACI
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Source:
https://asq.org/about-asq/code-of-ethics
90
1 2 3
Expectations
•Be truthful and and the environment. •Do not use confidential
transparent in all •Avoid conduct that information for personal
professional interactions unjustly harms or gain.
and activities. threatens the reputation •Fully disclose and avoid
Professional
factual, and fully informed •Do not intentionally cause objectivity or
manner. harm to others through independence in the
•Accurately represent and words or deeds. Treat service of clients,
do not mislead others others fairly, courteously, customers, employers, or
regarding professional with dignity, and without the Society.
qualifications, including prejudice or •Give credit where it is
education, titles, discrimination. due.
affiliations, and •Act and conduct business •Do not plagiarize. Do not
certifications. in a professional and use the intellectual
•Offer services, provide socially responsible property of others without
advice, and undertake manner. permission. Document the
assignments only in your •Allow diversity in the permission as it is
areas of competence, opinions and personal obtained.
Source: expertise, and training. lives of others.
https://asq.org/about-asq/code-of-ethics
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Team Types
• Functional
• Cross Functional
• Virtual
• Self Managed
• Quality Circles
93
Tuckman Model of Team Life Cycle
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• Leader
• Facilitator
Team Roles • Coach
• Members
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• Coach provides one to one support after
training.
Team Roles • Coach is the first person to be contacted if the
- Coach team has an issue and needs help.
• GROW Model of Coaching
GROW
G - Goal What team wants to achieve
R - Reality Current reality and challenges the team has
O - Obstacles What stops team from achieving the goal.
W – Way forward Steps needed to be taken to achieve the goal
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101
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Brainstorming
Force-field Analysis
103
104
• Four Rules:
• Focus on quantity
Brainstorming • Withhold criticism
• Welcome unusual ideas
• Combine and improve ideas
105
Nominal Group
Technique
• The nominal group technique (NGT) is a
group process involving problem
identification, solution generation, and
decision making.
• Five Steps
• Introduction and explanation
• Silent generation of ideas
• Sharing ideas
• Group discussion
• Voting and ranking
106
107
Multi-
voting
108
Conflict • Two underlying dimensions of conflict
Resolution My interest
(concern for self,
or assertiveness)
Your interest
(concern for
others, or
empathy)
109
C C
Assertiveness
Competing Collaborating
Conflict Resolution
maximizes concern for self and minimizes collaborators willingly invest time and resources
empathy (i.e., concern for others) into finding a “win-win” solution
Compromising
Empathy
A A
Avoiding Accommodating
when an individual has withdrawn in dealing characterized by a high level of concern for others
with the other party. and a low level of concern for oneself.
110
Force Field
Analysis
• Balance between
forces driving
change and forces
resisting change.
111
Force Field
Analysis
Forces
against
the
change
Forces in
favor of
change
112
Force Field
Analysis
- Reduced over time
- Initial investment
- Fear of new
technology
- Customer looking
for less defects
- Low down time
- Increased sale
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• Create right environment of open
Team communication
Communication • Encourage communication
115
Noise
Sender Receiver
116
• Verbal
Communication • Non-verbal
Methods • Written
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1G. Customer Relations
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120
Quality
Function
Deployment
121
Surveys
Interviews / Meetings
Observations
122
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• A group of people are asked about their
Focus perceptions, opinions, beliefs, and attitudes.
• Generally 6-10 people having open discussion
Group with skilled moderator.
124
• Engagement questions
• Start discussion to make participants
comfortable with the process.
Focus • Exploration questions
• Main questions
Group • Exit question
• Anything else members want to add
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1H-1 Techniques
127
• Boeing
• intended to reduce the 787's development
time from six to four years and development
Supplier cost from $10 to $6 billion.
• increase outsourcing to 70 percent (from 30-
Management 50% done previously)
• outsourced the engineering and construction
- Challenges of the plane long before the product was
defined and the relative costs established.
• over budget
• over three years late
• https://www.forbes.com/sites/stevedenning/
2013/01/21/what-went-wrong-at-boeing/
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129
• There continues to be a high level of
outsourcing
Supplier • For mid to large corporations, the level of
spend on purchased products and services
Management averages around 50% of revenue - focus on
core competencies and outsource their non-
- Challenges core operations
• Managing supplier is the key factor for the
organization’s success
130
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• Identifying Potential Suppliers
• Shortlisting
• Prequalification
Supplier • Establish bidders list
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
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Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
134
• Shortlisting or screening
• To avoid likelihood of late delivery, poor
Supplier quality, non-responsible suppliers
• Method used for shortlisting
Selection • Market reputation
• Public information
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
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• Prequalification
• Financial status
Supplier • Capacity available
• Quality – ISO 9001 or other certifications
Selection • Client approval if required
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
136
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
137
• Request Bids
• Request for Proposal (RFP) – when buyers
indicate the preferences and ask bidder to
Supplier provide the details, how these
requirements will be fulfilled.
Selection • Request for Quote (RFQ) – when buyer
can develop exact specification for the
product needed
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
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• Evaluate Bids
• Based on pre-determined criteria such as
price, quality, schedule, and commercial
Supplier terms etc.
• Other criteria includes: Finance,
Selection production capability, communication,
responsiveness to queries, Health, Safety ,
Environment, Society responsibility etc.
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
139
• Award
Supplier • Place the Purchase Order to the selected
Selection supplier.
Identify supplier Shortlist Prequalify Establish list Request bids Evaluate bids Select
140
1H-2 Improvement
141
Supplier Lifecycle Management
142
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• Typical Performance Parameters:
• Cost
• Under/over budget, cost savings
Supplier • Quality
• Defect rate, returns, failures, damages
Performance • Schedule
Monitoring • On time delivery, shortages
• Responsiveness
• Willingness to change the order details
(quantity, design etc.)
145
1H-3 Risk
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Risk Management
Coordinated activities to direct and control an organization with regard to risk.
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Risk Management
151
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• A contingency plan is a plan devised for
an outcome other than in the usual
(expected) plan.
Contingency • Events covered in the contingency plan
Planning are not as extreme as the Business
Continuity Plan.
• Examples: Supplier going out of business,
bankruptcy, price/currency fluctuations
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Reference: https://www-935.ibm.com/services/us/its/pdf/resilientinfra.pdf
156
1I. Barriers to Quality
Improvement
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