Fitness forConsumer Use

Fitness forConsumer Use

Producer’s PerspectiveProducer’s Perspective Consumer’s PerspectiveConsumer’s Perspective

Quality of ConformanceQuality of Conformance

• Conformance to specifications

• Cost

Quality of DesignQuality of Design

• Quality characteristics• Price

MarketingMarketingProductionProduction

The Meaning of QualityThe Meaning of Quality

The Meaning of Quality

Eight Dimensions of Quality

1. Performance2. Reliability3. Durability4. Serviceability5. Aesthetics6. Features7. Perceived Quality8. Conformance to Standards

Effective management of quality requires the execution of three activities:

1. Quality Planning

2. Quality Assurance

3. Quality Control and Improvement

Quality Control• The main outputs of quality control are:

– Acceptance decisions– Rework– Process adjustments

• There are Seven Basic Tools of Quality that help in performing quality control

4

Quality Assurance• Quality assurance includes all the activities related to satisfying the

relevant quality standards for a project

• Another goal of quality assurance is continuous quality improvement

• Benchmarking generates ideas for quality improvements by comparing specific project practices or product characteristics to those of other projects or products within or outside the performing organization

• A quality audit is a structured review of specific quality management activities that help identify lessons learned that could improve performance on current or future projects

5

Five Cost Categories Related to Quality

• Prevention cost: cost of planning and executing a project so it is error-free or within an acceptable error range

• Appraisal cost: cost of evaluating processes and their outputs to ensure quality

• Internal failure cost: cost incurred to correct an identified defect before the customer receives the product

• External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer

• Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities

6

Quality Problem Types

1. Conformance problems

2. Unstructured performance problems

3. Efficiency problems

4. Product design problems

5. Process design problems

Two Ways Quality Improves Profitability

Improved Improved QualityQuality

Increased Increased ProfitsProfits

Increased productivity Lower rework and scrap costs Lower warranty costs

Reduced Costs via

Improved response

Flexible pricing

Improved reputation

Sales Gains via

Figure 6.1Figure 6.1

The Flow of Activities

Organizational PracticesLeadership, Mission statement, Effective operating procedures, Staff support, TrainingYields: What is important and what is to be

accomplished

Quality PrinciplesCustomer focus, Continuous improvement, Benchmarking, Just-in-time, Tools of TQMYields: How to do what is important and to be

accomplished

Employee FulfillmentEmpowerment, Organizational commitmentYields: Employee attitudes that can accomplish

what is importantCustomer SatisfactionWinning orders, Repeat customersYields: An effective organization with

a competitive advantage

Elements of TQM

• Continual improvement• Competitive benchmarking• Employee empowerment• Team approach• Decisions based on facts• Knowledge of tools• Supplier quality• Champion• Quality at the source• Suppliers

Seven Concepts of TQM

Continuous improvement Six Sigma Employee empowerment Benchmarking Just-in-time (JIT) Taguchi concepts Knowledge of TQM tools

Traditional TQM Approach Traditional TQM Approach to Solving Problemsto Solving Problems

• Understand– Document the process flow– Establish customer-based measures

• Characterize– Collect on key measures– Analyze data to find root causes

• Simplify– Make data-driven decisions– Eliminate waste, standardize the process

TQM Organization

• The Director’s job (and managers’ and supervisors’) is to support the front-line employees who work with the customers

• Note the presence of customers at the top of the hierarchy

Customers

Employees

Supervisors

Managers

Director

How should we define “Quality”?

• What does the term quality mean?

• “Quality” represents the extent to which a good/service meets or exceeds customer expectations– Overall Quality– Quality along many dimensions

• Quality is both “technical” and “personal”– “technical” = objectively measured– “personal” = subjectively measured

Quality Problem Types

1. Conformance problems

2. Unstructured performance problems

3. Efficiency problems

4. Product design problems

5. Process design problems

LEAN Variation Reduction• Predictability• Feasibility• Efficiency• Capability• Accuracy

• Flow Mapping • Waste Elimination• Cycle Time• WIP Reduction• Operations and

Design

Lean DMAICELIMINATE

WASTE, IMPROVE

CYCLE TIME

DESIGN PREDICTIVE

QUALITY INTO PRODUCTS

ELIMINATE DEFECTS, REDUCE

VARIABILITY

DFSS

• Requirements allocation• Capability assessment• Robust Design• Predictable Product Quality

Design for Six Sigma

Process Improvement Triad

The Juran Trilogy

1. Planning

2. Control

3. Improvement

• These three processes are interrelated

• Control versus breakthrough

• Project-by-project improvement

Examples of Service Quality

Dimension Examples1. Tangibles Were the facilities clean, personnel neat?

2. Convenience Was the service center conveniently located?

3. Reliability Was the problem fixed?

4. Responsiveness Were customer service personnel willing and able to answer questions?

5. Time How long did the customer wait?

6. Assurance Did the customer service personnel seem knowledgeable about the repair?

7. Courtesy Were customer service personnel and the cashierfriendly and courteous?

1. Leadership Commitment• Key word “Leader”ship

2. Data Based Decisions• Not sound decisions without data

3. Training and Culture change• Knowledge and understanding in order

for change

3 key Principles of Six Sigma

Key Six Sigma Metrics in Services

• Accuracy

• Cycle time

• Cost

• Customer satisfaction

Common Six Sigma Tools

Tools for Six-Sigma and Quality Improvement

• Elementary statistics• Advanced statistics• Product design and reliability• Measurement• Process control• Process improvement• Implementation and teamwork

Six Sigma Quality: DMAIC CycleCases/examples from classmates

1. Define (D)

2. Measure (M)

3. Analyze (A)

4. Improve (I)

5. Control (C)

Customers and their priorities

Process and its performance

Causes of defects

Remove causes of defects

Maintain quality

Baldrige Criteria• Named after Malcolm Baldrige, Reagan’s

Secretary of Commerce who died in office.• 7 part framework

– Leadership– Strategic Planning– Focus on patients & other customers– Measurement, Analysis, and Knowledge

Management– Staff Focus– Process management– Organizational Performance Results

Market Perceived Value Profile RACI Diagram Customer Selection Matrix Customer Discussion Guide Image KJ Translation Worksheet Requirements KJ Importance Questionnaire QFD HOQ #1 Concept Generation Pugh Screening Matrix QFD HOQ #2 Critical Parameter Tree CPM Scorecard Process Mapping Weakness KJ Basic Stats Probability Determination Exploratory Data Analysis Control Charting Capability Analysis (variables data) Attribute Capability Analysis Measurement System Analysis

DFSS Tools Dimensional Variation Analysis Monte Carlo Simulation DFMEA DFA Analysis Worksheet Cause and Effects Matrix Confidence Intervals T-Test For Means Comparison F-Test For Variances Comparison Anova Correlation Regression (Simple Or Multiple) Design Of Experiments DOE with Centerpoints Response Surface Experimental Design Multiple Response Optimization P-Diagram Robust Design Empirical Tolerancing Life Data Analysis Sample Size Planning 2 Proportions Comparison Regression Applied To Life Data Accelerated Life Testing (ALT)

Where should we spend our

time in ME470?

Six Sigma and CMMI

CMMI Process Area/Six Sigma Relationships

Six Sigma Tools For Software Development

– Benchmarking – Scatter diagram– Correlation analysis– Control charts– Flowcharts – Modeling and Simulation

Methodologies: DMADV

• First three steps are the same• Define – “the project goals and deliverables for both

internal and external customers”• Measure – “and determine customer needs and

specifications”• Analyze – “the process options to meet the customer

needs”• Design – “the process to meet the customer needs” • Verify – “the design performance and ability to meet

customer needs”

Types of Audits

• Internal and External

• Horizontal– all departments audited against one

element of standard or procedure• Vertical

– one department audited against all – elements of standard or procedure

Responsibilities for the Audit

Management:– Define [internal] auditing

policy

– Assign responsibility of

internal audit program

• Quality Manager

– Must be advised of

internal audit outcomes

• discussed at

management review

Quality Manager:– Establish & maintain

internal audit system

– Develop schedule

– Coordinate audits

– Manage corrective action

system

– Advise management

audit outcomes

Business Measures

Voice of the Customer

Change Management

Six Sigma

ISO 9001CMMI

Methods & Tools

DMAICDFSS

Process Management

Mission Systems’ Integrated Approach to Process Improvement

ISO 9001 – quality management discipline for project and functional areas

Six Sigma – framework for ensuring process improvements support corporate goals

CMMI – use of industry best practices in software/systems engineering

Six Sigma Quality

• Two Types of Quality– Type 1: Customer Quality - The features that customers want.– Type 2: Engineered Quality - The problems customers do not want.

• No Intuition – Only cold hard facts

• VOC – Voice of the customer– Needs analysis, eSurvey, Focus Groups,

Surveys

Elements of Six SigmaThe CustomerThe Process

The EmployeeThe Customer

Customers are the center of any company’s universe: they define quality. They expect performance, reliability, competitive prices, on-time delivery, service, clear and correct transaction processing and more. Our customers’ satisfaction is priority number 1. If we don't keep them happy, someone else will.The ProcessOutside-In Thinking By understanding the transaction lifecycle from the customer's needs and processes, we can discover what they are seeing and feeling. With this knowledge, we can identify areas where we can add significant value or improvement from their perspectiveThe EmployeeEmployees must focus their talents and energies on satisfying customers.Employees are trained in the strategy, statistical tools and techniques of Six Sigma quality. Training courses are offered at various levels:Quality Overview Seminars: basic Six Sigma awareness. Team Training: basic tool introduction to equip employees to participate on Six Sigma teams. Master Black Belt, Black Belt and Green Belt Training: in-depth quality training that includes high-level statistical tools, basic quality control tools, Change Acceleration Process and Flow technology tools. Design for Six Sigma (DFSS) Training: prepares teams for the use of statistical tools to design it right the first time.

Six Sigma Strategy

• To achieve Six Sigma quality, a process must produce no more than 3.4 defects per million opportunities.

• Critical to Quality (CTQ):Attributes most important to the customer• Defect:Failing to deliver what the customer wants• Process Capability:What your process can deliver• Variation:What the customer sees and feels• Stable Operations:Ensuring consistent, predictable processes to improve what the

customer sees and feels• Design for Six Sigma:Designing to meet customer needs and process capability• Customers don't judge us on averages, they feel the variance in each transaction, each

product we ship. Six Sigma focuses first on reducing process variation and then on improving the process capability.

• Customers value consistent, predictable business processes that deliver world-class levels of quality.

Steps to SuccessStep 1 Identify Opportunities Pick a Good Target

Step 2 Form Team and Scope Project

Organize and Focus

Step 3 Analyze Current Process Evaluate the “As-Is”

Step 4 Define Desired Outcomes for Improved Process

Envision the “To-Be”

Step 5 Identify Root Causes and Proposed Solutions

Figure Out What’s Stopping Us

Step 6 Prioritize, Plan and Test Proposed Solutions

Try Out the Best Solution

Step 7 Refine and Implement Solutions

Fine Tune and Standardize

Step 8 Measure, Progress and Hold Gains

Check on Progress

Step 9 Acknowledge Team and Communicate Results

Publicize and Celebrate

Right Problem

Right People

Right Process

Right Performance

Do it Again

Each must be managed to improve

quality and reliability.

Each must be managed to improve

quality and reliability.

• Non-Conformances come from many sources including:

• Variation• Culture • Complexity • Mistakes

Quality Management Tool Box

CultureComplexity

Variation

Mistakes

Six Sigma Development Model

Opportunity

Management Champion

Strategic Plan

Projects

Black Belts

Green Belts

Coaching Awareness

The DMAIC Model

At the heart of Six Sigma is a systematic method for analyzing and improving business processes called DMAIC. The model includes five elements: 

Define opportunities  Measure performance  Analyze opportunity 

Improve performance  Control performance

Six Sigma Process and the Statistical Tools

AnalyzeA

MeasureM

DefineD

ImproveI

ControlC

• Voice of the Customer (VOC) - QFD

• XY Matrix• Process Analysis and FMEA• Data Collection Methods• Data Integrity and Accuracy• Basic Statistics - Common Distributions - Central Limit Theorem - Sampling Distribution of Mean - Basic Probability Concepts• Decision-Making• Non-Normal Data Graphical• Short vs. Long Term Capability• Data Analysis (B7) - Cause and Effect Diagram - Check Sheets - Control Charts - Flowcharts - Histogram - Pareto Chart - Scatter Diagram• Measurement System (Gage) Analysis• Process Capability Assessment

• Graphic Data Analysis• Multi-Vari Analysis• Inferential Statistics - Confidence Intervals - Sample Size• Hypothesis Tests - Means, Variances and Proportions - ANOVA - T-Tests - Test for Equal Variance - Paired Comparison Tests - Chi-Square - Proportion - Contingency Tables - Point and Interval Estimation - Non-Parametric Tests• Simple Linear Correlation• Regression-Simple and Multiple - Measure and Model Relationships Between Variables - Binary Logistics • Process Modeling and Simulation

• Hypothesis Tests - ANOVA - Non-Parametric tests - Contingency Tables• Design of Experiments - Terminology - Plan and Organize Experiments - Design Principles - One Factor - Full-Factorial - Two Level Fractional - Mixture Experiments - Taguchi Robustness Concepts• Response Surface Methodology - Steepest Ascent/Decent - High Order Experiments• Evolutionary Optimization (EVOP)

• Control Charts - Theory, Objectives, Benefits - Variable Selection - Rational Sub-grouping - Selection/Application - Analysis - Moving Average - Exponentially Weighted Moving Average (EWMA) - CuSum• Process Capability Assessment

Design for Six Sigma• Quality Function Deployment (QFD)• Robust Design and Process - Functional Requirements - Noise Strategies - Tolerance Design - Tolerance and Process Capability• Design Analysis and FMEA• Reliability Fundamentals

Six Sigma Process and the Management Tools

• Business Case• Problem/Objective Statement• Project Scope• Project Goals• Project Definition• Project Charter• Identify Owners and Stakeholders• Identify Customers• Financial Benefits• Benchmarking• Team Leadership• Team Dynamics and Performance• Change Agent• Performance Measurements• Gap Analysis• High Level Process Mapping/ SIPOC(Suppliers, Inputs, Process, Output, and Customers) Design for Six Sigma

• Design for (X) - Manufacturing (DFM) - Cost (DFC) - Test (DFT) - Maintainability (DFMA) - Quality/Reliability (DFQ)• Special Design Tools - Inventive Problem Solving - Axiomatic Design

• Lean Enterprise - Lean Thinking - Theory of Constraints - Continuous Flow Manufacturing - Non-Value Added Activities - Cycle Time Reduction - Cost of Quality - Tools Visual Factory, Kanban, Poka-Yoke • Solution Implementation - Mistake-Proofing (Poka-Yoke) - Visible Enterprise

The Six Sigma Journey• Enterprise View• Leadership• Business Strategy• Organizational Goals/Objectives• Project Management Tools (N7) - Activity Network Diagram - Affinity Diagram - Interrelationship Digraph - Matrix Diagram - Prioritization Matrix/Grid - Tree Diagram - Process Decision Program Chart• What’s Next-Six Sigma Evolution

AnalyzeA

MeasureM

DefineD

ImproveI

ControlC

• Control Plans - Training - Documentation - Monitoring - Response - Systems and Structures• Total Productive Maintenance (TPM)• Best Practice Sharing/Translation

Problem Solving

• Problem: any deviation between what “should be” and what “is” that is important enough to need correcting– Structured– Semistructured– Ill-structured

• Problem Solving: the activity associated with changing the state of what “is” to what “should be”