MTSU 1 Quality Tools. MTSU 2 Plan Do Study Act The PDSA Cycle.

1MTSU

Quality ToolsQuality Tools

2MTSU

Plan

Do

Study

Act

The PDSA CycleThe PDSA Cycle

3MTSU

The Process Improvement The Process Improvement CycleCycle

Implement theImproved process

Select aprocess

Study/document

Seek ways toImprove it

Design anImproved process

Evaluate

Document

4MTSU

Process Improvement Process Improvement ToolsTools

• There are a number of tools that can be used for problem solving and process improvement

• Tools aid in data collection and interpretation, and provide the basis for decision making

5MTSU

Seven Basic Quality ToolsSeven Basic Quality Tools

1. Check sheets2. Flowcharts3. Scatter diagrams4. Histograms5. Pareto analysis6. Control charts7. Cause-and-effect diagrams

6MTSU

Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

Check SheetCheck Sheet

7MTSU

FlowchartFlowchart

Process Good? Process Good? Process

Process

8MTSU

Scatter DiagramScatter Diagram

Variable A

Variable B

9MTSU

HistogramHistogram

frequency

A B C D E

10MTSU

80% of the problems may be attributed to 20% of thecauses.

80% of the problems may be attributed to 20% of thecauses.

Smearedprint

Nu

mb

er o

f d

efec

ts

Offcenter

Missinglabel

Loose Other

Pareto AnalysisPareto Analysis

11MTSU

970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

UCL

LCL

Control ChartControl Chart

12MTSU

Cause-and-Effect DiagramCause-and-Effect Diagram

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

13MTSU

Tracking ImprovementsTracking Improvements

UCL

LCL

LCLLCL

UCLUCL

Process not centeredand not stable

Process centeredand stable

Additional improvementsmade to the process

14MTSU

Seven Management ToolsSeven Management Tools

1. Affinity Diagram2. Interrelationship Diagraph3. Tree Diagrams4. Prioritization Matrices5. Matrix Diagram6. Process Decision Program Chart7. Activity Network Diagram

15MTSU

Methods for Generating Methods for Generating IdeasIdeas

• Brainstorming• Quality circles• Interviewing• Benchmarking• 5W2H

16MTSU

A Brief History of QualityA Brief History of Quality

17MTSU

America Re-discovers America Re-discovers DemingDeming

18MTSU

… … and Juranand Juran

19MTSU

Rediscovering the GurusRediscovering the Gurus

• Deming– Emphasis on Statistical Control– 14 Points for Management

• Juran– Quality Planning and Analysis– Managerial Breakthrough– Quality Control Handbook

21MTSU

22MTSU

23MTSU

24MTSU

25MTSU

26MTSU

27MTSU

28MTSU

29MTSU

30MTSU

Statistics

31MTSU

32MTSU

What Types of Companies What Types of Companies Can Benefit from Six Can Benefit from Six

Sigma?Sigma?• Companies that benefit from structured

organizational improvement• Companies that need to improve customer

satisfaction• All types of companies can benefit:

– Manufacturing– Service – Non-profit– Educational

33MTSU

What is Six Sigma?What is Six Sigma?

A. Customer Focus – Focus on what is critical to customers

B. Data Driven – Extensive use of statistical tools

C. Robust Methodology – Tools plus implementation methods to make success more likely

34MTSU

What is Six Sigma?What is Six Sigma?Key ConceptsKey Concepts

1. Critical to Quality: What attributes are most important to the customer? (CTQ, CTC, CTD)

2. Defect: Failing to deliver what the customer wants / expects (DPMO)

3. Variation: The level of unpredictability the customer experiences

35MTSU

What is Six Sigma?What is Six Sigma? Key ConceptsKey Concepts

5. Process Capability: What your process can deliver – consistently

6. Stable Operations: Stable ops are predictable

7. Design for Six Sigma: Designing to meet customer needs and process capability

36MTSU

DMADV - DMAICDMADV - DMAIC

Define

Design

Verify

Measure

Analyze

Define

Improve

Control

Measure

Analyze

New Processes Existing Processes

37MTSU

Statistics LiteStatistics LiteCentered Centered ProcessProcess

LSL USL

38MTSU

Statistics LiteStatistics Lite Centered Centered ProcessProcess

LSL USL

39MTSU


LSL USL

Non-conformingProduct

1,300 DPMO

40MTSU


LSL USL


2,600 DPMO

41MTSU

Statistics LiteStatistics Lite Shifted Shifted ProcessProcess

LSL USL

1.5 mean shift

42MTSU


LSL USL


66,800 DPMO

1.5 mean shift

43MTSU


Cost to your company – 15-30% of sales

LSL USL


66,800 DPMO

1.5 mean shift

44MTSU

Cost of Poor QualityCost of Poor Quality

Lost Opportunity

DowntimeRework

InspectionOvertime

Rejects

Lost sales

Late delivery

Long cycle times

Expediting costs Inaccurate Reports

(less obvious)

Lost Customer Loyalty

Redundant Operations

Cost of Capital

Excessive Planning

5-8% ofSales

15-22%of Sales

45MTSU

Statistics LiteStatistics Lite Centered 6Centered 6ProcessProcess

LSL USL

46MTSU

Statistics LiteStatistics Lite Shifted 6Shifted 6ProcessProcess

LSL USL

1.5 mean shift

47MTSU

Statistics LiteStatistics Lite Shifted 6Shifted 6ProcessProcess

LSL USL

1.5 mean shift


3.4 DPMO

48MTSU

99.99966% (6 Sigma)

• 20,000 lost articles of mail per 20,000 lost articles of mail per hourhour

• 5,000 incorrect surgical 5,000 incorrect surgical operations per weekoperations per week

• Two short or long landings at Two short or long landings at most major airports each daymost major airports each day

• 200,000 wrong drug prescriptions 200,000 wrong drug prescriptions each yeareach year

• No electricity for almost seven No electricity for almost seven hours each monthhours each month

• Seven articles lost per hourSeven articles lost per hour

• 2 incorrect operations per week 2 incorrect operations per week

• One short or long landing every One short or long landing every five yearsfive years

• 70 wrong prescriptions per year70 wrong prescriptions per year

• One hour without electricity every One hour without electricity every 34 years34 years

99% (3.8 Sigma)

Why Six Sigma?Why Six Sigma?

49MTSU

Six Sigma Six Sigma Breakthrough StrategyBreakthrough Strategy

• Define• Measure• Analyze• Improve• Control

50MTSU

DMADV - DMAICDMADV - DMAIC

Define

Design

Verify

Measure

Analyze

Define

Improve

Control

Measure

Analyze

Existing ProcessesNew Processes

51MTSU

Define - Selecting ProjectsDefine - Selecting Projects

• The project must relate to customer satisfaction

• The project’s results must reduce defects by some threshold amount

• The project should achieve some threshold of cost savings.

52MTSU

Criteria for Project Criteria for Project SelectionSelection

• Does it involve recurring events?

• Is the scope narrow?• Do measures exist? • Do you have control of the

process?

53MTSU

Define Phase, ContinuedDefine Phase, Continued

• If these criteria are met then:1) Identify the customers involved, both internal and external to the function.2) Find out what the customer’s CT’s are (Critical to Quality, Critical to Delivery, Critical to Cost, etc). 3) Define the project scope and goals.4) Map the process to be improved.

54MTSU

Define Phase - ToolsDefine Phase - Tools

• Project Charter• Stakeholder

Analysis• Affinity Diagram• SIPOC• Voice of the

Customer• CT Tree

• Kano Model• SWOT Analysis• Cause-and-Effect

Diagrams• Supplier

Segmentation • Project

Management

55MTSU

CharterCharter

• Problem statement• Business case• Goals, milestones,

success criteria, & deliverables

• Project scope / boundaries

• Roles & responsibilities

• Stakeholder support / approval needed

56MTSU

Define PhaseDefine PhaseCharter DevelopmentCharter Development

Charter – An agreement between management and project team members about what the team will accomplish.

57MTSU

Charter: Providing Charter: Providing DirectionDirection

You have to be careful if you don’t know

where you’re going, ...

because you might not get

there.

58MTSU

Define Phase Define Phase Charter – What it doesCharter – What it does

• Clarifies expectations (what and why)

• Keeps team focused – Reduces tampering– Reduces wandering– Reduces goal creep

• Transfers ownership from management to team

59MTSU

Define Phase Define Phase Charter – What it doesCharter – What it does

• Provides overview of purpose• Describes why you are working on

this project (business case)• Defines scope of project• Determines deliverables• Defines measures of success• Determines resources available

60MTSU

Business CaseBusiness Case

Potential Improvement

Potential Impact

Improve quality Reduce cost, inventory

Improve OTD Shortages , inventory Select better suppliers Q, $, LT, reduce

inventory

Implement rating system

Improve supply efficiency, better suppliers

Reduce price Reduce cost

61MTSU

Define Phase - ToolsDefine Phase - Tools

• Project Charter• Stakeholder

Analysis• Affinity Diagram• SIPOC• Voice of the

Customer• CT Tree

• Kano Model• SWOT Analysis• Cause-and-Effect

Diagrams• Supplier

Segmentation • Project

Management

62MTSU

SIPOC ExampleSIPOC Example

Suppliers Inputs Processes Outputs Customers

Ops Mgt Supplier Perf.

SupplierEvaluation

Survey Ops Mgt

Buyers Complaints

Rating system

Buyers

Engrg. Tech Reqts

Improved Supplier Perform.

Engineering

Mfg. Rating system

Commit. to suppliers

Mfg.

Suppliers Supplier Complaints

Suppliers

63MTSU

SWOT AnalysisSWOT Analysis

Positive Negative

Internal Strengths Weaknesses

External Opportunities

Threats

64MTSU

Define OutputsDefine Outputs

• Once completed, the Define Phase should answer the following questions:1) Who is the customer?2) What matters?3) What is the scope?4) What defect am I trying to reduce?5) What are the improvement targets?

65MTSU

Define PhaseDefine Phase Toll Gate ReviewToll Gate Review

• Submit project storyboard to sponsor

• Toll Gate review presentation• Sponsor provides feedback• Project corrections are made prior

to proceeding to the next phase

66MTSU

The Measure PhaseThe Measure Phase

• Purpose– To collect current performance of the

process identified in the Define phase

– This data is used to determine sources of variation and serve as a benchmark to validate improvements

67MTSU

MeasurementsMeasurements

• Benefits of having good data need to outweigh the costs of getting it

• What does this measure do for the Project?

68MTSU

The Measure PhaseThe Measure Phase

• Upon completion of the measure phase, Project Teams will have:

»A plan for collecting data that specifies the type of data needed and techniques for collecting the data

»A validated measurement system that ensures the accuracy and consistency of the data collected

»A sufficient data set for problem analysis

69MTSU

Measure - Key ConceptsMeasure - Key Concepts

• Measurement• Variation

– Exists naturally in any process and is the reason Six Sigma projects are undertaken

• Data• Data Collection Plan• Measurement System Analysis

– Ensures measurement techniques are reproducible and repeatable

70MTSU

Recording MeasurementsRecording Measurements

• 3 stages– The output stage

»These tell how well customer needs are being met

– Parts of the process»These are taken at critical points in the

process

– The input stage»These evaluate contributions to the process

that are turned into value for the customer

71MTSU


• Output Stage– Shortages– Line shutdowns– Quality – discrepant material– Material price variances– Internal customer survey

72MTSU


• Parts of the process– Project milestones– Supplier ship on time performance– Supplier OTD– Supplier internal throughput yield– Supplier suggested cost reductions

73MTSU


• The input stage– Supplier base size– % Buyers with degrees– % of spend covered by LTC’s– % of spend from reverse auction– Supplier FMEA’s

74MTSU

Operational DefinitionsOperational Definitions

Walter Shewhart, the inventor of statistical process control,

believed his work on operational definitions to be of

greater importance than his work on control charts.

75MTSU


“An operational definition is a procedure agreed upon for

translation of a concept into measurement of some kind.”

Operational definitions should be valid and reliable.

Deming, 1986

76MTSU

Operational Definitions?Operational Definitions?

Slump, I ain’t in no slump. I just ain’t

hitting.

77MTSU


• On-Time Delivery• On-Time Payment• Late• Defective• Clean• Good communication• Engineering support

Do you, your management, and your Do you, your management, and your suppliers agree on these definitions? suppliers agree on these definitions?

78MTSU

Determining Data TypeDetermining Data Type

• What do we want to know?

• Review materials developed during design phase

• What characteristics do we need to learn more about?

79MTSU

Data Collection PlanData Collection Plan

• What data will be collected?• Why is it needed?• Who is responsible?• How will it be collected?• When will it be collected?• Where will it be collected?

80MTSU

Measurement System Measurement System AnalysisAnalysis

• After Data Collection Plan is complete, it needs to be verified before actual data is collected

• MSA is performed on a regular basis

• MSA ends when a high level of confidence is reached that the data collected accurately depicts the variation in the process

81MTSU

Analyze PhaseAnalyze Phase

• The analyze phase allows the Project Team to target improvement opportunities by taking a closer look at the data.

82MTSU

Analyze PhaseAnalyze Phase

• Capability Analysis - establishing current performance level

• Graphical Analysis - a visual indication of performance using graphs

• Root Cause Analysis – developing a hypothesis about the causes of variation

• Root Cause Verification – verifying that the planned action will generate the desired improvement

83MTSU

Process CapabilityProcess Capability

When selecting a process to perform an operation, the inherent variability of process output should

be compared to the range or tolerances allowed by the designer’s specifications.

84MTSU

Process CapabilityProcess Capability

LowerSpecification

UpperSpecification

A significant portion of the process output falls outside of the specification width

In other words, is the process capable of producing the item

within specifications?

Much of the process output fits within specification width

Almost all of the process output fits within the specification width

process distribution

85MTSU

Analyze PhaseAnalyze Phase Cause HypothesesCause Hypotheses

• Identifying Obvious Process Problems– Disconnects– Bottlenecks– Redundancies– Unnecessary distance– Rework– Decision points

Process Map Review

86MTSU


• Quantifying Value-Added Steps– Value-Adding– Value-Enabling– Non-Value-Adding

Process Map Review

87MTSU


• Process Time Analysis– Work time (value, but often only 5%)– Wait (& queue) time (usually dominates)– Setup time (tremendous leverage)– Move time (process dependent)

88MTSU

Analyze PhaseAnalyze Phase ToolsTools

• Brainstorming . . . And beyond!• Process Maps• Cause-and-Effect Diagrams• Focused Problem Statement• Statistical Tools

89MTSU

Cause-and-Effect Diagrams Cause-and-Effect Diagrams Supplier Failure - CausesSupplier Failure - Causes

People

Materials

Equipment

Processes

Environment

Measurement

FireEarthquake

Mat'l price increase

Bankruptcy

Illness

Turnover

Process upset Commodity allocation

Bad specs

Inaccurate PO

New employees

New source

IncompetenceIncapable equip

Lack of PM

FraudLawsuit

Tornado

Flood

StrikeStrikeBusiness down

Business up

Different standards

90MTSU

Elements of Improve Elements of Improve PhasePhase

Generate Improvement Alternatives

Create a “Should Be” Process Map Conduct FMEA Perform Cost/Benefit Analysis Pilot Validate Improvement

91MTSU

Improve PhaseImprove PhaseElementsElements

Generate Improvement Alternatives

Create a “Should Be” Process Map Conduct FMEA Perform Cost/Benefit Analysis Pilot Validate Improvement

92MTSU

Failure Modes Effects Failure Modes Effects AnalysisAnalysis

• Identify failure modes – How can this product or process fail?

• Identify failure effects – What happens when this failure occurs?

• Identify potential causes of the effects & their probability of occurring.

• Rate the likelihood of detecting the occurrence.

93MTSU

FMEA - OutputFMEA - Output

• Ranked list of products that contribute to risk

• List of actions and persons responsible for addressing the risk

• Revised ranked priority list

94MTSU

Improvement PhaseImprovement PhaseMethodsMethods

UCL

LCL

LCLLCL

UCLUCL

Process not centeredand not in control

Process centeredand in control

Evidence of additional improvements

95MTSU

Review of Improvement Review of Improvement PhasePhase

• Generate Improvement Alternatives

• Create a “Should Be” Process Map• Conduct FMEA• Perform Cost/Benefit Analysis• Pilot• Validate Improvement

96MTSU

Generating Improvement Generating Improvement AlternativesAlternatives

Define Improvement Criteria Generate Possible Improvements Evaluate Improvements and Make

Best Choice

97MTSU

PilotPilot

Benefits of Pilot• Determine best way to implement the

improvement• Lowers risk of failure• Increases opportunity for feedback• Obtain buy-in from affected personnel• Provides opportunity to revise the

improvement before full implementation

98MTSU

Stakeholder AnalysisStakeholder Analysis

People or Groups

Level of Commitment

Buy Mfg Eng

Enthusiastic Support

Help it work

Compliant

Hesitant X

Indifferent

Uncooperative X

Opposed

Hostile X

99MTSU

Review of Implementation Review of Implementation PhasePhase

• Generate Improvement Alternatives

• Create a “Should Be” Process Map• Conduct FMEA• Perform Cost/Benefit Analysis• Pilot• Validate Improvement

100MTSU

Control PhaseControl PhaseWhy is it important?Why is it important?

• The Control Phase begins as the project team tries to eliminate errors by “Mistake Proofing” their improvement alternative.

• Mistake Proofing attempts to eliminate the opportunities for error.

101MTSU

Control PhaseControl PhaseWhy is it important?Why is it important?

• Mistake Proofing tries to make it impossible for an operation to be performed incorrectly, and/or correct errors before they are passed to the next worker, where they might become a defect.

102MTSU

Control Phase #2Control Phase #2

• During the Control Phase the Project team will:1) Develop a plan to make sure the measurement system will remain relevant over the long term.2) Establish Control Charts the process owner will use to manage the process.3) Create a Reaction Plan to address situations that might cause the process to move out of control.

103MTSU


• The Control Phase ends when:1) Standard Operating Procedures have been updated.2) Process Operators, the people who do the job, have been trained for the new process.

• Once completed, the Control Phase should sustain the gains the project made while implementing ongoing process controls.

104MTSU


• When is a project complete?1) When other Black Belts can see the ongoing controls work2) When the customer sees the results3) When the business sees the money.

105MTSU

Six Sigma Six Sigma Six Sigma PeopleSix Sigma People

• Executives• Champions (deployment, project)• Master Black Belts• Black Belts• Green Belts

106MTSU

Control PhaseControl Phase MethodsMethods

• During the Control Phase the Project team will:1) Develop a plan to make sure the measurement system will remain relevant over the long term.2) Establish Control Charts the process owner will use to manage the process.3) Create a Control Plan to address situations that might cause the process to move out of control.

107MTSU

Statistical Process Control Statistical Process Control (SPC)(SPC)

• Chance variations are the many sources of variation within a process that is in statistical control. They behave like a constant system of random chance causes.

• If only natural causes of variation are present, the output of a process forms a distribution that is stable over time and is predictable.

108MTSU

Statistical Process Control Statistical Process Control (SPC)(SPC)

• Assignable variation in a process can be traced to a specific reason. Machine wear Misadjusted equipment Fatigued or untrained workers

• If assignable causes of variation are present, the process output is not stable over time and is not predictable.

109MTSU

SPC - Assignable CausesSPC - Assignable Causes

The operational definition of assignable variation is variation that causes out-of-control points on a control chart.

110MTSU

Natural Patterns or VariationsNatural Patterns or Variations

Natural patterns exhibit the following characteristics:

• Most of the points are near the centerline.• A few points spread out and approach the control

limits.• None (or only on rare occasions) of the points

exceeds the control limits.

Reference: Statistical Quality Control Handbook, Western Electric

111MTSU

Unnatural Patterns or Unnatural Patterns or VariationsVariations

Unnatural patterns exhibit the following characteristics:

• Absence of points near the centerline produces a pattern known as a “mixture.”

• Absence of points near the control limits produces an unnatural pattern known as “stratification.”

• Presence of points outside of the control limits produces an unnatural pattern known as “instability.”

Reference: Statistical Quality Control Handbook, Western Electric

112MTSU

Tests for Unnatural PatternsTests for Unnatural Patterns

• Instability– A single point falls outside of the 3 sigma control

limits.– Two out of three successive points fall in the outer one third

of the control limits.– Four out of five successive points fall in the outer two thirds

of the control limits.– Eight successive points fall on one side of the centerline.

• Systematic variable– A long series of points are high, low, high, low without

interruption.Reference: Statistical Quality Control Handbook, Western Electric

113MTSU

Statistical Process ControlStatistical Process ControlWhy use averages?Why use averages?

• To create a normal distribution

• Averages are more sensitive to change than individuals

114MTSU

Central Limit Theorem Central Limit Theorem SimulationSimulation

The distribution of a sample approaches normal even when the parent population is not normally distributed.

115MTSU

UCL

LCL

x-Chart

UCL

LCL

R-chart

Drift Detected

No drift detected

process mean drifting upward

ProcessDistribution

Control Phase Control Phase Mean and Range ChartsMean and Range Charts

116MTSU

UCL

LCL

R-chart

UCL

LCL

x-Chart

process variability increasing

Control Phase Control Phase Mean and Range ChartsMean and Range Charts

ProcessDistribution

No shift detected

Increase detected

117MTSU

Statistical Process ControlStatistical Process Control

• Tolerance or specification limits– Defined by an engineer– Related to product design

requirements

• Control limits– Defined by the process– Related to the variation in the process– Unrelated to product needs

118MTSU

Control PhaseControl Phase Control PlansControl Plans

• Structured approach for designing value added control methods

• Control actions necessary to ensure output quality

• May include controls anywhere in the process

119MTSU

Control Phase Control Phase Radar ChartRadar Chart

0123456F1

F2

F3F4

F5

Baseline Current

05

101520Cust-1

Cust-2

Cust-3

Cust-4

Baseline Current

0123456Jane

Sally

TomSteven

Jose

Baseline Current

Product Features -

Data Entry Errors

Days Late

0100000200000300000400000500000

P1

P2

P3

P4

P5

P6

Threshold Actual

Savings by Project

120MTSU

Control Phase Control Phase Radar ChartRadar Chart

0123456S1

S2

S3

S4

S5

S6

Q1 Q2 Q3

Defect Levels by Supplier

121MTSU

Final Toll Gate ReviewFinal Toll Gate Review

• Submit project storyboard to sponsor• Toll Gate review presentation

– Did the team carry out the agreed upon tasks?

– Did the team achieve the desired results?

• Sponsor provides feedback• Project corrections are made prior to

termination or proceeding to next cycle

122MTSU

Why TQM FailsWhy TQM Fails

• Lack of Top Management Commitment

• Wasted Education & Training

• Lack of Short-Term Results

• Failure to Empower EmployeesBrown, Hitchcock, and Willard - 1994

CommitmentUp Front

AppropriateTraining

Biz CaseThreshold

Charter

123MTSU

Why Six Sigma FailsWhy Six Sigma Fails(and it does)(and it does)

• Lack of Top Management Commitment

• Interdepartmental / cross-functional issues

• Communication• People

124MTSU

Quality ToolsQuality Tools

Kimball Bullington, Ph.D.

125MTSU

References

Books:• Six Sigma Pocket Guide (Rath & Strong’s)• The Black Belt Memory Jogger (GOAL / QPC)• Six Sigma (Harry and Schroeder)• Implementing Six Sigma (Breyfogle)• The Six Sigma Way Team Fieldbook (Pande, et al)• The Vision of Six Sigma: A roadmap for breakthrough

(Harry)• Why TQM Fails and What To Do About It (Brown,

Hitchcock, & Willard)

Web sites:• www.isixsigma.com• www.ge.com/sixsigma• www.asq.org• www.aiag.org

MTSU 1 Quality Tools. MTSU 2 Plan Do Study Act The PDSA Cycle.

Documents

Transcript of MTSU 1 Quality Tools. MTSU 2 Plan Do Study Act The PDSA Cycle.