Process Improvment TQM-Present5 (1)

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Total Quality Management - 5.0

Process Improvement andProcess Improvement and

Basic tools for Basic tools for quality managementquality management

Session 5:

Total Quality Management




Learning ObjectivesLearning Objectives After completing this session you should be able to After completing this session you should be able to

explain what a work process is and why it is soexplain what a work process is and why it is so

describe a systematic approach for improvingdescribe a systematic approach for improvingbusiness processesbusiness processes

discuss common pitfalls encountered whendiscuss common pitfalls encountered when

working on a process improvement projectworking on a process improvement project

use basic tools for improving processuse basic tools for improving process




Required ReadingsRequired Readings

Chapter 6, Textbook (chapters 7, 8 optional)Chapter 6, Textbook (chapters 7, 8 optional)

Suggested reading:Suggested reading:

The Golden Rules of Process Redesign by Roger The Golden Rules of Process Redesign by Roger

Rupp and James RussellRupp and James Russell




Session AgendaSession AgendaSession AgendaSession Agenda

Process introduction or understanding processProcess introduction or understanding process

Your examples on processYour examples on process

Process improvementProcess improvement -- TQMTQM

Your examples on improvementYour examples on improvement Improvement process models and pitfallsImprovement process models and pitfalls

Your ideas on processYour ideas on process

Tools for quality managementTools for quality management Your experience on toolsYour experience on tools




WHAT IS A WORK PROCESS ?WHAT IS A WORK PROCESS ?

Supplier WorkGroup

Customer

Requirements

Product / Service

Feedback

Work Process Model

Input Process Output

Simple Process




Process DefinitionProcess DefinitionProcess DefinitionProcess Definition

Thomas Davenport, in Process Innovation: ". . . a structured, measured set of activities

designed to produce a specified output for a

particular customer or market."

Michael Hammer and James Champy, in

R eengineering the Corporation:

". . . a collection of activities that takes one or

more kinds of input and creates an output that isof value to the customer ."




Process DefinitionProcess DefinitionProcess DefinitionProcess Definition

James Harrington, in Business Process

Improvement

" Any activity or group of activities that takes

an input, adds value to it, and provides anoutput to an internal or external customer ."

Joseph M. Juran, in J uran on Planning for

Quality

". . . a systematic series of actions directed tothe achievement of a goal."




Four groups of people are involved in theFour groups of people are involved in theoperation and improvement of processes:operation and improvement of processes:

CustomersCustomers

WorkWork GroupGroup

Supplier Supplier

Owner Owner




Why process?Why process?Why process?Why process?

We areWe are qualityquality talking;talking; thenthen conformance, variation, gaps«conformance, variation, gaps«betweenbetween

customer expectation and what we offer .customer expectation and what we offer .

A customer focuses on value they get (along the A customer focuses on value they get (along the

visible line when you have to sketch ³servicevisible line when you have to sketch ³serviceblueprint´ last term), he does not care of eachblueprint´ last term), he does not care of each

business function.business function.

Colleagues as customersColleagues as customers

Responsiveness to customer inquiries.Responsiveness to customer inquiries.

then...then...




Why process?Why process?Why process?Why process?

with process and detailed elements we have:with process and detailed elements we have:

sequence (quality)sequence (quality)

whowho produce the outputs (accountability)the outputs (accountability)

boundary clarification (responsibility and quality)boundary clarification (responsibility and quality)

process owner (accountability)process owner (accountability)

input & outputinput & output

those help promotethose help promote qualityquality




Examples of processes in system viewExamples of processes in system view

Inputs

- Component parts

- machines

- Operators

Process

- Assembly of

components into

final product

- ship to customer

Outputs

- Customer

receives

product

FeedbackInformation on product performance

Production processProduction process




Inputs

- Resume

- Interview

- Information from

references, former employees, and

schools

Process

- Synthesize

information

- Evaluate

information- Make decision

- Hire applicant

Outputs

Employee to

fill vacant

position

Feedback

Inform personnel decision-maker of strengths and weaknesses of employee to

improve future hiring efforts

Hiring process Hiring process




Identifying processesIdentifying processesIdentifying processesIdentifying processes

Why difficult?Why difficult? We are talking more on functionWe are talking more on function

We have no chance to get out of out functionalWe have no chance to get out of out functional

departmentdepartment

It is easier to discuss on function, task, step, or It is easier to discuss on function, task, step, or operation. It¶s hard to talk about ³process´ in aoperation. It¶s hard to talk about ³process´ in a

businessbusiness

Functions have names, processes have noFunctions have names, processes have no

names.names.

Disputes often arise when talking process.Disputes often arise when talking process.

Process hides in stream of activities.Process hides in stream of activities.




Identifying processIdentifying processIdentifying processIdentifying process

How to?How to?

Anchor the analysis of a business process to Anchor the analysis of a business process to

something, some one, tangible, or customer .something, some one, tangible, or customer .

Ignore process nameIgnore process name Set boundaries anywhere on stream to analyseSet boundaries anywhere on stream to analyse

(tips: where state changes, transfer of (tips: where state changes, transfer of

ownership, handownership, hand--offs)offs)

beware of loop in process.beware of loop in process.




SAV ESAV E--MBA intake processMBA intake processSAV ESAV E--MBA intake processMBA intake process

InputInput

OutputOutput

Process identifyingProcess identifying

Anchors setting Anchors setting Get related people involvedGet related people involved

Problem Identifying toolsProblem Identifying tools

Process improvementProcess improvement




What are the boundaries of the process?What are the boundaries of the process?What are the boundaries of the process?What are the boundaries of the process?

The boundaries of a process may not be limited inThe boundaries of a process may not be limited ina functiona function

Intrafunctional process is a process performedIntrafunctional process is a process performedwithin a single function (e.g. preparation of wagewithin a single function (e.g. preparation of wage

sheets)sheets)

Interfunctional process is a process involving moreInterfunctional process is a process involving morethan one function (e.g. product development andthan one function (e.g. product development and

planning)planning)




Defining Key ProcessDefining Key Process

Six questions help in the identification of key process:

Defining Key ProcessDefining Key Process

Six questions help in the identification of key process:

1. Which products and services are most important1. Which products and services are most important

to the customers? (implicationto the customers? (implication--priority, generalpriority, general

view of customer requirement)view of customer requirement)

2. What are the processes that produce these2. What are the processes that produce these

products and services? (general view)products and services? (general view)

3. What are the key ingredients that stimulate action3. What are the key ingredients that stimulate actionin the organization, and what are the processesin the organization, and what are the processes

that convert these stimuli to output? (morethat convert these stimuli to output? (more

detailed of process elements)detailed of process elements)




4. Which processes have the highest visibility with4. Which processes have the highest visibility with

customers? (priority)customers? (priority)

5. Which processes have the greatest impact on5. Which processes have the greatest impact on

customer customer--driven performance standards? (keydriven performance standards? (keyprocess identified)process identified)

6. Which processes do performance data or 6. Which processes do performance data or

common sense suggest have the greatestcommon sense suggest have the greatest

potential for improvement? (improvementpotential for improvement? (improvement

opportunities)opportunities)




Continual Improvement of Work ProcessContinual Improvement of Work ProcessContinual Improvement of Work ProcessContinual Improvement of Work Process

Continuous improvement is a systematicContinuous improvement is a systematic

approach to the closing of gaps betweenapproach to the closing of gaps between

customer expectations and the characteristicscustomer expectations and the characteristics

of process outputs. of process outputs.




BASIC TOOLS FOR QUALITYBASIC TOOLS FOR QUALITY

MANAGEMENTMANAGEMENT

BASIC TOOLS FOR QUALITYBASIC TOOLS FOR QUALITY

MANAGEMENTMANAGEMENT

Flowcharts Cause and Effect Diagrams Control Charts

Histograms Check Sheets Pareto Diagrams

Scatter Diagrams




1. FLOWCHARTS1. FLOWCHARTS1. FLOWCHARTS1. FLOWCHARTS

WhatWhat isis aa flowchart?flowchart?

A A flowchartflowchart isis aa pictorialpictorial summarysummary of of thethe flowsflows

andand decisionsdecisions thatthat comprisecomprise aa processprocess



FlowchartFlowchart

SymbolsSymbols

FlowchartFlowchart

SymbolsSymbolsBasic input/output symbol The general form that represents

input or output media, operations,

or processes is a parallelogram

Basic processing symbol The general symbol used to depict

a processing operation is a

rectangle

Decision symbol A diamond is the symbol that

denotes a decision point in the

process. It includes attribute typedecision such as pass ± fail, yes ±

no. It also includes variable type

decisions such as which of several

categories a process measurement

falls into.

Flowline symbol A line with an arrowhead is the

symbol that shows the direction of

the stages in a process. The

flowline connects the elements of

the system.

Start / stop symbol The general symbol used to

indicate the beginning and end of a

process is an oval.




TypesTypes of of FlowchartsFlowchartsTypesTypes of of FlowchartsFlowcharts

S ystems Flowchart S ystems Flowchart

A system flowchart is a pictorial summary of A system flowchart is a pictorial summary of

the sequence of operations that make up athe sequence of operations that make up a

process. It shows what¶s being done in aprocess. It shows what¶s being done in a

process.process.

Applications: manufacturing process, quality of Applications: manufacturing process, quality of design study, quality control chart,design study, quality control chart,

organization chart, flows of billing, accounting,organization chart, flows of billing, accounting,

purchasing, etc.purchasing, etc.




START

Design of trial

prototype

specifications

Trial

production

of units

Evaluation of

prototype

Overall

evaluation of

trial

production

units

Production

design

acceptedSTOP

Bad Bad

Good Good

Example: Quality of Design StudyExample: Quality of Design Study




Layout Flowchart Layout Flowchart

A layout flowchart depicts the floor plan of an A layout flowchart depicts the floor plan of an

area, usually including the flow of paperworkarea, usually including the flow of paperwork

or goods and location of equipment, fileor goods and location of equipment, filecabinets, storage areas, and so on. cabinets, storage areas, and so on.

These flowcharts are especially helpful inThese flowcharts are especially helpful inimproving the layout to more efficiently utilizeimproving the layout to more efficiently utilize

a space.a space.




Constructing a FlowchartConstructing a FlowchartConstructing a FlowchartConstructing a Flowchart

We should follow the rules:We should follow the rules:

Rule 1Rule 1: The most important rule is that the right: The most important rule is that the right

people must be involved in making the chart.

people must be involved in making the chart.

Rule 2 Rule 2 : All members of the group must participate. : All members of the group must participate.

The use of an independent facilitator will be aThe use of an independent facilitator will be a

great benefit.great benefit.

Rule 3Rule 3: All data must be visible and: All data must be visible andunderstandable to all the people all the time.understandable to all the people all the time.




Rule 4Rule 4: Enough time must be allotted.: Enough time must be allotted.

RRule 5 ule 5 : The more questions everyone asks, the: The more questions everyone asks, the

better . Questions are the key to thebetter . Questions are the key to the

flowcharting process. What is the first thing thatflowcharting process. What is the first thing that

happens? What is the next thing that happens?happens? What is the next thing that happens?




Benefits of a flowchartBenefits of a flowchartBenefits of a flowchartBenefits of a flowchart

It functions as a communication toolIt functions as a communication tool

It functions as a planning toolIt functions as a planning tool

It provides an overview of the systemIt provides an overview of the system

It defines the rolesIt defines the roles It demonstrates interrelationshipsIt demonstrates interrelationships

It promotes logical accuracyIt promotes logical accuracy

It facilitates troubleIt facilitates trouble--shootingshooting It documents a systemIt documents a system




2. CAUSE AND EFFECT DIAGRAM2. CAUSE AND EFFECT DIAGRAM2. CAUSE AND EFFECT DIAGRAM2. CAUSE AND EFFECT DIAGRAM

~ Fishbone diagrams~ Fishbone diagrams

~ Ishikawa diagrams~ Ishikawa diagramsInformation is the key to improving processesInformation is the key to improving processes

A cause and effect diagram is the key to gathering information A cause and effect diagram is the key to gathering information

The technique consists of defining an occurrence or The technique consists of defining an occurrence or

problem (effect). Once the effect is defined, the factorsproblem (effect). Once the effect is defined, the factors

that contribute to it (causes) are delineatedthat contribute to it (causes) are delineated

Relationship between causes and effectsRelationship between causes and effects




Constructing a C&E DiagramConstructing a C&E DiagramConstructing a C&E DiagramConstructing a C&E Diagram

1. State the problem1. State the problem

2. Identify major causes2. Identify major causes

Effect

(Quality Problem)

Effect

(Quality Problem)

Quality

Problem

Quality

Problem

MeasurementMachinePersonnel

Environment Materials Method




3. Brainstorm subcauses3. Brainstorm subcauses

Quality

Problem

Quality

Problem

Measurement

Repeatability

Sample size

Machine

CapacitySafety

Personnel

Capability

Knowledge

Absenteeism

Working

Environment

Temperature Light

Materials

Quality

Method

EffectivenessStandardization




Advantages and disadvantages of C&E diagramAdvantages and disadvantages of C&E diagramAdvantages and disadvantages of C&E diagramAdvantages and disadvantages of C&E diagram

Advantages: Advantages:

Forces preparation of the process flow diagramForces preparation of the process flow diagram

Forces consideration of the entire process asForces consideration of the entire process as

potential causes of a problempotential causes of a problem

Identifies alternative work proceduresIdentifies alternative work procedures

Educational for members not familiar with theEducational for members not familiar with the

entire processentire process

Easy to use since most group members will beEasy to use since most group members will befamiliar with the processfamiliar with the process

Can be used to anticipate process problems byCan be used to anticipate process problems by

focusing on sources of variability.focusing on sources of variability.




DisadvantagesDisadvantages

Easy to overlook potential causes (e.g.,Easy to overlook potential causes (e.g.,

materials or measurements) since people maymaterials or measurements) since people may

be too familiar with the process.be too familiar with the process.

Hard to use on long, complicated processesHard to use on long, complicated processes




Investigation of Potential CausesInvestigation of Potential CausesInvestigation of Potential CausesInvestigation of Potential Causes

The C&E diagram is not intended to identifyThe C&E diagram is not intended to identify

which potential causes are root causes. which potential causes are root causes.

Thus, it is necessary to identify whether aThus, it is necessary to identify whether a

potential cause is a root cause of a problempotential cause is a root cause of a problem



C&E

diagramPrioritization Hypothesis

generation

Design

studies

Simple

statistical

tools

C&E

diagram

Select most likely

potential causes.Evaluate each

against problem

specification

Determine which

data wouldidentify potential

cause as a root

cause

Collect

appropriate

data

Analyze

data

Potential

cause

determined to

be a root

cause

Correct problems

and monitor

results

Problemeliminated

Stop

No

Yes

No

Yes

Process for identifying whether a potential cause is a root cause of a problem




3. CONTROL CHARTS3. CONTROL CHARTS3. CONTROL CHARTS3. CONTROL CHARTS

The major kinds of control charts:The major kinds of control charts: Attribute Data: Attribute Data:

Charts for nonconforming units ( p chart)Charts for nonconforming units ( p chart)

Charts for counts of nonconformities (c chart)Charts for counts of nonconformities (c chart)

Variable Data:Variable Data:

R chartR chart

XX--bar chartbar chart

Process Capability refers to the inherent variabilityProcess Capability refers to the inherent variability

of process output relative to the variation allowed byof process output relative to the variation allowed by

the design specifications.the design specifications.




4. HISTOGRAMS4. HISTOGRAMS4. HISTOGRAMS4. HISTOGRAMS

HistogramsHistograms areare aa graphicgraphic displaydisplay of of thethe number number of of timestimes aa measurementmeasurement hashas occurredoccurred atat aa

particular particular valuevalue or or withinwithin anan intervalinterval of of thethe

measurementmeasurement scalescale..




Typical Patterns of VariationTypical Patterns of VariationTypical Patterns of VariationTypical Patterns of Variation

(b)(a)

(a) (b)

Bell-shaped Double peaked Plateau

Comb Skewed

Truncated Isolated

peaked

Edge peaked

T l Q li M 38




Constructing a HistogramConstructing a HistogramConstructing a HistogramConstructing a Histogram

Number of

measurements (N)

Number of

scale intervals

< 50 5 ± 7

50 ± 100 6 ± 10

100 ± 250 7 ± 12

> 250 10 ±20

T t l Q lit M t 5 39




a. Quick Method a. Quick Method

A histogram can be constructed using the A histogram can be constructed using the

following steps:following steps:

1. Find the largest and smallest measurement1. Find the largest and smallest measurement

2. Construct the measurement scale between the2. Construct the measurement scale between thelargest and smallest measurementlargest and smallest measurement

Smallest

measurement

Largest

measurement





3.Place a slash ³3

.Place a slash ³\\´ on the scale in step 2 for each occurrence´ on the scale in step 2 for each occurrenceof a measurement. Every fifth occurrence should use aof a measurement. Every fifth occurrence should use a

longer slash (longer slash ( \\ \\ \\ \\ ) . A space should be skipped between) . A space should be skipped between

group of fivegroup of five

4. Evaluate whether there are too many intervals in the main4. Evaluate whether there are too many intervals in the main

body of the histogram. If there are too many intervals, thebody of the histogram. If there are too many intervals, the

interval method should be used.interval method should be used.





b. Interval Method b. Interval Method

A histogram can be constructed using the A histogram can be constructed using thefollowing steps:following steps:

1. Find the largest and smallest measurement1. Find the largest and smallest measurement

2. Choose a value for the number of intervals2. Choose a value for the number of intervals

using the preceding guidelines for the number of using the preceding guidelines for the number of

measurements to be plotted in the histogrammeasurements to be plotted in the histogram

3. 3. Compute the interval size:Compute the interval size:

intervals scale of number

)tmeasuremen smallest - tmeasuremen largest( sizeintervall !!

Total Q alit Management 5 42




44.. RoundRound ll toto aa convenientconvenient number number .. For For example,example,00..512512 becomesbecomes 00..55

55.. ChooseChoose aa convenientconvenient number number slightlyslightly smaller smaller

thanthan or or equalequal toto thethe smallestsmallest measurementmeasurement;; callcall itit

XXlowlow.. ComputeCompute thethe followingfollowing intervalsintervals::

XXlowlow

XXlowlow ++ ll

XXlowlow ++ 22ll

XXlowlow ++ 33ll

««

Interval 1

Interval 2

Interval 3

Total Quality Management 5 43




66.. ConstructConstruct aa scalescale toto bebe usedused inin plottingplotting thatthat correspondscorrespondstoto thethe intervalsintervals computedcomputed inin stepstep 55::

77.. PlacePlace aa slashslash ³³\\´́ inin thethe intervalinterval inin stepstep 66 for for eacheach

occurrenceoccurrence of of aa measurementmeasurement..

Xlow Xlow + 1l Xlow + 2l Xlow + 3l «.

Smallest

measurement

Largest

measurement

Xlow

Xlow + 1l

Xlow + 2l

Xlow + 3l

«.





Xlow Xlow + 1l Xlow + 2l Xlow + 3l «.

Frequency

For

For either either thethe quickquick or or thethe intervalinterval method,method, shadedshadedbarsbars areare oftenoften drawndrawn aroundaround thethe slashesslashes.. A A

frequencyfrequency (number (number of of occurrences)occurrences) scalescale isis

typicallytypically usedused..





Histogram from Control ChartsHistogram from Control ChartsHistogram from Control ChartsHistogram from Control Charts

ThereThere areare threethree typestypes of of histogramshistograms thatthat cancan bebeobtainedobtained formform typicaltypical XX--bar bar andand RR chartchart datadata::

Sample Subgroup (n = 5)

1 1 2 3 4 5 X R

23«

N

Individualshistogram

means

histogram

ranges

histogram





5. CHECK SHEET5. CHECK SHEET5. CHECK SHEET5. CHECK SHEET

Check sheets are used for collecting or Check sheets are used for collecting or gathering data in a logical format. gathering data in a logical format.

The most important purpose of check sheet is toThe most important purpose of check sheet is toenable the user(s) to gather and organize dataenable the user(s) to gather and organize data

in a format that permits efficient, easy analysis.in a format that permits efficient, easy analysis.

Total Quality Management - 5 47




Types of check sheetsTypes of check sheetsTypes of check sheetsTypes of check sheets

Attri bute check sheet Attri bute check sheet . Gathering data about. Gathering data aboutdefects in a process is necessary for defects in a process is necessary for

stabilization, improvement, and innovations of stabilization, improvement, and innovations of

the process.the process.

V ariablesV ariables check check sheet sheet .. GatheringGathering datadata aboutabout

aa processprocess alsoalso involvesinvolves collectingcollecting informationinformation

aboutabout variables,variables, suchsuch asas size,size, length,length, weight,weight,

temperature,temperature, etcetc.. TheseThese datadata areare bestbest

representedrepresented byby organizingorganizing thethe measurementsmeasurements

intointo aa frequencyfrequency distributiondistribution onon aa variablesvariables

checkcheck sheetsheet..





Defect location check sheet Defect location check sheet . Another way to. Another way to

gather information about defect in a product is togather information about defect in a product is to

be used a defect location check sheet. This is abe used a defect location check sheet. This is a

picture of a product or a portion of it on which anpicture of a product or a portion of it on which an

inspector indicates the location and nature of theinspector indicates the location and nature of the

defect.defect.

Checklist Checklist .. ChecklistChecklist isis usedused under under operationaloperational

conditionsconditions toto ensureensure thatthat allall importantimportant stepssteps or or

actionaction havehave beenbeen takentaken.. ItsIts purposepurpose isis for for guidingguidingoperations,operations, notnot for for collectingcollecting datadata.. TheThe preflightpreflight

checklistchecklist thatthat aa commercialcommercial airlineairline pilotpilot mustmust

completecomplete isis aa goodgood exampleexample..




Total Quality Management 5.49

ChecklistChecklist for for EvaluatingEvaluating aa CheckCheck SheetSheetChecklistChecklist for for EvaluatingEvaluating aa CheckCheck SheetSheet

Check if

true

Questions

S 1. Is an appropriate title given? Are department or operation namesand numbers specified? Is the part name and number given?

S 2. Is the individual who completed the check sheet identified (who)?If more than one person completed that check sheet, is eachperson identified?

S 3. Is the appropriate method of collecting the data understood

(what)? Are brief instructions for completing the check sheetwritten on the collection form?

S 4. Is the process location where parts are collected identified(where)? Is the sampling method defined and understood?

S 5. Is the time in which parts are sampled identified (when)?

S 6. Do individuals who are collecting the data understand why the

data are being obtained (why)?S 7. Is the evaluation or gagging method understood (how)? Have gage

studies have been performed to evaluate the bias and repeatabilityof gages? Is a gage identification number required?



S 8 Are all stratification variables identified, such as machine, spindle,pallet and fixture? Are such factors as vendor, test hand, furnace,die, tool and material identified? Are any lot identification numbersrecords?

S 9 9Will total number of parts evaluated be recorded (how many)? Isthe number of parts produced during the evaluation periodindicated?

S 10 Do individuals understand how to record multiple defects? Will alldefects on a part be evaluated? Do individuals understand howmultiple occurrences of the same defect on a unit will be recorded(e.g., is 1 missing screw or 10 missing screws on a unit recordedas a single defect)?

S 11 Are data recorded on check sheets in a manner analogous to thegage measurement scales?

S 12 Is coded gage data used if appropriate? Is the relationshipbetween the coded gage data and the actual measurement stateas:

Actual value = offset + scale x gage value

S 13. Has a trial run of the check sheet been attempted? Has a trialanalysis of the data been attempted?

S 14. Is there sufficient space for the user of the check sheet to write inand make comments concerning unusual occurrences?





6. PARETO DIAGRAM6. PARETO DIAGRAM6. PARETO DIAGRAM6. PARETO DIAGRAM

Pareto focused attention on the concept of Pareto focused attention on the concept of ³ the vital few versus the trivial many´.³ the vital few versus the trivial many´.

Pareto is a tool used to identify and prioritizePareto is a tool used to identify and prioritize

problems for solution. problems for solution.

The 80The 80--20 rule is based on an application of 20 rule is based on an application of

the Pareto principle. For example, 80 percentthe Pareto principle. For example, 80 percent

of sales come from 20 percent of customers,of sales come from 20 percent of customers,

or 80 percent of dollar inventory is accountedor 80 percent of dollar inventory is accountedfor by 20 percent of the items.for by 20 percent of the items.





Constructing a Pareto DiagramConstructing a Pareto DiagramConstructing a Pareto DiagramConstructing a Pareto Diagram

1. Establish categories for the data being analyzed.1. Establish categories for the data being analyzed.

2. Specify the time period during data will be2. Specify the time period during data will be

collected.collected.

3. Construct a frequency table arranging the3. Construct a frequency table arranging thecategories from the one with the largest number categories from the one with the largest number

of observations to the one with the smallestof observations to the one with the smallest

number of observations.number of observations.





Category Signal Frequency Relative % Cumulative%

% of TotalInspected

(1) (2) (3) (4) (5) (6)1. XX Y1 C1 C1/C x 100 = P1 P1 C1/N x 100

2. XX Y2 C2 C2/C x 100 = P2 P1+P2 C2/N x 100

3. XX Y3 C3 C3/C x 100 = P3 P1+P2+P3 C3/N x 100« « « «

« « « «

Total C 100% 100% C/N

N = Total number of parts or items inspected




Q y g

4.

Construct a Pareto diagram.4.

Construct a Pareto diagram.

Part A, Pareto bars: Select the most appropriatePart A, Pareto bars: Select the most appropriate

scale to plot the Pareto bars:scale to plot the Pareto bars:

FrequencyFrequency = Column 3= Column 3

Relative %Relative % = Column 4= Column 4

% of total inspected = Column 6% of total inspected = Column 6

Part B, cumulative percentages: Select the linePart B, cumulative percentages: Select the lineplot or stacked bar format to graph the cumulativeplot or stacked bar format to graph the cumulative

percentages and plot the data in column 5.percentages and plot the data in column 5.




y g

Example: Consider the following defects for a machined

part

Example: Consider the following defects for a machined

part

Defects Quantity

Undersized A hole 224

Porosity 52

Nicks 149Concentricity diameter A-F 46

Parallelism surface Z-W 58

Oversized A hole 5

Others 23

Total defects: C = 557Number inspected: N = 2217




y g

Pareto Analysis Work Sheet

Defects Signal Frequency Relative%

Cumulative%

% of TotalInspected

(1) (2) (3) (4) (5) (6)Undersized A 224 40 40 10.1Nicks B 149 27 67 6.7Parallelism C 58 11 78 2.6Porosity D 52 9 87 2.3Concentricity E 46 8 95 2.1Oversized F 5 1 96 0.2Others G 23 4 100 1.0Total 557 100% 100% 557/2217 =

25.1




y g

Pareto Diagram of Defects for a Machined Part

0

50

100

150

200

250

U n d e

r s i z

e d

N i c k

s

P a r a l l e l i s

m

P o r o s i t y

C o n

c e n t r i c i t y

O v e

r s i z e d

O t h e r s

N u m

b e r o

f D e f e c t s

0

10

20

30

40

50

60

70

80

90

100

C u m

l a t i v e P

e r c e n t a g e




250

200

150

100

50

A B C D E F G

%

100

80

60

40

20

Pareto diagram with stacked bars

Cumulative

percentage




150

100

50

B C A D E F G

Pareto Diagram of defects for a machined

part after the improvement




Cost Pareto DiagramCost Pareto DiagramCost Pareto DiagramCost Pareto Diagram

SometimeSometime ParetoPareto diagramdiagram cancan havehave moremoreimpactimpact whenwhen problemsproblems or or defectsdefects areare

representedrepresented inin termsterms of of their their dollar dollar costscosts..

Pareto Analysis Cost Work Sheets: Cost per Defect Work Sheet

Defect Signal Frequency Cost per unit ($) Cost of defect Rank(1) (2) (3) (4) (5) (6)

Undersized A 224 0.25 56.00 3Nicks B 149 0.10 14.90 5Parallelism C 58 1.25 72.50 1Porosity D 52 0.75 39.00 4Concentricity E 46 1.25 57.50 2Oversized F 5 1.25 6.25 6Total 534 246.15




Pareto Analysis Cost Work Sheet

Defect Signal Frequency Cost of

defect

Relative cost

%

Cumulative

%

(1) (2) (3) (4) (5) (6)

Parallelism C 58 72.50 29 29

Concentricity E 46 57.50 23 52Undersized A 224 56.00 23 75

Porosity D 52 39.00 16 91

Nicks B 149 14.90 6 97

Oversized F 5 6.25 3 100

Total 534 246.15


P t Di f D f t C t



Pareto Diagram for Defect Cost

0

5

10

15

20

25

30

35

C E A D B F

C

o s t p e r c e n

t a g e (

0

10

20

30

40

5060

70

80

90

100

C u m u l a t i v e p e r c e n t a g




Warning about using Pareto AnalysisWarning about using Pareto AnalysisWarning about using Pareto AnalysisWarning about using Pareto Analysis

yy Ignore customer¶s requirementsIgnore customer¶s requirements

yy Data collected from unstable processesData collected from unstable processes

yy Identify the easyIdentify the easy--toto--find problems as thefind problems as thevital fewvital few

yy Ignore the trivial many problemsIgnore the trivial many problems

yy Short time for Pareto analysisShort time for Pareto analysis

RelationshipRelationship ofof attrib teattrib te datadata anal sisanal sis toolstoolsRelationshipRelationship ofof attrib teattrib te datadata anal sisanal sis toolstools



RelationshipRelationship of of attributeattribute datadata analysisanalysis toolstoolsRelationshipRelationship of of attributeattribute datadata analysisanalysis toolstoolsTool Purpose

Instructions

Check

Sheet

Collect Data

Determinetop problemsParetodiagram

ProblemA

Obtain potential

causes of aproblem

Cause and

EffectDiagram

Assess process

stability and

improvement

p chart

and c

chart




77.. SCATTERSCATTER DIAGRAMDIAGRAM77.. SCATTERSCATTER DIAGRAMDIAGRAM

Scatter diagram provides a method to evaluateScatter diagram provides a method to evaluate

these interrelationships between twothese interrelationships between two

characteristicscharacteristics

Understanding the relationship betweenUnderstanding the relationship between

characteristics increases our ability to control acharacteristics increases our ability to control a

process and detect problems. process and detect problems

.




Types of PatternsTypes of PatternsTypes of PatternsTypes of Patterns

C h a r a c t e r i s t i c s 2

Characteristics 1

(a)

Characteristics 1

(b)


Characteristics 1

(d)

C h a

r a c t e r i s t i c s 2

Characteristics 1

(e)

C h a

r a c t e r i s t i c s 2

Characteristics 1

(c)





Two mistakes are commonly made:Two mistakes are commonly made:

First, it is assumed that if correlation existsFirst, it is assumed that if correlation exists

between two characteristics, one characteristic inbetween two characteristics, one characteristic in

some way causes the value of the other some way causes the value of the other

characteristiccharacteristic

This is not trueThis is not true

Correlation doesCorrelation doesnot imply causation.not imply causation.

TheThe secondsecond mistakemistake commonlycommonly mademade inin usingusing

scatter scatter plotsplots isis toto consider consider tootoo narrownarrow aa rangerange of of thethe characteristicscharacteristics beingbeing evaluatedevaluated..


C t ti tt diC t ti tt diC t ti tt diC t ti tt di



Constructing a scatter diagramConstructing a scatter diagramConstructing a scatter diagramConstructing a scatter diagram

Sampling unit Characteristic 1 Characteristic 2

1 X1 Y1

2 X2 Y2

« « «

N XN YN

ItIt isis aa goodgood practicepractice toto useuse aa samplesample sizesize of of atatleastleast NN == 3030 ± ± 5050 samplingsampling unitsunits..

11..SelectSelect thethe characteristiccharacteristic (label(label 11),), if if any,any, thatthat for for

somesome reasonreason isis thoughtthought toto predictpredict thethe valuevalue of of thethe

other other characteristiccharacteristic (label(label 22))..



22.. PlotPlot thethe valuesvalues for for eacheach samplingsampling unitunit.. If If repeatedrepeated

valuesvalues occur occur inin aa particular particular location,location, useuse thethe

followingfollowing plottingplotting conventionconvention::

33.. UseUse thethe typestypes of of patternspatterns aboveabove toto evaluateevaluate thethe

relationshiprelationship betweenbetween thethe characteristicscharacteristics.. TheThe nextnexttwotwo proceduresprocedures cancan bebe usedused toto testtest for for thethe presencepresence

of of correlationcorrelation

Three values

Two values

Single value

Four values




ProceduresProcedures for for testingtesting correlationcorrelationProceduresProcedures for for testingtesting correlationcorrelation

S ign

S ign Test Test for for correlationcorrelation

11.. RankRank fromfrom lowestlowest toto highesthighest thethe valuesvalues of of eacheach

characteristiccharacteristic.. For For characteristiccharacteristic 11,, rankrank thethe XX

values,values, andand for for characteristiccharacteristic 22 rankrank thethe YY valuesvalues..

22.. FindFind thethe medianmedian valuevalue for for eacheach characteristiccharacteristic..

33.. PreparePrepare aa scatter scatter plotplot.. DrawDraw thethe dasheddashed medianmedian

lineslines onon thethe scatter scatter plot,plot, andand labellabel thethe lineslines andandfour four quadrantsquadrants..




Characteristic 1

C h a r a c t e r i s t i c

2

Median 2

Median 1

12

3 4

4. Count the number of points in each quadrant, and compute4. Count the number of points in each quadrant, and compute

the following quantities:the following quantities:

A = number of points in quadrants 1 and 3 A = number of points in quadrants 1 and 3B = number of points in quadrants 2 and 4B = number of points in quadrants 2 and 4

Q = number of points on either median lineQ = number of points on either median line

Total N = A + B + QTotal N = A + B + Q




5. Compute the test value C, where5. Compute the test value C, whereC = smaller of A and B = min (A, B)C = smaller of A and B = min (A, B)

Sample size for the test SS = NSample size for the test SS = N ± ± QQ

If C is no greater than the table value c for theIf C is no greater than the table value c for thegiven value of SS, the characteristics aregiven value of SS, the characteristics are

correlated.correlated.

The maximum value c of computed C needed toThe maximum value c of computed C needed toconclude that a correlation exists:conclude that a correlation exists:




SS c SS c SS c

20-22 5 54-55 19 86-87 3323-24 6 56-57 20 88-89 3425-27 7 58-60 21 90-91 35

28-29 8 61-62 22 92-93 3630-32 9 63-64 23 94-96 37

33-34 10 65-66 24 97-98 3835-36 11 67-69 25 99-101 3937-39 12 70-71 26 110 4340-41 13 72-73 27 120 4842-43 14 74-76 28 130 52

44-46 15 77-78 29 140 5747-48 16 79-80 30 150 6149-50 17 81-82 31 200 84

51-53 18 83-85 32




Correlation Coefficient (r)Correlation Coefficient (r) Correlation Coefficient (r) shows the linear relationshipCorrelation Coefficient (r) shows the linear relationship

between characteristics:between characteristics:

r = 0.8r = 0.8 ± ± 1.01.0 high positive correlationhigh positive correlation

r = 0r = 0 no correlationno correlation

r =r = --0.80.8 ± ± --1.01.0 high negative correlationhigh negative correlation




SYSTEMATIC APPROACH FOR SYSTEMATIC APPROACH FOR

IMPROVING WORK PROCESSESIMPROVING WORK PROCESSES




The sevenThe seven--step process improvement modelstep process improvement model

introduces a systematic approach for applying qualityintroduces a systematic approach for applying quality

management to any type of process. The approachmanagement to any type of process. The approach

helps build a fundamental understanding of thehelps build a fundamental understanding of the

business processes before attempting to improvebusiness processes before attempting to improvethem. them.

The seven steps are described in a straightforward,The seven steps are described in a straightforward,

linear fashion for clarity. Actual application will oftenlinear fashion for clarity. Actual application will often

be complicated by the need to recycle back to earlier be complicated by the need to recycle back to earlier steps as new information is gained and earlier steps as new information is gained and earlier

hypotheses are found to be incomplete or incorrect.hypotheses are found to be incomplete or incorrect.



Define the Problem1

Study the presentsystem2

Analyze the potential

causes3

Plan and implementa solution4

Evaluate the results5

Standardize

the improvement6

Reflect on process and

develop future plans7

Process Improvement Model




Step oneStep one:: Define the ProblemDefine the Problem

Identify the gap between what is and whatIdentify the gap between what is and whatshould beshould be

Document the importance and relevance of theDocument the importance and relevance of the

problemproblem

List the customers¶ key quality characteristicsList the customers¶ key quality characteristics

State how closing the gap will benefitState how closing the gap will benefit

customerscustomers

Identify the outputsIdentify the outputs Identify processes producing these outputsIdentify processes producing these outputs

Identify the process owner Identify the process owner




Step twoStep two: Study the present system: Study the present system

Develop flowchart of the processesDevelop flowchart of the processes Identify the process participantsIdentify the process participants

Determine what data to be used to measureDetermine what data to be used to measure

progressprogress

Customer satisfactionCustomer satisfaction

Cost of qualityCost of quality

Output deliveredOutput delivered

Process variables (what, where, to whatProcess variables (what, where, to whatextent and who)extent and who)




Design data collection instrument, develop anyDesign data collection instrument, develop anyoperation definitions needed to collect dataoperation definitions needed to collect data

Collect data, summarize the information learnedCollect data, summarize the information learned

about variables¶ effect on the problemabout variables¶ effect on the problem




Step threeStep three: Analyze the potential causes: Analyze the potential causes

Use the data collected and the experience of theUse the data collected and the experience of the

process participants to identify conditions thatprocess participants to identify conditions that

might lead to the problemmight lead to the problem

Analyze the conditions of interest and decide on Analyze the conditions of interest and decide on

most likely causesmost likely causes If possible verify the cause through observation or If possible verify the cause through observation or

by directly controlling variablesby directly controlling variables




Step four Step four: Plan and implement a solution: Plan and implement a solution

Develop a list of solutions to be consideredDevelop a list of solutions to be considered

Assess the feasibility of each solution, likelihood Assess the feasibility of each solution, likelihood

of success and potential adverse consequencesof success and potential adverse consequences

Indicate clearly why a particular solution isIndicate clearly why a particular solution is

chosenchosen Plan the implementation (Any pilot project? WhoPlan the implementation (Any pilot project? Who

is responsible? Any training required?)is responsible? Any training required?)

Implement the preferred solutionImplement the preferred solution




Step fiveStep five: Evaluate the results: Evaluate the results

Collect data on measurements used to measureCollect data on measurements used to measureprogress decided in step twoprogress decided in step two

Analyze the results. Determine if the solution Analyze the results. Determine if the solution

tested was effectivetested was effective

Repeat prior steps as necessaryRepeat prior steps as necessary




Step sixStep six: Standardize the improvement: Standardize the improvement

Develop a plan for institutionalizing the improvementDevelop a plan for institutionalizing the improvementand assign responsibilitiesand assign responsibilities

Implement the plan, check to see that it has beenImplement the plan, check to see that it has been

successfulsuccessful


Step sevenStep seven: Reflect on process: Reflect on process



Step sevenStep seven: Reflect on process: Reflect on process

and develop future plansand develop future plans

Determine if the remaining gap should be narrowDetermine if the remaining gap should be narrowfurther further

Identify related problems that should beIdentify related problems that should be

addressedaddressed

Summarize lessons learned during the processSummarize lessons learned during the process

improvement project, make recommendations for improvement project, make recommendations for

future teamsfuture teams

Celebrate the contributions of the team.Celebrate the contributions of the team.


Illustration of the SevenIllustration of the Seven step Method to Estep Method to E MBAMBAIllustration of the SevenIllustration of the Seven step Method to Estep Method to E MBAMBA



Illustration of the SevenIllustration of the Seven--step Method to Estep Method to E--MBAMBAIllustration of the SevenIllustration of the Seven--step Method to Estep Method to E--MBAMBA

77--step method problem solving for Estep method problem solving for E--MBA is aMBA is asystematic one for improvement rather thansystematic one for improvement rather than

using the tools alone and intermittently.using the tools alone and intermittently.

In these steps, using the 7 tools of improvementIn these steps, using the 7 tools of improvement

for finding causes and solutionsfor finding causes and solutions

Where and which tools to use?Where and which tools to use?

There are other methods of problem solving butThere are other methods of problem solving butthe tools are useful there as well.the tools are useful there as well.




Other approaches to Process ImprovementOther approaches to Process Improvement

The PDCA CycleThe PDCA Cycle

P

(Plan)

D

(Do)

A

(Act)

C

(Check)

Quality

Steps 1,2 & 3 Step 4

Step 5Steps 6 & 7


PlPl DD Ch kCh k A t P dA t P dPlPl DD Ch kCh k A t P dA t P d



PlanPlan--DoDo--CheckCheck--Act ProcedureAct ProcedurePlanPlan--DoDo--CheckCheck--Act ProcedureAct Procedure

Plan. Recognize an opportunity and plan aPlan. Recognize an opportunity and plan a

change. change.

Do. Test the change. Carry out a smallDo. Test the change. Carry out a small--scalescalestudy. study.

Check. Review the test, analyze the results andCheck. Review the test, analyze the results and

identify what you¶ve learned. identify what you¶ve learned.


PlanPlan DoDo CheckCheck Act ProcedureAct ProcedurePlanPlan DoDo CheckCheck Act ProcedureAct Procedure



PlanPlan--DoDo--CheckCheck--Act ProcedureAct ProcedurePlanPlan--DoDo--CheckCheck--Act ProcedureAct Procedure

Act. Act.

Take action based on what you learned in theTake action based on what you learned in the

study step: If the change did not work, gostudy step: If the change did not work, go

through the cycle again with a different plan. If through the cycle again with a different plan. If

you were successful, incorporate what youyou were successful, incorporate what you

learned from the test into wider changes. Uselearned from the test into wider changes. Use

what you learned to plan new improvements,what you learned to plan new improvements,

beginning the cycle again. beginning the cycle again.


When to Use PlanWhen to Use Plan DoDo CheckCheck ActActWhen to Use PlanWhen to Use Plan DoDo CheckCheck ActAct



When to Use PlanWhen to Use Plan--DoDo--CheckCheck--ActActWhen to Use PlanWhen to Use Plan--DoDo--CheckCheck--ActAct

As a model for continuous improvement. As a model for continuous improvement. When starting a new improvement project. When starting a new improvement project.

When developing a new or improved design of aWhen developing a new or improved design of a

process, product or service. process, product or service.

When defining a repetitive work process. When defining a repetitive work process.

When planning data collection and analysis inWhen planning data collection and analysis in

order to verify and prioritize problems or rootorder to verify and prioritize problems or root

causes. causes. When implementing any change.When implementing any change.


The Philip Crosby Associates¶ Method for The Philip Crosby Associates¶ Method for



p yp y

eliminating Noneliminating Non--conformancesconformances

1 Define Situation

2 Fix Situation3 Identify Root

Causes

5 Evaluate and Follow Up

4 Corrective Action

Xerox¶s Quality Improvement ProcessXerox¶s Quality Improvement Process



5 Identify Process Steps

1 Identify Output

2 Identify Customers

3 Identify Requirements

4 Develop Specifications

6 Select Measurements

7 Determine Capability

Produce Output

8 Evaluate Results

9 Recycle

Problem SolveOK ?

OK ? Problem Solve




Organizations have customized the processOrganizations have customized the processimprovement model for their own use. Someimprovement model for their own use. Some

modified the terminology. Some reduced themodified the terminology. Some reduced the

number of steps by combining elements, andnumber of steps by combining elements, and

others increased the number of steps toothers increased the number of steps toexplicitly consider certain elements.explicitly consider certain elements.

These variants of the process improvementThese variants of the process improvement

model are all somewhat different from onemodel are all somewhat different from one

another but in essence they are all veryanother but in essence they are all verysimilar .similar .

Total Quality Management - 5.94Checklist of common Pitfalls to processChecklist of common Pitfalls to process



improvementimprovement

Although numerous problems will be Although numerous problems will be

encountered along the seven steps, thoseencountered along the seven steps, those

included in the checklist impact the earlyincluded in the checklist impact the early

steps and often cause irreparable damage.steps and often cause irreparable damage.

yy

TamperingTamperingyy Incomplete ownershipIncomplete ownership

yy Lack of expertiseLack of expertise

yy Imposed solutionImposed solution

yy ConstraintsConstraints

yy World hunger World hunger




Concluding remarksConcluding remarks

Systematic process improvement relies onSystematic process improvement relies onbuilding a fundamental understanding of building a fundamental understanding of

customers¶ requirements, process capability andcustomers¶ requirements, process capability and

the causes for the gaps between them. the causes for the gaps between them.

Hypotheses are developed and tested andHypotheses are developed and tested andimprovement gained through the continuous cycleimprovement gained through the continuous cycle

of planof plan--dodo--checkcheck--act. This systematic approachact. This systematic approach

bears striking contrast to the classic short cut of bears striking contrast to the classic short cut of

problem detection and subsequent solving, anproblem detection and subsequent solving, anapproach resembling planapproach resembling plan--dodo--planplan--do. do.




The sevenThe seven--step model was developed as astep model was developed as a

universal guide for systematic improvement. It canuniversal guide for systematic improvement. It can

be used to improve manufacturing as well as nonbe used to improve manufacturing as well as non--

manufacturing processes and helps assuremanufacturing processes and helps assureapplication of theapplication of the plan plan--dodo--check check--act act strategy.strategy.

Process Improvment TQM-Present5 (1)

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