unit iii tqm tools and techniques i

TQM TOOLS AND

TECHNIQUES IUNIT III

CONTENT The seven traditional tools of quality

New management tools – Six-sigma: Concepts,

methodology,

Applications to manufacturing, service sector

including IT

Bench marking – Reason to bench mark, Bench

marking process

FMEA – Stages, Types

SEVEN STATISTICAL TOOLS OF QUALITY

TOOLS PURPOSE

Flow chart (Stratification, Run chart) Depicts essential steps of a process

Check sheet Systematic data gathering

Histogram Graphically displays frequency

distribution of numerical data

Pareto diagramIdentify causes that account for quality

loss

Cause and effect diagramIdentify and analyze causes of a given

problem

Scatter diagram Relationship between two variables

Control chartIdentifying process variations and

signaling corrective actions.

RELATIONSHIP BETWEEN Q-7 TOOLS & PDCA CYCLE

Q-7 TOOLSPlan

(P)

Do

(D)

Check

(C)

Act

(A)

Flow chart

Check sheet ü

Histogram ü ü

Pareto diagram ü ü

Cause and effect diagram ü ü

Scatter diagram ü ü

Control chart ü ü

FLOW CHART Also known as Process flow chart, Flow diagram and

Process deployment flow.

Diagrammatic view of various steps in sequential order

that form an overall process in an organization.

Easily understandable.

Simple mapping tool.

Used to document and analyze the connection and

sequence of events in a process.

Creates an integrated understanding of the activities.

FLOW CHARTSYMBOL NAME MEANING

Terminator Start or end

Action Process or Activity or Task

Decision Decision

Arrow Direction of flow

Link Link to another page

FLOW CHART

CHECK SHEETALSO KNOWN AS ‘TALLY SHEET’.

Systematic data gathering and registering to get a clear view of facts. Used to keep track of how often something occurs. Used to indicate the frequency of a certain occurrence.

TYPES OF CHECK SHEETS:

1. Process distribution check sheet.

Used to collect on process variability.

2. Defective item check sheet.

Specifies the variety of defects occurring.

3. Defect location check sheet.

Identify where defect occurs.

4. Defect factor check sheet.

Monitor the input parameters.

CHECK SHEET

ADVANTAGES

Distinguishes between fact and opinion.

Gathers data about how often a problem occurs.

Gathers data about the type of problem that occurs.

CHECK SHEET

HISTOGRAM Specialized type of bar chart showing distribution of variable

quantities.

Simple, graphical view of accumulated data.

Provides easiest way to evaluate the distribution of data.

ADVANTAGES:

Used to show clearly where the most frequently occurring values are

located and data is distributed.

Tool for determining maximum process results.

Enables the analysts to quickly visualize the features of a complete

data set.

Provides an easy-to-read picture of the location and variation in a data

set.

HISTOGRAMHISTOGRAM STATISTICS

The following are calculated for histogram:

Mean

Minimum

Maximum

Standard Deviation

Class Width

Number Of Classes

Skewness

Kurtosis

HISTOGRAMTYPES OF HISTOGRAM

Bell shaped

Double peaked

Plateau

Comb

Isolated peak

Edged peak

Skewed

Truncated

HISTOGRAM

PARETO DIAGRAM

Also known as ‘80/20 rule’ and ‘ABC analysis’.

Wilfredo Pareto – Italian Economist.

Diagnostic tool used for separating the ‘vital few’ from the ‘trivial many’

causes that account for a dominant share of quality loss.

Based on “Pareto Principle” – few (20%) of the defects accounts for most

(80%) of the effects.

PARETO DIAGRAM

ADVANTAGES Used for focusing on critical issues by ranking them in order of

importance and frequency.

It prioritizes problems or causes to efficiently initiate problem-solving.

It analyzes problems or causes by different groupings of data.

Analyzes before and after impact of changes made in a process.

Used as risk assessment technique from activity level to system level.

Clearly prioritizes the magnitude of the problem.

PARETO DIAGRAMSTEPS INVOLVED:

1. Collect data.

2. Arrange data in descending order.

3. Calculate relative percentage of individual data.

4. Calculate cumulative percentage for individual data.

5. Draw a graph with scales on both the axis.

6. In the order of data, draw bars.

7. Using cumulative percentage of data, draw cumulative curve.

8. Identify the vital few.

PARE

TO D

IAG

RAM

CAUSE AND EFFECT DIAGRAM Also known as ‘fish bone diagram’ (because of its appearance) or

‘Ishikawa diagram’ (after the name of the person who developed it in 1943).

A graphical – tabular chart to list and analyze the potential causes of a given problem.

Diagram- Central stem- leading to effect Multiple branches- possible causes. Ishikawa-

Kaoru Ishikawa Japan Pioneered quality management process in the Kawasaki shipyards.

CAUSE AND EFFECT DIAGRAM Causes in CE diagram- arranged in 4 major categories:

Recommended for Manufacturing- (4 M’s) Man power Methods Materials Machinery

Recommended for administration and services Equipment Policies Procedures People

CAUSE AND EFFECT DIAGRAMUSES:

To analyze C & E relationships.

To facilitate the search for solutions of related problems.

To standardize existing and proposed operations.

To educate and train personnel in decision-making and

corrective-action activities.

Used to explore the potential or real causes (inputs) that

result in a single effect (output).

To search for the root causes, identify areas where there may

be problems and compare the relative importance of different

causes.

CAUSE AND EFFECT DIAGRAMADVANTAGES:

Identifies the potential causes of a problem or an issue in

an orderly way.

Summarizes the major causes under 4 categories.

Has unlimited application in research, manufacturing,

office operations, services and so forth.

CAUSE AND EFFECT DIAGRAMSTEPS:

Place the problem statement in box on the right.

Draw the major causes (4 M’s).

Place the brainstormed ideas in appropriate major causes.

Branch off the main causes to sub/sub/sub causes.

Look for causes that appear repeatedly.

Determine critical causes.

Work out counter actions.

CAUSE AND EFFECT DIAGRAM

SCATTER DIAGRAM A graphical tool to depict the relationship between two variables:

o Horizontal axis- Cause (Independent variable)

o Vertical axis- Effect (Dependent variable)

Displays paired data as a cloud of points. Density and direction of

the cloud – indicates how 2 variables influence each other.

Indicates the existence and strength of the relationship.

Used as follow-ups to CE analysis- to determine whether a stated

cause has impact on quality characteristics.

TYPES

Positive correlation

Negative correlation

No correlation

Negative correlation may exist

Correlation by stratification

Curvilinear relationship.

SCATTER DIAGRAM

USES

Scatter diagram are mostly used to find the pattern of

relationship between 2 variables, like:

Cutting speed and tool life

Breakdown and equipment age

Training and errors

Speed and gas mileage

Production speed and the number of defective parts.

SCATTER DIAGRAM

ADVANTAGES

Validating ‘hunches’ about CE relationship between

types of variables.

Displays direction (+,-,….) and strength of relationship.

Used to understand, why particular variations occur and

how they can be controlled.

SCATTER DIAGRAM

STEPS

Select variables which are related to each other.

Collect data.

Create scatter diagram – X axis- cause and Y- axis-

effect.

Examine the shape of cloud of points.

Determine the type and strength of the mutual

relationships.

SCATTER DIAGRAM

SCATTER DIAGRAM

SCAT

TER

DIA

GRA

M

CONTROL CHART Invented by Walter.A.Shewart, most widely used tool in SPC.

A graph that displays data taken over time and the variations of this data.

Used to check whether the process is being controlled statistically.

Illustrates dynamic performance of the process.

Based on a series of random samples taken at regular intervals.

Chart- has 3 horizontal lines:

Centre- set at normal design value.

LCL- Lower Control Limit- (-3) S.D of sample mean.

UCL- Upper Control Limit- (+3) S.D of sample mean.

If sample lies between these lines- process is in control, sample lies outside-

out of control.

CONTROL CHART

CONTROL CHARTTYPES

Control charts for variables- for measurable data (time,

length, temperature, weight, pressure, etc)

Control charts for characteristics- for qualifiable data

(number of defects, typing errors in a report).

CONTROL CHARTUSES

To identify when the process has gone oyt of control-

thus signaling need for some action.

Used to show the sources of variations and eliminate

them in order to control the process.

Used to evaluate process stability and to decide when

to adjust the process.

NEW SEVEN MANAGEMENT TOOLS

Seven Management and Planning tools (MP tools).

Seven basic tools- for quantitative problems,

Seven MP tools- for qualitative problems.

Uses subjective information and are used for the following:

o Process improvement,

o Cost reduction,

o Policy deployment,

o New product development.

Used to find the root cause of the problem by focusing on the process.

Develops critical thinking.


Helpful for managers to

• Organize large amounts of non-quantitative data,

• Create hypothesis,

• Clarify inter- relationships,

• Establish priorities.

Very useful for top and middle level managements for strategic

planning, goal setting and problem solving.

Procedure adopted – as follows:

• Describe the problem clearly,

• Keep asking ‘why’ till root cause is obtained.


AFFINITY DIAGRAM

RELATIONSHIP DIAGRAM

TREE DIAGRAM

MATRIX DIAGRAM

MATRIX DATA ANALYSIS

DECISION TREE (PDPC)

ARROW DIAGRAM (PERT)

S.NO MANAGEMENT TOOLS PURPOSE

1 AFFINITY DIAGRAM For synthesizing, classifying, organising indefinite ideas

2 RELATIONSHIP DIAGRAM For isolating cause and effect relationship

3 TREE DIAGRAM For deploying general concepts into details

4 MATRIX DIAGRAM For correlating in logical form, in order to evaluate, select, and decide

5 MATRIX DATA ANALYSIS For quantifying relationship

6 DECISION TREE (PDPC) For identifying alternatives

7 ARROW DIAGRAM For planning


Also known as ‘ KJ Diagram’Tool to collect a large amount of verbal expressions and organize them in groups according to natural relationships between individual items.Special kind of brain storming tool.

USESIt is used To provide a visual representation of large amount of ideas. To determine logical priorities. To extract large amount of useful information from few or scattered

data, or from unrelated ideas. To understand and organize unclear problems. To create new concepts.

AFFINITY DIAGRAM

AFFINITY DIAGRAM

ADVANTAGES

A participative exercise which generates commitment.

Identifies common view in thinking within a group.

Provides valuable ideas which can be refined by using other

tools.

Excellent for preliminary planning purposes, particularly in

addressing poorly defined areas where the problem is to

identify the problems.

AFFINITY DIAGRAM

STEPS

Define problem.

Generate ideas.

Record ideas on cards.

Display cards in random order.

Arrange cards in groups.

Create headers for groupings.

Draw the affinity diagram.

AFFINITY DIAGRAM

Also known as ‘Inter-relationship diagraph’. Tool to find causes to a problem. Same logic as CE diagram. Not only clarifies relationship between cause and effect, but also

between various causes. A graphical representation of all factors in a complicated problem,

system or situation. A creative process, which allows for ‘multi-directional’ thinking rather

than ‘linear’ thinking. The header cards from affinity diagram are used as the starting point for

relations diagram. It reveals the following:

Relationship between causes, Multiple routes from cause to effect, Relative importance of the causes.


USES

To generate a visual representation of the relations between

an effect and its causes as well as inter-relationship between

different causes of the problem.

Can be used to

Identify key problem from a list of important problems.

Identify the root cause of existing problem.

Identify key factors needed to make a decision.


STEPS

Identify ‘effect’ – in centre.

Conduct brainstorming – to identify immediate cause-

around the effect.

Connect with an arrow mark with a head, towards effect.

Most outgoing arrows- indicate root cause

Most incoming arrows- indicate key outcome or result.


Also known as ‘systematic diagram’.

Adaptation of the Fundamental Analysis System Technique (FAST) in value

engineering.

It systematically breaks down a topic into its component elements, and shows the

logical and sequential links between these elements.

Outlines the spectrum of paths and tasks that must be carried out to achieve a goal.

Serves the purpose of developing the essential means to achieve an objective or

goal.

Used when the causes that influence the problem are known, but a plan and method

for resolving the problem has not been developed.

According to Mizuno, this method searches for the most appropriate arid effective

means of accomplishing objectives.

TREE DIAGRAM

TREE

DIA

GRA

M

TYPES

Constituent-component-analysis diagram breaks down the main

subject into basic elements and depicts their relationships to the

objectives and the means of obtaining those objectives.

The plan-development diagram systematically shows the means and

procedures necessary to successfully implement a given plan.

TREE DIAGRAM

STEPS

State the problem to be studied.

Brainstorm all possible causes (for why-why diagram) OR

methods of addressing the problem (for how-how diagram).

Identify and list the primary, secondary and tertiary means

from brainstorm.

Arrange and re-arrange the elements in proper order in

boxes.

TREE DIAGRAM

USES Helps to breakdown complex issues into sub issues. Useful in planning a new program, a new service or a new product. Enables developing a sequence of steps that depend on each other

and from the solution to a problem. Used when missing a key step in implementing the solution to a

problem can lead to serious consequences. Purpose is to explore the ways and means to achieve the objective,

develop a list of alternative means and to present them in visual understandable form.

Helps to develop a systematic, step-by-step strategy to achieve an objective

TREE DIAGRAM

Also known as ‘multi-dimensional matrices’ or ‘quality table’.

Tool used to systematically organize information that must be

compared on a variety of characteristics in order to make a

comparison, selection or choice.

Depicts the relation between 2, 3 or 4 sets of factors in the

form of table or a matrix.

Starting point in building a ‘house of quality’.

Clarifies problematic spots through multi-dimensional

thinking.

Identifies corresponding elements involved in a problem

situation or event.

MATRIX DIAGRAM

MATRIX DIAGRAM

MATRIX DIAGRAM

L-shaped 2 groups AB or AA

T-shaped 3 groups BAC but not BC

Y-shaped 3 groups ABCA

C-shaped 3 groups All three simultaneously (3D)

X-shaped 4 groups ABCDA but not AC or BD

Roof-shaped 1 group AA when also AB in L or T

TYPES

STEPS

Determine the factors.

Select the type of matrix to be used.

Select the relationship symbol to be used.

Complete the proper matrix using appropriate factors and

symbols.

Examine the matrix and draw the appropriate conclusion.

MATRIX DIAGRAM

USES Used to show relations between individual items in 2 sets of factors. Eg.

Used to understand the relations betweeno Customer satisfaction and product characteristics.o Complaints and product groups.o Complaints and geographical regions.o A product’s performance in the market and promotional inputs into it.

QFD:o Quality Function Deployment.o A popular methodology based on matrix-style representation.o Column- “how”- different things that can be done to achieve the

objectives. (‘how to accomplish’).o Row- “what”- customer requirements or objectives (‘what to

accomplish’)

MATRIX DIAGRAM

Prioritization matrix.

Similar to matrix diagram but numerical data is used

instead of symbols indicating the existence and strength of

relationship.

Only tool among “New 7 MP tools” which uses numerical

data and produces numerical results.

It is a multivariate analysis technique called “Principal

Component Analysis”.

Used when matrix chart does not give detailed information

sufficiently.


STEPS

Decide the 2 factors whose relations are to be analyzed.

Check the number of individual items in 2 factors.

Prepare a matrix to accommodate all items of 2 factors.

Enter numerical data in the matrix.

Analyze the final results.


USES

Analyzes production process where factors are complexly intertwined.

Analyzes causes of non-conformities that involve a large volume of

data.

Grasps the desired quality level indicated by the results of the market

survey.

Classifies sensory characteristics systematically.

Accomplishes complex quality evaluations.

Analyzes curvilinear data.


Process Decision Programme Chart (PDPC).

An adaptation of the Operations Research methods.

A planning tool to outline every conceivable and likely

occurrence in any planning.

A very useful and powerful method to overcome an

unfamiliar problem or a goal

DECISION TREE

CHARACTERISTICS

A simple graphical tool used to mitigate risk in virtually any undertaking.

Helps to determine which processes to use to obtain desired results by

evaluating the progress of events and the variety of conceivable outcomes.

Establishes an implementation plan for mgmt by objectives.

Establishes an implementation plan for technology development themes.

DECISION TREE

DECISION TREE

STEPS

Prepare a ‘normal’ flow chart of process with all expected events as

steps in the chart.

Identify various possibilities of the process not going as per the plan due

to any abnormal occurrences.

Write these occurrences on flow chart through branching at appropriate

locations

Identify the ways and means to counts the effects due to abnormal

occurrences.

Write these counter measures connecting the corresponding abnormal

occurrences on one side and the process objectives on the other.

DECISION TREE

USES

Useful when one wants to plan all possible chains of events

that might occur during a project.

Used in new product development, building and equipment,

and data processing programs.

Used in decision making when the task is new, complex and

unique.

DECISION TREE

Also known as ‘activity network’ or CPM critical path method.

Graphical description of the sequential steps that must be

completed before a project can be completed.

Best known arrow diagram – PERT (Program evaluation and

review technique).

A planning tool that determines the critical path of a process or a

project.

It is a technique of planning, scheduling and control of activities

of a project.

ARROW DIAGRAM

ARROW DIAGRAM

TYPES

Activity on arrow (AOA) diagram – widely used.

Activity on node (AON) diagram.

STEPS

Identify and list each activity to be done in the project.

Determine the sequence of activities.

Construct a network reflecting the precedence relationships.

Write the activity time under the arrow leading from it.

ARROW DIAGRAM

USES Helps understand and manage a complex project (task). Enables understanding and managing a project in which multiple

activities take place and must be managed simultaneously. Enables explaining the project status to others. Helps implement plans for new product development and also to

develop product- improvement and respective follow-up activities. Helps establish daily plans for experimental trials and also for increase

in production and their follow-up activities. Helps synchronize the preceding plans for QC activities. Helps develop plans for a facility move and for monitoring follow-up. Helps analyze a manufacturing process and draw up plans for improved

efficiency.

ARROW DIAGRAM

SCOPE OF SIX SIGMA

Manufacturing

Service Industries

Hospitals

Insurance

Call Centre

SIX SIGMA

BENCHMARKING

Process of determining who is the very best, who sets the

standard and what the standard is.

It is a systematic method by which organizations can measure

themselves against the best industry practices.

It is finding the secrets of any given function or process so that a

company can learn from the information and improve on it.

It helps the company close the gap with the best-in-class

performer without having to reinvent the wheel.

BENCHMARKING

DEFINITION

“The process of identifying, understanding and adapting outstanding

practices and processes from organizations anywhere in the world to

an organization to improve its performance”. – APQC (American

Productivity and Quality Centre).

“The continuous process of measuring products, services and

practices against the toughest competitors or those companies

recognized as industry leaders”. -David Kearns.

“The systematic comparison of elements of performance of an

organization against those of other organizations, usually with the

aim of mutual improvement”. –Thore.

BENCHMARKINGA STEP-BY-STEP APPROACH TO BENCHMARKING

BENCHMARKINGTYPES OF BENCHMARKING

Based on the OBJECT to be benchmarked.

Product benchmarking.

Performance benchmarking.

Process benchmarking.

Strategic benchmarking.

Generic benchmarking.

Based on ORGANISATION against whom one is benchmarking.

Internal benchmarking.

External benchmarking.

Industry benchmarking.

Competitive benchmarking.

Best-in-class benchmarking.

Relationship benchmarking.

FMEAFAILURE MODE EFFECT ANALYSIS

A Failure Mode is:

The way in which the component, subassembly, product, input,

or process could fail to perform its intended function

Failure modes may be the result of upstream operations or

may cause downstream operations to fail

Things that could go wrong

Why?

Methodology that facilitates process improvement

Identifies and eliminates concerns early in the development of a

process or design

Improve internal and external customer satisfaction

Focuses on prevention

FMEA may be a customer requirement (likely contractual)

FMEA may be required by an applicable

Quality Management System Standard (possibly ISO)

FMEA

FMEA

BENEFITS

Allows us to identify areas of our process that most impact

our customers

Helps us identify how our process is most likely to fail

Points to process failures that are most difficult to detect

FMEA Manufacturing: A manager is responsible for moving a

manufacturing operation to a new facility. He/she wants to be

sure the move goes as smoothly as possible and that there are

no surprises.

Design: A design engineer wants to think of all the possible

ways a product being designed could fail so that robustness can

be built into the product.

Software: A software engineer wants to think of possible

problems a software product could fail when scaled up to large

databases. This is a core issue for the Internet.

FMEAFMEA PROCEDURE

1. For each process input (start with high value inputs), determine

the ways in which the input can go wrong (failure mode)

2. For each failure mode, determine effects Select a severity level for each effect

3. Identify potential causes of each failure mode Select an occurrence level for each cause

4. List current controls for each cause Select a detection level for each cause

FMEAFMEA PROCEDURE

5. Calculate the Risk Priority Number (RPN)

6. Develop recommended actions, assign responsible persons,

and take actions Give priority to high RPNs

MUST look at severities rated a 10

7. Assign the predicted severity, occurrence, and detection levels

and compare RPNs

FMEARISK PRIORITY NUMBER (RPN)

RPN is the product of the severity, occurrence, and detection scores.

Severity Occurrence Detection RPNX X =

FMEA

PROCESS TO CHANGE OIL IN A CAR

Drive caron lift

Fill withnew oil

Take Car off lift Process

Complete

3000 miles driven

Drain Oil ReplaceFilter

FMEA WORKSHEET

Process or Product Name

Change Oil in Car Prepared by: Leon Page _1____ of __1____

Person Responsible

Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________

Process Step

Key Process Input

Potential Failure Mode

Potential Failure Effect

Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Fill with new oil

New Oil—Mechanic

Wrong type of oil

Engine wear

No oil added

Engine Failure

Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)

FMEA

Process or Product Name: Hotel Service at Special Olympics Prepared by: Page _____ of ______

Person Responsible: Joe Quality Date (Orig) ___________ Revised __________

Process Step

Key Process Input

Potential Failure Mode

Potential Failure Effect

Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Register guest

Service Desk

Cannot Register in time

Complaints 5 Lack of language and communication skills, support of volunteers not sufficient

4 No plan on training content; training and volunteer support sufficient

3 72

Provide Guest Services

Guest Support

Lack of barrier-free facility

Inconvenience and injury

10 Cannot provide barrier-free facility

3 Providing barrier-free facility

7 210

Provide Meals

Food Service

Food goes bad

Disease or injury

10 Past shelf life

6 No control of raw material

8 240

Provide Medical Service

Medical Service

Service not in time

Illness changes for worse

10 No 24 Hour service

6 12 hour service

3 180

FMEA

FMEA identifies risk in our processes Impact/Severity Probability of Occurrence Detection

Helps identify what can go wrong and what we should fix

Can be used in multiple stages of process improvement

FMEA

SUMMARY

FMEA identifies risk in our processes

Impact/Severity

Probability of Occurrence

Detection

Helps identify what can go wrong and what we should fix

Can be used in multiple stages of process improvement

unit iii tqm tools and techniques i

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