Quality Management

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 What is Quality…
Good
Right
consistent
First
Performance
Time

Meeting my Zero
requirements defects

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Process Improvement Methodologies
▪ Various Process Improvement Methodologies
– Kaizen

– Lean

– Six Sigma

– Lean Six Sigma

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 What is Kaizen?
▪ Philosophy of gradual, incremental, and orderly continuous improvement, creating more value and less waste;
emphasis on process improvement and process control; Japanese word meaning “ongoing improvement”

▪ Requires:
– Taking action on obvious problems and deviations to maintain process control
– Establishing control through Standard Operating Procedures (SOPs)
– To be completed within 1-10 days

▪ Kaizen can be done using any approach (PDCA or DMAIC)

Start with an idea for doing the job better;

If desired results were
study the current situation; identify the
achieved, implement the
problem and formulate a plan
change into the SOP

Observe and evaluate

results to determine if the
idea produced the desired Conduct experiments to investigate the
results idea; implement the plan on a small scale

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 Lean Values

LEAN is “A systematic approach to identify and eliminate waste (non-value-added activities) through continuous improvement by
flowing the product at the pull of the customer in pursuit of perfection”

Continuously Improve values

Knowledge in pursuit of
Perfection
Involve, Align &
Empower Employees

Make Value Flow at the Pull

of the Customer

Identify Value Stream and

Eliminate Waste & Variation

Specify Value in the eyes of

the Customer

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 Lean House
Lowest Cost
Continuous Improvement • Total Cost
Highest Quality • Price – Cost = Profit
• PDCA
• Kaizen, Quick Change Over Lowest Cost
• Elimination of Waste
• Measurables Human-centered Work
Continuous Improvement • Lean Culture
• Communication
• Support for the Value-adder
Human Centered
Just In Time Work
• Takt Time
Just Built
• Level Production
In in Built-in Quality
• Pull System, Kanban
Time Quality • Quality Standards
• Flow
• Multi-skilled Operators • Error Proofing
• Andon

Problem Solving
Standardization
• Standardized Work Problem Solving
• 5S, Visual Controls & Visual • Process Problem
Standardization Solving
Displays(Visual Factory)

** All the lean tools can be used as standalone tools and can follow any problem solving methodology

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 Lean Benefits

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Understanding Waste

The Three Ms of LEAN

Remember the three Ms…

Muda - Waste
Mura - Inconsistency
Muri - Unreasonableness

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9 Wastes

➢ Defects
➢ Overproduction
➢ Transportation
➢ Waiting
➢ Inventory
➢ Motion
➢ Processing (over)
➢ Knowledge not being used
➢ Misuse of Resources

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Defects

▪ Includes all products that do not meet customer specifications.

▪ Utilizing resources to inspect and/or repair product.

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Overproduction

➢ Producing more than is required by the next process.

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Transportation

➢ Unnecessary movement of product and materials.

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Waiting

▪ Idle time when waiting for materials or information.

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Inventory

▪ Anything more than is required to do the job.

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Motion

➢ Movement of people or machines that does not add value to the product.

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Over Processing

▪ Processing that adds no value to the product from the customer’s

viewpoint.

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Knowledge Not Being Used

• Hard work put forth without the guidance of profound knowledge may be
the root of ruin. Hence it is better to check the existing knowledge base of
the company before devising a solution. Avoid reinventing the wheel.

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Misuse of Resources

▪ Not using people’s abilities to their fullest potential.

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What is Six Sigma?

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 What is Six Sigma?
▪ Measure of Quality

Focus of Six
Defect Rate
Sigma Competitive level Sigma: Elimination
(PPM) of variation

6 3.4 World
Class
5 233

4 6210
Industry
Average
3 66807

2 308537
Non
Competitive
1 6,90000

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 Six-Sigma Defined

Is 99.00% In “Our Daily Lives” Good Enough?

▪ Six-Sigma @ Daily Life!
Common Accuracy @ 99.0% Accuracy @ 99.9997%
Activity ( 3.80 Sigma ) ( 6.00 Sigma )

Mail 20,000 Lost Articles 7 Lost Articles

Delivery of Mail Per Hour of Mail Per Hour

Drinking Unsafe Drinking Water Unsafe Drinking Water

Water for 15 Mins Per Day for 2 Mins Per Year

Hospital 5000 Incorrect Surgery 2 Incorrect Surgery

Surgery Procedures Per Week Procedures Per Week

Air 2 Abnormal Landings 1 Abnormal Landing

Travel at Most Airports Each Day Every 5 Years

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 Introduction to Lean Six Sigma

Lean + Six Sigma

creates magic!
Reducing Reducing
Waste Variation
Doing the right things Doing the right things
all of the time

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 Few Quality Terms

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Population and Sample
Population

Sample

Population Sample
Frequency : N Frequency : n
Mean :  Mean :
X
Standard σ Standard
s
Deviation Deviation :
:Variance: σ2 Variance: s2
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Data Types

Data Classification

Numeric Attribute
(Discrete)

Continuous
Discrete - Counts Binary
(Gaussian – Normal Non-Binary
(Poisson) (Binomial)
Not-Normal)

E.g. Yes/No, Pass/Fail

E.g. 1,3,5,7,10,20 E.g. Height, Weight,
Temperature
Ordered Unordered
(Ordinal) (Nominal)
Continuous data gives more information than
other data types thus require smaller sample
E.g. Rating Scale 1- E.g. days of week,
size. Also, continuous data is able to capture 5 RAG
the deviation

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Exercise
Classify each set of data as discrete or continuous.
HINTS
1. The number of suitcases lost by an airline. Discrete – Counts

2. Feedback Score on a Rating of 1-5 Discrete – Ordinal

Numeric
3. Types of calls Discrete – Nominal

4. The height of corn plants. Continuous Discrete - Counts

Continuous
(Poisson)
5. The number of ears of corn produced. Discrete – Counts

6. Assessment Score as Pass/Fail Discrete – Binomial Attribute

(Discrete)
7. AHT of a Transaction Continuous

8. The time it takes for a car battery to die. Continuous Binary

Non-Binary
(Binomial)
9. No. of calls taken Discrete – Counts
Ordered Unordered
10. Day of the week Discrete – Nominal (Ordinal) (Nominal)

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 7 QC Tools

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Seven Quality Tools

1. Check sheets
2. Histograms
3. Pareto Charts
4. Scatter Diagrams
5. Flow Charts
6. Cause and Effect Diagrams
7. Control Charts

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Why Do This?

The benefits of using the 7 QC tools are:

– Improve Quality
– Decrease Costs
– Improve Productivity
– Decrease Price
– Increase Market
– Stay in Business
– Provide More Jobs
– Return on Investment

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Tool No 1: Check sheets

What is it?
• Pre-designed format for collection of data
• Encourages organized collection and groups data into categories.
• Categories are created in advance and may be added as needed.
• A check mark is added for each example of a category.
• The marks are added to determine subtotals

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 Example for check sheets
Example for data collected for various problems that has occurred with an airways company month wise

Departure
Month Lost luggage delay Mechanical Overbook Other

January 1 2 3 3 1

February 3 3 0 1 0

March 2 5 3 2 3

April 5 4 4 0 2

May 4 7 2 3 0

June 3 8 1 1 1

July 6 6 3 0 2

August 7 9 0 3 0

September 4 7 3 0 2

October 3 11 2 3 0

November 2 10 1 0 0

December 4 12 2 0 1

Total 44 84 24 16 12

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Exercise on check sheets

Prepare a check sheet for the the different types of 10 defects that may occur in a week (i.e.
Sun-Sat) in a process with total defects in a day and total no of individual defects
happened ?

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 Solution of exercise on check sheets

Defect Types/ Dates

Event
Occurrence Sunday Monday Tuesday Wednesday Thursday Friday Saturday TOTAL

Defect 1

Defect 2

Defect 3

Defect 4

Defect 5

Defect 6

Defect 7

Defect 8

Defect 9

Defect 10

TOTAL

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Tool No 2: Histograms
Purpose:
To determine the spread or variation of a set of data points in a graphical form

What is it:
▪ A display of the distribution of data by category

▪ Effective way of displaying data than a table of figures

▪ Gives visual indication of relationships

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Histogram
Activity:
Ask all the participants to stand in ascending order of their heights with grouping as shown below

Frequencies

4
5’10” – 6’ Classes

Curve
6
5’8” – 5’10”

5 5’6” – 5’8”

Count
5’4” – 5’6”
Each Row 3

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Histogram
Peak of the curve
Center
6

5
4

5’6” – 5’8” 5’8” –

5’4” – 5’6” 5’10” – 6’
5’10”

Spread - Variation
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Tool No 3: Pareto Chart
Purpose:

The purpose of the Pareto chart is to prioritize problems - to decide what problems
must be addressed. No company has enough resources to tackle every problem, so
they must prioritize

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Tool No 3: Pareto Chart
Pareto principle:

The Pareto concept was developed by the Italian economist

Vilfredo Pareto describing the frequency distribution of any
given characteristic of a population. Also called the 20-80
rule, he determined that a small percentage of any given
group (20%) account for a high amount of a certain
characteristic (80%).

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 Pareto chart

Example:
If your business was investigating the delay associated with processing credit card
applications, you group the data into the categories mentioned in the below analysis sheet .
Prepare a pareto chart for the data mentioned in the analysis sheet

Category Frequency
No address 9
Illegible 22
Current customer 15
No signature 40
Other 8

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Solution of Pareto chart

45 100.00%100.00%
40 91.49% 90.00%
81.91% 80.00%
35
30 70.00%
65.96%
60.00%
25
50.00%
20 42.55% 40.00%
15
30.00%
10 20.00%
5 10.00%
0 0.00%
No signature Illegible Current No address Other
customer

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Tool No 5: Flowchart
Purpose:
Visual illustration of the sequence of operations required to complete a task
✓ Schematic drawing of the process to measure or improve.
✓ Starting point for process improvement
✓ Potential weakness in the process are made visual.
✓ Picture of process as it should be
" Draw a flowchart for whatever you do. Until you do, you do not know what you are doing,
you just have a job.”

-- Dr. W. Edwards Deming.

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FlowChart

▪ Process Flowchart
– A graphical method illustrating the details of a process using the flowcharting
technique. Some common symbols used in making flowcharts are :

Symbol Name Explanation

Elongated Show starting and end points of a process
Circle Flowchart

Indicates process task and each box contains a

Box
short description of the process

Decision making point and contains questions

Diamond
that can be answered “yes” or “no”

This connects one task of a flow chart with

Connector
another

Inspection/
Read papers for information, or check quality of
Measureme
goods
nt

Data Indicates Input/Output data

Document A transfer or output of a hard copy document

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Tool No 6: Cause and Effect diagram
Purpose: Graphical representation of the trail leading
to the root cause of a problem

What is it?
– Decide which quality characteristic, outcome or effect
you want to examine (may use Pareto chart)
– Backbone –draw straight line
– Ribs – categories
– Medium size bones –secondary causes
– Small bones – root causes

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Tool No 6: Cause and Effect diagram
▪ Identify Root Causes
– Cause & Effect Diagram or Fishbone or Ishikawa Diagram

Y = f(X)
Measurement Material Personnel

Xs

Xs

Effect (Y)
Xs
Causes
Why?
Why?
Why?
Environment Methods Machine Why?
Why?

Use 5 Why Technique to reach the Actual

Root Cause
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Tool No 6: Cause and Effect diagram

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 Other Quality Tools

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What is a Value Stream?

▪ Time Series of all activities & steps (Both Value Add

And Non-value Add) required to bring a Product,
Service or Capability to the Client
▪ Value Streams cut across Functional Boundaries
▪ Value Streams are usually mapped out by product or
product family

Most Value Streams have 2-5% Value Added Time

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 5S

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Philosophy

▪ Turn your workplace into a showcase that can easily be

understood by anyone at a glance.

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5S Steps
Pillars of 5S
▪ Sort (Organization)
▪ Set in Order (Orderliness)
▪ Shine (Cleanliness)
SORT SHINE SUSTAIN ▪ Standardize (Adherence)

SET IN ORDER STANDARDIZE

▪ Sustain (Self-discipline)

5
S

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The First Pillar: SORT!
▪ Remove all items from the
workplace that are not needed
for current production or clerical
operations

• Defective or excess quantities of small

inventory items and office supplies
• Damaged parts and equipment
• Outdated forms
• Outdated or broken tools and inspection gear
• Electrical equipment with broken cords
• Outdated posters, signs, notices, and memos

“ When in Doubt, Move It Out ! ”

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The Second Pillar: Set In Order!

▪ Arrange needed items so

that they are easy to use
▪ Label items so that they are
easy to find and put away
▪ Determine how many of each
item will be stored in each
location
▪ Make it easy for anyone to
find, use and return items

“A Place for Everything and Everything in Its Place !”

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The Third Pillar: Shine!

▪ Make sure that everything in the

facility stays clean
▪ Clean to inspect, inspect to detect,
detect to correct and correct to
prevent

“ Cleaning with Meaning! ”

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The Fourth Pillar: Standardize

▪ Maintain first 3 pillars:

▪ SORT
▪ SET IN ORDER
▪ SHINE
▪ Prevent setbacks in the first pillars
▪ Make 5S standards a daily habit,
mini 5S (5 min)

“Maintain and Monitor the First Three Pillars!”

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The Fifth Pillar: Sustain

▪ Make a habit out of properly

maintaining correct procedures
▪ Integrate these procedures into daily
routines

“Sustain the Gains!”

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SIPOC

– Define the process boundaries by agreeing on start and stop points

– Identify the key inputs required for successful process execution
– Identify the key suppliers who are responsible for providing inputs
– Identify the process steps (process-map) using process mapping tools by applying brainstorming and storyboarding techniques
– Establish the customer outputs expected from the process delivery
– Establish the customers expected to use the process output

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SIPOC
▪ SIPOC - Example

S I P O C
(Supplier) (Input) (Process) (Output) (Customer)

1. Client 1. Scanned 1. Open the 1. Completed 1. Client

Documents document/ transaction
2. Management 2. Management
E-Mail/ Queue
2. E-Mail
2. Tag the document
3. Update on Queue
3. Process the
4. Staff
document
5. Systems
4. QC the document
5. Update the
document

Input Measures: Process Measures: Output Measures:

▪ System Uptime (E) ▪ Processing Time (E) ▪ Transaction Quality (Ef)

▪ Staff Availability (Ef) ▪ # of transactions processed ▪ CSAT (Ef)
▪ Scanned Document Quality per day (E) ▪ % transactions within TAT
(Ef) (Ef)

E: Efficiency
Ef: Effectiveness
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 Basic Statistics Overview

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Measures of Center
X
Median
Mean or Average Or 
It is the central value of the data
It is the arithmetic average computed by summing all the
values in the dataset and dividing the sum by the number of
data values. E.g. Scores of 6 students are mentioned below. Calculate Average.
Arrange the data in ascending or descending
E.g. Scores of 6 students are mentioned below. Calculate Ajay : 10 order
Average. N Vijay: 5
Ajay : 10 x i
x1 + x2 + ... + x N
Sapna: 15 Odd Data Set : Median is (n+1)/2th ordered value
Even Data Set : Median is Average of the n/2 and Median is not
Vijay: 5 x = i =1
= Manu: 10 the (n/2)+1 ordered value
Sapna: 15 N N Swapna: 5 affected by
Manu: 10 Sameer: 15 Solution : extreme
Average = 5,5,10,10,15,15
Swapna: 5
Sameer: 15 (10+5+15+10+5+15)
Count = 6 (Even)
values/outliers
6
Mean is the approximate center which represents your (6/2)th term + ((6/2) +1 )th term = (3rd term + 4th term)/2
population/sample 2
= (10 +10 ) / 2 = 10
Quartiles
Range
Quartile 1: (Q1 or P25) is defined as the ordered value below
which 25% of the data points fall. If we put all data in rank Range is defined as the difference between smallest value in a data and the largest value in a
order (low to high), then Q1 is the value located at n/4 data; and is influenced by extreme values
Quartile 3: (Q3 or P75) is defined as the ordered value below Range = Value High − Value Low
which 75% of the data points fall. If we put all data in rank
order (low to high), then Q3 is the value located at 3n/4 E.g. Scores of 6 students are mentioned below. Calculate Range.

10,5,5,15,10,5,15 Range = 15 – 5 = 10
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Measures of Center and Variation – Formulae in Excel
Statistic Formula in Excel
Mean =average(“Select Range”)
Median =median(“Select Range”)
Quartile 1 – Q1 =percentile(“Select Range”,25%)
Quartile 3 – Q3 =percentile(“Select Range”,75%)
Range =max(“Select Range”) - min(“Select Range”)

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Measures of Center and Variation
Exercises

Find the Mean, Median, Q1, Q3, Range for the following list of
values:

10 , 20, 13 , 15 , 17 , 18 , 19 , 11 , 10 , 18 , 20 , 15 , 30 , 40

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Measures of Center and Variation
Exercises

Find the Mean, Median, Q1, Q3, Span, Stability Factor, IQR, Range,
Standard Deviation and Variance for the following list of values:

10 , 20, 13 , 15 , 17 , 18 , 19 , 11 , 10 , 18 , 20 , 15 , 30 , 40

Answers
Mean : 18.3
Median : 17.5
Q1: 13.5
Q3: 19.8
Range: 30

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