1. Chapter 9 Quality Management – Focus on 6 Sigma
Total Quality Management Defined
Malcolm Baldrige National Quality Award
Components of Quality
Costs of Quality
Continuous Improvement
Six Sigma
Quality Tools
Benchmarking
Fail-safe Design
ISO 9000

2. Total Quality Management (TQM) Defined
Total quality management: managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

3. Malcolm Baldrige National Quality Award Established 1987, Revised in 1999
Leadership
Strategic Planning
Customer and Market Focus
Information and Analysis
Human Resource Focus
Process Management
Business Results

4. Categories for the Baldrige Award
Manufacturing companies or subsidiaries that
Service companies or subsidiaries that sell service
Small businesses
Health care organizations
Educational institutions

5. Components of Quality
Design quality: Inherent value of the product in the marketplace
Conformance quality: Degree to which the product or service design specifications are met

6. Costs of Quality
Costs of
Quality

7. Continuous Improvement (CI)
Management's view of performance standards of the organization
The way management views the contribution and role of its workforce

8. CI Methodology: PDCA Cycle (Deming Wheel)

9. 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 six standard deviations of the process outputs

10. Six Sigma Quality (Continued)
Six Sigma allows managers to readily describe process performance using a common metric: Defects Per Million Opportunities (DPMO)

11. Six Sigma Quality (Continued)
Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation if 2 opportunities for error exist for each letter?

12. 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
DMAIC consists of five steps….

13. Six Sigma Quality: DMAIC Cycle (Cont.)
1. Define (D)
2. Measure (M)
3. Analyze (A)
4. Improve (I)
5. Control (C)

14. Example to illustrate the DMAIC process…
Suppose we are a manufacturer of breakfast cereals. Consumer Reports has just published an article that shows that we frequently have less than 16 ounces of cereal in a box.
What should we do?

15. Step 1 - Define Customers –
Project – our boxes of cereal are reported to contain less than 16 ounces of cereal. Determine how large the problem is and what should be done about it.
Critical-to-quality characteristic:

16. 2 - Measure
How and what should would we measure to evaluate the extent of the problem?
What are acceptable limits on this measure?

17. 2 – Measure (continued)
Let’s assume that the government says that we must be within ± 5 percent of the weight advertised on the box.
Upper Tolerance Limit =
Lower Tolerance Limit =

18. 2 – Measure (continued)
We go out and buy 1,000 boxes of cereal and find that they weigh an average of ounces with a standard deviation of ounces.
What percentage of boxes are outside the tolerance limits?

19. Process
Mean = oz.
Std. Dev. = oz.
Upper Tolerance
Limit = 16.8 oz.
Lower Tolerance
Limit = 15.2 oz.
What percentage of boxes are defective (i.e. less than 15.2 oz)?

20. Process
Mean = oz.
Std. Dev. = oz.
Upper Tolerance
= 16.8 oz.
Lower Tolerance
= 15.2 oz.

21. Step 3 – Analyze - How can we improve the capability of our cereal box filling process?
Decrease Variation
Center Process
Increase Specifications

22. Step 4 – Improve: How good is good enough?
Six sigma philosophy: minimum of 6s from process center to nearest spec 1 2 3
12s 6s LS US

23. Six Sigma Impact Implies 2 parts/billion “bad” with no process shift
With 1.5s shift in either direction from center (process will move), 3.4 parts/million “bad”. 6s 6s 3 2 1 1 2 3 LS US

24. Statistical Process Control (SPC)
Step 5 – Control
Statistical Process Control (SPC)
Use data from the actual process
Estimate distributions
Look at capability - is good quality possible?
Statistically monitor the process over time

25. Six Sigma Roles and Responsibilities
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

26. APPLICATIONS FOR PROBLEM SOLVING TOOLS/TECHNIQUES Brassard, Michael
APPLICATIONS FOR PROBLEM SOLVING TOOLS/TECHNIQUES Brassard, Michael. The Memory Jogger, Goal/QPC: Methuen MA, 1988

27. Example: Process Flow Chart
Material Received from Supplier
No, Continue…
Inspect Material for Defects
Defects found?
Yes
Can be used to find quality problems.
Return to Supplier for Credit

28. CHECK SHEETS (or tally sheets)
Simple tool to record frequency of an event: Use it to gather data to begin to detect patterns. Often this is the first step in most problem solving cycles.
HINTS FOR USE:

29. A Check Sheet
Number of Customer Complaints.

30. PARETO CHARTS A vertical bar graph that helps us prioritize problems
Portrays attribute data (frequency of each type of defect or problem) gathered from check sheets.

33. Example: Cause & Effect Diagram
The results or effect.
Man
Machine
Material
Method
Environment
Possible causes:

34. Example: Control Charts
Can be used to detect unusual variations in ongoing production process quality and quality conformance to stated standards of quality.
1020
UCL
1010
1000 CL
990
LCL
980
970 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

35. Example: Histogram Data Ranges, i.e., temperature Number of Lots
Defects in lot
Number of Lots 1 2 3 4
Data Ranges, i.e., temperature

36. SCATTER DIAGRAMS:
These charts portray the relationship between two variables. Use them to explore hypotheses you generate about causes and effects. If a relationship shows some correlation check it out mathematically.

37. Other Six Sigma Tools
Failure Mode and Effect Analysis (DMEA) 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

38. Benchmarking 1. 2. 3. 4.

39. The Shingo System: Fail-Safe Design
Shingo’s argument:
Poka-Yoke includes:

40. ISO 9000
Series of standards agreed upon by the International Organization for Standardization (ISO)
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."