Quality 4.

0- Digital Transformation of
Quality Management

"Quality 4.0" is a term that references the future of quality and organizational
excellence within the context of Industry 4.0.
 What Will Be Covered
1. TQM & Total Cost of
Quality(TCoQ)
2. Digital Transformation
of Quality
Management through
Quality 4.0
3. Q4.0 Case studies &
Applications
TQM & Cost of Poor Quality

The main driver of Quality 4.0

Projects feasibility study

3
 DIGITAL QUALITY
( Realtime , Data driven
Proactive, Self Correcting)
SYSTEM INTEGRATION

CONTINUAL IMPROVEMENT
FACT BASED DECISIONS
PROCESS ORIENTATION

PREVENTIVE ACTION
CUSTOMER FOCUS

COMMUNICATION & LEADERSHIP

TOTAL EMPLOYEE EMPOWERMENT

TOTAL QUALITY MANAGEMENT

4
 Back to Basics-TQM PILLARS
• The eight principles of TQM are:

1. Customer focus. ...

2. Leadership. ...
3. Involvement of people. ...
4. Process approach. ...
5. System approach to management. ... •QUALITY 4.0
6. Factual approach to decision making. ... ELEMENTS 4,5,6
7. Continuous improvement. ...
8. Mutually beneficial supplier relationships.

5
 Total Cost of Quality
Armand V. Feigenbaum
• Cost of Achieving Good Quality
– Prevention costs
• costs incurred during product design
– Appraisal costs
• costs of measuring, testing, and
analyzing
• Cost of Poor Quality
– Internal failure costs
• include scrap, rework, process failure,
downtime, and price reductions
– External failure costs
• include complaints, returns, warranty
Author of world famous book
claims, liability, and lost sales
on Total Quality Control

6
 Research findings of ASQ
(American Society of Quality)
• Many organizations will have true Quality related
costs as high as 15-20% of Sales Revenue, some
going as high as 40% of total cost of operations.
• A general thumb rule is the cost of poor quality in a
thriving company will be about 10-15% of cost of
operations
• In a research study over 45% stated that Quality
improvement programs improved Profitability
• Over 75% of the respondents admitted that they still
don’t measure CoQ or somewhat or unsure

7
Positive Impact of Smart Factory on Cost of Quality
(The basis of RoI in Q4.0 Projects )

Profit ProfitProfit Profi

t
Prevention Impact of
Appraisal Digitalizatio
TCOQ Internal Failures
n

External Failures Preventio

Total Cost n Appraisa
l
of Internal
Failures
Operations External
Failures

Total Cost Total Cost Total Cost

of of of
Operations Operations Operations

Proprietary & Confidential. Copyright

2019, Tulip Interfaces, Inc.
Preventing Poor Quality (Comparison)

Prevention
Costs

Appraisal Benefit
Costs

$ Repair Costs Prevention

Costs

Appraisal
Failure Costs Costs
● Internal Repair Costs
● External
Failure Costs

Before Quality After Quality

Improvement Improvement
Programs Programs

9
BASICS of QUALITY 4.0

10
Case Study – Atlas Copco

11
 What is Industry 4.0? &
Quality 4.0

18th century 19th century Mid 20th century Today

Enabling ICTs Cyber physical

Steam power Electricity systems, Internet of
Technology Electronics things (IoT), networks

Production Mass production

Automation and
Intelligent, flexible,
Mechanical production networked
Systems and assembly
production
distributed
lines production
Quality 2.0: Quality 3.0: Quality 4.0:
Quality Quality 1.0: Inspection / control Software for Continuous quality
Systems Self-inspection / assurance / QMS, with real-time data
military standards improvement and and IoT
planning

Proprietary & Confidential. Copyright

2019, Tulip Interfaces, Inc.
 Traditional vs Digital Quality
CRITERIA OF Status in Traditional Status in Digital Quality
EVALUATION Quality Management Management
DATA QUALITY
Data is collected sporadically, Data is collected in real time, so you
used when it’s already can improve processes faster
outdated
INFORMATION
Siloed databases with data Stakeholders can access integrated
SHARING
keepers that block data from process, machines and
information people
SPEED OF
“Monday meetings” focused “Monday meetings” focused on
IMPROVEMENT
on fixing spikes of poor improvement opportunities
quality
COST OF
Need to perform additional Audits, tests, appraisals, become
QUALITY
audits, tests, appraisals embedded in the system
SKILLS OF
Low skills, repetitive tasks (i.e. Smart worker, focused on prevention
QUALITY STAFF
inspection, testing) through data analysis, IoT and app
development

13
Fundamental principles of Q4.0

Proactive Process Quality Control

14
 Back to Basics-JURAN’S TRILOGY-
PLANNING, CONTROL, IMPROVEMENT

• MEASURE • ANALYSE
• FEEDBACK • DIAGNOSE
• CONTROL • PREDICT
• MONITOR • PRESCRIBE
• IMPROVE • VISUALISE

15
Key Elements of a Quality Management System
(Joseph Juran)

Design Develop Control Continuously Improve

Process

Poor Performance

Breakthrough

COPQ

Time
 Key Elements of a QMS &
Digital Apps

Plan with Apps Control with IoT Improve with real-time data

Poor Performance

Breakthrough

COPQ

Time

Proprietary & Confidential. Copyright

2019, Tulip Interfaces, Inc.
REALTIME DATA DRIVEN DECISION MAKING
DATA SCIENCE: the backbone of Quality 4.0

18
QUALITY 4.0 Tools

19
 Integrating and digitalizing
the entire value chain
from concept to realization

Cloud-based, open IoT operating system: “ MindSphere”

Product Production Production Production Services

design planning engineering execution
Collaboration platform:
Teamcenter
Suppliers and logistics
• Teamcenter • Teamcenter • Teamcenter • Teamcenter • Teamcenter
• NX CAD • Tecnomatix • TIA Portal • MES MOM • MindSphere
• NX CAE (Process Simulate) • SIMATIC, SINAMICS, • IT security
• NX MCD SINUMERIK, SIRIUS, RFID, • Data-driven services,
Sensors Predictive Maintenance

SINUMERIK Integrate
for production

Industrial Ethernet
 Process Quality:
Critical to Quality (CTQ)

CT CT CT CT
Q Q Q Q

Input Process Process Process Process Output

Step Step Step Step

Work Work Work Work

BLUE = Production Instructions Instructions Instructions Instructions
Steps
GRAY = Appraisal,
Control
 REALTIME FEEDBACK of
CYBERPHYSICAL SYSTEMS
And even deeper into a process

CT Establish
Q Baseline
Performance

Monitor Actual
Performance
Input Process
Output
Step
Compare to
CTQ Targets

BLUE = Production
Take Action
Steps on Difference
GRAY = Appraisal,
Control
 Quality 4.0 APPS
Manufacturing Apps turn your workflows into instrumented, data collecting,
digital processes.

Continuous Improvement, Lean

Create, test, and deploy quickly--then iterate
and improve.

Visual
User-friendly interfaces and rich media provide
an intuitive experience.

IoT Enabled
Connect with machines, tools, and sensors.

Data-driven
Automatically collect production data.

Interactive logic
 Quality 4.0 Apps marry Process and Quality

Interactive and dynamic logic guides people through

decision making and quality control loop

CT Critical to quality CT
CT CT
Q (CTQ) variables Q
Q Q
are automatically
measured and
collected with IoT

Input Proces Proces Proces Proces Output

s s s s
Step Step Step Step
Real Time Data
Process is digitized, guiding people as they complete
is collected to
manufacturing operations
improve
BLUE = GREEN =
Manufacturing Quality Proprietary & Confidential. Copyright
2019, Tulip Interfaces, Inc.
 QUALITY 4.0 & Juran’s Trilogy
Fewer mistakes throughout your operations and faster error detection and
improvement minimize need for additional quality measures.

PLAN CONTROL
MEASURE REAL-TIME
SHOP-FLOOR MANUFACTURING
PROCESS APP PRODUCTION DATA

PROCESS OPTIMISATION
IMPROVE
 Adopting Apps in Your Operations Digitizes Your QMS

From work instructions to quality checks, to the right machine setup, all the
quality processes in your shop floor can be managed through apps

Quality
inspection Audit Kaizen
s event

Work
Instruction
s Part
Samplin
Machine g
Maintenanc
e

Proprietary & Confidential. Copyright

2019, Tulip Interfaces, Inc.
 Quality 4.0 is more than
Technology
✔ Quality 4.0 is more than technology.
It’s a new way for quality
professionals to manage quality with
the digital tools available today and
understanding how to apply them
and achieve excellence through
People
•

quality. +Process
✔ By speaking the digital language and
making the case for quality in
disruption, quality professionals can
+Q4.0
elevate their role from enforcers to Technology
navigators to successfully guide
organizations through digital
disruption and toward excellence.

27
 Digitisation of Quality Control in
Assembly Line
The implementation of
selected VISION
technologies and a UHF
RFID system for
automatic identification
and inspection of
product parts before
and after the assembly
operations.

28
DEMO of QUALITY 4.0 IN ASSEMBLY LINES
https://youtu.be/tE8YAbvS08k

29
 Digitisation of Quality Control in
Assembly Line
• RFID technologies can also be employed to track items such
as pallets or products within a supply chain, and are
additionally capable of ensuring full component process
history for end users
• Both of these technologies can be used for certain tasks such
as dimension measuring, errors detection, dynamic status
identification of the product, and presence detection of the
correct part for assembly process.

30
 Digitisation of Quality Control in
Assembly Line
• These technologies can provide
digital data acquisition from
every part of production. The
captured data can help to
update and extend digital twins
created from 3D models of
Devices or products.
• Cloud Platforms can provide
user-friendly data
representation by timelines,
day/weeks or months
automated reports, and alarm
systems for critical production
status.
31
 FROM REACTIVE TO PROACTIVE
QUALITY MANAGEMENT
1) Quality through detection at source
2) Quality through automation
3) Quality through usage monitoring
Quality 4.0 doesn’t replace traditional quality methods, but
rather builds and improves upon them. Manufacturers should
use the framework to interpret their current state and identify
what changes are needed to move to the future state.

32
FROM REACTIVE TO PROACTIVE QUALITY MANAGEMENT
1) Quality through detection at source:
Through instrumentation and monitoring of production equipment
manufacturers can detect when equipment calibration is drifting beyond the
required settings which could result in assemblies, components or products that
do not meet specifications. For example, a gradual change in actuator speed
could result in component misalignment.

Concurrently, products can be tested or measured after key manufacturing

steps to determine if attributes are within specifications. The ability to monitor
both equipment settings and results of a completed manufacturing step gives
manufacturers added assurance of detecting quality problems at the source.

33
 2) Quality through automation
Beyond monitoring, many manufactures are
beginning to employ robotics as a means to
improve process quality.
The ability for robots to execute processes more
accurately and efficiently and apply cognitive to
continually learn to improve, or automatically
adapt to variations in manufacturing
requirements, will significantly enhance quality
and throughput.
34
QUALITY 4.0 EXAMPLE
Quality 4.0 – Ford’s
Automotive Body
Quality Solution
See how Ford body
quality inspectors
interact with smart
devices to quickly
check overall
dimensional body
performance by
measuring gap, flush, https://www.youtube.com/watch?v=aL7YQ7iqYT4

door closing velocity

and force.

35
 Real Time Quality Checks- CAD & AR
The Fraunhofer Institute for Computer Graphics Research IGD, together with Daimler AG,
TIGRIS Elektronik GmbH and Ensenso GmbH, has developed a fully automated system for
optical quality assurance in vehicle manufacturing as part of a project called
“Scrutinize3D”. The goal of this project was to establish a method of quality control for
complex components on the production line that was fully automated.

https://youtu.be/S8T8RAh-aTA

36
 Real Time Quality Checks using 3D
METROLOGY & ONLINE INSPECTION
3D METROLOGY IN PROCESS INSPECTION

37
 3) Quality through usage monitoring

Beyond the factory, with an increasing number of products

imbued with sensors, intelligence and connectivity, the ability to
monitor usage “in the field” can provide accurate and detailed
perspective regarding product performance, potentially alerting
customer service, warranty management, and even product
design to shortcomings in product performance or unusual or
unanticipated usage.

Early detection of impending trends enables companies to

proactively address and remedy problems before they become
unmanageable and potentially ruin corporate reputation.

38
IBM QUALITY EARLY WARNING SYSTEM (QEWS)
Detect
• Detect process and product quality issues earlier and more definitively in
quality comparison to statistical process control methods.
issues earlier

Monitor • Assess quality of materials or components to prevent introduction of

substandard materials.
product • Determine if components or products manufactured during a critical step
quality conform to specifications.

Monitor • Monitor production steps to determine if equipment is properly calibrated.

process Determine if process input and output variables remain within target ranges.
Alert in event of unfavorable changes.
quality

Low false • Advanced statistical algorithms detect developing quality problems (at a
low rate of false alarms) and can alert to quality issues at any stage of
alarm rate manufacturing or production process.

Cloud • Faster deployment via secure IBM Cloud data-centers that manage the
entire offering infrastructure with automatic application provisioning and
deployment registration services
Predictive Analytics

40
 Quality Management 4.0
implementation
1) Degree of awareness & adoption
2) Digital Quality Professionals

41
42
43
 5 Traits of Quality Professionals
in the Digital Era
1. Systems thinking
2. Data-driven decision
making
3. Leadership for
organizational learning
4. Establishing processes
for continuous
improvement
5. Understanding how
decisions affect people
44
 VALUE PROPOSITIONS of Q4.0
Augment (or improve upon) human intelligence.

Increase the speed and quality of decision making.

Improve transparency, traceability, and auditability

Anticipate changes, reveal biases, and adapt to new circumstances and

knowledge.

Evolve relationships, organizational boundaries, and concept of trust to reveal

opportunities for continuous improvement and new business models.

Learn how to learn by cultivating self awareness and other awareness as skills.

45
4 pronged impact of QUALITY 4.0
1. The speed of Quality 4.0 accelerates
responses to issues
2. Q4.0 provides more data that is actionable
3. Customer Experience is the focus with
higher emphasis
4. Total CoQ reduces drastically as we shift to
prevention

46
 Way Forward
1. Map out your value chain with
customer at the center
2. Identify the most impactful
opportunities- low hanging fruits
3. Start with a proof of concept
4. Use Analytics to get buy-in
5. Create a culture of digital quality

47
Phased Implementation of
Quality 4.0

48
 Acknowledgements
• Juran Institute of
Quality-Tulip
• IBM website-EWS
• ASQ-American Society
of Quality
• Case studies of
Renishaw et al
• Articles in the Web

49
 Copy Right

A.N.Chandramouli
ANCM Management Consultants
#39, Chaitanya Greenford One, Kadugodi, Bangalore -
560067
[email protected], +91 9611763479