Process – Is a sequence of linked activities To apply techniques of Process

that is intended to achieve some results Management Process must be:

Process Involve - Repeatable
- Measurable
- Combination of people
- Machines, tools, materials “Unless you change the process why would
- Techniques you expect the result to change”
- Improvement in a defined series of
Repeatable – means the process must
the steps and actions
recur over time
Common Types of Production Processes
Measurement – provides the ability to
- Machining capture important quality and
- Mixing performance indicates to reveal patterns
- Assembly about performance
- Filling orders
Process and Requirements
- Approving loans
- It includes acquiring customer and
Process Management
market knowledge, strategic
- Involves planning and administering planning, research and
the activities necessary to achieve development
high level of performance
These Processes Fall into 2 categories:
Process Management 3 Major Activities
1. Value Creation Process (core
1. Design – focuses on ensuring that the process)
inputs to the process, such as - Maintaining or achieving a
materials, technology, work methods sustainable competitive advantage
and trained workforce - Are driven by consumer or external
2. Control – Focuses in maintaining consumer needs.
consistency in output by assessing
Value Creation Process Include
performance and taking corrective
action when necessary - Product Design – Involve all activities
3. Improvement – focuses on that are performed to incorporate
continually seeking to achieve customer requirements, new
higher level of performance technology and organizational
knowledge
Cycle Time – refers to the time it takes to
- Production/Delivery – create or
accomplish one cycle of a process.
deliver the actual product
Process Owners – are accountable for 2. Support Processes
process performance and have the - Are those that important to an
authority to control and improve the organization value creation process,
products. employees, and daily operations
- Are driven by internal customer
needs and must be aligned with the
need of key value creation process.
Value Creation Process for Pal’s Sudden Technology is an internal part of
Service process design that makes today’s service
and manufacturing process operate
PRINCIPAL
PROCESS productivity and meet customer needs
REQUIREMENT
better than ever.
Order Taking Accurate fast friendly
Process Mapping
Cooking Proper Temperature
Designing a process – requires a
Proper sequence,
systematic approach for most process, this
sanitary, correct
includes defining the sequence of steps
ingredients &
Product Assembly that needs to be performed, along with
amounts, speed,
format documentation of procedures and
proper temperature,
requirements
neat
Accurate, fast, Process Map for Training Printing Press
Cash Collection
friendly Operators
Ham/chicken
Proper temperature, Hire………….
preparation chili
quantity, freshness
preparation Process Design for Services
Cut/size,
Slicing Most cross functional business value-
freshness/color
Supply chain Price/cost, order creation processes and all support
management accuracy processes are primarily service-oriented
Sales potential, Service Processes – often involve born
Proper acquisition
adherence to budget internal and external activities, a factor
On time, within that complicates design for quality
Construction
budget
- Internal Activities – Quality of
Market & Clear, message,
Conformance
advertising brand recognition
- External Activities – Quality of Design
Service has three basic Components:
Process Design
1. Physical facilities processes and
The goal of process design is to procedures
develop an efficient process that satisfies 2. Employee behavior, and
both internal and external customers 3. Employee professional judgement
requirements and is capable of achieving
the requisite level of quality and Designing a service essentially involves
performance determining an effective balance among
all three of these the five key service
Factors that might need to be considered dimensions that have been introduced in
in process design chapter 3 provide a basis for designing
- Safety quality into the three service components
- Cost
- Variability
- Productivity
- Environmental impact
- Green Manufacturing
- Manufacturing of equipment
A useful Approach to designing services Enablers of Agility include:
differ in Three dimensions:
- Close relationships with customers
1. Customer contact and interaction - Empowering employees as design
2. Labor intensity, and maker
3. Customization - Effective manufacturing and
information technology
in designing service processes, the
- Close supplier and partner
following questions should be answered or
relationships
considered
- Breakthrough improvement
- What service standards are required
Agility is crucial to such customer-
to be met?
focused strategies as mass customization
- What is the final result of the service
to be provided? Mass Customization
- At what point does the service begin
- Requires significant changes to
and what signal its competition?
traditional manufacturing process
- What is the maximum waiting time
that focus on either customized,
that a customer will tolerate?
crafted products or mass-produced
- How long should it take to perform
standardized products.
the service?
- Who must the customer/consumer Mistake – Proofing Process
deal with completing the service?
- What components of the service are - Human beings tend to make
essential? mistakes inadvertently
- Which components can differ from Such errors can arise from the following
one service encounter to another factors
while still meeting standards
- Forgetfulness due to lack of
Design for Agility reinforcement or guidance
- As customers’ needs and - Misunderstanding or incorrect
expectations change, organizations identification because of the lack of
must design processes that are familiarity with a process or
increasing agile. procedures
- What is agility? - Lack of experience
- What is flexibility? - Absent mistakes and lack of
attention, especially when a process
Flexibility might demand special strategies is automated
such as:
Preventing Mistakes can be done in Three
- Modular designs Ways:
- Sharing components
- Sharing manufacturing lines 1. Designing potential defects and
- Specialized training for employees errors out of the products
2. Identify potential doctors and errors
and stopping a process before they
occur
3. Identifying defects and errors soon
after they occur and quickly
correcting the process.
POKA-YOKE (POH- kahYoh-kay) Process Control in Services
Is an approach for mistake-proofing - It defines as a standard or goal and
process using automatic devices or make corrections as needed
simple methods to avoid human
10 step monitoring and evaluation Process
error.
for Health care organizations
Two Aspects of Poka-Yoke
1. Assign Responsibility
1. Prediction – or recognizing that a 2. Delineate scope of care
defect is about to occur and 3. Identify important aspects of care
providing a warning and, 4. Identify indicators
2. Detention – or recognizing that a 5. Establish Thresholds for Evaluation
defect has occurred and stopping 6. Collect and Organize Data
the process 7. Evaluate Care
- The Poka-Yoke concept was 8. Take Actions and Sole Problems
developed and refined in the early 9. Assess actions and Documents
1960’s by the late Shigeo Shingo. Improvement
10. Communication Relevant
Information to the Organization.
Chapter 5: Process Focus Wide Quality Assurance Program.

Process Control Process Improvement

Control – Removing the cause of such Continues Improvement – Refers to both
abnormalities and maintaining consistent incremental changes, which are small, and
performance is the essence of control gradual, and breakthrough improvements.

Control vs. Improvement Continues Improvement – It is an important

business strategy in competitive markets
Control Process – Focuses on keeping the
process still on target that still satisfy Reasons
customers profitably
1. Customer loyalty is driven by
Improvement Process – Focused on the delivered value
Improvement of the exiting processes 2. Delivered value is created by
without changing the fundamental design business processes
of the process 3. Sustained success in competitive
markets requires a business to
Control System has 4 elements continuously improve delivered
- A standard or goal value
- A means of measuring 4. To continuously improve value
accomplishment creation ability
- Comparison of results with the Process Improvement
standard to provide feedback
- The ability to make corrections as Real Improvement Depends in Learning –
appropriate which means understanding why changes
are successful through feedback.
Process Control in Manufacturing
Peter Senge – a professor at the
- It is usually applied to incoming Massachusetts Institute of Technology (MIT)
materials
Peter Senge – defines the learning - The goal is to achieve quantum
organization as “survival learning” or leaps in performance
“adoptive learning” - Successful Re-engineering requires
fundamental understanding of
Continues Improvement
process, creative thinking to break
- Is an ongoing effort to improve away from traditions and
products assumptions and effective use of (IT,)
Kaizen – is a Japanese word that means Managing Supply Chains
gradual and orderly continues
- Supply chains are among the most
improvement
important business process and can
The Rizal – carton Hotel company has eight be viewed as encompassing many
mechanisms devoted solely to the key value creations and suppose
improvement of process such as supplier selection
and certification, purchasing,
- New Hotel Start-Up Improvement logistics, receiving and performance
Process measurement
- Comprehensive Performance
- Quality Network Suppliers include not only companies
- Quality Improvement Team that provides materials and components
- Strategic Quality Planning but also the distributors, transformation
- Streamlining Process companies and information. Health care
- Process Improvement and education providers.

Kaizen Blitz – is a rapid improvement Many companies segment suppliers into

workshop and has creative problem categories based on their performance
solving and importance to business and manage
them.
Breakthrough Improvement
Three guiding principles in Supply Chain
- The major Improvement in key
business areas 1. Recognizing the strategic
importance of suppliers in
Competitive Benchmarking – accomplishing business objectives,
Researching Competitors and industry particularly minimizing the total cost
leaders of strategy of ownerships
Process Benchmarking – organization 2. Developing win-win relationship
how it rates in operational performance through long-term partnership rather
than as adversaries, and
Reengineering – define as process to 3. Establishing trust through openness
achieve dramatic improvement and honesty, thus leading to mutual
Principles of Quality advantages.

Re-engineering – Has been defined as the Supplier Certification

fundamental rethinking and radical design Many companies use some type of
of business process to achieve supplier certification process to help
improvements in critical contemporary manager their supply chain. These
performance such as cast, quality, service processes are designed to rated and
and speed. certify supplier who provide quality
materials in a cost-effective and timely Normal – Distribution
manner.
The probability density function of
Supplier certification is driven by the normal distribution is represented
performance measurement and rating graphically by the familiar Bell shaped
processes. curved, however not every symmetric and
unimodal curve is a normal distribution, nor
If it is being delivered on time, how
can all the data from a sample population
delivered or dropped off, if the pieces are
can be assumed to fit to be a normal
100% good or no issues and their overall
distribution
performance for the whole contract.
Standard Normal Distribution
The standard normal distribution also
Chapter 6: Statistical Method in Quality
called the Z-distribution, is a special normal
Management
distribution where the mean is 0 and the
Statistics is the science concerned standard deviation is 1.
with the collection, organization, analysis,
Any normal distribution can be
interpretation and presentation of data.
standardized by concerting its values into
Statistics is essential for quality and z-scores. Z-scores tell you how many
implementing a continuous improvement standard deviations from the mean each
philosophy statistical methods help value lies.
manager make sense of data and gain
Exponential Distribution
insight about the nature of variation the
processor they manage Probability theory and statistics. The
exponential distribution is a continuous
Basic Probability Concepts
probability distribution that often concerns
To apply statistics properly, you need the amount of time until some specific
to have basic understanding about event happens
probability and probability distributions
Sampling
In statistical terminology, experiment is
Sampling forms the basis for
processing the results in some outcome.
statistical application. Many types of
The collection of the possible outcome of sampling schemes are still existed. The
the experiment is called sample space following are some of the most common

Probability distribution 1. Simple Random Sampling – Every

item in the population has an equal
A probability distribution is a probability of being selected
characterization of the possible values that 2. Stratified Sampling – The population
a random variable may assume along with is partitioned intro groups, or strata
the probability of assuming these values and a sample is selected from each
A probability distribution can be group.
either discrete or continuous, depending 3. Systematic Sampling – Every nth (4th,
on the nature of the random variable it 5th, etc.)
models. 4. Cluster Sampling – A population is
partitioned into groups (Cluster)
5. Judgement Sampling – Expert
opinion is used to determine the
sample.
Formula for Normal Distribution Statistical Distribution
1 1 𝑥−𝜇− 2 A sampling distribution is the
𝐹(𝑥) = 𝑒− ( )
𝜎√2𝜋 2 𝜎 distribution of a statistic for all possible of ^
and pare of the most interest. Let us first
consider the sampling distribution of x.
Standard Normal Distribution when using simple random sampling, the
𝑥−𝜇 expected value of * is the population
𝑍= mean u.
𝜎
𝐹(𝑥) = 𝛾𝑒 −−𝛾𝑒 The standard deviation (often called the
standard error of the mean) is given by the
𝜇 = 0 formula.
𝜎= Statistical Analysis of Microsoft excel
𝜋=
Z= The data analysis Toolpax in
Microsoft excel for windows provides many
Frequency distribution and Histogram Excel procedures for conducting statistical
Template analyses that only require you to point to
One of the major disadvantages of data or enter data into a dialog; the tools
the Histogram tool and most excel Data from performance the calculations and
Analysis procedures is that the result is not display the results two of the most useful
dynamically linked to the data. If you excel tools for statistical analysis are the
change the data or wish to use a different descriptive statistics and Histogram tools.
number of cells, you must run the tool The Excel Descriptive Statistics Tool
again. As an alternative, we have created
a simple spreadsheet template, frequency A convenient way of obtaining basic
Distribution, and Histogram. Xlsx, which summary measures for sample data. Click
allows you to create frequency distributions on Data Analysis under data tab in the
and histograms for up to 150 observations Excel menu bar. Select Descriptive Statistics
and experiment with different numbers of from the list of tools. You need only enter
cells. the range of the data, which must be in a
single row or column. If the data are in
Statistical Inference multiple columns, the tools treat each row
Statistical inference is concerned or column as a separate data set,
with drawing conclusions about depending on which you specify.
populations based on sample data. To be The Excel Histogram Tool
able to make probability statements about
the relationship between sample statistics A frequency distribution is a table
and population parameter and draw that shows the number of observations
interferences, we must first need to each of several non-overlapping groups. A
understand sampling distributions. graphical depiction of a frequency and
distribution numerical data in the form of a
column chart is called a histogram.
Frequency and histograms can be
creating using the Data Analysis Toolpax in
Excel. To do this, click the Data Analysis
tools button in the Analysis group under the
Data tab in the Excel menu bas and select Steps in Hypothesis Testing
Histogram from the list.
1. State the Hypothesis
Confidence Intervals 2. Identify the test statistic and its
probability distribution
Are one way to represent how good
3. Specify the significance level
an estimate is the larger a 90% confidence
4. State the decision rule
interval for a particular estimate, the more
5. Collect the data and performance
caution is required when using the
the calculations
estimate
6. Make the statistical decision
Determinants: these are factors that 7. Make the economic or investment
determine the size of the confidence decision
interval of a given confidence level.
Formula:
These are sample size, Percentage, and 𝑥−𝜇
Population size. 𝑍=
𝜎 √𝑛
Formula: Regression and Correlation
𝛿
𝐶𝐼 = 𝑥 + 𝑧 Is a tool for building statistical models
√𝑛 that characterize relationships between a
CI = Confidence Interval dependent variable and one more
independent variable which are numerical
X = Sample Mean
Regression – helps in estimating a variable’s
Z = Confidence Level Value value based on another given value
S = Sample Standard Deviation Correlation – is a measure of a linear
N = Sample Size relationship between two variables

Calculating a Confidence intervals: Simple Regression – A regression model

that involves a single independent variable
1. The point estimate you are
constructing the confidence interval Multiple Regression – A regression model
for that involves several independent
2. The critical values for the statistic variables
3. The standard deviation of the Linear Regression – A regression which
sample assume a linear relationship between the
4. The sample sizes dependent and independent variables is
Hypothesis Testing the most common application

A premise or claim that we want to Correlation Coefficients – will range from -1

test to +1

Null Hypothesis (H0) – currently accepted Design of Experiment (DOE)

value for a parameter Is a statistical tool used by engineers
Alternative Hypothesis (H1) – also called a to evaluate the effect of single or multiple
research hypothesis. changes to a process or design
Five stages of DOE Concurrent Engineering
1. Planning - A process in which all major
2. Screening functions involved with bringing a
3. Optimization product to market are continuously
4. Robustness Testing involved with product development
5. Verification from conception through sales.
- Simultaneous engineering
Analysis of Variance (ANOVA)
Design for Six Sigma
Is a hypothesis testing mythology for
drawing conclusions about equality or Different approach to new product
means of multiple populations or process development with multiple
methodologies that can be utilized
Sum of Squared (SS) – The Variation data is
computed 4 Principal Activities
Mean Squared (MS) – Deviations from the 1. Concept Development
appropriate sample mean and scaled as a 2. Detailed Design
variance measure 3. Design Optimization
4. Design Verification
3 types of ANOVA
DMADV
1. Dependent variable – continuous
2. Independent Variable – Categorical Define – identifying and understanding the
independent variables market need for opportunity
3. Null Hypothesis
Measure – identifies the vital characteristics
Chapter 7: that are most important to customers, and
outlines the functional requirements of the
Design for Quality Product
product that will meet customer needs
A set of principles that encompass a
Analyze – focuses on concept
multi-faceted approach to product design
development from engineering and
that ensures a product will delight the
aesthetic perspectives.
customer, last long, and work reliability in
service Design – focuses on developing detailed
specifications, purchasing requirements,
Why is it Important?
and so on.
- Companies face immense pressure
Verify – involves prototype development,
to continually improve their products
testing, and implementation planning for
- To improve quality and to reduce
production
costs in the process
Concept Development and Innovation
Product Development
Concept Development – process of
Six Phases
applying scientific, engineering, and
1. New Idea business knowledge to produce a basic
2. Preliminary Concept Development functional design that meets both
3. Product/Process Development customer needs and manufacturing or
4. Full-Scale Development service delivery requirements
5. Market Introduction
6. Market Evaluation
 Innovation – Adoption of an idea, vi) Determine which Technical
process, technology, product, or business Requirements to Deploy in the
model that is either new or new to its Remainder of the Delivery Process
proposed application 3) Roof of the House shows the
Interrelationships Between Any Pair of
4 Categories of Innovation
Technical Requirements.
1. Entirely new category of Products - - Very Strong Relationship
2. First its type on the market - - Weak Relationship
3. Significant Important
Target and Tolerance Design: Seeks to
4. Modest Improvement
minimize dispersion but at the same time
Creativity meet the design target.
- The use of the imagination or original 1. Nominal Dimensions – Ideal
ideas, especially in the production of Dimensions or the Target Value
an artistic work 2. Tolerance – Permissible Variation
- Seeing things in new or novel ways
Chapter 8
TRIZ
Measurement for quality control
- A Russian acronym for “Theory of
- Measurement is the act of collecting
Inventive Problem Solving”
data to quantity the values of
- Developed by a Russian patent clerk
products, services, process and other
that developed around 200
business metrics
exercises to foster creative problem
- Measures and indicators refer to the
solving
numerical results obtained from the
Detailed Design: Focuses on Establishing measurement
Technical Requirements and
Common Quality Measurements
Specifications.
- Product and Service quality
1. Axiomatic
measures focus on the outcomes of
2. Independence
manufacturing and service
3. Information
processes
Quality Function Deployment: A systematic - Unit of work is the output of a
to integrate customer requirements process or an individual process step
- Nonconformance is any defect or
1) Product Objectives error associated with a unit of work in
2) House of Quality manufacturing, we use the word
i) Identity Customer Requirements defect and in service manufacturing
ii) Identity Technical Requirements we use the term Error to describe a
iii) Relate the Customer nonconformance
Requirements to the Technical - Nonconforming unit of work is the
Requirement one that has one or more error or
iv) Conduct an Evaluation of defects
Competing Products or Services - Measures used in quality control fall
v) Evaluation Technical into one of two categories
Requirements and Develop
Targets.
Attribute Measurement – Characterizes the 2 Common types of Measuring Instruments
presence or absence of nonconformance used in Manufacturing
in a unit of work or the number of
1. Low-Technology – instruments are
nonconformance in a unit of work
primarily manual devices such as
Variable Measurement – apply to the gages that have been available for
dimensional quantities such as length, many years
weight, and time, or any value on a 2. High-Technology – those that
continuous scale of measurement depend on modern electronics,
microprocessors, lasers, or advanced
Cost of Quality Measures
optics
- Costs are associated preventing,
Several reasons why high rates occur:
detecting and remediating product
issues related to quality 1. Complexity – the number of defects
- It is also called costs of poor quality, caught decreases with more parts
avoiding poor quality or those and less orderly arrangement
incurred as a result of poor quality 2. Defect rate – when the product
defect rate is low, inspectors tend to
4 Categories of Quality Costs
miss more defects than when defect
1. Prevention Costs rate is higher
- Are investments made to keep 3. Inspection rate – the inspector’s
nonconforming products from performance degrades rapidly as
occurring and reaching costs the inspection rate increases
2. Appraisal Costs
Metrology
- Those associated with efforts to
ensure conformance to requirement, - Is the science of measurement and is
generally through measurement and defined broadly as the collection of
analysis of data to detect people, equipment, facilities,
nonconformances methods, and procedures used to
3. Internal Failure Costs assure the correctness or adequacy
- Incurred as a result of unsatisfactory of measurements
quality found before the delivery of
Accuracy
a product to the customers
4. External failure Costs - Is the difference between the true
- Occur after poor-quality products value and the observed average of
reach the customer measurement
Activity-based costing Precision
- Organizes information about the - Is the closeness of the repeated
work activities such as moving, measurements to each other
inspecting, receiving, shipping, and
order processing that consumes Calibration
resources facilitates the capture of - Is the process of verifying the
quality costs. capability and performance of an
Measurement system evaluation item of measuring and test
equipment compared to traceable
- It is a tool for analyzing variation measurement standards
present in each type of inspection,
measurement, and test equipment
Repeatability and Reproducibility study Statistical Process Control (SPS)
- Defined as the process used to - Is a methodology for monitoring a
evaluate a gauging instruments process to identify special causes of
precision by ensuring its variation and signal the need to take
measurements are repeatable and corrective action
reproducible - Relies on control charts
- It is important that the gauge be
Control Chart
properly calibrated before starting
the gauge R and R study - Is a simply a run chart to which two
horizontal lines, called control limits
Repeatability and Equipment Variation (EV)
are added, the upper control limit
- Is the variation in multiple (UCL)
measurements of a quality - Proposed by Walter Shewhart at Bell
characteristics by an individual using Laboratories in the 1920s and were
the same instrument. strongly advocated by Deming
Reproducibility and Appraiser Variation Patterns in Control Chart
(AV)
- When a process is in statistical
- Is the variation when using the same control, the points on a control chart
measuring instrument by different fluctuate randomly between the
individual to measure same parts control limits with no recognizable
pattern
Process Capability Measurement
The following list provides a set of general
- Is the ability of a process to produce
rules for examining a control chart to
output that conforms to
determine whether the process is in
specifications
control:
Process Capability Study
1. No points are outside limits
- Is a carefully planned study 2. The number of points above and
designed to yield specific below the center line is about the
information about the performance same
of a process under a specified 3. The points seem to fall randomly
operating condition above and below the center line
4. Most points, but not all, are near the
3 Types of Capability Study center line, and only a few are close
1. Process Characterization Study to the control limits
2. Peak Performance Study One point outside control limits
3. Component Variability Study
- A single point outside the control
Process Capability Index – is a statistical limits is usually produced by a special
tool to measure the ability of a process to cause
produce output within customer’s - Common reason for a point falling
specification limits outside a control limits is an error in
Process Performance Index – is a statistical the calculation of the control limits
tool to verify if the sample that have
generated from the process is capable to
meet the customer requirements.
Sudden shift in the process average Control Charts for Variables Data
- the charts most commonly used for
- An unusual number of consecutive
variables data are the x- chart (“x-
points falling on one side of the
bar” chart) and the
center line is usually an indication
R-chart (range chart)
that the process average has
a) X-chart - is used to monitor the
suddenly shifted
centering of the process
- Causes might be a new process
operator, a new inspector, a new b) R-chart – is used to monitor the
machine setting, or a change in the variation in the process.
production setup or method. Control Limit
- Represents the range between
Cycles which all points are expected to fall
if the process is in statistical control
- Cycles are short, repeated patterns - Are often confused with
in the chart, alternating high peaks specification limits
and low valleys. - Are based on the sampling
- These patterns are the result of distribution of the mean, therefore,
special causes that come and go on the standard error becomes smaller
a regular basis. with increasing sample sizes and
Trends therefore, the larger the sample size,
- Is the result of some because that the narrower the control limits.
gradually affects the measurement
Process Monitoring and Control
and causes the points on a control
chart to gradually move up or down - After the final control limits are
from the center line. determined, the charts should be
used to monitor performance,
Hugging the Center line identify any special causes that
might arise, and make corrections
- Occurs when nearly all the points fall only as necessary. This should be
close to the center line done by the employees who run the
process.
Hugging the Control Limits
Estimating Process Capability
- Shows up when many points are - After a process has bn brought to a
near the control limits with few in state of statistical control by
between. eliminating special causes of
variation, the control chart statistic
Control charts are relatively simply to use. may be used to obtain a quick
The following is a summary of the steps estimate of process capability.
required to develop and use control
charts. Control Charts for Attributes Data
1. Prepare Attribute data can be observed and
2. Collect Data counted are useful in many practical
3. Determine initial control limits situation
4. Analyze the chart
5. Use for ongoing control
Fraction nonconforming (p) chart Definition of SPS goals
- A p-chart monitors the proportion of Conditions for a successful SPC system
nonconforming units a p-chart is
Elements of the SPC system
constructed by first gathering 25 to
30 samples of the attributes being Basis for Sampling
measured. The size of each sample
should be large enough to have - The purpose of a control chart is to
several nonconforming units. identify the variation in a system that
may change over time
P-charts with Variable Sample Size
Sample size
- Often 100 percent inspection is
performed on process output during - The choice of sample size represents
fixed sampling periods, in these a tradeoff between cost and
cases, the number units produced in information
each sampling period will vary. Sampling Frequency
NP-charts - Taking large samples on a frequent
- An alternative to plot the number of basis is desirable but clearly not
nonconforming units in each sample. economical
However, this can only be done if Location of control limits
the size of each sample is constant
- Control limits need to adhere to the
Charts for nonconformance statistical 3 standard error about the
C-chart – applies when the number of mean formulas
opportunities for nonconformances in Practical Guidelines
each sampling unit is constant
- Cost model attempt to find the best
U-chart – used when the number of combination of design parameters.
opportunities for nonconformances in
each unit is not constant Chapter 9: Process Improvement and Six
Sigma
Implementing Statistical Process Control
Process Improvement Methodologies
- ISO 9000-2000 emphasizes the use of
statistical technique. For example, - Depend on the ability to effectively
the standard requires applicable identify problems, develop good
method, including statistical solutions, and implement them
techniques be identified and used A systematic, fact-based problem
for monitoring and measuring
products and process and that - Solving approach is vital to
through monitoring and accomplishing this.
measurement the organization the A structured problem-solving approach
organization can demonstrate the
ability of process to meet - Provides all employees with a
requirements and that product common language and a set of
requirements have been met. tools to communicate with each
other, particularly as members of
cross-functional teams. It also
ensures that solutions are developed
 objectively, rather than based on Tools and Techniques for Quality
opinions or rash judgements.
Japanese executives adapted this into the
Methodologies for Improvement PDCA cycle:
1. Redefining and analyzing the - Plan (design the product)
problems – collect and organize - Do (ensure that production makes
information, analyze the data and the product as designed)
underlying assumptions, and - Check (check sales/complaints and
reexamine the problem for new confirm whether the customer is
perspectives, with the goal of satisfied)
achieving a workable problem - Act (use feedback to incorporate
definition improvements in the next phase of
2. Generating ideas – “Brainstorm” to planning).
develop potential solutions
Deming later then reintroduced this
3. Evaluating and selecting ideas –
during his management seminars in the
determine ideas have merit and will
1980s and changed “Check” to “study”,
achieve the problem solver’s goal.
calling it the PDSA cycle.
4. Implementing ideas – sell solution
and gain acceptance by those who Plan-Do-Study-Act (PDSA)
must use them
- Over the years, PDSA has evolved
The Deming Cycle from its original focus on product
design to include both short-term
Deming cycle – is a simple adaption of the
and long-term continuous
scientific method for process improvement
improvement. Improvement comes
Walter Shewhart first introduced this as a from the application of knowledge
three-step process: that can make a job easier, more
accurate, faster, less costly, safer, or
1. Specification
meet customer needs
2. Production
3. Inspection for mass production 3 fundamental questions:
Deming modified his idea and presented it - What are we trying to accomplish?
during his seminars in Japan in 1950. The - What changes can we make that
“Deming wheel” consisted of: will result in improvement?
- How will know that a change is an
1. Design the product with appropriate
improvement?
tests
2. Make the product and test in the Creative Problem Solving (CPS)
production line and in the
Solving quality problems often
laboratory
involves a high amount of creativity.
3. Sell the product
4. Test the product in service and - Creativity – is seeing things in new or
through market research. Find out novel ways
what users think about it and why - Soikufu – creative thinking or
nonuser have not bought it. inventive ideas.
- An effective problem – solving
process that can easily be adapted
to quality improvement stems from
 concepts pioneered by Alex Osborn Six sigma
and refined by Sidney Parnes
Can be described as a business
This strategy consists of the following steps: improvement approach that seeks to find
and eliminate causes of defects and errors
- Understanding the “mess”
in manufacturing and service process by
- Finding facts identifying specific
focusing on outputs that are critical to
problems
customers and a clear financial return for
- Identifying specific problems
the organization.
- Generating ideas
- Developing solutions The core philosophy of Six sigma is based
- Implementing solutions on the following concepts:
Custom Improvement Methodologies 1. Think in terms of key business process
and customer requirements with a
Numerous variations of the Deming
clear focus on overall strategic
Cycle and creative problem-solving
objectives.
process exist. For example, an approach
2. Focus on corporate sponsors
used by some hospitals and the US Coast
responsible for championing
Guard is known by the acronym FADE:
projects, support team activities,
- Focus help to overcome resistance to
- Analyze change, and obtain resources.
- Develop 3. Emphasize such quantifiable
- Executive measures as DPMO that can be
applied to all parts of an
Process improvement methodologies – are organization: manufacturing,
often aligned with the unique engineering, administrative,
organizational culture of many software, and so on.
organizations. For example, Park Place 4. Ensure that appropriate metrics are
Lexus, the first automobile dealership to identified early in the process and
receive the Baldrige Award, uses a process that they focus on business results,
known as DRIVE: thereby providing incentives and
- Define the problem accountability
- Recognize the cause 5. Provide extensive training following
- Identify the solution by project team development to
- Verify the actions improve profitability, reduce non-
- Evaluate the results, value-added activities, and achieve
cycle time reduction
DMAIC – is the process improvement 6. Create highly qualified process
approach used in Six Sigma improvement experts (“Green Belts,”
- Define “Black Belts,” and improvement tools
- Measure and lead teams
- Analyze 7. Set stretch objectives for
- Improve improvement
- Control
Evolution of Six Sigma Project Management and Organization
Motorola pioneered the concept of Projects are the vehicles that are used to
Six Sigma as an approach to measuring organize and to implement Six Sigma.
product and service quality. Although projects are set up as temporary
organization structures, their flexibility
- The term “Six Sigma” was coined by
allows cross-functional teams to complete
Bill Smith, an engineer at Motorola.
significant work in minimum time, if well
- Six Sigma in the present form –
managed.
originated in the early 1980s at
Motorola as a tool for reducing Champions – Senior-level managers who
product-failure levels promote and lead the deployment of Six
- General Electric (GE) implemented Sigma in a significant area of business
Six Sigma in 1995 after Motorola, and
Master Black Belts – full-time Six Sigma
allied Signal followed the Six Sigma
experts who are responsible for Six Sigma
trail GE
project
Comparison between Six Sigma and older
Black Belts – fully-trained Six Sigma experts
TQM Philosophy
with extensive technical training.
- TQM is based largely on worker
empowerment and teams: Six Sigma is Green Belts – functional employees who
owned by business leader champions. are trained in introductory Six Sigma tools
- TQM activities generally occur within a and methodology and work on projects on
function, process, or individual a part-time basis.
workplace; Six Sigma projects are truly
cross-functional. Team Members – individuals from various
- TQM training is generally limited to functional areas who support specific
simple improvement tools and projects
concepts; Six Sigma focuses on a more
4 Main Return on Quality (ROQ)
rigorous and advanced set of statistical
methods and DMAIC methodology. 1. Quality is an investment –
- TQM is focused on improvement with fundamental different from investing
little financial accountability: Six Sigma in equipment or buildings
requires a verifiable return on investment
2. Quality efforts must be made
and focus on the bottom line.
financially accountable – business
Implementing Six Sigma evaluate other investments in quality
efforts that should be subject to the
Problem – according to Kepner and same types of financial justification
Tregoe a problem is a deviation between 3. It is possible to spend too much on
what should be happening and what quality – customers might not be
actually happening. willing to pay the premiums
Conformance Problems – associated with higher levels of
quality
Efficiency Problems – 4. Not all quality expenditures are
quality valid – improvement in
Unstructured Performance Problems –
product design or customer
Product Design Problems – response is important strategy.
Process Design Problems –
The DMAIC Process - Outputs
- Customers
Seven Quality Control Tool
Measure
- Flowchart
- Check Sheet - Understanding process performance
- Histograms and collecting the date necessary
- Pareto Diagrams for analysis.
- Cause and Effect - Y=f(X)
- Run Charts - Operational definitions
- Control Charts - Benchmarking
- Compare current performance to
A3 Report – Made by Toyota Unique Tool
the best-in-class performance.
- Theme
Data Sheets
- Background
- Current Condition - Use simple columnar or tabular forms
- Cause Analysis to second to record data
- Target Condition
Check Sheets
- Implementation
- Follow up - The results may be interpreted on the
form directly without additional
Six Sigma
processing
Define
Run chart
• Clearly define the problem
- Shows how the data change over
• Project Management issues
time
• Project Charter
- Useful in the control stage to show
- Define
effects of process improvements
- Objective
- Deliverables The Juran Institute Suggests 10 Important
- Project team and sponsor Consideration for Data Collection
Pareto Analysis 1. Formulate good questions that relate
to the specific information needs of
- The Pareto Principle
the project
- Popularized in 1950
2. Use appropriate data analysis tools
- Vilfredo Pareto
and be certain he necessary data
Pareto Distribution are being collected
3. Define comprehensive data
- Largest frequency to smallest
collection points so that job flows
Pareto Diagram suffer minimum interruption
4. Select an unbiassed collector who
- Graphical description of Pareto has the easiest and most immediate
distribution access to the relevant facts
SIPOC Diagram 5. Understand the environment and
make sure that data collectors have
- Supplier-inputs-process-outputs- the proper experience
customers 6. Design simple data collection forms
- Key elements in the process 7. prepare instructions for collecting
- Inputs the data
 8. test the data collection forms and Principles:
the instructions and make sure they
- Put to other uses
are filled out properly
- Adapt
9. train the data collectors as the
- Modify
purpose of the study, what the data
- Magnify
will be used for, how to fill out the
- Minify
forms, and the importance of
- Substitute
remaining unbiased
- Rearrange
10. audit the data collection process
- Reverse
and validate the results
- Combine
Analyze
Mistake-proofing and poke-yoke
- Start with the fundamental
Control
understanding of the process
- Focuses on why defects, errors, or - Maintaining of the improvements
excessive variation occur - New standards and procedures
- Training the workforce
Value Stream Map
- Instituting controls
- All activities involved in designing,
Principles of Six Sigma
producing, and delivering goods
and services to customers DMAIC Process
Root Cause Analysis - Theme
- Background
- An approach using statistical,
- Current Condition
quantitative, or qualitative tools to
- Cause Analysis
identify and understand the root
- Target Conditions
cause
- Implementation Plan
Cause and effect Diagram - Follow-up
- A simple graphical method for 7 General Groups
presenting a chain of causes and
- Elementary Statistical Tools
affects and for sorting out causes
- Advanced Statistical Tools
and organizing relationships
- Product Design and Reliability
between variables
- Measurement
Scatter Diagrams - Process Control
- Process Improvement
- Graphical component of regression
- Implementation and Teamwork
analysis
Lean Tools for Process Improvement
Improve
Tools used in lean production
- Idea-gathering phase
- Brainstorming - Visual controls
- Alex Osborn - Efficient layout and standardized
- Generating ideas of solution to a work
problem - Pull production
- Single minute exchange of dies
- Total production maintenance
- Source inspection
 - Continuous improvement Workforce focus
This category examines how an
Lean Six sigma in Services
organization builds an effective and supportive
- Accuracy workforce environment.
- Cycle time
- Cost OPERATION FOCUS
- Customer satisfaction This category examines how an
organization design, manages, and improves
Chapter 10: The Baldrige Framework for
Performance Excellence its work system and work process to deliver
customer value and achieve organizational
The criteria for performance excellence success and sustainability.
The Baldrige award examination is
based upon a rigorous set of criteria, called the
Criteria for performance excellence.
Designed to encourage companies to
enhance their competitiveness through an
aligned approach to organizational
performance management that results in.
1. delivery of ever-improving value to
customers, resulting in improved
marketplace success
1. 2.improvement of overall company
performance and capabilities
2. 3.organizational and personal learning
7 Categories
K&N Management
Leadership
The information for leadership category
- As first of the seven categories, it signifies provided by K&N Management in award
the critical importance of Leadership to application summary for the Vision and Values
business success. questions above. K&N Management is
passionate about guest delight and
Strategic planning excellence. which is evident throughout our
- An organization develops strategic operation. the senior leadership team (SLD)
objectives and action plants consists of two owners and seven directors who
are responsible for setting and deploying the
Customer focus vision and values of the organization.
- An organization engages its customers
for long-term marketplace success and
builds a customer-focused culture.
Measurement, analysis and knowledge
management
Is positioned as the foundation for all
other categories in the systems framework that
underlies The Baldrige philosophy and provides
a key feedback structure linking business result.
 European Excellence Award Framework

EFQM Recognition Levels:

- EFQM Excellence Award
- Recognized for Excellence
- Committed to Excellence
Canadian Awards for Business Excellence
- National Quality institute (NQI) is a
non-profit organization, their goal
was to help the Canadian private
Criteria Evolution and public sector organizations to
implement programs of excellence.
As the important management
practices of any organization should be the
criteria are evaluated and improved each
year.
INTERNATIONAL QUALITY AND PERFORMANCE
EXCELLENCE PROGRAM
European Quality Award
- European Quality Award or now called
European Excellence Award
- In October 1991, European Foundation
for Quality Management Australian Business Excellence Award
(EFQM) in partnership with the European Australian Quality Awards now called
Commission and the European Organizations. Australian Business Awards were developed
European Foundation for Quality independently from the MBNQA (Malcolm
Baldrige National Quality Award) in 1988.
Management (EFQM)
FRAMEWORK
- is a non-profit organization that was
established in 1989 in Brussels,
Belgium.
- helps organization to perform better
by creating data-driven insights.
Australian Business Excellence Prize Six sigma
4 Levels of Awards: Six Sigma focuses on measuring product
quality and driving process improvement and
- The Foundation in Business
cost savings throughout the organization
Excellence Level
- Bronze Award Level Six Sigma elements (ISO 9000)
- Silver Award Level
- Gold Award Level - 01 Quality Management System
- 02 Resource Management
Quality Awards in China - 03 Product Realization
- 04 Measurement, Analysis, and
- China Quality Award (CQA) is the Improvement section of standard
supreme honor given to the
organizations, programs, and Voice of Customer
individuals that have made
outstanding contributions to the The power of the customer in the new
standard It is bookended by two drivers
implementation of the National
Strength through Quality Strategy Customer Requirements drive the input and
Customer Satisfaction drives the output. The
- CQA consists of awards for
organizations (CQA), projects organization will need methods in place to
(Excellent Project Award) and describe and monitor the needs and desires of
individuals (China Excellent Quality each customer for each order, and will need
Person). processes and procedures in place to measure
- In 2001, China Association for Quality and analyze customer satisfaction
(CAQ) introduced the National Critical to quality (CTQ)
Quality Award, which it recently
renamed the Performance A Critical to Quality Tree (also known as a CTQ
Excellence Award. Tree) is a Six Sigma tool used to identify the
- The award criteria are based on needs of the customer and translate that
components of the Malcolm Information into measurable product and
Baldrige National Quality Award process requirements. It allows originations to
(Leadership, Strategy, Customers, understand the characteristics of a product or
measurement, analysis and service that most drives quality for customers.
knowledge management, Basic Framework
workforce, operations, result)
- Establishing, planning, and
Baldrige, ISO 9000 and Six Sigma implementing measurement,
Baldride monitoring, and improvement activities
- Monitoring information about customer
Baldrige focuses on performance satisfaction as a performance metric
excellence for the entire organization in an - Establishing measurement and
overall management framework, identifying monitoring methods to assure that
and tracking important organizational result product and process requirements are
ISO 9000 attained
- Acquiring and analyzing data to
ISO focuses on product and service determine improvement effectiveness
conformity for guaranteeing equity in the - Promoting continuous improvement
marketplace and concentrates on fixing using auditing reports, data anal is, and
quality system problems and product and management reviews.
service nonconformities
Six sigma Different levels
Level 1
- Projects directly affect an organization's
profit. margin (projects have a clear,
hard dollar impact on profitability!
Level 2
- Projects result in redeployment of
resources inside an organization to
increase operating efficiency or
productivity
Level 3
- Projects directly affect operations by
avoiding expenditures or increasing the
chances of obtaining higher future
revenues