2. c Go n Grow Business Consulting Inc. 2
Agenda
Quality Planning
Exercise 1
Exercise 2
Quality Assurance
Quality Control
3. c Go n Grow Business Consulting Inc. 3
Why Quality
Fundamental to staying in business
Protect the Brand
Retain customers
Maintain internal morale
Increase unit profitability
Promotes versatility
4. c Go n Grow Business Consulting Inc. 4
Continuous Improvement
Out of the Crisis by W. Edwards Deming ,1986.
5. c Go n Grow Business Consulting Inc. 5
Constancy of Purpose
Long term vision
Beyond current customer view
Build for the future
6. c Go n Grow Business Consulting Inc. 6
Adopt a New Philosophy
Quality ahead of financial returns
Starts in the boardroom
Clear definition
Clear organisation
Design a work process, test it then refine it
7. c Go n Grow Business Consulting Inc. 7
Cease Mass Inspection
Too expensive to make, inspect, correct
and release
Management has the responsibility to
Learn the process
Adjust it to eliminate defects
Reduce inspectors
Move to statistical sampling
8. c Go n Grow Business Consulting Inc. 8
Differentiate Products
Stop the price tag alone approach
Minimise total cost by
Building long term relationships with
High quality suppliers
Build value – a joint effort
9. c Go n Grow Business Consulting Inc. 9
Improve Continuously
Don’t manage the defects or outcomes
Manage the system that produced the
defect
10. c Go n Grow Business Consulting Inc. 10
Train and Retrain
Skills to perform the job
Why it is important
How it fits into the system
Understand upstream and downstream
user needs
You are your supplier’s customer
11. c Go n Grow Business Consulting Inc. 11
Improve Leadership
Help people do a better job
Help them be consistent
Be a Visionary
Ensure your managers know the system
12. c Go n Grow Business Consulting Inc. 12
Safe-fail Environments
Provide a sense of security
Learn from failure
Embrace change
Acknowledge uncertainty
Stress community
13. c Go n Grow Business Consulting Inc. 13
Eliminate Inter-Departmental
Friction
Interdependent NOT independent
View the business as a whole
Competition is overall improvement in
place of divisional ‘wins’
14. c Go n Grow Business Consulting Inc. 14
Eliminate Slogans
Ask people to what they can do
Provide support to do a better job
Design the system to eliminate problems
Exhortations will frustrate where the
system is not designed for quality
15. c Go n Grow Business Consulting Inc. 15
Performance Appraisals
Eliminate numerical quotas
Focus on well rather than many
Reduce competition
Substitute cooperation
Design organisational rewards
16. c Go n Grow Business Consulting Inc. 16
Create Pride
Celebrate success – customer feedback
Show how contribution is significant
Most valuable asset is people
Their skills
Teir ability to work together
17. c Go n Grow Business Consulting Inc. 17
Self-improvement
Vigorous programs
Knowledge and skills in any area
Steve Jobs: Connecting the dots, humility & death
Job focused
Personal development
By learning more, do better
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Do It
Top management initiate actions
Through seminars
By teaching
Showing by example
Put everyone to work to accomplish the
transformation
19. c Go n Grow Business Consulting Inc. 19
What is “Quality”
The customer defines your quality standard
Expectation = Fitness for Purpose
A strategy to consistently meet requirements or
expectations
A series of steps and activities that convert
inputs into outputs and deliver “value”
Value = effectively satisfying customer needs
Effectiveness = efficiency + flexibility
20. c Go n Grow Business Consulting Inc. 20
The Customer’s View
Customers feel variation not averages
Six Sigma is all about:
reducing variation in product or service quality
from the customer perspective
21. c Go n Grow Business Consulting Inc. 21
Quality Responsibility
Management owns the responsibility:
As executives of the organisation
As directors of delivery and supporting
processes
Errors = 94% Management and processes,
6% worker fault
Management have the authority and tools
to align resources to the customer needs
22. c Go n Grow Business Consulting Inc. 22
Quality Flows
From identification of the project purpose
Integral to scope and deliverable definition
Impact on risk and mitigation strategies
Execution (assurance) and control
(control) phases
Project close – lessons learned folded
back into continuous improvement
process
23. c Go n Grow Business Consulting Inc. 23
Quality is When?
At each project stage
Metrics defined at project planning
Where cost of failure is greater than
Cost of appraisal and control and
Cost of prevention
As a compulsory project process
Integral to the regular status report
24. c Go n Grow Business Consulting Inc. 24
Quality is Maintained
Inspection steps throughout the planning,
execution and close project phases
Determine special or common causes
Problem solving teams – Ishikawa diagram:
People, Methods, Management, Technology,
Measurements & Environment.
Change control
Continuous improvement
25. c Go n Grow Business Consulting Inc. 25
Quality Planning
Define Product Quality
Attributes
Functionality
Usability
Reliability
Performance
Measurements
Plan Quality Processes
Change Management
Configuration Management
Standards
Procedures
Testing Methods
Tools
26. c Go n Grow Business Consulting Inc. 26
Define Attributes
Who is the Customer?
Common agreement of outcome
What the product will accomplish for the users
Clearly defined components
What each component does
How each component links the other
27. c Go n Grow Business Consulting Inc. 27
Who is the Customer?
Owner or user
Owner puts the money up
User has significant influence on the
specification
Use is daily operational mode
Cost-effective
Team buy-in
Tripartite negotiations with PM facilitating
28. c Go n Grow Business Consulting Inc. 28
Acceptable Quality Level - AQL
Acceptable Quality Level. Also referred to as Assured
Quality Level. The largest quantity of defectives in a
certain sample size that can make the lot definitely
acceptable; Customer will definitely prefer the zero
defect products or services and will ultimately establish
the acceptable level of quality. Competition however, will
'educate' the customer and establish the customer's
values. There is only one ideal acceptable quality level -
zero defects - all others are compromises based upon
acceptable business, financial and safety levels.
29. c Go n Grow Business Consulting Inc. 29
Stakeholder Analysis Chart
Key
Stakeholder
Strongly
Against
Having It
Happen
Moderately
Against
Havening It
Happen
Lets It
Happen
Helps It
Happen
Makes It
Happen
Robyn
o x
Rick
o x
Joanna
o x
Ruben
o x
30. c Go n Grow Business Consulting Inc. 30
Influence Chart
Key Stakeholder Type of Resistance Underlying Issue Strategy
Robyn
Rick
Joanna
Ruben
Technical
Political
Organisational
Individual
Feelings of inadequacy
with new technology
Loss of perceived power
Control
Emotional paralysis
Educate, involve in
learning and inform
Stress what is gained
through successful
solutions
Give control over
processes or give credit for
successes
Support and consult
without asking for
decisions
31. c Go n Grow Business Consulting Inc. 31
Define Functionality
Cost of Quality
Specification
Duty cycle
Fitness for purpose
Conforming to the customer requirement
32. c Go n Grow Business Consulting Inc. 32
Define Usability
Use in whose view
Multiple perspectives
Different outcomes for each perspective
Back to the scope
Negotiate a compromise
Check on ‘fit-for-purpose’ and ‘cost of
quality’
33. c Go n Grow Business Consulting Inc. 33
Define Reliability
Availability
Expected duty cycle
Expectation of errors
Tolerance for errors
Impact of errors
Maintainability
Difficult, complex
Lagging maintenance reduces reliability and, in turn,
availability
34. c Go n Grow Business Consulting Inc. 34
Define Performance
Standard a product is expected to deliver
Link back into:
Fit for purpose
Reliability
Cost of quality
Scope – Common agreement of outcome
35. c Go n Grow Business Consulting Inc. 35
Performance Is..
Input
Suppliers
Effectiveness
Process
Your Efficiency
Output
Your Effectiveness
Develop key quality
measures
Cycle time
How well you are meeting
customer requirementsCost Structure
Value Added
Labour Applied
36. c Go n Grow Business Consulting Inc. 36
Define Measurements
Measure performance
Not too many parameters (Analysis paralysis)
The ones that show up as a variance in the
customers eyes
The ones that increase cost
Those that have a significant impact where
performance fails or is sub standard
37. c Go n Grow Business Consulting Inc. 37
Measurement Tollgates
Create a Data Collection plan of:
What to measure
Input = Supplier Effectiveness (1 to 2)
Process = Your Efficiency (1 or 2)
Output = Your Effectiveness (2 to 3)
Type of measure: Not too much; not too little
Type of data
Discrete = on/off, good/bad
Continuous = days, height, weight, length
Operational definitions = common language: no ambiguity
Target/Specifications: Target = finite; Specifications = limits up or down
Data collection forms that define
What a defect is
Categories of defect
Time frame to collect data
Grid of data collection
38. c Go n Grow Business Consulting Inc. 38
Definition Reality
Time
Broadened Scope
Increased Quality
to Match New Scope
Original Scope
Original Quality
Larger
Team Increased
Cost
People Cost
39. c Go n Grow Business Consulting Inc. 39
Threat / Opportunity Matrix
Threats
Long Term Changes require a new
skill-set
Lay-off’s through not
meeting business goals
Customers regognise
and reward
organisation for
exceptional work
Short Term
Increased negative
publicity over internal
actions
Profitability targets met
Short Term Long Term
Opportunities
40. c Go n Grow Business Consulting Inc. 40
Solution Payoff Matrix
Ease to
Implement
Hard Install SAP as the ‘Best
Practice’ information
system
Install new fab lines
without disrupting
existing production
Easy
Change web site to
provide ‘click-through’
to order entry
Eliminate 60% of non-
value add activities in
the set-up process
Low High
Business Impact
41. c Go n Grow Business Consulting Inc. 41
Solution Vision Statement
Solution Action Result Behaviour
Modify patient
registration form
Next Solution
Reduce lines to 5 from
14
Actions
Less time registering
Results
Greater personal
attention to the customer
More discretionary time
to manage the process
More flexible behaviour
42. c Go n Grow Business Consulting Inc. 42
Plan Change Management
Processes
You don’t get it right first time
As you build, you learn of greater possibilities
Involve people in setting the priority changes –
what’s changed
Assess the benefits against the cost
Compromise on rigidity vs. fluidity
Publish the change process widely and often
43. c Go n Grow Business Consulting Inc. 43
Plan Configuration Management
Processes
Identify errors as early as possible in the
lifecycle
Costs of change are highly geared the further
you are in the process
Spend time at the front doing lots of ‘what-if’
scenarios
Start the Quality Control Walkthroughs right at
the beginning of the project lifecycle
44. c Go n Grow Business Consulting Inc. 44
Impact on the User - Historical
Traditional Project Transition
Transition Point
Degree of Change
Time
Learning Curve
Turns Positive
T1 T3
Project Team Rolls Off
Operations Takes Over
T2
The Valley of Despair
45. c Go n Grow Business Consulting Inc. 45
Current View
Early Project Transition
Transition Starts
Degree of Change
Time
Learning Curve
Turns Positive
T1 T2
Transition Point
Project Team Rolls Off
Operations Takes Over
Joint Team Effort
Transition Gradient
T3
Project Team
Operations Team
a
b
c
46. c Go n Grow Business Consulting Inc. 46
Cause & Effect Diagram
Why are there so many
'waits' in this process
Machine Methods
People Materials
Measurement
Mother Nature
Numbers in
place of
minutes
Traffic conflict
Tempramental
Thermometers
Push
production
Electrical
'brown-outs'
Inferior
materials
Cost
pressures
Layout
Training
Staff turnover
Power lines
down
47. c Go n Grow Business Consulting Inc. 47
Plan Procedures
Design or apply processes to
Monitor quality
Trigger changes
Align project processes to internal processes
Bring your internal customers into the team as
experts
Publish procedures widely and show respect for
the process – walk the talk.
48. c Go n Grow Business Consulting Inc. 48
Procedures - Actions
Communication
Build awareness of demand for quality & opportunity for improvement
Set goals for improvement
Report progress
Celebrate success and learning from failure
Organise
Make the process acceptable to the people
Take advice: use cross-functional teams
Train & retrain
Don’t apply yesterday’s tools to today’s problems
Keep score
Compare actual outcome to baseline
49. c Go n Grow Business Consulting Inc. 49
Plan Quality Management Tools
Tools include
Critical to quality trees
Process maps
Cause and effect analysis
Pareto diagrams and histograms
Affinity diagrams
Run and control charts
50. c Go n Grow Business Consulting Inc. 50
10 Technical Tools
1. Critical to Quality Tree
2. Process Map
3. Histogram
4. Pareto Chart
5. Process Summary Worksheet
6. Cause-Effect Diagram
7. Scatter Diagram
8. Affinity Diagram
9. Run Chart
10. Control Chart
51. c Go n Grow Business Consulting Inc. 51
10 Soft Tools
Stakeholder Analysis Chart
Planning for Influence Table
Threat / Opportunity Matrix
Pay-off Matrix
Solution Vision Statement
Team Meeting Agenda
Ground Rules
Parking Lot
Plus / Delta Meeting Review
Activity Reports
52. c Go n Grow Business Consulting Inc. 52
Balance People with Tools
Six Sigma is tool-heavy
Statistics
Processes
Solutions
Six Sigma requires
changed behaviours
Managers
Supervisors
Line workers
Successful Six Sigma
projects require:
Intense strategic
communication
Bringing people along as
part of the change process
Training and retraining
Providing safe-fail
environments
Celebrating failures and
successes
53. c Go n Grow Business Consulting Inc. 53
Critical to Quality Tree
Registration
Courtesy
Timeliness
Accuracy
General Need Behaviour Required
Type of Room
Hospital Ward
54. c Go n Grow Business Consulting Inc. 54
The Critical To Quality Tree
Start with the Customer needs
State the need as a noun with no adjective
Move left to right until ‘how to measure’ is
described – not the unit of measure
Once started, a branch should define
greater detail – not a new requirement
55. c Go n Grow Business Consulting Inc. 55
Your Turn, Now
For the next 45 minutes:
Get into your teams and take a whiteboard
Start defining and planning your quality
approach to your Archer solution
At the end of 30 minutes, report out the full
class on your key activities
56. c Go n Grow Business Consulting Inc. 56
A Little Bit of Six Sigma
The Six Sigma History
Motorola under Bob Galvin
Acted on processes producing most variance
Allied Signal under Larry Bossidy
Understood customer measures of effectiveness
General Electric under Jack Welch
Pursued with passion
57. c Go n Grow Business Consulting Inc. 57
Philosophy of Six Sigma
Management responsible for work gets
done
Customers see business as a series of
processes
Strategic business objectives are:
Revenue less Costs = Profit Margin
Growth: continued customer satisfaction
Sustainability via employee satisfaction
58. c Go n Grow Business Consulting Inc. 58
Standard Deviation
59. c Go n Grow Business Consulting Inc. 59
Partial Process Sigma Table
Long Term Yield Process Sigma Defects per
1,000,000
99.99966 6 3.4
99.98 5 233
99.4 4 6,210
93.3 3 66,807
84.1 2.5 158,655
69.1 2 308,538
50.0 1.5 500,000
60. c Go n Grow Business Consulting Inc. 60
Σ Calculation
Unit = food order
Defects = too early or too late (1), inaccurate (1), not
fresh (1)
Opportunities = 3
Examine 50 orders: result = early or late (13), inaccurate
(3), not fresh (0)
Calculate: defects (16)/(units (50)x opportunities (3))x
1,000,000
[16/(50x3)x1,000,000 = 106,667]
Σ between 2.7 and 2.8
61. c Go n Grow Business Consulting Inc. 61
Process Frequency Distribution
X
X
X X
X X X x
X X X X X X
x x x x X x x
Previous
Day
12:00 to
2:00
2:01 to
4:00
4:01 to 6:00 6:01 to
8:00
8:01 to
10:00
Later Day
62. c Go n Grow Business Consulting Inc. 62
High-level DMAIC Methodology
Define
Measure
Analyse
Improve
Control
• Charter
• Customer needs, requirements
• High-level process map
•Data collection plan
•Data collection
implementation plans
•Data analysis
•Process analysis
•Root cause analysis
•Solution generation
•Solution selection
•Solution
implementation
•Control methods
•The response plan
63. c Go n Grow Business Consulting Inc. 63
The Process Map
Map the representative process – not the best or
worst
Capture steps as the actually occur – both easily
seen and invisible (waits or moves)
Verify the map:
Talk to people in the process
Follow the process from beginning to end
Use verbs or adjectives to describe steps
Use nouns to describe output and input
Now, do a ‘to be’ process map of what should be
happening.
64. c Go n Grow Business Consulting Inc. 64
Process Map – Five Categories
DMAIC Step Define Analyse Improve
Identity of suppliers
to the process
High level
Start the process of
measurement
Greater detail
Understand the
detail and validate
the measurements
Should be maps
Map the solution
and validate with
experiments
Inputs provided
Function of the
process
Out from the
process
Customers of the
process
65. c Go n Grow Business Consulting Inc. 65
Process Summary Worksheet
Process Step 1 2 3 4 5 6 Total
Minute
s
Percent
Time ( in minutes) 1 20 15 45 10 15 106 100.0
Value added x x 16 15.1
Non-value added x x x x 90 84.9
Moves 0 0
Delays x 45 42.5
Set-up 0 0
Internal failures x x 25 23.5
External failures x 20 18.9
Control / Inspection 0 0
Value-enabling 0 0
66. c Go n Grow Business Consulting Inc. 66
Plan Testing Methods
Statistical sampling
User engagement via test scripts
Component testing
Unit testing
Batch testing
System testing
Consolidated testing
Final user acceptance testing
67. c Go n Grow Business Consulting Inc. 67
Run Chart – The Foundation
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's
68. c Go n Grow Business Consulting Inc. 68
Your Turn, Again
Get to your whiteboard space and:
Brainstorm some processes that fit your
Archer project approach
Develop a stakeholder map and strategies to
move the stakeholders to a positive point
Brainstorm and justify your testing methods
Take 45 minutes – no more!
Report out to the full group
69. c Go n Grow Business Consulting Inc. 69
Quality Assurance
Audit Processes
Verify Quality of the System
70. c Go n Grow Business Consulting Inc. 70
Quality Assurance
A planned and systematic set of activities to ensure that variances in
processes are clearly identified, assessed and improving defined processes
for fullfilling the requirements of customers and product or service makers.
A planned and systematic pattern of all actions necessary to provide
adequate confidence that the product optimally fulfils customer's
expectations.
A planned and systematic set of activities to ensure that requirements are
clearly established and the defined process complies to these requirements.
"Work done to ensure that Quality is built into work products, rather than
Defects." This is by (a) identifying what "quality" means in context; (b)
specifying methods by which its presence can be ensured; and (c)
specifying ways in which it can be measured to ensure conformance (see
*Quality Control*, also *Quality*).
71. c Go n Grow Business Consulting Inc. 71
Quality Control – Assess Quality
Verify and Validate Products
Walkthrough reviews
Technical reviews
Phase reviews
Perform Acceptance Testing
Solution Acceptance
Review Quality Standards
72. c Go n Grow Business Consulting Inc. 72
To Assess Quality
Clear specifications: don’t change the agreed
definitions – modified by change processes
Use defined standards from an agreed baseline
Historical experience
Qualified resources
Impartial design reviews
73. c Go n Grow Business Consulting Inc. 73
Quality Control
Also called statistical quality control. The managerial process during which
actual process performance is evaluated and actions are taken on unusual
performance.
It is a process to ensure whether a product meets predefined standards and
requisite action taken if the standards are not met.
------------
Quality Control measures both products and processes for conformance to
quality requirements (including both the specific requirements prescribed by
the product specification, and the more general requirements prescribed by
*Quality Assurance*); identifies acceptable limits for significant *Quality
Attributes*; identifies whether products and processes fall within those limits
(conform to requirements) or fall outside them (exhibit defects); and reports
accordingly. Correction of product failures generally lies outside the ambit of
Quality Control; correction of process failures may or may not be included.
74. c Go n Grow Business Consulting Inc. 74
Run Chart – With Control Limits
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's
Upper Control Limit
Lower Control Limit
Trend
75. c Go n Grow Business Consulting Inc. 75
Run Chart: Expected Revised Control Limits
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's
Revised Upper Control Limit
Revised Lower Control Limit
76. c Go n Grow Business Consulting Inc. 76
Thank You for Your Participation
Chris.Dennis@shaw.ca
http://www.isixsigma.com/
Editor's Notes
1 Give examples of Allied Signal and Larry Bossidy (MBA dissertation notes, HBR articles, Journal of Executive Management, Sloan Review)
2 Use example of insurance stats of it taking 10 times the effort to attract a customer as it takes to retain a customer
1 Give examples of fitness for purpose. Find out some of the class hot-buttons and link stories into those hot-buttons
2 Strategy is created by the executives and is part of the organisational commitment. Use the example of 94% of problems are process or management issues; 6% is worker related
3 If the 94% statement is true, management owns
Each stakeholder will have an individual chart as each person needs to be managed separately. As the process moves forward, the type of resistance will change and new strategies will be needed. It is really important to keep track of the changes and the strategies so that people are moved through a process of learning, feeling good about themselves and becoming confident in the outcomes. Remember to look through the lens of the individual as reality is their reality not yours or the teams.
Moves: Steps where the product is moved from one place to another
Delays: Product or service is waiting for the next step in the process
Set-up: Steps in the process to prepare the product or service for a future step
Internal failures: Steps that have to be re-done
External failures: Failure detected by the customer
Control / Inspection: Steps where product or service is reviewed to ensure customer satisfaction
Value-enabling: Process steps that are needed to keep the organisation functioning. These steps don’t add direct value but without them, the organisation would falter.