5. Quality Management History “ On the assembly line at the Ford Motor Company in 1923, most of the workers producing Model T’s were immigrants and could not speak English. Many were also illiterate. Workers learned their trade by modeling the actions of other workers. They were unable to plan, problem-solve, and make decisions. As a result, the Taylor scientific school of management flourished, and MBAs and industrial engineers were invented to do this work. Today, however, the workforce is educated. Workers know what is needed to improve their jobs, and companies that do not tap into this significant source of knowledge will truly be at a competitive disadvantage.” Joseph M. Juran (1991) SHAILENDRA DAF

6. Quality Management History “ Knowledge-worker productivity is the biggest of the 21st-century management challenges. In the developed countries, it is their first survival requirement . In no other way can the developed countries hope to maintain themselves, let alone to maintain their leadership and their standards of living.” Peter F. Drucker (1999) SHAILENDRA DAF

12. Baldrige Award Criteria Framework Information, Analysis, and Knowledge Management SHAILENDRA DAF Organizational Profile: Environment, Relationships, and Challenges 1 Leadership 2 Strategic Planning 3 Customer and Market Focus 5 Human Resource Development & Management 7 Business Results 6 Process Management

13. Malcolm Baldrige National Quality Award (2004) 1.0 Leadership (120 points) 2.0 Strategic Planning (85 points) 3.0 Customer and Market Focus (85 points) 4.0 Information and Analysis (90 points) 5.0 Human Resource Focus (85 Points) 6.0 Process Management (85 points) 7.0 Business Results (450 points) SHAILENDRA DAF

20. ISO 9000 versus the Baldrige Award SHAILENDRA DAF Baldrige ISO 9000 QS 9000

24. COPQ Projections $ Appraisal Costs External Failure Costs Internal Failure Costs Prevention Costs $ Saved Total Cost Using a COPQ System Total Cost Without Using A COPQ System Months SHAILENDRA DAF

25. Process Flow Chart No, Continue… Buffer:Material Received from Supplier Inspect Material for Defects Defects found? Return to Supplier for Credit Yes Can be used to find quality problems. SHAILENDRA DAF

26. Input-Output Analysis Suppliers Inputs Sub- Processes Outputs Customers S C O P I Measures From Flowchart SHAILENDRA DAF

27. Example SIPOC - Specifying Equipment Selection and Installation Procedures at Coca-Cola USA Suppliers Customers Coca-Cola Fountain Outputs Equipment Selection Guide Equipment Sales Manuals Technology Cost/ Benefit Matrix Installation Guidelines Installation Time Standards Installation Rating System Installation Design Guidelines Inputs Technical Information Technical Questions Customer Input Process Developing Installation Cost Reduction Programs Developing Equipment Selection Policies and Procedures Designing Installation Policies and Procedures Customers Burger King McDonald’s Prestige Coca-Cola Fountain Equipment Suppliers Measures Number of Entities Using Guidelines Installation Audit Ratings Survey of Users Effectively Using Selection Guidelines SHAILENDRA DAF

28. Pareto Analysis 80% of the problems may be attributed to 20% of the causes. Assy. Instruct. Frequency Design Purch. Training Other SHAILENDRA DAF

29. Run Chart 0.44 0.46 0.48 0.5 0.52 0.54 0.56 0.58 1 2 3 4 5 6 7 8 9 10 11 12 Time (Hours) Diameter SHAILENDRA DAF

30. Histogram Frequency Data Ranges SHAILENDRA DAF

31. Scatter Diagram 0 2 4 6 8 10 12 0 10 20 30 Hours of Training Defects SHAILENDRA DAF

33. Cause & Effect Diagram SHAILENDRA DAF Effect Man Machine Material Method Environment

34. Fishbone Analysis: Existing Hiring Process Problems SHAILENDRA DAF

35. Control Charts 970 980 990 1000 1010 1020 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 SHAILENDRA DAF LCL UCL

36. Customer Survey SHAILENDRA DAF Worst Best Are We On Time? 5 4 3 2 1 Are We Courteous? 5 4 3 2 1 Does The Product Work? 5 4 3 2 1 Is It Cost Effective? 5 4 3 2 1 Overall Rating? General Comments: 5 4 3 2 1

38. Continuous Improvement Process Orlando Remanufacturing And Distribution Center SHAILENDRA DAF

40. Phase 1: Internal Kickbacks To Be Remanufac-tured Equipment Tear Down And Wash Remanu- facture Reassembly Final Clean-up QA Unit Not OK SHAILENDRA DAF

41. Five Most Common Reasons For Returns From QA January-May (61 units) SHAILENDRA DAF

42. Reasons for Returns from QA - Weighted Average Weighted Avg. = % Occurring X Defect Cost (0-10, Based on Time to Repair) SHAILENDRA DAF

45. PDCA Cycle (Deming Wheel) SHAILENDRA DAF 1. Plan a change aimed at improvement. 1. Plan 2. Execute the change. 2. Do 3. Study the results; did it work? 3. Check 4. Institutionalize the change or abandon or do it again. 4. Act

47. Six Sigma DMAIC Process Measure Control Define Analyze Improve Define: Define who your customers are, and what their requirements are for your products and services – Their expectations. Define your team goals, project boundaries, what you will focus on and what you won’t. Define the process you are striving to improve by mapping the process. SHAILENDRA DAF

48. Six Sigma DMAIC Process Measure Control Define Analyze Improve Measure: Eliminate guesswork and assumptions about what customers need and expect and how well processes are working. Collect data from many sources to determine speed in responding to customer requests, defect types and how frequently they occur, client feedback on how processes fit their needs, how clients rate us over time, etc. The data collection may suggest Charter revision. SHAILENDRA DAF

49. Six Sigma DMAIC Process Measure Control Define Analyze Improve Analyze: Grounded in the context of the customer and competitive environment, analyze is used to organize data and look for process problems and opportunities. This step helps to identify gaps between current and goal performance, prioritize opportunities to improve, identify sources of variation and root causes of problems in the process. SHAILENDRA DAF

50. Six Sigma DMAIC Process Measure Control Define Analyze Improve Improve: Generate both obvious and creative solutions to fix and prevent problems. Finding creative solutions by correcting root causes requires innovation, technology and discipline. SHAILENDRA DAF

51. Six Sigma DMAIC Process Measure Control Define Analyze Improve Control: Insure that the process improvements, once implemented, will “hold the gains” rather than revert to the same problems again. Various control tools such as statistical process control can be used. Other tools such as procedure documentation helps institutionalize the improvement. SHAILENDRA DAF

52. Six Sigma DMADV Process Measure Validate Define Analyze Design Design: Develop detailed design for new process. Determine and evaluate enabling elements. Create control and testing plan for new design. Use tools such as simulation, benchmarking, DOE, Quality Function Deployment (QFD), FMECA analysis, and cost/benefit analysis. SHAILENDRA DAF

53. Six Sigma DMADV Process Measure Validate Define Analyze Design Validate: Test detailed design with a pilot implementation. If successful, develop and execute a full-scale implementation. Tools in this step include: planning tools, flowcharts/other process management techniques, and work documentation. SHAILENDRA DAF