Taguchi loss function

In order to hit the nominal value, hit the perfect target

 Inspire exellence
 Safe resources
 Be more confident
 Protect your customers

Variation

 Definition: The outputs from all processes and their components parts vary over time.
Variation is a major cause of poor quality. Variation in the production process leads to quality
defects and lack of product consistency.
 Example: when a chipmaking machine was found to be a few feet longer at one facility than
another, Intel made them match. When water quality was found to be different at one
facility, Intel instituted a purification system to eliminate any differences. Even when a
worker was found polishing equipment in one direction, he was asked to do it in the
approved circular pattern
 Cause:
Special cause variation
 Due to event external to the usual functioning of system
 Cause can be identified & eliminated
Common-cause variation
 Due to the process itself
 To be reduced to improve the process
 Determine process capability

 How to reduce varition

 Technique improvement and staff training (employees)
 Standardize process in production (with least variation)
 Process control, create and build a strong and consistent process => to make sure
every step always be the same
 Supplier management always be synchronous
 Find and select the best materials

Dimensions of quality for manufactured products

1. Performance: The basic operating characteristics of a product; for example, how well a car
handles or its gas mileage.
2. Features: The “extra” items added to the basic features, such as a stereo CD or a leather
interior in a car.
3. Reliability: The probability that a product will operate properly within an expected time
frame; that is, a TV will work without repair for about seven years.
4. Conformance: The degree to which a product meets preestablished standards.
 5. Durability: How long the product lasts; its life span before replacement. A pair of L.L. Bean
boots, with care, might be expected to last a lifetime.
6. Serviceability: The ease of getting repairs, the speed of repairs, and the courtesy and
competence of the repair person.
7. Aesthetics: How a product looks, feels, sounds, smells, or tastes.
8. Safety: Assurance that the customer will not suffer injury or harm from a product; an
especially important consideration for automobiles.
9. Other perceptions: Subjective perceptions based on brand name, advertising, and the like

Dimensions of quality for service

1. Time and timeliness: How long must a customer wait for service, and is it completed on
time? For example, is an overnight package delivered overnight?
2. Completeness: Is everything the customer asked for provided? For example, is a mail order
from a catalogue company complete when delivered?
3. Courtesy: How are customers treated by employees? For example, are catalogue phone
operators at L.L. Bean nice and are their voices pleasant?
4. Consistency: Is the same level of service provided to each customer each time? Is your
newspaper delivered on time every morning?
5. Accessibility and convenience: How easy is it to obtain the service? For example, when you
call L.L. Bean does the service representative answer quickly?
6. Accuracy: Is the service performed right every time? Is your bank or credit card statement
correct every month?
7. Responsiveness: How well does the company react to unusual situations, which can happen
frequently in a service company? For example, how well is a telephone operator at L.L. Bean
able to respond to a customer’s questions about a catalogue item not fully described in the
catalogue?

House of the quality

  Definition: The House of Quality (HOQ) is defined as a product planning matrix that is built to
show how customer requirements relate directly to the ways and methods companies can
use to achieve those requirements. House of Quality diagrams use a design that resembles
the outline of a house and can be created using technical and competitive benchmarking
data. HOQ is considered the primary tool used during quality function deployment to help
facilitate group decision making.

 QFD (Quality function deployment) translates voice of customer into technical design
requirements
 Displays requirements in matrix diagrams
– first matrix called “house of quality”
– series of connected houses

 House of Quality diagrams rely heavily on identifying and maintaining the voice of the
customer (VOC). VOC is a way of obtaining and implementing the customer’s stated
needs and requirements for their services or products.

 Benefits of building a House of Quality include:

 A customer’s needs and requirements are established, then used to build and prioritize
service offerings and products.
 Identifying customer needs and requirements, then ensuring they are achieved, leads to
customer satisfaction and loyalty.
 Improving a company’s understanding of its customers, which leads to better customer
utilization, overall sales, and share of wallet.
 Promotes better understanding of customer demands
 Promotes better understanding of design interactions
 Involves manufacturing in design process
 Provides documentation of design process

 6 components
  Identify what the customer wants.
 Identify how the product will satisfy customers. It refers to
identifying specific product characteristics, features, or attributes and
showing how they will satisfy customers
 Identify relationships between how’s. A couple of questions, that are
to be answered here: How do our how’s tie together? What is the
relationship between our two or more how’s?
 Develop importance ratings. It refers to using the customer’s
importance ratings and weights from the relationships in the matrix to
compute our importance ratings.
 Evaluate competing products or services. The question to be
answered here is: How well do competing products meet customer
wants? This activity is completely based on research.
 Determine the desirable technical attributes. In this step, our
performance and the competitor’s performance are determined and
compared.

1. Create constancy of purpose toward improving products and

services

For businesses to remain competitive in their market, it usually requires

constancy of purpose toward quality. This is a long-term philosophy that can
help ensure the business's survival, as companies require a farsighted
approach. Short-term, reactive solutions have a short-term effect. Increasing
the effectiveness of tasks that a company is already doing is good, but the
company can also innovate, conduct research, and regularly improve product
design.

2. Adopt a new philosophy

It can be helpful to have a vision for the quality the company seeks to deliver.
Moving from a traditional management focus to a leadership focus can change
how a company performs business. Adopting a new philosophy involves
building a quality culture with a commitment from everyone involved. Once the
company has put this philosophy in place, it can develop a strategy to realize its
vision. Practical interventions, such as employee training, full management
support, proper supervision, and management continuity planning, can
encourage companies to prioritize quality management and fulfil customer
needs.

3. Cease dependence on inspections

Instead of inspections, Deming recommends building systems to help ensure

quality in each process of the organization. This proactive approach can save
the organization money as it allows it to discover any costly defects much
earlier than an inspection. It also allows an organization to adjust processes to
avoid faults from reoccurring instead of simply highlighting any areas of
improvements.

4. Use a single supplier for any item

It's important for a company to have a mutually beneficial relationship with its
suppliers. If the company is more willing to pay for quality, the supplier may be
more likely to meet quality requirements because it has the resources to do so.
Instead of reducing the price of supplies while still expecting them to provide
the highest quality, the company can develop a long-term relationship with the
supplier.

Focusing on one supplier for each input can create greater motivation from the
supplier to meet the company's requirements. A trusting relationship with a
supplier can create an increase in the focus on improvement with a higher level
of consistency.

5. Constantly improve processes

This point encourages companies to analyze and improve their processes

continuously. Improving employee productivity and training to help them
deliver their best usually improves company profits. When a company works on
permanently fixing any flaws in its processes, it can move on to the remaining
processes and have confidence that the previous issues aren't going to be a
problem anymore. Companies can use business process management software
to help adjust to any changes.

6. Use on-the-job training

Companies can use on-the-job training to focus on quality improvement to get

predictable and consistent results. It's also important to share process
knowledge among everyone who has a role within it. Managers can let
employees determine how they fit in a process instead of assigning them work.
There are various ways a company can do this, starting with an employee
onboarding process. If employees can see where they fit into a team and how a
team's results can depend on their efforts, they are likely to care about their
results.

7. Institute leadership

It's important for supervisors and managers to focus on leadership, which

encourages collaboration, understanding, and a coaching approach.
Supervision is a requirement for every company, but working as a team to help
everyone deliver their best can significantly help a company see results. A team
with good leadership can become an important part of a quality management
team. Team members can make suggestions, ask for help, and discuss any
issues management didn't notice. Leaders can help empower their team to
meet targets by creating an environment where team members can reach their
potential.

8. Reduce fear

When management and supervisors share the requirement to reduce any fear,
employees are likely to acknowledge any mistakes without asking. They're also
more open to reporting problems and understanding they're there to improve
processes. Managers can address the issues and not the person, work with
employees to develop solutions, and share quality goals so everyone
understands what the company wants to achieve. This can help management
discover the best process and quality management suggestions.

9. Reduce departmental barriers

A company can reach its potential when its departments work together. For
example, the company's product design, production, and sales departments
can share input about a new product to help the company reach its potential.
It's important for the various departments to communicate with people that
receive their work, while also focusing on the end users of the service or
product.

10. Eliminate slogans and communicate with individuals

When a company seeks to improve its quality or productivity, it may use

slogans, catchphrases, or encouragement. Instead, it's important to look at
improving business processes. If these processes work well, then the company
has a better chance of delivering excellent quality and working effectively. A
slogan is typically an expression of a company's general goal and may not align
with the personal career goals of each employee. Companies can develop
individual goals for each team member and a road map to help achieve them.

11. Eliminate quotas and numerical targets

Sometimes setting a numerical target replaces good leadership, and having

high production targets can reduce quality. For example, if a company pays an
employee on a per-piece basis, the employee may try to finish as many pieces
as possible instead of prioritizing the quality of their work. Companies can still
use numbers to evaluate their processes and set numerical goals to help them
find success, but can focus on quality of work rather than strictly on quantity.

12. Remove barriers to pride of workmanship

Having pride in one's work is important to improving quality and processes.

When employees love what they do, they are likely to do it better and feel great
about their results. It's natural for some employees to gain skills faster than
their colleagues. Employees who aren't delivering top results may be
experiencing issues with a process. These processes require assessment and
modification, so every employee has the tools to perform effectively.
Companies can help by working with the employees to determine where the
process fails.

13. Encourage education and self-improvement

When an employee receives training that's relevant to their job, they strengthen
their skills. It's often beneficial for a company to determine ways to support
their employees who want to improve themselves in other areas. Doing so can
help the company have high-quality skills at their disposal to help improve its
products and services.
14. Make transformation everyone's job

It's important for a company to receive as much input as possible from

employees in this process to improve quality. Companies can use a flowchart to
demonstrate their processes and ask team members for input on ways to
change the processes to enhance output quality. This helps the team prepare
when the time comes to implement any changes.