TQMBH14-5 - Session 02

Total Quality Management TQMBH14-5Session 02 Quality Culture + Six Sigma

(Basic Concepts)

Dipankar Bose - XLRI

Contribution of Various Functional

Disciplines

Discipline Example of contribution

Finance Measuring the cost of poor quality

Industrial engineeringDesign of integrated system/ Measurement/ Problem solving/

Work analysis

Information technology Measurement, analysis, reporting on quality

Market research Competitive standing on quality/ Understand customer desires

Operations management Management of integrated system

Operations research Analyzing product design alternatives for optimization

Organizational behavior Understanding quality culture/ Making teams effective

Organizational effectiveness Satisfying needs of both external and internal customers

Strategic planning Quality as a measure of unique competitive advantage

System engineering Translating customer needs to product and process features

Value engineering Analysis of essential functions needed by customer


Training Needs

Subject MatterTop

Management

Quality

Managers

Other Middle

ManagersSpecialists Facilitators Workforce

Quality awareness

Basic concepts

Strategic quality management

Personal roles

Three quality processes

Problem solving methods

Basic statistics

Advanced statistics

Quality in functional areas

Motivation for quality


Developing Quality Culture

Goals &

Measurement

Self-development

& Empowerment

Leadership

Participation

Recognition &

Rewards

Departmental

quality activities


Obstacles to Achieve Quality Goals

Lack of leadership by higher management

Lack of infrastructure for quality

Failure to understand the skepticism about New quality

culture

Assumption by management that exhortation will work

Failure to start small and learn from pilot activities

Reliance on specific techniques as primary means of

achieving quality goals

Underestimate the time and resource required


Teams

Quality council

Quality project team

Project champion/ Project team leader/ Recorder/

Team member/ Facilitator

Workforce team

Normally through quality circle

Benefits on people attitude and behavior

Self-directed team

Contradicts Taylors system of work design


Quality Circle

A group of employees

6-12 members from same work area

Receives training in

Problem solving/ Statistical quality control/ Group

process

Recommend solutions which

Management may implement

Typical objectives

Quality improvement/ Productivity enhancement/

Employee involvement


Phases

Start-up

Initial problem solving

Presentation and approval of solutions

Implementation of solutions

Expansion and continued problem solving

Decline


Six Sigma (Basic Concepts)


Six Sigma Quality

The process

Centered between the limits

With small variation so that each limit is six standard

deviations from the mean

Normally distributed

Needs to be clear on

Unit being judged

What constitutes a defect

How we calculate opportunities for defects


Interpretation of Six Sigma

Six Sigma as a metric

Used as a measure for process capability/performance

A common yardstick for the organization

Six Sigma as a philosophy

Six sigma process may not bring down the defect at 3.4

DPMO

But the philosophy ensures employees understand the

importance of reducing sigma through projects

Six Sigma as a management system

Organization should express quality in terms of

capability level


Three Emphasis Areas for Six Sigma

Design for Six Sigma

Product design excellence/ DFM

Within all components of the development and new

product introduction process

Transactional Six Sigma

Operational excellence

Within all components of the operation. Areas of focus

include Sales, HR, Finance, Materials, etc.

Production Six Sigma

Production excellence/ variation and defect reduction/

lean production techniques

Within all components of the production and delivery

process


Choosing Candidates for Six Sigma

Projects Basic Terminologies

Critical To Quality (CTQ)

Customer generated/ Process generated/ Business

generated

CTQ Metric or XY Metric

Process metric/ Business result metric Input = X Product metric = Y = f (X)

Determine the critical Xs which affect the Y most

Defect / Defective

Opportunity & Defects Per Million Opportunities (DPMO)

Cost Of Poor Quality (COPQ)


XY Metric

Y = f (X1, X2.Xn)

Dependent Independent

Output Input

Effect Cause

Symptom Problem

Monitor Control


Tree Diagram Critical to Quality

(CTQ)

Performance to Schedule

Deviation from schedule in completed units

< 3.4 DPMO

Customer

Needs

Product

arrives on-time

Response(Y)

Measure

SpecificationLimit(s)

Allowabledefect Rate

Target

100% of committed ships prior to 5:00 pm as received on Customer receiving dock

LSL = 0 hours lateUSL = 6 hours early

Customer

Requirement

Detailed Specifications

Better

Delivery

CTQ Driver


Some Calculations

Defects Per Million Opportunities (DPMO)

= ((Total Defects) / (Total Opportunities)) * 1,000,000

Defects (%)

= ((Total Defects) / (Total Opportunities)) * 100

Yield (%)

= 100 (Defects Percentage)

Process Sigma

= NORM.S.INV(1 ((Total Defects)/(Total Opportunities)))

+ 1.5


Some Additional Calculations

Process Yield (PY) Dont include rework in calculation Final Yield (FY) Product of individual PY

Throughput Yield (TPY) Includes rework in calculation Also called First Pass Yield (FPY)

DPU and TPY Defects assume Poisson distribution DPU = LN(TPY)

Rolled Throughput Yield (RTY) Probability of the entire process producing zero defects

Product of individual TPY

RTY and TDPU TDPU = LN(RTY) Normalized Yield (NY) Geometric mean of TPY


Yield Calculation Example

Input =100 units

Process A Scrap = 5 units; Rework = 9 units Process B Scrap = 3 units; Rework = 6 units Process C Scrap = 4 units; Rework = 5 units

Calculate PY for each process and overall PY or FY

Calculate TPY or FPY for each process, RTY, NY, DPU and

TDPU

PY-1 = 0.95; PY-2 = 0.968; PY-3 = 0.9565

FY = Overall PY = 0.88

TPY-1 = 0.86; TPY-2 = 0.905; TPY-3 = 0.902 (also FPY)

RTY = 0.7024

NY = (0.7024)^(1/3) = 0.8889


Yield Calculations Another Example

A process produces 50000 pencils. Three types of defect

can occur

Blurred printing 40 Wrong dimensions (Length & Diameter) 125 Rolled ends 10

Calculate DPU, TPY, PPM, DPMO


DMAIC

Define

From potential problem identification to team

formation for selected project

Measure

From identification of key product parameter/process

characteristics to measurement of current state

Analyze

Identifies causes of variation by analyzing past/present

data

Improve

Remedy/ effectiveness of remedy/ implementation plan

Control


DMAIC Questions

Define

What are customer expectations of the

product/process?

Measure

What is the frequency of defects?

Analyze

Why/when/where do defects occur?

Improve

How can we fix the process?

Control

How can we make the process stay fixed?


TQMBH14-5 Assignment (Define)

Each group should have 5-6 students

At least 2 BM & 2 HRM students in each group

Submit Group member names on or before

15th September, 2015

Submit by email with Subject TQMBH14-5 Group details

Details of Assignment (Define) Total 5 marks

Choose any organization

Identify one process with long existing problem

Which impacts their business

Calculate approximate weekly loss due to the problem

1 Marks


TQMBH14-5 Assignment 1

Continued

Details of Assignment (Define) Continued

Prepare Business case, Problem statement, Mission

Statement, SIPOC chart of the process having problem

1+1+1+1 = 4 Marks

Submission Deadline

On or before 29th September, 2015

You may discuss the draft version

Submit by email with Subject TQMBH14-5 Assignment (Define)

Remaining Assignments (Measure, Analyze, Improve) 5

+ 10 + 5 = 20 Marks

Will be given to different groups separately

TQMBH14-5 - Session 02

Documents

quality failure

quality processes problem

quality circle benefits

new quality culture

sigma process

continued problem

process capabilityperformance

behavior selfdirected