2. 2
OBJECTIVES
Total Quality Management Defined
Quality Specifications and Costs
Six Sigma Quality and Tools
The Shingo System : Fail-Safe
ISO 9000 / ISO 14000
Kaizen & Continuous improvement
concepts
3. Total Quality Management
(TQM)
Total quality management is
defined as managing the entire
organization so that it excels on all
dimensions of products and
services that are important to the
customer
3
4. 4
Total Quality Management- TQM
Quality: Definition
Fitness for use
Meeting specifications & requirements
Customer satisfaction
Faith of user
Competitive cost & Reliability
Best at first
Pride for use
Consistency
Safety
5. 5
Total Quality Management- TQM
Quality: Definition
Fitness for use
Meeting specifications & requirements
Customer satisfaction
Faith of user
Competitive cost & Reliability
Best at first
Pride for use
Consistency
Safety
Right quality: Definition
– Suitability for it’s intended purpose
(Example:- M.D’s table Vs Classroom table)
6. 6
Methods of describing quality
Samples
Brand names
Specifications
Standards
Material specifications
Performance specifications
drawings
Industry
National
International
Market Grades
7. 7
Quality Specifications
Quality Characteristics
– Variables – characteristics that are measurable on a numerical scale –
e.g. dimensions
– Attributes – a characteristic that cannot be measured on a numerical
scale - e.g. the smell of a cologne is characterized as either acceptable
or not/ the color of a fabric is either acceptable or not
– Defect – a quality characteristic that does not meet certain standards
– Standard or specification – a set of conditions and requirements
– Quality of design – deals with the stringent conditions that the
product or service must minimally possess to satisfy the customer
requirements
– Quality of conformance
– Quality of performance - is concerned with how well the product
functions or service performs when put to use - It measures the degree
to which the product or service satisfies the customer
8. 8
Quality Control & Quality Assurance
Quality Assurance
Definition: All those planned or systematic actions necessary to provide confidence
that a product or service will satisfy given needs
Evolution of Q.A
–
–
–
Inspection – oriented Quality Assurance
Process control –oriented Quality Assurance
New product development based Quality Assurance
Objective: of Q.A function is to have in place a formal system that continuously
surveys the effectiveness of the company quality philosophy
Function: The Q.A Team audits the various departments and assists them in meeting
their responsibilities for producing a quality product
Comparative Stance
Quality Assurance – Preventive
Quality Control
- Curative
(Popular saying – “Prevention better than Cure”)
9. Costs of Quality
Appraisal Costs
External Failure
Costs
Costs of
Quality
Internal Failure
Costs
Prevention Costs
9
10. 10
Six Sigma Quality
A philosophy and set of
methods companies use to
eliminate defects in their
products and processes
Seeks to reduce variation
in the processes that lead
to product defects
The name, “six sigma”
refers to the variation that
exists within plus or minus
three standard deviations
of the process outputs
11. 11
What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products / processes that perform at high
standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:
• A standard
• A certification
It is Another metric like percentage
12. 12
The evolution of Quality Systems
2000 and beyond
1987 and beyond
Six Sigma
1960-1980’s
Total Quality
Management
1940-1960’s
1920-1940’s
Quality as
Inspection
Statistical
process
control
Zero defects
Lean Six
Sigma
• Lean
manufacturing
(TPM, JIT, SCM) +
Six sigma
• Optimized flow
from the customer
point of view
Organizations tuned
towards quality –
Quality assurance
Using statistical
techniques for
reducing variability –
Quality control
Time
13. 13
Path to Six Sigma
6 Sigma
Sigma levels and
Defects per million
opportunities (DPMO)
5 Sigma
4 Sigma
3 Sigma
2 Sigma
3.4 Defects
233 Defects
6,210 Defects
66,807 Defects
308,537 Defects
14. 14
Origin of Six Sigma
Motorola
Motorola
the company that invented Six Sigma
the company that invented Six Sigma
• The term “Six Sigma” was coined by Bill Smith, an engineer with
Motorola
• Late 1970s - Motorola started experimenting with problem solving
through statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program
15. 15
The Growth of Six Sigma
GE
GE
the company that perfected Six Sigma
the company that perfected Six Sigma
• Jack Welch launched Six Sigma at GE in Jan,1996
• 1998/99 - Green Belt exam certification became the criteria for
management promotions
• 2002/03 - Green Belt certification became the criteria for promotion to
management roles
17. 17
The Growth of Six Sigma
The GE model for process improvements
D efine
M easure
A nalyze
I mprove
C ontrol
Combination of change management & statistical analysis
18. 18
Six Sigma Quality: DMAIC
Cycle
Define, Measure, Analyze, Improve, and Control
(DMAIC)
Developed by General Electric as a means of
focusing effort on quality using a methodological
approach
Overall focus of the methodology is to understand
and achieve what the customer wants
A 6-sigma program seeks to reduce the variation
in the processes that lead to these defects
DMAIC consists of five steps….
19. Six Sigma Quality: DMAIC
Cycle (Continued)
1. Define (D)
Customers and their priorities
2. Measure (M)
Process and its performance
3. Analyze (A)
Causes of defects
4. Improve (I)
Remove causes of defects
5. Control (C)
Maintain quality
19
20. 20
Analytical Tools for Six Sigma and
Continuous Improvement: Flow Chart
Material
Received
from
Supplier
No,
Continue…
Inspect
Material for
Defects
Defects
found?
Yes
Can be used to
Can be used to
find quality
find quality
problems
problems
Return to
Supplier
for Credit
21. 21
Diameter
Analytical Tools for Six Sigma and
Continuous Improvement: Run Chart
0.58
0.56
0.54
0.52
0.5
0.48
0.46
0.44
Can be used to identify
Can be used to identify
when equipment or
when equipment or
processes are not
processes are not
behaving according to
behaving according to
specifications
specifications
1
2
3
4
5
6
7
8
Time (Hours)
9
10 11 12
22. 22
Analytical Tools for Six Sigma and
Continuous Improvement: Pareto Analysis
80%
Frequency
Can be used
Can be used
to find when
to find when
80% of the
80% of the
problems
problems
may be
may be
attributed to
attributed to
20% of the
20% of the
causes
causes
Design
Assy.
Instruct.
Purch.
Training
23. Analytical Tools for Six Sigma
and Continuous Improvement:
Checksheet
Monday
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Can be used to keep track of
Can be used to keep track of
defects or used to make sure
defects or used to make sure
people collect data in a
people collect data in a
correct manner
correct manner
23
24. Number of Lots
Analytical Tools for Six Sigma
and Continuous Improvement:
Histogram
24
Can be used to identify the frequency of quality
Can be used to identify the frequency of quality
defect occurrence and display quality
defect occurrence and display quality
performance
performance
0
1
2
Data Ranges
3
4 Defects
in lot
25. Analytical Tools for Six Sigma and
Continuous Improvement: Control
Charts
25
Can be used to monitor ongoing production process
Can be used to monitor ongoing production process
quality and quality conformance to stated standards of
quality and quality conformance to stated standards of
quality
quality
1020
UCL
1010
1000
990
LCL
980
970
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15
26. Analytical Tools for Six Sigma
and Continuous Improvement:
Cause & Effect Diagram
Possible causes:
Possible causes:
Machine
Man
The results
The results
or effect
or effect
Effect
Environment
Method
Material
Can be used to systematically track backwards to
Can be used to systematically track backwards to
find a possible cause of a quality problem (or
find a possible cause of a quality problem (or
effect)
effect)
26
27. 27
Other Six Sigma Tools
Failure Mode and Effect Analysis (FMEA)
is a structured approach to identify,
estimate, prioritize, and evaluate risk of
possible failures at each stage in the
process
Design of Experiments (DOE) a statistical
test to determine cause-and-effect
relationships between process variables
and output
28. 28
Six Sigma Roles and
Responsibilities
1.
2.
3.
4.
Executive leaders must champion
the process of improvement
Corporation-wide training in Six
Sigma concepts and tools
Setting stretch objectives for
improvement
Continuous reinforcement and
rewards
29. The Shingo System: Fail-Safe
Design
Shingo’s argument:
–
–
–
SQC methods do not prevent defects
Defects arise when people make errors
Defects can be prevented by providing
workers with feedback on errors
Poka-Yoke includes:
– Checklists
– Special tooling that prevents workers from
making errors
29
30. Zero-Defect Concept
(Total Error-free performance)
• Origin- Missile Industry / later Aviation
Industry
• “ To Err is Human” – Training to erase the
myth
• Employee awareness programme - direct
contribution to the product performance
31. 31
ISO 9000
Series of standards agreed upon by the
International Organization for
Standardization
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to "document
what you do and then do as you
documented"
32. 32
Three Forms of ISO
Certification
1. First party: A firm audits itself against
ISO 9000 standards
2. Second party: A customer audits its
supplier
3. Third party: A "qualified" national or
international standards or certifying
agency serves as auditor
33. ISO 14000
Quality Management Systems
ORIGIN
•
•
Primarily as a result of Uruguay round of GATT negotiations and RIO
summit on environment in 1992.
Released in the year 1996 as a Global series of Environmental
management system standards.
HOW MANY STANDARDS IN EMS ?
•
•
Totally 12 standards (14000 – 14060)
ISO 14001 is the most critical (“Environmental Management Systems –
specifications with guidance for use”)
ISO 14000- WHAT DOES IT COVER AND ACHIEVE ?
•
•
•
•
•
Starts with “environmental policy”
Provides a framework for organization to demonstrate their commitment
to environmental responsibility
Establishes targets and objectives relates to identified environmental
management goals.
Environmental auditing, environmental labeling, life cycle assessment
etc.,
Prevents pollution , reduced waste and create a good public image.
33
34. 34
Question Bowl
a.
b.
c.
d.
e.
Which of the following are
Dimensions of Design Quality?
Performance
Durability
Aesthetics
All of the above
None of the above
Answer: d. All of the above
35. 35
Question Bowl
Approximately what percentage of
every sales Rupee is allocated to
the “cost of quality”?
a. Less than 5%
b. About 10%
c. Between 15 and 20 %
d. More than 30%
e. None of the above
Answer: c. Between 15 and 20 % (for cost of
reworking, scrapping, repeated service, etc.)
36. 36
Question Bowl
a.
b.
c.
d.
e.
Which of the following are
classifications of the “cost of
quality”?
Appraisal costs
Prevention costs
Internal failure costs
External failure costs
All of the above
Answer: e. All of the above
37. 37
Question Bowl
a.
b.
c.
d.
e.
Which of the following are functions of
a quality control department?
Testing product designs for reliability
Gathering product performance data
Planning and budgeting the QC
program
All of the above
None of the above
Answer: d. All of the above
38. 38
Question Bowl
a.
b.
c.
d.
e.
Which of the following is a Critical
Customer Requirement (CCR) in the
context of a Six Sigma program?
DMAIC
Answer: e. None of the
DPMO
above (The CCR is the
PDCA
criteria that is used to
DOE
None of the above define desired quality.
Processing a loan in 10
days is an example of a
CCR.)
39. 39
Question Bowl
a.
b.
c.
d.
e.
The DMAIC cycle of Six Sigma is
similar to which of the following
quality management topics?
Continuous improvement
Servqual
ISO 9000
External benchmarking
None of the above
Answer: a. Continuous improvement
40. 40
Question Bowl
The “A” in DMAIC stands for which of
the following?
a. Always
b. Accessibility
c. Analyze
d. Act
e. None of the above
Answer: c. Analyze (Define, Measure,
Analyze, Improve and Control)
41. 41
Question Bowl
Which of the following analytical
tools depict trends in quality data
over time?
a. Flowcharts
b. Run charts
c. Pareto charts
d. Checksheets
e. Cause and effect diagrams
Answer: b. Run charts
