kenneth j. andrews emp-5179-4-1 manufacturing systems: emp-5179 module #4: tq tools & techniques...

Kenneth J. Andrews EMP-5179-4-1

Manufacturing Systems: EMP-5179

Module #4: TQ Tools& Techniques

Dr. Ken AndrewsHigh Impact Facilitation

Fall 2010


EMP-5179: Module #4

Introduction to Total Quality (TQ)

Cycle-Time Reduction

Six Sigma & Defects

TQ Tools

Process Management & Improvement


Total Quality’s Goals

Use Total Quality to create a new culture of Continuous Improvement

Never satisfied with the way things are.

Know & be driven by your Customers’ requirements.

Improve processes to exceed expectations……and improve productivity

Measure improvements over time.

Deliver these goals with Teamwork.


Elements of TQM

Top management commitment and involvement

Customer involvement

Design products for quality

Design production processes for quality

Control production processes for quality

Developing supplier partnerships

Customer service, distribution, and installation

Building teams of empowered employees

Benchmarking and continuous improvement


Quality Drives the Productivity Machine

If production does it right the first time and produces products and services that are defect-free, waste is eliminated and costs are reduced.

Estimated that 20-25% of COGS in the US is spent on finding and correcting errors.

Quality management programs today are viewed by many companies as productivity improvement programs.


Steps to complete a task using people, equipment, and/or procedures. Material or information is

changed for a specific result. Definable Repeatable Measurable

OutputsInputs

What is a Process?


Cycle time reduction: fulfills customer

expectations increases responsiveness reduces defects reduces waste

Through Process Simplification

Defect elimination reduces:• process defects• product & service defects• cycle time• waste

Cycle Time Reduction and Defect Elimination


Baseline

Entitlement

Benchmark

Where you are today?

How good you can get?

Best in world

A measure of the currentperformance of a process

Best possible performancewith current resources

The world-class process,a reference for improvement

WorldClass

The Journey to Cycle Time Reduction


A step adds value if:

The Customer recognizes the value

It alters the ‘thing’ in the process

It is done right the first time

It is required by external law, regulation, policy..or by health and safety considerations

Defining Value-Added Work


The Facts: Shorter Cycle Time

Improves customer responsiveness– Delivers on-time– Meets customer needs before they change

Improves quality– Reduces opportunities for defects– Increases cycles of learning

Increases profit– Gets to market first– Uses fewer resources


““A comprehensive and flexible system for achieving, A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer is uniquely driven by close understanding of customer

needs, disciplined use of facts, data and statistical needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving analysis, and diligent attention to managing, improving

and reinventing business processes.”and reinventing business processes.”

-- The Six Sigma Way, by Pande, Newman and Cavanaugh

creating value for our customers

““Six Sigma”Six Sigma”: What is it?: What is it?


Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data.

What is Sigma?


The Statistical Tools of Six Sigma:


Cure Time of Silicone Sealant

Nu

mb

er o

f S

amp

les

Lower Specification Limit (LSL)

Upper Specification Limit (USL)


The Statistical Tools of Six Sigma:


PPM

100K

10K

1K

100

10

1 2 3 4 5 6 7

AverageCompany

Best inClass

Restaurant BillsDoctor Prescription WritingPayroll ProcessingOrder Write-upAirline Baggage Handling

Domestic AirlineFlight Fatality Rate

Tax Advice (Phone In)

Sigma

Sigma as a Measurement of Defects


The Cost of Poor Quality

Sigma Level Defects per Million Opportunities Cost of Poor Quality

2 398,537 (Noncompetitive Companies) Not applicable3 66,807 25-40% of sales4 6,210 (Industry Average) 15-25% of sales5 233 5-15% of sales6 3.4 (World Class) < 1% of sales

Each sigma shift provides a net income improvement which equals 10% of sales.

Six Sigma, by Harry and Schroeder, p. 17

creating value for our customers

Impact of Six Sigma


Net Result of 4 Sigma Performance

Warranty expense is unacceptably high.

Service engineers are stretched.

Sales force spends most of its time keepingCustomers pacified, instead of selling more products.

Customers are dissatisfied & unhappy.

Competitors are very happy.

Kenneth J. Andrews EMP-5179-4-19creating value for our customers

• The Six Sigma Way (ISBN 0-07-135806-4) by Pande, Neuman, and Cavanaugh

• The Power of Six Sigma (ISBN 0-7931-4434-5) by Subir Chowdhury

• Six Sigma (ISBN 0-385-49437-8) by Harry and Schroeder.

• The Six Sigma Handbook (ISBN 0-07-137233-4) by Pyzdek is more technical and becoming the 'handbook' for Black Belts.

Text References


Run Chart

Average

Time or Sequence

Measure

- - - - - - - - - - - - - - - - - - - - - - - - -

Run Chart / Control Chart

Average

Time or Sequence

Measure

- - - - - - - - - - - - - - - - - - - - - - - - -

UCL

LCL

Pareto Chart

CumulativePercent

50

40

30

20

10

a b c d e

0%

50%

100%

PercentContribution

Sub-Problem

Costs

Checksheets

Defect Type

Wrong Form

No Approval

Invalid Data

Not on File

Defect Count Subtotal

Date: 9/9/99Account Processing

Grand Total

15

13

8

5

41

Decision MatrixAlternatives

Criteria A B C

Defects

Cycle Time

Cost

Flexibility

25 36 42

Issues / Problems / Opportunities

Prioritize

Map / Flow -- ImplementProcess Flow Analysis

Current Process

Proposed Process

IDEAS

Histogram

Frequencyof Defect

Type of Defect to Measure (Temperature)

12

10

8

6

4

2

-10 0 10 15 20 25 30 35 40 45 50 55 60 65 70 75

NGT

Procedures People

Policy Plant

100%

80%

A Effect / Problem

Major Causes

MinorCauses

MinorCauses

Root Cause Analysis

MinorCause

MinorCause

MajorCause

MajorCause

MajorCause

MinorCause

Problem

MajorCause

Cause and Effect Diagram

Ishikawa diagram Fishbone diagram

CUSTOMERCUSTOMER

I Want

CUSTOMER

I Want


What is Root Cause Analysis?

Find the reasons for “events” or “mishaps”

Find at least one cause that can be acted upon such that it meets our goals and objectives, and is within our control

Purpose: prevent future (negative) events

“Give any good supervisor or manager a description of a problem in their area and they will most likely come up with a

solution. That's what is expected of them in our traditional style of management.

But most problems don't have a single root-cause. That's why they remain problems.”

Arthur M. Schneiderman

Analog Devices


Most Problems ……

Have more than a single cause

Are not resolved by the most obvious (first thought) solution

Require patience to fix

Have been ‘band-aided’ many times

Are not caused by ‘bad people’


Productive Root-Cause Analysis: Tips

Use a mind-map format (the ‘bone’ diagram is too restrictive)

Ask “why” to generate the first level of causes

Consider prioritizing to a manageable number

Start to ‘drill down’ on the major causes (new flip-chart)

Asking a simple ‘why?’ may not be effective; consider:“Why was that a problem?“Why did that happen?”“What caused that?”

Keep asking until you reach something you can fix

Check by backtracking:”if…then?”

Capture the conclusions (clean-up & summarize)


Real-World Flow-Charting: How?The neat, tidy clinical way

OR

The practical, useful, not-so-tidy way

Involve everyone who works the process

Record what actually happens … using Post-Its

Capture ‘wait/delay’ steps

Identify ‘hot-spots’

Avoid too much detail – start with ‘big picture’

One flip-chart is never enough

Confirm by being the thing going through the process


Input Output

Product / Services Product / Services

Activity

Process Management

Ensures focus on Customers

Identifies Customers / Suppliers and their requirements

Creates Customer oriented measurements

Highlights non-value add work and facilitates trade offs

Improves Teamwork - Participation

Fosters Continuous Improvement of your processes


Process Improvement Model

Continuous Improvement

“As Is” “To Be” GapAnalysis

Implementation

Why is the change needed?What problems are being addressed?Why are those problems there today?


Implement & Measure Improvements

Continuous Improvement

“As Is” “To Be” GapAnalysis

Implementation

Incremental change is more sustainable:• Course corrections are easier

• Pilot programs increase confidence.


Fast Track Process Improvement

What process?

Customer +requirements

Map currentprocess

Identifyhot-spots

Root-causeanalysis

Improvements toa) fix root causes b) meet C requirements

Metrics (1-3 months)

Communicate plan

Implement,measure,fine-tune


Fast Track Process Improvement

1. Clearly identify the process to be improved (start & end);communicate with up- and down-stream process managers.

2. Who is the (key) Customer – what are their requirements?

3. Map the current process (involve all stakeholders).

4. Identify “hot-spots” – maximum 3.

5. Perform root-cause analysis on all hot-spots.

6. Brainstorm & confirm improvements to the process(fix root-causes and satisfy Customer requirements).

7. Agree 1-3 month plan & improvement metrics (pilot?).

8. Communicate improvement plan.

9. Implement, measure, fine-tune.


Preparation for Next Class

Prepare an “As-Is” flowchart for Gen-X Manufacturing, identify the ‘hot-spots’ and their possible root-causes(we’ll discuss together in two weeks)

Watch for new articles/links on the website

Download material for module #5

Ideas for your term paper??

kenneth j. andrews emp-5179-4-1 manufacturing systems: emp-5179 module #4: tq tools & techniques...

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