MGMT 19105

GeoffHigginsMGMT 19105Quality Management

MGMT 19105MGMT 19105

Quality Quality Management Management

GeoffHigginsMGMT 19105Quality Management 22

Week 10 Important Terms Week 10 Important Terms – Problem Solving– Problem Solving

Existent ProblemsExistent Problems – – Problems we already have.Problems we already have.Initially the response is ‘reactive’.Initially the response is ‘reactive’.

Latent ProblemsLatent Problems – – Problems we are yet to experience Problems we are yet to experience (but which we are able to predict).(but which we are able to predict).Initially the response is ‘proactive’.Initially the response is ‘proactive’.

(Goetsch & Davis 2006, p. 539)(Goetsch & Davis 2006, p. 539)


Week 10 Outcome of Problem SolvingWeek 10 Outcome of Problem Solving

A problem is solved ‘only when its A problem is solved ‘only when its occurrence has become impossible occurrence has become impossible or significantly less probable’.or significantly less probable’.

(Goetsch & Davis 2006, p. 537)(Goetsch & Davis 2006, p. 537)

GeoffHigginsMGMT 19105Quality Management

Week 11Week 11

Quality Function Quality Function Deployment & Deployment &

Continual Continual ImprovementImprovement


Module ObjectivesModule Objectives1.1. Identify the key differences between quality function Identify the key differences between quality function

deployment and continual improvement;deployment and continual improvement;2.2. Draw and explain the ‘house of quality’;Draw and explain the ‘house of quality’;3.3. Trace a customer requirement through the house of quality to Trace a customer requirement through the house of quality to

the related process requirement in the product design;the related process requirement in the product design;4.4. Describe the process of implementing quality function Describe the process of implementing quality function

deployment;deployment;5.5. Explain the use of the affinity diagram and the interrelationship Explain the use of the affinity diagram and the interrelationship

digraph;digraph;6.6. Describe what is meant by ‘continual improvement’;Describe what is meant by ‘continual improvement’;7.7. Identify the steps in implementing continual improvement;Identify the steps in implementing continual improvement;8.8. Explain the Japanese concept of the five Ms and apply it to a Explain the Japanese concept of the five Ms and apply it to a

production situation; andproduction situation; and9.9. Describe the purpose and focus of the ‘theory of constraints’.Describe the purpose and focus of the ‘theory of constraints’.


ReadingsReadingsStudy GuideStudy Guide Module 11 Module 11

TextbookTextbook Goetsch & Davis (2006)Goetsch & Davis (2006)Chapter 17 Quality Function Deployment (QFD) Chapter 17 Quality Function Deployment (QFD) Chapter 19. Continual ImprovementChapter 19. Continual Improvement

Electronic journal articlesElectronic journal articles Sanford, JL 2005, ‘How useful is QFD?’ Sanford, JL 2005, ‘How useful is QFD?’

(About – QFD done by highschoolers – a worked example.)(About – QFD done by highschoolers – a worked example.) Dalgleish, S 2005, ‘Variation as a continual improvement tool’Dalgleish, S 2005, ‘Variation as a continual improvement tool’

(About – Intentionally introducing variation.)(About – Intentionally introducing variation.) Warriner, W, Goldratt, EM, Cox, J, and Bertain, L et al. 1994, Warriner, W, Goldratt, EM, Cox, J, and Bertain, L et al. 1994,

‘Story time’‘Story time’(About – Extracts from Business Fiction.) (About – Extracts from Business Fiction.)

Miller, B 2000, ‘Applying TOC in the real world’Miller, B 2000, ‘Applying TOC in the real world’(About – The theory of constraints and continuous improvement.)(About – The theory of constraints and continuous improvement.)

(Available on Proquest)(Available on Proquest)


Quality Function DeploymentQuality Function Deployment

A process pioneered by Yoji Akao and Shigeru A process pioneered by Yoji Akao and Shigeru Mizuno at a Mitsubishi shipyard in Kobe , Japan, Mizuno at a Mitsubishi shipyard in Kobe , Japan, in the late 1960s and 1970s (Sanford, 2005).in the late 1960s and 1970s (Sanford, 2005).

Also used by Toyota and Hewlett-Packard.Also used by Toyota and Hewlett-Packard. Gives the customer a voice, and seeks to design Gives the customer a voice, and seeks to design

customer satisfaction into the product.customer satisfaction into the product. Used for designing and developing new Used for designing and developing new

products, and designing improvements into products, and designing improvements into existing products.existing products.


The House of QualityThe House of Quality

The Key Components:The Key Components:

1.1. Customer InputCustomer Input

2.2. Current Product SpecificationsCurrent Product Specifications

3.3. Planning MatrixPlanning Matrix

4.4. RelationshipsRelationships

5.5. Prioritised Process RequirementsPrioritised Process Requirements

6.6. Trade-offs (Current Specifications)Trade-offs (Current Specifications)


The House of QualityThe House of Quality

The Key Components:The Key Components:1.1. Customer InputCustomer Input

The ‘voice of the customer’.The ‘voice of the customer’.2.2. Current Product SpecificationsCurrent Product Specifications

(Inc. requirements for suppliers.)(Inc. requirements for suppliers.)3.3. Planning MatrixPlanning Matrix

Prioritised customer requirements & competitive evaluation.Prioritised customer requirements & competitive evaluation.4.4. RelationshipsRelationships

…between the voice of the customer and the manufacturer’s …between the voice of the customer and the manufacturer’s current specifications.current specifications.

5.5. Prioritised Process RequirementsPrioritised Process RequirementsThe ‘result’ of the House of Quality.The ‘result’ of the House of Quality.

6.6. Trade-offs in the Current SpecificationsTrade-offs in the Current Specifications(or relationships between the different current specifications)(or relationships between the different current specifications)


The Rest of QFDThe Rest of QFD

Focus:Focus:Structured collection of information Structured collection of information

about customer needs and wants used about customer needs and wants used to develop products and services.to develop products and services.

A range of tools:A range of tools:Affinity Diagrams (from Week 5)Affinity Diagrams (from Week 5) Interrelationship DigraphsInterrelationship DigraphsTree DiagramsTree DiagramsMatrix DiagramsMatrix Diagrams


Affinity DiagramAffinity Diagram

Small GroupSmall GroupYou have a 1978 Toyota in You have a 1978 Toyota in good condition. You have good condition. You have advertised it for 4 weeks on advertised it for 4 weeks on the Internet. It has not sold.the Internet. It has not sold.

Do an Affinity Diagram Do an Affinity Diagram for the question:for the question:

““Why can’t I sell my car?”Why can’t I sell my car?”

1.1. State the issue as a State the issue as a question.question.

2.2. Brainstorm a large Brainstorm a large number of potential number of potential answers.answers.

3.3. Write the answers in Write the answers in point form on sticky point form on sticky notes.notes.

4.4. Move the sticky notes to Move the sticky notes to sit beside closely related sit beside closely related answers.answers.

5.5. Write a ‘head note’ with Write a ‘head note’ with a name for each a name for each grouping.grouping.

6.6. Write up an Affinity Write up an Affinity Diagram.Diagram.


Interrelationship DigraphsInterrelationship Digraphs

Extends the analysis of a problem.Extends the analysis of a problem. Involves using the Affinity Diagram Involves using the Affinity Diagram

‘answer cards’.‘answer cards’. Involves:Involves:

Identifying the degree of influence of the Identifying the degree of influence of the answer on the problem.answer on the problem.

Identifying ‘causal’ links between the various Identifying ‘causal’ links between the various answers and the problem.answers and the problem.


Interrelationship Interrelationship DigraphDigraph

Small GroupSmall GroupContinuing with the 1978 Continuing with the 1978 Toyota …Toyota …

Do a Relationship Digraph Do a Relationship Digraph for the question:for the question:

““Why can’t I sell my car?”Why can’t I sell my car?”

1.1. Take a card and write Take a card and write the problem on it.the problem on it.

2.2. Take the ‘answer cards’ Take the ‘answer cards’ from the Affinity from the Affinity Diagram.Diagram.

3.3. Place the answer cards Place the answer cards beside the ‘problem beside the ‘problem card’, with the cards card’, with the cards most closely related to most closely related to the problem closest and the problem closest and those least related those least related furthest away.furthest away.

4.4. Draw causal arrows Draw causal arrows showing what showing what contributes to what.contributes to what.


Other QFD ToolsOther QFD Tools

Tree Diagrams – show the tasks required Tree Diagrams – show the tasks required to accomplish the outcomes identified to accomplish the outcomes identified through the Affinity Diagram and through the Affinity Diagram and Relationship Digraph.Relationship Digraph.

Matrix Diagrams – show the tasks to be Matrix Diagrams – show the tasks to be performed in association with the performed in association with the people/departments responsible for them people/departments responsible for them (showing the ‘degree of responsibility’).(showing the ‘degree of responsibility’).


QFD & ProductivityQFD & Productivity

Politis (2005) examined productivity, QFD Politis (2005) examined productivity, QFD and creativity, and found that QFD and creativity, and found that QFD (a structured approach to product (a structured approach to product improvement) contributed better to improvement) contributed better to productivity than creativity (an unstructured productivity than creativity (an unstructured approach to product improvement).approach to product improvement).

Politis, JD 2005, ‘QFD, organisational creativity and productivity’, The International Journal of Quality & Reliability Management, vol. 22, no. 1, pages unknown (online, Proquest).


QFD Success CriteriaQFD Success Criteria

Successful organisations using QFD:Successful organisations using QFD: Demonstrate top management commitment to QFD;Demonstrate top management commitment to QFD; Facilitate worker-supervisor collaboration in QFD efforts;Facilitate worker-supervisor collaboration in QFD efforts; Institute internal processes and strategies for QFD;Institute internal processes and strategies for QFD; Establish effective use of information and data to support Establish effective use of information and data to support

QFD actions;QFD actions; Build relationships with customers;Build relationships with customers; Enable employees to develop and utilise their capacity to Enable employees to develop and utilise their capacity to

deliver value to customers; anddeliver value to customers; and Enhance QFD team-building, consensus-oriented, and Enhance QFD team-building, consensus-oriented, and

flexibly disciplined approach that structures synthesising flexibly disciplined approach that structures synthesising new ideas.new ideas.

Source: Politis 2005


Continual ImprovementContinual Improvement

Also known as ‘continuous improvement’ or Also known as ‘continuous improvement’ or kaizenkaizen (in Japanese.) (in Japanese.)

Is a way of thinking about what we do to ensure Is a way of thinking about what we do to ensure quality.quality.

Many different approaches can be taken, with Many different approaches can be taken, with the goal being improvement of people, the goal being improvement of people, processes and products/services. processes and products/services.

W. Edwards Deming (cited in Goetsch & Davis W. Edwards Deming (cited in Goetsch & Davis 2006) states that just fixing things that are wrong 2006) states that just fixing things that are wrong is not improvement, that is getting the thing to is not improvement, that is getting the thing to where it was going to be before it broke!where it was going to be before it broke!


Critical AspectsCritical Aspects Leadership must be involved (not just supportive).Leadership must be involved (not just supportive). Structural initiatives are required, including a quality Structural initiatives are required, including a quality

council and sub-committees.council and sub-committees. A scientific approach must be taken, including data A scientific approach must be taken, including data

collection and a process for addressing potential collection and a process for addressing potential opportunities.opportunities.

We must focus on, and improve, processes through We must focus on, and improve, processes through standardisation, streamlining, reducing sources of standardisation, streamlining, reducing sources of variation and bringing processes under statistical variation and bringing processes under statistical control.control.

The use of the tools covered in the earlier module The use of the tools covered in the earlier module ‘Tools for Total Quality Management’.‘Tools for Total Quality Management’.

(Goetsch & Davis 2006)(Goetsch & Davis 2006)


The Scientific ApproachThe Scientific Approach

1.1. Collect meaningful data.Collect meaningful data.

2.2. Identify root causes of problems.Identify root causes of problems.

3.3. Develop appropriate solutions.Develop appropriate solutions.

4.4. Plan and make changes.Plan and make changes.

(Also, more detailed process on p. 648; and(Also, more detailed process on p. 648; and

additional strategies on p. 651.)additional strategies on p. 651.)

(Goetsch & Davis 2006)(Goetsch & Davis 2006)


The 5 MsThe 5 Ms

A simple checklist to focus attention:A simple checklist to focus attention:

1.1.Man (Operator)Man (Operator)2.2.MachineMachine3.3.MaterialMaterial4.4.MethodsMethods5.5.MeasurementMeasurement


The 5 MsThe 5 Ms

Small GroupSmall GroupWe have a small furniture manufacturing We have a small furniture manufacturing company. We are struggling to meet demand company. We are struggling to meet demand for couches.for couches.

““Using the 5Ms, describe what problems we Using the 5Ms, describe what problems we might have in meeting demand for couches.”might have in meeting demand for couches.”


Breakthrough vs Breakthrough vs Continual ImprovementContinual Improvement

Goetsch and Davis’s (2006) describe kaizen as being Goetsch and Davis’s (2006) describe kaizen as being about continual about continual incrementalincremental improvement. improvement.

Rao Rao et alet al (1986) provide a distinction between (1986) provide a distinction between continuous improvement and ‘breakthrough continuous improvement and ‘breakthrough improvement’. Breakthrough improvement typically improvement’. Breakthrough improvement typically involves the implementation of new technologies or involves the implementation of new technologies or radically different processes.radically different processes.

The Japanese do not distinguish between incremental The Japanese do not distinguish between incremental and radical improvement. The goal is improvement, and and radical improvement. The goal is improvement, and the scale can be of any magnitude. the scale can be of any magnitude.

(Rao (Rao et alet al suggest it is desirable to have a continuous suggest it is desirable to have a continuous process of incremental improvement punctuated at process of incremental improvement punctuated at intervals by breakthrough improvements.)intervals by breakthrough improvements.)


The Theory of ConstraintsThe Theory of Constraints

An alternative view of a manufacturing system.An alternative view of a manufacturing system. Using throughput, inventory and operating Using throughput, inventory and operating

expense to measure success (rather than profit expense to measure success (rather than profit and return on investment).and return on investment).

Focussed on reducing the impact of constraints Focussed on reducing the impact of constraints on the organisation.on the organisation.

Involves the concept of critical chain thinking – Involves the concept of critical chain thinking – where the organisational process is a series of where the organisational process is a series of interlinked chains. As we make an improvement interlinked chains. As we make an improvement in one area, we are likely to cause new problems in one area, we are likely to cause new problems elsewhere.elsewhere.


TOC at Virginia Semiconductor Inc TOC at Virginia Semiconductor Inc

Step 1: Identify the system's constraints. Step 1: Identify the system's constraints.

Step 2: Decide how to exploit the system's Step 2: Decide how to exploit the system's constraints. constraints.

Step 3: Subordinate everything else to the Step 3: Subordinate everything else to the above decision. above decision.

Step 4: Elevate the system's constraints. Step 4: Elevate the system's constraints.

Step 5: If a constraint has been broken, go Step 5: If a constraint has been broken, go back to Step 1.back to Step 1.

Electronic journal article by Miller (2000).Electronic journal article by Miller (2000).



Step 1: Identify the system's constraints. Step 1: Identify the system's constraints. Find the backlogged pile of work in Find the backlogged pile of work in

process (ie, in-process stockpile).process (ie, in-process stockpile). VC: the polishing process.VC: the polishing process.




Step 2: Decide how to exploit the system's Step 2: Decide how to exploit the system's constraints. constraints. Figure out how best to exploit the Figure out how best to exploit the

constraint’s resources.constraint’s resources. VC: left a buffer of waiting work to VC: left a buffer of waiting work to

indicate urgency; and prioritised the indicate urgency; and prioritised the work.work.




Step 3: Subordinate everything else to the Step 3: Subordinate everything else to the above decision. above decision. Focus all surrounding work activity Focus all surrounding work activity

on supporting the efforts to eliminate on supporting the efforts to eliminate the constraint.the constraint.

VC: facilitated flow to polishing (by VC: facilitated flow to polishing (by making some people slow down); making some people slow down); published backlog on the wall.published backlog on the wall.




Step 4: Elevate the system's constraints. Step 4: Elevate the system's constraints. Improve the capacity of the Improve the capacity of the

constraining area.constraining area. VC: Increased resources.VC: Increased resources.




Step 5: If a constraint has been broken, go Step 5: If a constraint has been broken, go back to Step 1.back to Step 1. (As it says.)(As it says.) VC: sales and marketing.VC: sales and marketing.



The Theory of ConstraintsThe Theory of Constraints

Small GroupSmall Group

““Describe how the Theory of Describe how the Theory of Constraints can be applied in a Constraints can be applied in a ‘services’ organisation.”‘services’ organisation.”


Summing It All UpSumming It All Up

Small GroupSmall Group

““What is the difference between What is the difference between QFD and Continual Improvement?”QFD and Continual Improvement?”


QFD & Continual Improv’tQFD & Continual Improv’tQuality Function Deployment Continual Improvement A set of tools that support

quality management. Focussed on designing

products that are aligned with customer needs and wants.

Tools:o House of qualityo Affinity diagramso Interrelationship digraphso Tree diagramso Matrix diagrams

A mindset that is supported by a toolset

Focussed on improving people, processes and products.

Tools: (See earlier module.)o Pareto Chartso Ishikawa Diagrams (also

known as Cause and Effect Diagrams and Fishbone Diagrams)

o Check Sheetso Histogramso Scatter Diagramso Run Chartso Control Charts.


ConclusionConclusion Recap of Module 10Recap of Module 10 Quality Function DeploymentQuality Function Deployment The House of QualityThe House of Quality Affinity Diagram and Interrelationship DigraphsAffinity Diagram and Interrelationship Digraphs QFD and ProductivityQFD and Productivity QFD Success CriteriaQFD Success Criteria Continual ImprovementContinual Improvement The Scientific ApproachThe Scientific Approach The 5 MsThe 5 Ms Breakthrough vs Continual ImprovementBreakthrough vs Continual Improvement Theory of ConstraintsTheory of Constraints Difference Between QFD and CIDifference Between QFD and CI


Next WeekNext WeekWeek 12Week 12

“Total Quality and Benchmarking and “Total Quality and Benchmarking and the Future for the Total Quality the Future for the Total Quality Approach”.Approach”.

Study GuideStudy GuideGoetsch & Davis (2006)Goetsch & Davis (2006)

Chapter 20. BenchmarkingChapter 20. BenchmarkingFour (4) electronic journal articles (Proquest) Four (4) electronic journal articles (Proquest)


Questions?Questions?

MGMT 19105

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