QM-032-SQC tool application

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QM-032-SQC tool application

  1. 1. SQC, Tools and Applications Adam Falkenstein December 14 th , 2004
  2. 2. Outline <ul><li>Brief History of Quality Control </li></ul><ul><li>Deming’s Principles </li></ul><ul><li>Six Sigma—methodology and tools </li></ul><ul><li>Balanced Scorecard </li></ul><ul><li>A Scorecard from Healthcare </li></ul><ul><li>A Scorecard for the U of M Morris </li></ul>
  3. 3. Brief History of Quality Control <ul><li>Pre-statistics </li></ul><ul><ul><li>Chinese hand crafts 11-8th centuries BC </li></ul></ul><ul><ul><li>Scandinavian shipbuilders </li></ul></ul><ul><ul><li>Examples from Bible circa 600 BC </li></ul></ul><ul><ul><li>Greeks building temples </li></ul></ul><ul><ul><li>India Working with Gold in 300 BC </li></ul></ul><ul><ul><li>Romans standardization-400BC to 400 AD </li></ul></ul><ul><ul><li>Guilds and Governments-competition, quality </li></ul></ul>
  4. 4. <ul><li>Pre WWII </li></ul><ul><ul><li>Walter Shewhart, 1924 Bell Laboratories </li></ul></ul><ul><ul><li>Shewhart develops and improves methodology for Statistics in industry. (Economic Control of Quality of Manufactured Product, 1931) </li></ul></ul><ul><ul><li>US Military Adopts SQC during WWII </li></ul></ul>Brief History of Quality Control
  5. 5. <ul><li>Post WWII </li></ul><ul><ul><li>SQC spreads to Europe through industry </li></ul></ul><ul><ul><li>Japanese Quality </li></ul></ul><ul><ul><li>Deming Advises Japan in SQC </li></ul></ul>Brief History of Quality Control
  6. 6. Deming’s Principles . <ul><li>Create Constancy of purpose </li></ul><ul><li>Adopt a new philosophy </li></ul><ul><li>Cease dependence on inspection for quality </li></ul><ul><li>End Proactive awarding of business on price tag alone-instead minimize total cost </li></ul><ul><li>Improve every process constantly/forever </li></ul>
  7. 7. Deming’s Principles . <ul><li>Institute training on the job </li></ul><ul><li>Adopt and institute Leadership </li></ul><ul><li>Drive out fear </li></ul><ul><li>Break down barriers between staff areas </li></ul><ul><li>Eliminate Slogans, exhortations and targets for workforce </li></ul><ul><li>Eliminate numerical quotas </li></ul>
  8. 8. Deming’s Principles . <ul><li>Remove barriers that rob pride of workmanship </li></ul><ul><li>Institute rigorous programs for education and self Improvement </li></ul><ul><li>Put everybody in the company to work to accomplish this transformation </li></ul>
  9. 9. Six Sigma <ul><li>What is six sigma? </li></ul><ul><li>3 Key Principles </li></ul><ul><li>DMAIC </li></ul><ul><li>Statistical Measures </li></ul><ul><li>Tools </li></ul>6σ
  10. 10. <ul><li>Term trademark to Motorola </li></ul><ul><li>Methodology for SQC </li></ul><ul><li>Six Sigma means-- Products and processes whose range of values that are…acceptable, for whatever is being measured, covers a range of 12 standard deviations (sigma)—6 on each side of the average or nominal value </li></ul>What is Six Sigma? 6σ
  11. 11. Six Sigma <ul><li>Assumptions </li></ul><ul><ul><li>Normal distribution </li></ul></ul><ul><ul><li>Nominal shift of 1.5 σ </li></ul></ul><ul><ul><li>μ and σ are known </li></ul></ul><ul><ul><li>Defects randomly distributed </li></ul></ul><ul><ul><li>Parts and process steps independent </li></ul></ul>6σ
  12. 12. <ul><li>Leadership Commitment </li></ul><ul><ul><li>Key word “Leader”ship </li></ul></ul><ul><li>Data Based Decisions </li></ul><ul><ul><li>Not sound decisions without data </li></ul></ul><ul><li>Training and Culture change </li></ul><ul><ul><li>Knowledge and understanding in order for change </li></ul></ul>3 key Principles of Six Sigma 6σ
  13. 13. DMAIC in Six Sigma 6σ Characterization Monitoring Systems Define Measure Analyze Improve Control Optimization Controlling Systems
  14. 14. DMAIC in Six Sigma 6σ Define Measure Analyze Improve Control <ul><li>What is Important? </li></ul><ul><li>Set expectations </li></ul><ul><li>Identify processes to be improved </li></ul><ul><li>How are we doing? </li></ul><ul><li>Identify processes that are critical for quality </li></ul><ul><li>Define defects </li></ul><ul><li>Establish Goals </li></ul><ul><li>What is wrong? </li></ul><ul><li>Explain variables that are likely to cause process variation </li></ul><ul><li>What needs to be done? </li></ul><ul><li>Confirm variables that are critical for quality </li></ul><ul><li>Identify acceptable ranges for key variables </li></ul><ul><li>How do we guarantee performance? </li></ul><ul><li>Ensure solution is sustained </li></ul><ul><li>Statistics!!! </li></ul>
  15. 15. <ul><li>Defects </li></ul><ul><li>Yield </li></ul><ul><li>DPO </li></ul><ul><li>DPMO </li></ul><ul><li>Process Sigma </li></ul><ul><li>Example….Adverse Drug Events </li></ul>Statistical Measures in Six Sigma ………… Sample 1000 admins—20 ADEs …………...980/1000=98.0% ……………20/1000=2.0% ………….DPO*1,000,000=20,000 ….From Scale, 3.55 6σ
  16. 16. Tools in Six Sigma <ul><li>Histogram/Pie Chart </li></ul><ul><li>Time Series Analysis </li></ul><ul><li>ANOVA </li></ul><ul><li>Cause and Effect Analysis </li></ul><ul><li>Pareto Charts </li></ul><ul><li>Control Charts </li></ul>All graphs created in MiniTab ® 6σ
  17. 17. Pareto Chart <ul><li>Chart consistencies of most frequent defects </li></ul><ul><li>Used to locate Major sources of problems </li></ul><ul><li>Able to use with Count and Categorical Data </li></ul><ul><li>Example… </li></ul>6σ
  18. 18. Example Pareto Data 6σ red blue green blue red red red yellow red red green red blue blue green green red red green red red red red red blue red blue blue blue blue blue red blue red red yellow red red yellow red green red green green green red red red red green red green red red blue red blue green red yellow blue blue blue yellow green red red blue blue red red green blue red red red yellow red red red red yellow blue blue green red blue blue green red green blue green red red red red red blue red brown red blue blue red brown green red
  19. 19. Example Pareto Chart 6σ
  20. 20. <ul><li>Used to determine if variation is chance or assignable cause </li></ul><ul><li>Good for measuring control of variation </li></ul><ul><li>Control needed before Change </li></ul><ul><li>More appropriately applied to process rather than product </li></ul>Control Charts 6σ
  21. 21. <ul><li>X-bar: Continuous values measuring product or service attributes </li></ul><ul><li>X: similar, but subgroups contain one value </li></ul><ul><li>P: Proportion of units defective </li></ul><ul><li>C: Count of units defective (equal subgroups needed) </li></ul><ul><li>U: Rate of defects per unit </li></ul>Types of Control Charts 6σ
  22. 22. Control Charting <ul><li>Sub-grouping—Time, random </li></ul><ul><li>Sample Mean </li></ul><ul><li>Sample Standard Error </li></ul><ul><li>UCL, LCL (usually mean plus and minus 3 times standard error) </li></ul>6σ
  23. 23. Sample Control Chart Data 6σ .70 22.81 Avg 22 23 21 25 24 22 22 23 22 24 23 22 22 20 X10 20 21 23 26 25 23 16 21 24 26 25 24 21 23 X8 25 23 21 26 24 22 23 23 24 23 22 18 24 23 X9 25 24 23 25 24 26 26 26 25 27 26 24 23 22 X7 24 26 25 25 26 24 26 25 23 25 24 25 26 24 X6 24 23 27 24 21 26 23 22 25 21 24 22 22 28 X5 .66 22.2 21 20 21 20 14 .54 22.5 22 21 20 22 13 .78 22.5 21 18 23 23 12 .83 23.4 21 23 21 18 11 .78 22.9 18 20 23 24 10 .54 23.6 24 21 23 25 9 .93 22.7 23 20 24 24 8 .53 23.2 26 22 22 22 7 .52 23 23 21 20 23 6 .79 23.2 24 19 21 22 5 .69 22.9 18 22 23 22 4 .79 22.5 19 22 23 26 3 .65 22.4 25 20 20 21 2 .80 22.3 22 19 22 20 1 S. E. Mean X4 X3 X2 X1 Batch
  24. 24. Sample Control Chart 22.8+3(.7)~24.9 22.8-3(.7)~20.7 6σ
  25. 25. Balanced Scorecard <ul><li>Purpose </li></ul><ul><li>Brief Understanding </li></ul><ul><ul><li>Financial </li></ul></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Internal Business Process </li></ul></ul><ul><ul><li>Learning and Growth </li></ul></ul><ul><li>Flow Diagram </li></ul>
  26. 26. Purpose of Balanced Scorecard <ul><li>Focus Strategy </li></ul><ul><li>Communicate Strategy </li></ul><ul><li>Align company Goals </li></ul><ul><li>Identify and Align strategic objectives </li></ul><ul><li>Perform periodic reviews </li></ul>
  27. 27. Financial Perspective <ul><li>Lagging Indicators </li></ul><ul><li>Usually Long term goals of company </li></ul><ul><li>Linked to drivers </li></ul><ul><li>Most companies aim to improve here </li></ul>
  28. 28. Customer Perspective <ul><li>Also lagging indicator </li></ul><ul><li>Share, retention, acquisition, satisfaction, profitability </li></ul><ul><li>3 class attributes </li></ul><ul><ul><li>Product and service </li></ul></ul><ul><ul><li>Customer relationships </li></ul></ul><ul><ul><li>Image and Reputation </li></ul></ul>
  29. 29. Internal-Business-Process <ul><li>Process Quality/Time </li></ul><ul><li>Identification of Critical Processes </li></ul><ul><li>Identification of Critical VOC </li></ul>
  30. 30. Learning and Growth <ul><li>Employee Skills </li></ul><ul><li>Other perspectives depend upon learning and growth </li></ul><ul><li>Enablers </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Systems </li></ul></ul><ul><ul><li>Organizational Alignment </li></ul></ul><ul><li>Satisfaction, Productivity, Retention </li></ul>
  31. 31. Balanced Scorecard Financial Cusotmer Internal-Business-Processes Learning and Growth
  32. 32. Immanuel St. Joseph-Mayo H.S. <ul><li>Balanced Scorecard in slightly different Context </li></ul><ul><li>Six Sigma foundation for Strategic Improvement Initiatives </li></ul><ul><li>Scorecard fundamental for tracking progress </li></ul><ul><li>Integrates Strategic Aims to Support Balanced Scorecard Methodology </li></ul>
  33. 33. Immanuel St. Joseph-Mayo H.S. <ul><li>Hospital specific </li></ul><ul><li>Backed by Institutional Data Dashboard </li></ul><ul><li>Tailored appropriately to meet the needs of Senior Team </li></ul><ul><li>Ultimate goal to expand Network-wide </li></ul>
  34. 36. UMM Scorecard <ul><li>A ranking tool to see how UMM matches against other Liberal Arts Colleges Nation-wide </li></ul><ul><li>Same standards as US News & World Report </li></ul><ul><li>Looks at past performance in different areas </li></ul><ul><li>Ranking by percentile in each category </li></ul><ul><li>Weighted Percentile overall </li></ul>
  35. 37. UMM Scorecard <ul><li>Peer assesment </li></ul><ul><li>Acceptance rate </li></ul><ul><li>H.S. Class standing </li></ul><ul><li>SAT/ACT scores </li></ul><ul><li>Faculty compensation </li></ul><ul><li>Faculty with highest possible degree </li></ul><ul><li>Full time Faculty </li></ul><ul><li>Student/Faculty ratio </li></ul><ul><li>Class size, 1-19 </li></ul><ul><li>Class size, 50+ </li></ul><ul><li>Graduation Rate </li></ul><ul><li>Freshman Retention </li></ul><ul><li>Educational Expense per student </li></ul><ul><li>Alumni giving rate </li></ul><ul><li>Graduation rate performance </li></ul>
  36. 38. UMM Scorecard-all LA
  37. 40. UMM Scorecard-PLAC
  38. 42. Questions?

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