142 spring 2014 wk 07a
TRANSCRIPT
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Total Quality Management
BUS 3142
Tools of QualityMarch, 2014
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Ishikawas Basic Seven (7) Tools of Quality
Process Maps
Check Sheets
Histograms
Scatter Plots
Control Charts
Cause & Effect (Fishbone) Diagrams
Pareto Analysis
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Logical Order of the Seven Basic Tools
Foster, Quality Management, Fifth Edition, Prentice Hall
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Process map
Specific symbols for specific definitionsProcessing
Decision
Input / Output
Start / Stop
Flow Line
Page Connector
Create a flow chart , from beginning to end
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Steps in creating process maps
Communicate the purpose to impacted individuals
Observe behavior
Interview participants and stakeholdrrs
Review reports and outputs
Draw the flow chart using the symbols
Evaluate Value Added (VA) and Non Value Added (NVA) activities
Review multiple times to ensure accuracy and buy-in
Use the map to streamline and simplify the
process, including eliminating NVA steps
Use the map for the Vision of the improved
Future Process
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High Level Supply Chain Flow
Product
Planning
Demand
Planning
Material
Planning
Master
Production
Scheduling
ProductionDelivery
& Service
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Forecast Process (SampleCross-Functional Swim Lane)
Acc ount Managem ent
Production Planning
Sales
Demand Planner
Sales Ops
Manugistics
Fulfillment
"Wednesday"
JudgedForecast
ReconciledForecast
RevenueIncreases
"Friday"
DemandSignal&
ExceptionReport
Build Plan "Thursday"
"Tuesday"
Commited Buffer
BuildP
lan
No
Yes
MaterialJudgementNotification
ForecastRevisions
No
Forecast
Revisions
Yes
No
Yes
No
Pull Forecast fromManugistics
Judge Forecast
Reconcile with AM& Sales
Reconcile wilthRevenue Plan
EscalateJudgements
Revenue IncreaseCommit
Create Build Plan Reconcile ExcessInventory
Customer Commit
Publish Build Plan
Publish Demand signal &Exception ReportStart Demand
Reconciliation
Demand /Supply
Reconciled
JudgementAcceptable?
SupplyAdequate?
EscalateSupply
Requiremen
Revenue IncreaseCommit**
Publish 13wk DSIposition / Heat Map
Allocate Productby Customer
RevenueRisk/
Sales Forecast
Revenue Plan
Enter OEMForecast at Part #
Level
Regional OEMsplits report -
Standard Tabs
Allocate StandardProducts by
Region
StandardTabs
Enter OEMForecast at Model
Level
Sales Forecast
Revenue Plan
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Check Sheets - for DATA GATHERING
After common defects are identified, operators andmachines track how often they occur
Setup routine not followed
Missing equipment
Machine breakdown
Parts shortage
Etc
A table is created to track the defects over time (hours /shifts / days / weeks)
The data from the check sheets are then used to populatehistograms and Pareto charts
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Check Sheet Example
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Histogram
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Work ExampleHistogram
Median Drive
Age at Invoice
Average Drive
Age at Invoice
Median: 18 days
Average: 25 days
Mode: 1 day
80% of units invoiced under 36 days of age
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Scatter Diagrams
Fi hb Ch
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Fishbone Chart
U H t b ild th h d P i tb h t i t it
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Use a Hammer to build the house and a Paintbrush to paint it
Quality Tool Purpose
Process Maps Establishing Baselines
Learning / Understanding the Basic Process
Identifying Data Requirements (Volumes, times, resources, systems, etc)
Encourage feedback and ownership
Communicate Future State Vis ion
Check Sheets Gather data according to predetermined categories
Timely
Lead to Process Control & Improvement
Histograms Summarized representation (totals) of categorized data
Can be a visual representation of key statistics (Mean, Median, Mode)
Can represent specific distributions (Normal, Poisson, other)
Pareto Analyses Histogram, sorted saccording to frequency of occurences
Scatter Plots Detailed representation (events / results) of categorized data
Control Charts Real time data gathering and analysis
Key for sustained productivity and cost management (later chapters)
Cause & Effect (Fishbone)Separates Problems from Symptoms (Is your problem that you have no money or
that you spend too much?)
Experts list key categories for further drill down and anlysis
Can be as detailed or general as necessary (team to decide)
Encourages teamwork and grup problem-solving
N T l f Q lit B l d S d
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Strategic Quality PlanningThe Too ls of Qual i tyOther Tools for Performance Measurement
New Tool of Quality: Balanced Scorecard
Designed to prevent over-emphasis on one objective or theme over
others
A control mechanism to monitor that optimizing one factor does notsub-optimize the whole enterprise
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
N T l f Q lit D hb d
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Strategic Quality PlanningThe Too ls of Qual i tyOther Tools for Performance Measurement
New Tool of Quality: Dashboard
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Easy to see
Best when tied to most critical metrics and performance levers
Requires little, to no, interpretation
K P i t di T l
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Key Points regarding Tools
Know if you are looking at time and trend data or at static /populationdata
Process Maps are static
Check sheets can be both
Histograms, Scatter Plots, Pareto Charts are for populations
Control Charts / SPC look at time and trend
Data gathering and analysis enables a more effective Plan-Do-Check-Act cycle
The data TELL you something! Act on what the data tell you
Root Cause identification
Separating Causes from Effects (5 Whys)
Planning and Implementing improved performance and Results
Refine the Measurement System so that focus is on facts andcollaborative problem solvingnot blame or spin
Precision vs. Enough (Diminishing Returns)