MGMT 425 Midterm #2

root cause

"that condition (or interrelate set of conditions) having allowed or cause a defect to occur, which once corrected properly, permanently prevents recurrence of the defect in the same, or subsequent, product or service generated by the process."

root cause analysis tools

-5 why technique -cause and effect diagram -scatter diagram

custom improvement methodologies

-FADE: focus, analyze, develop, and execute -DRIVE: define the problem, recognize the cause, identify the solution, verify the actions, evaluate the results (Park Place Lexus) -some organizations embed the Deming cycle within a broader framework

key process management principles for performance excellence

-Identify vital work processes that relate to core competencies and deliver customer value, profitability, organizational success, and sustainability -Determine key work process requirements, incorporating input from customers, suppliers, partners, and collaborators. -Design and innovate work processes to meet all requirements, incorporating new technology, organizational knowledge, cycle time, productivity, cost control, and other efficiency and effectiveness factors. -Seek ways to prevent defects, service errors, and rework and minimize costs associated with inspections, tests, and process or performance audits. -Implement work processes and control their day-to-day operation to ensure that they meet design requirements, using appropriate performance measures along with customer, supplier, partner, and collaborator input as needed. -Improve work processes to achieve better performance, reduce variability, improve products and services, and keep processes current with business needs and directions, and share improvements with other organizational units and processes to drive organizational learning and innovation. -Incorporate effective process management practices in the overall supply chain.

Evolution of Six Sigma

-Motorola (mid-1980s): improve product and services quality 10 times by 1989, and at least 100 fold by 1991. achieve six-sigma capability by 1992. with a deep sense of urgency, spread dedication to quality to every facet of the corporation, and achieve a culture of continual improvement to assure total customer satisfaction. there is only one ultimate goal: 0 defects- in everything we do. -General Electric (mid-1990s): rapid growth and interest in subsequent years

Process improvement methodologies

-Redefining and analyzing the problem: Collect and organize information, analyze the data and underlying assumptions, and reexamine the problem for new perspectives, with the goal of achieving a workable problem definition. -Generating ideas: "Brainstorm" to develop potential solutions. -Evaluating and selecting ideas: Determine whether the ideas have merit and will achieve the problem solver's goal. -Implementing ideas: Sell the solution and gain acceptance by those who must use them.

Tabulation of DPMO for different Sigma Levels

-Sigma Level 3.0 = DPMO 66807.2 -Sigma Level 3.5 = DPMO 22750.1 -Sigma Level 4.0 = DPMO 6209.7 -Sigma Level 4.5 = DPMO 1349.9 -Sigma Level 5.0 = DPMO 232.6 -Sigma Level 5.5 = DPMO 31.7 -Sigma Level 6.0 = DPMO 3.4

Difference Between Six Sigma and TQM

-TQM is based largely on worker empowerment and teams v. Six Sigma is owned by business leader champions -TQM activities generally occur within a function, process, or individual workplace v. Six Sigma projects are truly cross-functional -TQM training is generally limited to simple improvement tools and concepts v. Six Sigma projects are truly cross-functional -TQM training is generally limits to simple improvement tools and concepts v. Six Sigma focuses on a more rigorous and advanced set of statistical methods and DMAIC methodology -TQM is focused on improvement with little financial accountability v. Six Sigma requires a verifiable return on investment and focus on the bottom line

why defects, errors, or excessive variation occur

-a lack of knowledge about how a process works, which is particularly critical if different people perform the process. such lack of knowledge results in inconsistency and increased variation in outputs. -a lack of knowledge about how a process should work, including understanding customer expectations and the goal of the process -a lack of control of materials and equipment used in a process -inadvertent errors in performing work -waste and complexity, which manifest themselves in many ways, such as unnecessary steps in a process and excess inventories -hasty design and production of parts and assemblies; poor design specifications; inadequate testing of incoming materials and prototypes -failure to understand the capability of a process to meet specifications -lack of training -poor instrument calibration and testing -inadequate environmental characteristics such as light, temperature, and noise

charts for attributes

-a nonconformance (defect, error) is a single nonconforming quality characteristic of a unit of work -if a unit of work has one or more nonconformance, we term the entire unit nonconforming -attribute charts are used for monitoring nonconformance as well as the number nonconformance

pareto analysis

-a pareto distribution is one in which the characteristics observed are ordered from largest frequency to smallest -a pareto diagram is a graphical description of a pareto distribution

lean Six Sigma metrics in services

-accuracy -cycle time -cost -customer satisfaction

design for agility

-agility refers to flexibility and short cycle times. agility is crucial to customer-focused strategies as mass customization. -flexibility refers to the ability to adapt quickly and effectively to change requirements -examples: rapid changeover from one product to another, rapid response to changing demands -the ability to produce a wide range of customized services

lean Six Sigma

-an integrated improvement approach to improve goods and services and operations efficiency by reducing defects variation, and waste -lean production addresses visible problems in processes, for example, inventory, material flow, and safety -Six Sigma is more concerned with less visible problems, for example, variation in performance

analyze in the DMAIC process

-analyzing a problem starts with a fundamental understanding of the process. typically accomplished through detailed process mapping, expanding on the SIPOC diagram that is developed in the define phase -value stream map highlights value-added versus non-value-added activities, and include times that activities take. value stream maps are an important tool in lean thinking

analyzing process maps

-are the steps in the process arranged in logical sequence? -do all steps add value? can some steps be eliminated and should others be added in order to improve quality or operational performance? can some be combined? should some be reordered? -are capacities of each step in balance; that is, do bottlenecks exist for which customers will incur excessive waiting time? -what skills, equipment, and tools are required at each step of the process? Should some steps be automated? -at which point in the system might errors occur that would result in customer dissatisfaction, and how might these error be corrected? -at which point or points should quality be measure? -where interaction with the customer occurs, what procedures and guidelines should employees follow to present a positive image?

types of quality control measures

-attribute measurement -variable measurements

control chart design issues

-basis for sampling -sample size -frequency of sampling -location of control limits

Six Sigma teams

-champions -master black belts -black belts -green belts -team members

supplier evaluation and selection

-clarify the most important product requirements -develop processes for identifying suppliers that can provide the needed goods or services -qualify processes in terms of their production and quality capabilities -select suppliers that best fit an organization's needs, their management and workforce capabilities, technology, quality processes, production control system, financial stability, total cost, capacity, and the potential to be long-term partners

types of benchmarking

-competitive benchmarking -process benchmarking

errors in manual inspection

-complexity -defect rate -inspection rate

types of quality problems

-conformance problems -efficiency problems -unstructured performance problems -product design problems -process design problems

types of service errors

-customer errors in preparation -customer errors during an encounter -customer errors at the resolution stage of a service encounter

continuous improvement is important because

-customer loyalty is driven by delivered value -delivered value is created by business processes -sustained success in competitive markets requires a business to continuously improve delivered value -to continuously improve value-creation ability, a business must continuously improve its value-creation processes

key service dimensions

-customization -labor intensity -customer contact and interaction

common Six Sigma tools used in DMAIC

-define: project charter, cost of quality analysis, pareto analysis, high-level process mapping -analyze: scatter diagrams, detailed process mapping, statistical inference, cause-and-effect diagrams, failure mode and effects analysis, and root cause analysis -control: control charts, standard operating procedures -measures: run charts, check sheets, descriptive statistics, measurement system evaluation, process capability analysis, and benchmarking -improve: design of experiments, mistake proofing, lean production, deming cycle, seven management and planning tools

define in the DMAIC process

-describe the problem in operational terms -drill down to a specific problem statement (project scoping), apply pareto analysis -identify the process, use a SIPOC diagram -develop a project charter to include a simple project definition, the project objective, the project team and sponsor, the customers and CTQs on which the project focuses, existing measures and performance benchmarks, expected benefits an financial justification, a project timeline, and the resources needed

effective control systems

-documented procedures for all key processes -a clear understanding of the appropriate equipment and working environment -methods for monitoring and controlling critical quality characteristics, approval processes for equipment -criteria for workmanship, such as written standards, samples, or illustrations -maintenance activities

factors in Six Sigma project selection

-financial return (return on investment, ROI), as measured by costs associated with quality and process performance, and impacts on revenues and market share -impacts on customers and organizational effectiveness -probability of success -impact on employees -fit to strategy and competitive advantage

measure in the DMAIC process

-focus on understanding process performance and collecting the data necessary for analysis -key data collection questions: what questions are we trying to answer?, what type of data will we need to answer the question?, where can we find the data?, who can provide the data?, how can we collect the data with minimum effort and with minimum chance of error? -operational definitions clarify performance measures

improve in the DMAIC process

-generate ideas for removing or resolving the problem and improve the performance measures and CTQs -brainstorming -checklists to spawn new ideas -evaluation and selection: scoring models to assess possible solutions against important criteria such as cost, time, quality improvement potential, resources required, effects on supervisors and workers, and barriers to implementation such as resistance to change or organizational culture

lean production

-lean production refers to approaches that originate at the Ford Motor Company in the early 1900s, but which were refined and modernized by the Toyota Motor Corporation later in the century -lean approaches focus on the elimination of waste in all forms, including defects requiring rework, unnecessary processing steps, unnecessary movement of materials or people, waiting time, excess inventory, and overproduction

control in the DMAIC process

-maintain the improvements, which includes putting tools in place to ensure that the key variables remain within the maximum acceptable ranges under the modified process -establishing the new standards and procedures -training the workforce -instituting controls to make sure that improvements do not die over time using checklists, status reviews, or control charts

examples of poka-yoke

-many machines have sensors that would be activated only if the part was placed in the correct position. -a device on a drill counts the number of holes drilled in a work piece; a buzzer sounds if the work piece is removed before the correct number of holes has been drilled -computer programs display a warning message if a file has not been saved is to be closed. -passwords set for web accounts are entered twice. -orders for critical aircraft parts use pre-fit forms that only allow the correct part to be placed in them, ensuring that the correct parts are shipped. -associates at Amazon sort products into bins that weigh them and compare the weight to the order if there is an inconsistency the associate is prompted to verify the items

controlled processes

-no points are outside control limits -the number of points above and below he center line is about the same -the points seem to fall randomly above and below the center line -most points, but not all, are near the center line, and only a few are close to the control limits

typical out-of-control pattern

-point outside control limits -sudden shift in process average -cycles -trends -hugging the center line -hugging the control limits

quality cost classification

-prevention -appraisal -internal failure -external failure

types of process capability studies

-process characterization study -peak performance study -component variability study

project management and organization

-projects are the vehicles that are used to organize and to implement Six Sigma -the Project Management Body of Knowledge (PMBOK), developed by the Project Management Institute, defines 69 tools that every project manager should master -achieving professional certification in project management can significantly assist Six Sigma efforts

tools of lean production

-the 5 S's: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain) -visual controls -efficient layout and standardized work -pull production -single minute exchange of dies (SMED) -total productive maintenance -source inspection -continuous improvement

common quality measurements

-unit of work -nonconformance -nonconforming unit of work

key questions for service design process

-what service standards are required to be met? -what is the final result of the service to be provided? -at what point does the service begin, and what signals its completion? -what is the maximum waiting time that a customer will tolerate? -how long should it take to perform the service? -who must the consumer deal with in completing the service? -what components of the service are essential? desirable? superfluous? -which components can differ from one service encounter to another while still meeting standards?

control charts for variables data

-x-bar and r-charts -x-bar and s-charts -charts for individuals (x-charts)

"Act" in the Deming Cycle

1. Select the best change or solution 2. Develop an implementation plan: what needs to be done, who should be involved, and when the plan should be accomplished. 3. Standardize the solution, for example, by writing new standard operating procedures 4. establish a process to monitor and control process performance

developing process maps

1. begin with the process output and ask, "what is the last essential sub-process that produces the output of the process?" 2. for that sub-process, ask "what input does it need to produce the process output?" for each input, test its value to ensure that it is required. 3. for each input, identify its source. in many cases, the input will be the output of the previous sub-process. in some cases, the input may come from external suppliers. 4. continue backward, one sub-process at a time, until each input comes from an external supplier

"Do" in the Deming Cycle

1. conduct a pilot study or experiment to test the impact of the potential solution(s) 2. identify measures to understand how any changes or solutions are successful in addressing the perceived problems

Six Sigma DMAIC Methodology

1. define 2. measure 3. analyze 4. improve 5. control

"Plan" from the Deming Cycle

1. define the process: its start, end, and what it does 2. describe the process: list the key tasks performed and sequence of steps, people involved, equipment used, environmental conditions, work methods, and materials use 3. describe the players: external and internal customers and suppliers, and process operators 4. define customer expectations: what the customer wants, when, and where, for both external and internal customers 5. determine what historical data are available on process performance, or what data need to be collected to better understand the process 6. describe the perceived problems associated with the process; for instance, failure to meet customer expectations, excessive variation, long cycle times, and so on 7. identify the primary causes to the problems and their impacts on process performance 8. develop potential changes or solutions to the process, and evaluate how these changes or solutions will address the primary causes 9. select the most promising solutions(s)

preventing mistakes

1. designing potential defects and errors out of the process. this eliminates any possibility that the error or defect will occur and will not result in rework, scrap, or wasted time. 2. identifying potential defects and errors and stopping a process before they occur. often results in some non-value added time. 3. identifying defects and errors soon after they occur and quickly correctly the process. results in some scrap, rework, and wasted resources.

"Study" in the Deming Cycle

1. examine the results of the pilot study or experiment 2. determine whether process performance has improved 3. identify further experimentation that may be necessary

practical guidelines

1. if the cost of investigating an operation to identify the cause of an apparent out-of-control condition is high, wider control limits should be adopted. conversely, if that cost is low, narrower limits should be selected 2. if the cost of the defective output generated by an operation is substantial, narrower control limits should be used. otherwise, wider limits should be selected. 3. if the cost both types of errors are significant, wide control limits should be chosen and a larger sample size should be used. also, more frequent samples should be taken to reduce the duration of any out-of-control condition that might occur 4. if past experience with an operation indicates that an out-of-control condition arises quite frequently, narrower control limits should be considered. in the event that the probability of an out-of-control condition is small, wider limits might be preferred.

developing and using control charts

1. prepare -choose the variable or attribute measurement -determine the basis, size, and frequency of sampling 2. collect data -record the sample observations -calculate relevant statistics: averages, ranges, proportions -plot statistics on chart(s) 3. determine initial control limits -compute the upper and lower control limits -draw the center line (average) and control limits on the chart 4. analyze the chart -determine if it is in control -identifying and eliminate out-of-control points and recomputed control limits 5. use for ongoing control -continue collecting data and plotting on the chart(s) -stop the process when an out-of-control condition is identified and make necessary corrections or adjustments

supplier pertnership principles

1. recognized the strategic importance of suppliers in accomplishing business objectives, particularly minimizing the total cost of ownership 2. developing win-win relationships through long-term partnerships rather than as adversaries 3. establishing trust through openness and honestly, thus leading to mutual advantages

principles of Six Sigma

1. think in terms of key business processes and customer requirements with a clear focus on overall strategic objectives. 2. focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtain resources 3. emphasize such quantifiable measures as DPMO that can be applied to all parts of an organization: manufacturing, engineering, administrative, software, and so on 4. ensure that appropriate metrics are identified early in the process and that they focus on business results, thereby providing incentives and accountability 5. provide extensive training followed by project team development to improve profitability, reduce non-value-added activities, an achieve cycle time reduction 6. create highly qualified process improvement experts ("Green Belts, "Black Belts," and "Master Black Belts") who can apply improvement tools and lead teams 7. set stretch objectives for improvement

process capability index

=(USL-LSL)/6*SD -where USL is upper specification limit, LSL is lower specification limit, and SD is standard deviation of the process (of the sample standard deviation as an estimate)

defects per million opportunities (DPMO)

=(number of defects discovered/ opportunities for error) * 1,000,000 -in service, the term is used as an analogy to DPMO is errors per million (EPMO)

Breakthrough of Process Improvement an Six Sigma

The accomplishment of any improvement that takes an organization to unprecedented levels of performance -breakthrough attacks chronic losses or in Deming's terminology, common causes of variation. -Process improvement methodologies and tools provide the foundation for breakthrough as well as modern Six Sigma approaches.

Evolution of the Deming Cycle

Walter Shewart: specification, production, and inspection for mass production -these steps correspond to the scientific method of hypothesis carrying out an experiment and testing the hypothesis. -Deming Wheel 1. design the product with appropriate tests 2. make the product and test in the production line and in the laboratory 3. sell the product 4. test the production in service and through market research -Japanese implementation: Plan-Do-Check-Act, which evolved into Plan-Do-Study-Act (PDSA) known as the Deming Cycle

Kaizen

a Japanese word that means gradual and orderly continuous improvement -focus on small, gradual, and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization

Six Sigma

a business improvement approach that seeks to fine and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization -a term Six Sigma is based on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities (DPMO)

brainstorming

a group problem-solving procedure for generating a large number of ideas through combination and enhancement of existing ideas

statistical process control (SPC)

a methodology for monitoring a process to identify special causes of variation and signal the need to take corrective action when appropriate

control chart

a run chart to which two horizontal lines, called control limits are added: the upper control limit (UCL) and lower control limit (LCL)

process monitoring and controlling

after a process is determined to be in control, the charts should be used on a daily basis to monitor performance, identify any special causes that might arise, and make corrections only as necessary -workers who run a process should use control charts and need to be trained to use them properly

poka-yoke

an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error. -based on: prediction, or recognizing that a defect is about to occur and providing a warning, detection, or recognizing that a defect has occurred and stopping the process

Kaizen Event

an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional Kaizen application, which are performed on a part-time basis. -teams are generally comprised of employees from all areas involved in the process who understand it and can implement changes on the spot.

elements of control systems

any control system has 4 elements: 1. a standard or goal 2. a means of measuring accomplishment 3. comparison of results with the standard to provide feedback 4. the ability to make corrections as appropriate

nonconformance

any defect or error associated with a unit of work -in manufacturing we often use the term defect, and in service application, we generally use the term error to describe a nonconformance

variable measurements

apply to dimensional quantities such as length, weight, and time, or any value on a continuous scale of measurements. -generally expressed with statistical measures such as averages and standard deviations

best practices

approaches that produce exceptional results, are usually innovative in terms of the use of technology or human resources, and are recognized by customers or industry experts

conformance problems

are fined by unsatisfactory performance by a well-specified system -ex: Six Sigma

appraisal

associated with efforts to ensure conformance to requirements, generally through measurement and analysis of data to detect nonconformance

attribute measurement

characterizes the presence or absence of nonconforming in a unit of work, or the number of nonconformance in a unit of work -often are collected by visual inspection and expresses as proportions and counts

learning cycle

consists of 4 stages: 1. planning 2. execution of plans 3. assessment of progress 4. revision of plans based upon assessment findings

process control in manufacturing

control is usually applied to incoming materials, key processes, and final products and services.

control and improvement

control should be the basis for organizational learning and lead to improvement and prevention of defects and errors. -after-action review: what was supposed to happen? what actually happened? why was there a difference? what can we learn?

external failure

costs incurred after poor-quality products reach the customer

internal failure

costs of unsatisfactory quality found before the delivery of a product to the customer

creative problem solving

creativity is seeing things in a new or novel ways -creative problem solving processes: 1. understanding the "mess"- identify symptoms 2. finding facts- gather data; operational definitions 3. identifying specific problems- find the root cause 4. generating ideas- brainstorming 5. developing solutions- evaluate ideas and proposals 6. implementing solutions- make the solution work

process map (flowchart)

describes the specific steps in a process

5 why technique

forces one to redefine a problem statement as a chain of causes and effects to identify the source of the symptoms by asking why, ideally five times

master black belts

full-time Six Sigma experts who are responsible for Six Sigma strategy, training, mentoring, deployment, and results

black belts

fully-trained Six Sigma experts with extensive technical training who perform much of the technical analysis required in Six Sigma projects, usually on a full-time basis

green belts

functional employees who are trained in introductory Six Sigma tools and methodology and work on projects on a part time basis, assisting Black Belts while developing their own knowledge and expertise

SMART

good measure should be simple, measurable, actionable, related (to customer and operational requirements) and timely

process characterization study

how a process performs under actual operating conditions

peak performance study

how a process performs under ideal conditions

process benchmarking

identifying the most effective practices in key work processes in organizations that perform similar functions, no matter in what industry

projects as processes

in many companies, value-creation processes take the form of projects- temporary work structures that start up, produce products or services, and then shut down. -project management involves all activities associated with planning, scheduling and controlling projects.

customer errors at the resolution stage of a service encounter

include failure to signal service inadequacies, to learn from experience, to adjust expectations, and to execute appropriate post-encounter actions

suppliers

include not only companies that provide materials and components, but also distributors, transportation companies, and information, health care, and education providers

team members

individuals from various functional areas who support specific projects

prevention

investments made to keep nonconforming products from occurring and reaching the customer

process design problems

involve designing new processes or substantially revising existing processes -ex: combines approaches

product design problems

involve designing new products that better satisfy user needs- the expectations of customers that matter most to them -ex: special tools

what is process management?

involves planning and administering the activities necessary to achieve a high level of performance in business processes, and identifying opportunities for improving quality and operational performance, and ultimately, customer satisfaction

process capability study

is a carefully planned study designed to yield specific information about the performance of a process under specified operating conditions. -typical questions include: - where is the process centered? -how much variability exists in the process? -is the performance relative to specifications acceptable? -what proportion of output will be expected to meet specification? -what factors contribute to variability?

what are processes?

is a sequence of linked activities that is intended to achieve some result -involves combinations of people, machines, tools, techniques, materials, and improvements in a defined series of steps or actions. -Examples: machining, mixing, assembly, filling orders, approving loans

cause and effect diagram

is a simple graphical method for presenting a chain of causes and effects and for sorting out causes and organizing relationships between variables

repeatability and reproducibility (R&R) study

is a study of variation in a measurement system using statistical analysis 1. select m operators and n parts 2. calibrate the measuring instruments 3. randomly measure each part by each operator for r trials 4. compute key statistics to quantify repeatability and reproducibility

root cause analysis

is an approach using statistical, quantitative, or qualitative tools to identify and understand the root cause

precision

is defined as the closeness of repeated measurements to each other -related to the variance of repeated measurements

accuracy

is defined as the difference between the true value and the observed average of a measurement -is measured as the amount of error in a measurement in proportion to the total size of the measurement

supplier certification

is designed to rate and certify suppliers who provide quality materials in a cost-effective and timely manner -the Pharmaceutical Manufacturers Association defines a certified supplier as one that, after extensive investigation, is found to supply material of such quality that routine testing on each lot received is unnecessary. -supplier certification processes can be time-consuming and expensive to administer. using a uniform set of standards such as ISO 9000 can reduce costs.

nonconforming unit of work

is one that has one or more defects or errors

process capability

is the ability of a process to produce output that conforms to specifications

measurement

is the act of collecting data to quantify the values of product, service, process, and other business metrics

unit of work

is the output of a process or an individual process step

traceability

keeping records that their own measuring equipment has been calibrated by laboratories or testing facilities who measurements can be related to appropriate standards

proportion nonconforming formula

number of nonconforming units found divided by number of units inspected

measurement system evaluation

observed variation in process output stems from the natural variation that occurs in the output itself as well as the management system -the total observed variation in production output is the sum of the true process variation (which is what we actually want to measure) plus variation due to measurement

continuous improvement

refers to both incremental changes, which are small and gradual, and breakthrough improvements, which are large and rapid

breakthrough improvement

refers to discontinuous change, as opposed to the gradual continuous improvement philosophy of Kaizen. -results from innovative and creative thinking; often these are motivated by stretch goals, or breakthrough objectives. -example (Motorola): improve product and services quality 10 times within 2 years, and at least 100-fold within 4 years

measurement and indicators

refers to the numerical results obtained from measurement. -indicator is often used for measurements that are not a direct or exclusive measure of performance

component variability study

relative contribution of different sources of variation (eg., process factors, measurement system)

unstructured performance problems

result from unsatisfactory performance by a poorly specified system -ex: creative thinking

efficiency problems

results from unsatisfactory performance from the standpoint of stakeholders other than customers -ex: lean tools

champions

senior-level managers who promote and lead the deployment of Six Sigma in a significant area of the business

check sheets

special types of data collection forms in which the results may be interpreted on the form directly without additional processing

competitive benchmarking

studying products or business results against competitors to compare pricing, technical quality, features, and other quality or performance characteristics

customer errors during an encounter

such as inattention, misunderstanding, or simply a memory lapse, and include failure to remember steps in the process or to follow instructions

customer errors in preparation

such as the failure to bring necessary materials to the encounter, to understand their role in the service transaction, and to engage the correct service

dashboards

summaries of key performance measures, typically consisting of a small set of measures (5 or 6) that provide a quick summary of process performance -often use graphs, charts, and other visual aids to communicate key measures and alert workers and managers when performance is not where it should be

process control

the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance. -control is different from improvement!

cost of quality (COQ) measures

the cost of avoiding poor quality, or costs incurred as a result of poor quality -provides a basis for identifying improvement opportunities and success of improvement programs -COQ translates quality problems into the "language" of upper management- the language of money

process management and ISO 9000

the entire set of standards is focused on an organization's ability to understand, define, document, and manage its processes. -organizations must plan and control the design and development of products and manage the interfaces between different groups involved in design and development to ensure effective communication and clear assignment of responsibility -the standards address a wide variety of process management activities, including control of production and service, control of monitoring and measuring devices, and improvement of quality management system effectiveness

managing supply chain processes

the fundamental objective of a supply chain is to provide the right product in the right quantity at the right place at the right time

reengineering

the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speeds. -reengineering involves asking basic questions about business processes: why do we do it? why is it done this way?

process design

the goal of process deign is to develop an efficient process that satisfies both internal and eternal customer requirements and is capable of achieving the requisite level of quality and performance -process design considerations include safety, cost, variability, productivity, environmental impact, "green" manufacturing, measurement capability, and maintainability of equipment.

scatter diagram

the graphical component of regression analysis

inspection rate

the inspector's performance degrades rapidly as the inspection rate increases

complexity

the number of defects caught by an inspector decreases with more parts and less orderly arrangement

calibration

the process of verifying the capability and performance of an item of measuring and test equipment compared to traceable measurement standards -the National Institute of Standards and Technology (NIST) maintains national measurement standards -NIST calibrates the reference-level standards of those organizations requiring the highest level of accuracy. these organizations calibrate their own working-level standards and those of other metrology laboratories. these working-level standards are used to calibrate the measuring instruments used in the field.

metrology

the science of measurement and is defined broadly as the collection of people, equipment, facilities, methods, and procedures used to assure the correctness or adequacy of measurements -national and international trade requires weights and measures organizations that assure uniform and accurate measures used in trade, national, or regional measurement standards laboratories, standards development organizations, and accredited and internationally recognized calibration and testing

benchmarking

the search of industry best practices that lead to superior performance

monitoring supplier performance

this might include supplier surveys; quality certification records, test and inspection reports, and process control data; audits at the suppliers' sites, receiving inspection of delivered products, and recording key metrics such as defect rates and percentage of on-time deliveries -such activities can provide a basis for scoring suppliers against cost, quality, and delivery criteria

nonconformance per unit (NPU) formula

total number of nonconformance divided by number of units inspected -in manufacturing it is common to use the terms "proportion defective" and "defects per unit", DPU, in these formulas

mistake-proofing processes

typical reasons for mistakes and errors: -forgetfulness due to lack of reinforcement or guidance -misunderstanding or incorrect identification because of the lack of familiarity with process or procedures -lack of experience -absent-mindness and lack of attention, especially when a process is automated

learning

understand why changes are successful through feedback between practices and results, leading to new goals and approaches

process requirements

value creation process requirements usually depend on consumer or external customer needs. -support process requirements are driven by internal customer needs and must be aligned with the needs of key value-creation processes

reproducibility analysis (appraiser variation, AV)

variation in the same measuring instrument used by different individuals

repeatability analysis (equipment variation, EV)

variation is multiple measurements by an individual using the same instrument

defect rate

when the product defect rate is low, inspectors tend to miss more defects than when the defect is higher