A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. Customer satisfaction = Perception - Expectation Total Quality Management (TQM)

1. Find out what customers want; survey, interview, focused group 2. Design a product that will meet or exceed what customers want. Make it easy to use and easy to produce. 3. Design a production process that make it possible to do the job right at the first time. Determine where mistakes are likely to occur and try to prevent them. When mistakes do occur, find out why, and try to resolve them in a way that they never occur again. Create a mistake-proof process. 4.Keep track of results, use them to improve other parts of the system. Never stop trying to improve. 5.Extend these concept to the whole supply chain; suppliers and distributors. TQM Approach

Continual improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts Knowledge of tools Suppliers quality Elements of TQM

Continual improvement; –Improve all factors related to input-process-output. –It covers equipment, material, people, and methods. –Just because there is no problem doesn’t mean it can’t be improved. Competitive benchmarking; –Identify companies that are best in something. –study what they do, learn how to improve your operations. –Need not to be in the same field, Xerox used a mail order company, to benchmark its order processing. –We could also have internal benchmarking Elements of TQM

Employee involvement and empowerment; –Responsibility for improvement and authority to make changes provides high motivation in workers. –Personal communication in all levels Team approach; –Use teams for problem solving. –Take advantage of group synergy. –Promote spirit of cooperation. Decisions based on facts –rather than opinions –Statistical thinking Elements of TQM

Knowledge of tools; –Pictorial representation –Tabular representation –Simplification Supplier quality; –Suppliers are an integral part of the TOM. –Make them small in number with full responsibility. –Develop long term relationships. –Eliminate the need to inspect deliveries from suppliers. Elements of TQM

Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement. Kaizen : Continuous Improvement

Plan Do Study Act The PDSA Cycle : The essence of Kaizen Conceptual basis for process improvement. Study a current process Then develop a plan for improvement Implement the plan in small scale ( on a portion of the system) Document any change made during this phase Evaluate the results. Check how the results match the original goals of the plan If successful communicate the new methods to all related employees. Implement training for new method. Representing the process with a cycle is to show its continuing nature. If not successful, develop a new plan

Plan Do Study Act The PDSA Cycle Process Improvement Problem Solving

Process improvement is a basic tool in CI, It is composed of process mapping, process analysis, and process re-design. Process mapping; develop a flow chart for the process; show basic steps, inputs and outputs, people involved, decision made, information required, time, cost, space, waste, turnover, quality, morale. Process analysis; Is the flow logical? is there any missing step? is there any unnecessary and extra step? could it be eliminated? does it add value? is there any waste? can we reduce the time and cost, combine some steps? 5W2H Process re-design; document the improvements, measure reductions in time, cost, space, waste, …and improvement in quality, morale. Process Improvement

Systematic problem solving is a basic tool in Continuous Improvement. Its steps are as follows Define the problem and establish an improvement goal Collect data Analyze the problem Generate potential solutions Choose the preferred solution Implement the solution Monitor the solution to see if it accomplishes the goal Problem Solving

The philosophy of making each worker responsible for the quality of his/her work. Quality at Source

Check sheets Flowcharts Scatter diagrams Histograms Pareto analysis Control charts Cause-and-effect diagrams 5W2H Basic Tools for Process Improvement

Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Check Sheet A simple formatted page or a table for record and organize data to identify and analyze a problem. Check sheets are designed based on the purpose of the user. The following format is to identify the number, type, and timing of error. After recording, then we should study why they happen.

Check Sheet The following format is to identify the location of defects on a product ( gloves). After collecting data, then we should analyze the reason for these defects.

flowchart A pictorial representation of a process. Rectangle for processes or procedures, diamond for decisions or check points, arrows for flow of information or work flow,

Scatter Diagram Shows the relationship between two or more variables Humidity # of errors / hr

Frequency Repair time Histogram Histogram is useful in getting a sense of the distribution of the variable of interest.

80% of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Smeared print Number of defects Off center Missing label Loose Other Pareto Analysis

UCL LCL A statistical chart to see whether a process is in control or not. It is similar to Tracking Signal. If the process is in control, then the value of the corresponding variable is around the mean value with random variations. If the variable is out of UCL or LCL, then it is out of control. Also if we could extract a pattern out of it, again it is out of control. In any of the above cases we should check why the process is out of control. Control Chart (SPC)

Variable Control Chart –X-bar Chart –R Chart Attribute Control Chart –P Chart –C Chart Control Chart (SPC)

UCL LCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Tracking Improvements

Effect MaterialsMethods EquipmentPeople Environment Cause Cause and Effect Diagram

EquipmentPersonnel Procedure Material Other Aircraft late to gate Late arrival Gate occupied Mechanical failures late pushback tug Weather Air traffic Late food service Late fuel Late baggage to aircraft Gate agents cannot process passengers quickly enough Too few agents Agents undertrained Agents undermotivated Agents arrive at gate late Late cabin cleaners late or unavailable cockpit crews Late or unavailable cabin crews poor announcement of departures weight an balance sheet late Delayed check-in procedure Confused seat selection Passengers bypass checkin counter Checking oversize baggage Issuance of boarding pass Acceptance of late passengers cutoff too close to departure time Desire to protect late passengers Desire to help company’s income Poor gate locations Delayed Flight Departures Cause and Effect Diagram : Flight Departure Delay

5W2H What What is being done? WhyWhy it is necessary? WhereWhere is it being done? Why it is done there? Should we do it somewhere else? WhenWhen it is done Should we do it at another time? Who Who is doing it? Could someone else do it better? HowHow is it being done? Is there a better method? How muchHow much time does it take? How much does it cost? What would the new cost be?