Total Quality Management

What is Quality?

Old Quality vs. New QualityDifference between old quality (Rolls Royce,

personal banker, ...) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World, ...). The old is expensive, made for the few, using skilled hands, is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive.

Toyota Commercial

Why care about qualityincrease productivity

expand market share

raise customer loyalty

enhance competitiveness of the firm

at a minimum, serve as a price of entry

Achieving high quality Is Difficult Only 36% of the firms felt that Total Quality programs

boosted their ability to compete. Arthur D. Little

Survey of 500 Firms

Over 50% of firms rated their efforts D or F relative to increasing customer satisfaction, increasing market share, or reducing their cost.

Rath and Strong

Main Problem: Achieving high quality is as easy to understand as losing weight and quitting smoking and is as difficult to do.

Steve Schwartz, IBM MDQ VP

Why Quality is so difficult to do?

Quality can only be defined in terms of an agent (a judge of quality).

One has to translate future needs of the user into measurable characteristics

Service Industries are particularly DifficultReasons:High volume of transactionImmediate consumptionDifficult to measure and controlMore labor intensiveHigh degree of customization requiredImage is a quality characteristicBehavior is a quality characteristic

Quality Gurus

Deming: The father of the quality movement. Scientific approach to quality

Juran: Quality by designCrosby: Quality is free

Deming’s “Seven Deadly Diseases”

Lack of Constancy of purposeEmphasis on short term profitsEvaluation of performance, merit rating or

annual review of performanceMobility of managementRunning the company on visible figures aloneExcessive medical costs Excessive costs of warranty fueled by lawyers

that work on contingency fees

Interview with Deming

What is TQM??

The essence of Total Quality Management is a common sense dedication to

understanding what the customer wants and then using people and science to set up

systems to deliver products and services that delight the customer.

Greg HughesPresidentAT&T Transmission Systems

Basic Concepts of TQMCustomer Focus

Continuous Process Improvement - Kaizen

Employee Empowerment – Everyone is responsible for quality

Quality is free - focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time

Benchmarking – Legally stealing other people’s ideas

Customer-Supplier Partnerships

Management by fact..by numbers..by data – Balanced scoreboard (financial, customer, process, learning)

Quality in U.S. vs. the Japanese

U.S. conforming to the requirements at the least cost

Japanese joint responsibility to make the end customer happy

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“ I met the requirements”

13

OEM

Requireme

nt

Products

orTest

ResultsOEM

Supplier

Combative non collaborative relationship

14

“Creating the Best Vehicle/Systems with All the People All the Suppliers All the Time”

SOR

YOU meet therequirements! Let’s create

the best Vehicle andSystems together.

Partnership - Collaborative relationship

Strength of USA vs. Japan

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Concept

Time

Strength of USA Mfg Strength of Japanese MfgKAIZEN

Good Innovative Ideas Good Implementation

Good Ideas, Good Implementation are the goals of everyone in the automotive industry

Seven Basic Quality Tools To improve Process Quality

Scatter Diagrams: Plot data on a chart – no attempt is made to classify the data or massage it

Pareto Charts: Organize data on a histogram based on frequency from most prevalent to least. Help identify major causes or occurrences (80:20 rule)

Check Sheets: Easy way to count frequency of occurrence by front line workers

Histograms: Categorize data is cells and plot (see if any patterns emerge)

Run Charts: Plot data as a function of timeCause and effects Charts: fishbone diagrams are

used to identify the root causes of a problemControl Charts: are statistical tools used to

determine if the variation in results is caused by common or special events

Failures in O-rings

Graph Fit of O-ring failures

Full O-ring data including no failures

TRANSACTION TIME

RUN CHART

Time of Day

Data Collected From Check SheetTime Range (in

secs)44-50

51-57

58-64

65-71

72-78

79-85

86-92

93-99

100-106

107-113

Frequency 1

4

17

12

14

19

18

11

3

1

A Histogram 89 1896 11

103 3110 1

0

2

4

6

8

10

12

14

16

18

20

47 54 61 68 75 82 89 96 103 110

47

54

61

68

75

82

89

96

103

110

Be careful of Cell Size47 1 5054 4 6461 17 7868 12 9275 14 10682 1989 1896 11

103 3110 1

05101520253035

50 64 78 92 106

50

64

78

92

106

Pareto Chart (80-20 Rule)47 154 461 1768 1275 1482 1989 1896 11

103 3110 1

85

0%

20%

40%

60%

80%

100%

120%

0102030405060708090

1 2 3 4 5 6 7

Series2

Series1

Further info on Pareto Charts

Pareto Diagrams Purpose:

◦ helps organize data to show major factors◦ displays data in the order of importance◦ organize based on fact rather than perception

To construct:◦ use data from a check sheet or similar instrument◦ analyze data to determine frequency◦ identify the vital few◦ calculate percentages◦ add percentages to find vital few (80%)◦ draw cumulative curve

Typical Application:◦ display relative importance of different factors

choose starting point for problem solving monitor success identify basic cause of a problem

◦ use a selling tool to gain support

Processing Delays

Teller Processes

Computers

Sequenceof activities

Too many steps

Controlfunctions

Not user friendly

Too muchdowntime

Slow response time

Training

Attitude

Fatigue

Fishbone Diagram akaCause & Effect Diagram

Cause and Effect Diagram“Fishbone Diagram”

Purpose:◦ visual display of information to identify root causes rather than

symptoms. To construct:

◦ determine the issue and write problem statement in a box to the right of diagram

◦ find the main causes and write them on branches flowing to the main branch (method, equipment, people, material, environment, customer expectations, money, management, govt. regulations)

◦ identify all possible causes and write them on the diagram as sub-causes in each category

Typical Application:◦ determine the real cause of the problem◦ check the potential effects of a solution

Fishbone Diagrams Explained5 Why’s problem solving technique

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Mizenboushi and GD3 Concepts

Good Design

Good Discussion

Good Dissection

GD3

DRBFM DRBTR

Robust Design - keep Good Designs - minimize change

Find ProblemsPrevent Problems

Address any potential issues up stream at Design Phase

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Quality Focus At the Design Stage

Quality from the start – Directs attention to “Change”

Change = potential to have problems Directs attention to “Interfaces”

Most defects occur at the “interface”

Focus on

Change Points & Interface Points

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Examples:• Design change• Packaging environment change• Usage environment change• New manufacturing process• New supplier

No change – No Problem

Change Points have the highest potential to introduce defects

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DRBFM – Example

Tire Pressure Monitoring System – Changing the sensor from Aluminum Valve to Rubber Valve.

• Purely for cost reduction purposes... System Performance is the same.

Simple change – What could go wrong?

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Interfaces

Interfaces – (Interfaces where issues can brew and surface later)

Customer to Supplier Department to Department System Interfaces

The Crash sensor failure on Honda Minivans

Interface Points have the highest potential to introduce defects

Design Review By Failure Modes (DRBFM)Basic Concepts

Before and After – Description of the Change PointDescribe the Potential failure modesDescribe the Design CountermeasuresTarget Testing of the change points and

Countermeasures Only

Design techniques to uncover defects at the design stage – Up stream

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DesignDesign Verify/ValidateVerify/ValidateDRBFM DRBTR

Changes

Test Result (Change in product due to test: Cracks,Leaks, etc.)

DesignDesign

Focus on Implementation

Where do failures occur

Design Phase (Suppliers are Up Stream)Production In the field

Where is it cheapest to detect failures?

Example:Replacing a four crash sensors by a single one ..

When Failures Occur!

Why did the failure happen?Symptoms vs. Root CausesRoot Causes (Investigate the whole chain):

Suppliers/Component failureDesignManufacturingChange management

Why were not able to detect it?

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Rootcause Analysis:•Why Occurred?•Why Not Detected?

Failure Detection 5Ws-2Hs

WhoWhereWhen What WhyHow was the problem found?How can we isolate it? Turn On / Turn Off

Rootcause Analysis Methodology

Failure Isolation – KT Analysis: Is - Is Not

Why is this design and not the other similar designWhy this plant and not another plantWhy this operator and not the other operatorWhy in winter and not in the summerWhy this computer and not the other computerWhy in this model and not in other models

Rootcause Analysis Methodology

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Finding the root causes of a problem is not Fault Finding/Criticism. To find problems is not fault finding/criticism.

To find problems is a creative act, same as innovation.

We should never stop at only finding problems, but also develop a systemic corrective action plan... FIX THE PROCESS that created the problem & identify detection algorithms

We never forget that every job should relate directly to improving a product. Other jobs are nothing but waste, e.g., only to check, to inspect, etc.

Everyone should readily accept help from review participants.

Summary - Concepts Quality all the time by everyone from an end

user prospective

Address issues up stream. Address product and process defects at the design stage

Fixing problems usually involves fixing the systemic process issues that caused the problem – Reoccurrence Prevention

Focus on Implementation

Focus on Change Points and Interfaces