QDM Exam 2
What simple technique can we use to uncover the "root cause" of why the hot soldering iron is passing too close to previous solder joints?
"Ask Why Five Times"
In the FONZ MOBILE PHONE STORE example . . . What is the calculated Lower Control Limit?
-.06
In the FONZ MOBILE PHONE STORE example . . . What is sigma-P?
.057
In the FONZ MOBILE PHONE STORE example . . . What is the centerline of the SPC chart (aka "p-bar")?
0.11
In the FONZ MOBILE PHONE STORE example . . . What is the Upper Control Limit?
0.28
5 Common Deffinitions
1. Conformance to specification 2. Value for price paid 3. Fitness for use 4. Support services 5. Psychological Criteria
CONTINUOUS IMPROVEMENT
1. Plan - Identify the problem and make a plan 2. Do - Test the plan(try it out) ; Kaizen good change/Path / System / Way 3. Check - Review results (is it working?) 4. Act - Implement and document(standardize it) ***This is a cycle
SEVEN TQM TOOLS
1.Check Sheet 2.Scatter Diagram 3.Cause-and-Effect Diagram 4.Pareto Chart 5.Flowchart (Process Diagram) 6.Histogram 7.Statistical Process Control Chart
7 TQM CONCEPTS
1.Continuous Improvement 2.Six Sigma 3.Employee Empowerment 4.Benchmarking 5.Just-in-time (JIT) 6.Taguchi Approach 7.TQM Tools
n the FONZ MOBILE PHONE STORE example . . . What do we use for "z"?
3
W EDWARDS DEMING
A Founding Father of TQM "The prevailing system of management has crushed fun out of the workplace!"
SPC
A tool (one of 7) used to monitor and improve process performance -track outputs -identify issues -reduce variation -improve quality
In the Control Chart Match Game - contestant four states . . . "Before each car leaves the factory I want to know the total number of defects that required rework per vehicle." Which type of control chart should they use?
C-chart
The tip of the iceberg
COPQ - tip Collateral damage - can run deep and have an impact on employee turnover, inventory management costs, increased logistics costs, and etc.
What TQM tool can we use to brainstorm possible root causes of the overheated solder joint defects?
Cause & Effect Diagram (aka Ishikawa Fishbone)
Optimizing Quality Costs
Chart
PROCESS DESIGN OBJECTIVES
Competitive Advantage Eliminate Waste Add Value Customer Focus
What is it called when an operation selects complementary product lines or service offerings so that demand patterns are smoothed out and more level throughout the year.
Counter Cyclical Strategy
Which capability ratio indicates a process is NOT capable?
Cp = 0.5
Process Capability Ratio
Cp = 1.0 PERFECTLY ALIGNED - everything process produces is good Cp < 1.0 NOT CAPABLE of producing acceptable outputs on a regular basis Cp > 1.0 (we want to see this) Everything produced falls well within specification limits = FULLY CAPABLE
In the SOLAR SYSTEMS INC. example - once the supplier aligns their process to the specification AND reduces their variation . . . What is Cp and what is it telling us?
Cp=1.33 . . . the process is now fully capable
What analysis approach could we use to decide if proposed process improvement options are worth the investment?
Crossover analysis
SIX SIGMA
DMAIC Model Define: purpose, scope, and outputs Measure: process and collect data Analyze: data ensuring repeatability Improve: by modifying existing processes Control: to maintain new performance levels
Which one of the following is NOT considered a TQM Tool . . .
EOQ Analysis
TRUE OR FALSE: If a process parameter being tracked on an SPC chart is found to be both stable and in statistical control then that means the parameter will always meet customer specifications.
FALSE
PROCESS ANALYSIS TOOLS
GRAPHICAL representation of the MOVEMENT of PEOPLE and/or MATERIAL and/or DATA through a PROCESS
THE PROCESS BASICS -FUN & USEFUL!
Gemba Map It Identify Improve Review Repeat
BENCHMARKING
HOW DO YOU MEASURE UP? 1.Determine what to benchmark 2.Form a benchmark team 3.Identify benchmarking partners 4.Collect and analyze benchmarking information 5.Take action to match or exceed the benchmark **Learn from past success (and failure) of others!
After-sale Support Services
How issues or problems are handled after the sale Customer feels: Taken care of and things are made right (positive experience - become repeat customer) vs. Poor after sales services
Total Quality Management Statistical Process Control Process Capability Analysis
Improve Any Process . . . •Track Quality Performance •Quantify Customer Requirements •Reduce Process Variation
Where would you place the production of Harley Davidson motorcycles on the "Volume vs. Variety Matrix"?
In the center of the matrix because, relatively, they have a medium order volume and medium variety of models.
Where would you place the production of Lay's Potato Chips on the "Volume vs. Variety Matrix"?
In the lower right because, relatively, they have a high order volume but a low variety.
Where would you place Portsmouth Hospital on the "Volume vs. Variety Matrix"?
In the upper left because they have a comparatively lower volume of clients and a high variety of patient needs
Where would you place Dell computers on the "Volume vs. Variety Matrix"?
In the upper right because they have a high order volume and, since they offer to build custom systems, a high variety of product outputs.
TQM PHILOSOPHY
Involve Everyone Customer Focus
What is the Japanese term commonly used by operations managers to refer to continuous process improvement . . .
Kaizen
In the SOLAR SYSTEMS INC. example . . . What are the Lower and Upper Specification Limits for solar cell thickness?
LSL=1.58mm and USL = 1.62mm
Conformance to Specification
Measuring output or performance versus intended design parameters. ex: Is this m&m within the design tolerance? 1.040 +.003-.003
Variable Charts
Monitor characteristics that can be measured on a continuum of values. (height, weight, or volume) X-bar chart Monitors changes in mean value of a process R-chart Monitors changes in variability of a process
Attribute Charts
Monitor characteristics that have discrete values and can be counted. (# bad items or # of defects) p-chart Monitors the proportion of defects in a sample C-chart Monitors the number of defects per item or unit
Can efficiency ever be greater than 100%?
No - when calculating efficiency we have already considered all current operating conditions - so the best we can do is 100%.
Quality is ______
Objectively defined case by case
IMPORTANCE OF CAPACITY PLANNING
Optimize Resources Spend Wisely Satisfy Customers Improve Bottom Line
In the Control Chart Match Game - contestant two states . . . "I want to track the percentage of dropped calls in each group of fifty calls coming into our call center." Which type of control chart should they use?
P-chart
In the FONZ MOBILE PHONE STORE example . . . What type of chart should we use given the data available to us?
P-chart
What TQM tool can we use to categorize observed solder defects?
Pareto Chart
What TQM tool can we use to guide us through our continuous process improvement activities?
Plan-Do-Check-Act (PDCA)
Four basic processes stratagies
Process (Job shop) Focus Repetitive Focus Product Focus Mass Focus
Volume vs. Variety Matrix
Process Focus •Job Shops •Most Services(AP Hospital) Mass Customization •Difficult to achieve •Huge rewards (Dell Computer) Repetitive Focus •cars / motorcycles •home appliances(Harley Davidson) Product Focus •commercial foods •steel / glass(Frito-Lay) Poor Strategy •High fixed cost •High variable cost(Avoid this strategy!)
What tool can we use to help us visualize and analyze the transformer wiring process?
Process map
JUST IN TIME (JIT) INVENTORY
Producing goods just as they are needed High inventory = deep lake of water (conceals hazards of inventoty) holding inventory = cost process variability = cost Lower inventory = can operate with less inventory at lower cost and higher quality levels -Reduce variability
Quality of Control Costs
Programs and personel prevention and appraisal of quality defects
In the Control Chart Match Game - contestant one states . . . "I want to monitor the range of wait times my patients are experiencing at different times throughout the day." Which type of control chart should they use?
R-chart
RUSS' TRAINING AT GE
ROOT CAUSE "ask why five times" CORRECTIVE ACTION "fix it once and for all"
PROCESS REDESIGN CHALLENGE
Root cause / Corrective action
CAPACITY PLANNING
STRATEGIC DECISIONS: Broad in Scope Longer-term TACTICAL Strategies for matching company capabilities to customer needs •Capacity and Scale •Timing & Sizing •Systematic Planning
PATTERN ANALYSIS TEST
Stable = No action required Run = Take Action (upwards trend) Sudden Change = Monitor **Exceeds Control Limits = Take Action
Building a control chart
Start by collecting process output data Plot output data and observe patterns and trends ** observations within control limits are due to NORMAL, unavoidable natural causes -outside are due to assignable causes
Real world Impact of quality
Success of a business, safety of customers, survival as a species on this planet
DEFINITION OF TQM
TQM is the management of an entire organization so that it excels in all aspects of products and services that are important to the customer.
TAGUCHI APPROACH
Taguchi's concepts are used to calculate PROCESS CAPABILITY RATIOS
In the field goal kicker example . . . who would you pick?
The blue kicker who tends to shank the ball to the right but has a much tighter standard deviation
Psychological benefit
The core of how a customer feels about a service ex: Disney = positive psychological experience
Specifications
The peset range of acceptable characteristics tolerances on a product design or targets in a service level agreement
What is your assessment of the control chart for the FONZ store configuration process?
The process is currently in control - but there appears to be an upward trend in defects.
Quality
The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs or the degree to which a set of inherent characteristics fulfill requirements - ASQ / Ability of a product or service to meet customer needs - Russ
Process Focus
To create a viable process that can regularly produce offerings that meet customer requirements within costa and other managerial constraints
Cost of Quality (COQ)
Two categories Quality of Control Costs Quality failure costs
VALUE FOR PRICE PAID
Value is how a customer perceives the worth of an item relative to the price of the item. ex: Which meal/vehicle is of higher quality? Jeep vs. Porche
TYPES OF CONTROL CHARTS
Variable Charts Attribute Charts
MASS CUSTOMIZATION
Volume - High Variety - High Personnel - Flexible operators Job Instructions - Custom orders requiring many job instructions Inventory - Low inventory relative to the value of the product Production Strategy- Build-to-order (BTO)(some finished goods) Scheduling - Sophisticated(world class) Costs- Fixed costs tend to be high and variable costs low
PRODUCT FOCUS
Volume - High Variety - Low Personnel - Less broadly skilled operators Job Instructions - Standardized job instructions Inventory - Low Production Strategy - Finished goods are made to forecast and stored Scheduling - Routine Costs - Fixed costs are high and variable costs low
Process Focus
Volume - Low Variety - High Personnel - Broadly skilled operators Job Instructions - Unique for each job Inventory- High Production Strategy - Make to order(no finished goods) Scheduling - Complex Costs - Fixed costs are low and variable costs are high
REPETITIVE FOCUS
Volume - Medium Variety - Medium Personnel - Moderately trained employees Job Instructions - Few changes in the instructions Inventory - Low Production Strategy - Finished goods are made to frequent forecasts Scheduling- Routine Costs - Fixed costs are dependent on flexibility of the facility
What if the capacity of our operation is too LOW?
We may be unable to meet customer demand and might miss out on sales opportunities.
What if the capacity of our operation is too HIGH?
We may not receive enough customer orders to cover our fixed costs.
In the Control Chart Match Game - contestant three states . . . "I want to keep an eye on the average actual weights of our 55 lb bags of cement as they come off the bag filling station." Which type of control chart should they use?
X-bar chart
Based on the specification shown in the m&m example - would the red m&m be considered a quality product based on conforming to the diameter specification?
Yes - the red m&m's diameter is 1.042 mm which is within the design tolerance of 1.037 to 1.043 mm
Can DEMAND be manipulated to align with capacity?
Yes - we can encourage customers to place orders at different times and in different amounts.
Can utilization ever be greater than 100%?
Yes - we can push a system to operate beyond the design capacity.
PARETO CHART
a bar graph whose bars are drawn in decreasing order of frequency or relative frequency
Poor Quality management and control
ex: Ford Pinto
EMPLOYEE EMPOWERMENT
open and collaborative work environment -Empowerment vs. High Involvement -Jack Welch "Winning" "Empowerment doesn't mean anarchy. Involvement is less misleading -high involvement -a say in the decision-making, a stake in the institution, a voice. I'll tell you one thing: With voice comes responsibility."
Process Capability
the ability of the process to meet the design specifications (or exceed) for a service or product (how well a process preforms)
TQM
the entire organization is focused on satisfying the customer. -Manufacturing -Services -Finance / Banking -Health Care
Capability
the power or ability to do something
Quality Failure Costs
time and material required to fix the internal and external (with customers) failures
