MBA- Quality Improvement

1. Girlie D. Dagaman
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2. Process Improvement
Methodology
PART 01
Basic Tools For Process
Improvement
PART 02
Content
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Other Tools for Process
Improvement
PART 03

3. 1. Process Improvement Methodologies
 Deming Cycle
 FADE
 Juran's Breakthrough Sequence
 Creative Problem Solving
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4. Deming Cycle
 Simple Methodology for Improvement that
strongly promoted by W. Edwards Demings.
 It was originally called the Shewart Cycle
after it original founder, Walter Shewart, but
was renamed the Deming Cycle by the
Japanese in 1950.
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5. • Customers in line for up to
15mins
• Usually, tables were available
• Many of their customers are
regular
• People taking orders and
preparing food were getting in
each other's way
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PLAN STAGE:
 study current situation, collect on the number of customers on
line, the number of empty tables, and time until a customer
received the food ordered.
 The owners wanted to test a few changes. They decided 3
changes: (1) Provide a way to fax their orders i head of time.
(rent a fax machine for 1 mo). (2) Construct a preparation table
in the kitchen with ample room for fax orders. (3)Devote one of
their two cash registers to handling fax orders.
DO STAGE
 Implement the plan, the owners observe the results of the tree
measures for three weeks.
 The lenghts of the line and the number of empty tables were
measured every 15minutes during lunch hour by one of the
owners. In addition, when the 15-minute line check was
done,the last person in line was noted, and the time until that
person got served was measured.
STUDY PHASE
 Detected several Improvements.
 Time in line went down from 15 to average of 5 mins.
 The line length was cut to a peak average of 12 people.
 The Number of Empty tables decreased slightly.
ACT STAGE
 Owners held a meeting with all employees to discuss the result
 They decided to purchase the fax machine,prepare one orders in
the kitchen with the fax orders, and use both cash registers to
handle walk-up and fax order.

6. FADE
FOCUS - Team select the problem to be
address and defines it,characterizing its
current situation, and what the desired
result should be and benefits in achieving
the result.
EXECUTE- The
solution is
implemented and
monitoring plan is
established
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ANALYZE - The team works to
describe the process in
detail, determining what
data and information needed
and develop a list of root
causes of the problem
DEVELOP - Focuses in creating a
solution and implementation
plan along with documentation
to explain and justify
recomendations to management
who allocate the resources.

7. Juran's Breakthrough Sequence
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Managers, especially the top managers, need to be convinced with the idea that
quality improvements are simply good economics.
Through data collection efforts, information on poor quality, low productivity, or poor service
can be translated into the language of money which is the universal language of top
management-to justify a request for resources to implement a quality
improvement program.
All breakthroughs are achieved project-to project, and in no other way. By taking
this kind of approach, management provides a forum for converting an atmosphere of
defensiveness or blame into one of the constructive action. Participation on the project will
likely to increase the chance of the participant to act on the results.

8. Juran's Breakthrough Sequence
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Organization for improvement requires a clear responsibility for guiding the project The
responsibility for the project may be as broad as the whole division with formal
committee structures or as narrow as a small group of workers at one production operation.
Diagnosticians skilled in data collection, statistics, and other problem-solving tools are needed at
this phase. Some projects requires full-time, specialized experts (such as Six Sigma Black Belts)
while the workforce can perform others. Management-controllable and operator-controllable
problems require different methods of diagnosis and remedy.
This journey is consists of several phases: choosing an alternative that optimizes total cost (similar
to one of Deming's point), implementing remedial action, and dealing with resistance to change.

9. Juran's Breakthrough Sequence
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This journey is consists of several phases: choosing an alternative that optimizes total cost (similar
to one of Deming's point), implementing remedial action, and dealing with resistance to change.
The last step Involves formulating new standards and procedures, training the workforce, and
instituting controls to make sure that the breakthrough does not die over time.

10. Creative Problem Solving
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Understanding
the Mess
Finding Facts
Identifying
Specific
Problems
Generating
Ideas
Developing
Solutions
Implementation

11. Creative Problem Solving
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12. 2. Basic Tools for Process Improvement
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13. The 7 QC Tools
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Tools DMAIC
Application
CPS Application
Flow Charts Define, Control Mess-finding
Check Sheets Measure, Analyze Fact-Finding
Histograms Measure, Analyze Problem-Finding
Cause-and affect-
Diagram
Analyze Idea-Finding
Pareto Diagrams Analyze Problem-Finding
Scatter Diagrams Analyze, Improve Solutions-Finding
Control Charts Control Implementation

14. Flow Charts
14
 To clearly define a Six Sigma or any process improvement project, one must first
understand the process that creates the outputs that internal or external customers
receive. This understanding sets the foundation for identifying critical to quality issues,
selecting measurements, and identifying root causes of problems, identifying non-
value added steps, and reducing variation.
Flowcharts are best developed by having the people involved in the process.-
employees, supervisors, managers and customers construct the flow chart.
Flow charts help all employees understand how they fit into the process and who are
their suppliers and customers. This realization then leads to improve communication in
all parties. By participating in the development of the flowchart,workers feel sense of
ownership in the procss and hence become more willing in improving it.

15. Flow Charts
15

16. Flow Charts
16
Start
Call from
customer
regarding
post sale
claim
Sales
representative
discusses claim
with customer
Claim
Status
End
Declined
Approved
Sales
representative
completes
adjustment
request form
Sales
representative
sends adjustment
request form to
Accounting
End

17. Run Charts and Control Charts
17
A line graph in which data are plotted over time.he Vertical Axis represents a
measurement and the horizontal axis is the time scale.
They can be used to track such thing such as production volume, costs, and customer
satisfaction indexes.
A control chart is simply a run chart to which two horizontal lines, called control limits
are added: the upper control limit (UCL) and lower control limit LCL.
Control Charts were first proposed by Walter Shewart at Bell Labaratories in 1920's
and were strongly advocated by Deming
Control limits make it easier to intepret patterns in a run chart and draw conclusions
about the state of control.

18. Run Charts and Control Charts
18

19. Check Sheets
19
A simple tools for data collection.
In Manufacturing, vheck sheets are simple to use and easily interpreted by shop
personnel. Including specification limits makes the number non-conforming items
easily observable and provides an immediate indication of the process.

20. Histograms
20
Is a basic statistical tool that graphically shows the frequency of numbers of
observations of a particular value or within specified group .

21. Pareto Diagrams
21
 Joseph Juran popularized the pareto principle in 1950 after observing that a high
proportion of quality issues resulted from only a few causes.
 He named this technique after Vilfredo Pareto(1848-1923), an Italian economist who
determined that 85% wealth of Milan was owned by only 15 percent of the people.
 Pareto Analysis is often usd to analyze data collected in check sheets. One may also
draw a commulative frequency curve in histogram. Such as a visual aid clearly shows
the relative magnitude of defects and can be use to identify opportunities for
improvement. The most costly or significant problem standout.

22. Pareto Diagrams
22

23. Cause-and -Effect Diagrams
23
 Variation in process output and other quality problems can occur for a variety of
reasons such as materials, methods, people and measurement. The goal of problem
solving is to identify the causes of the problems in order correct them.
 Kaoru Ishikawa introduced the caused-and effect diagram in Japan, so it is also called
an Ishikawa Diagram. Because of its structure, it is often called as a FISHBONE
DIAGRAM.
 Cause-and -effect diagrams are constructed in brain storming type of atmosphere.
Everyone can get involved and feel they are important part of the problem-solving
process. Usually small groups drawn from operations or management work with
trained and experienced facilitator.

24. Cause-and -Effect Diagrams
24

25. Scatter Diagrams
25
 are the graphically component of regression analysis.
 Statistical correlation analysis is used to interpret scatter diagrams.
 Below shows three types of correlation. If the correlation is positive, an increase in
variable x related to an increase in variable y; if the correlation is negative, an increase
in x is related to a decrease in y; and if the correlation is close to zero , the variables
have no linear relationship.

26. 3. Other Tools for Process Improvement
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27.  Blitz teams generally comprised of
employees from all areas involved in the
process who understand it can implement
changes on the spot. Improvement is
immediate, exciting and satifying for all
those involved in the process.
 Example: In retail Services, a blitz team investigated
problems that continually plagued employees, and
discovered that many were related to the software
system. Some of the same customer information
had to be enterd in multiple screens, sometimes the
system took a long time to process information, and
sometimes it was difficult to find specific
information quickly. Neither the programmers nor
the engineers were aware of these problems. By
getting everyone together, some solutions were
easily determined. Estimated savings were $125,000
Kaizen Blitz
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28.  The Poka-yoke concept was developed and
refined in the early 1960's by the late
Shigeo Shingo, a Japanese manufacturing
engineer who develop the Toyota
Production System.
 Poka-yoke are designed to facilitate the
process or remove the human element
completely.
 Poka -oke is focused in two aspects
1. Prediction or recognizing that a defect is
about to happen and providing a warning
2. Detection, or recognizing that defects has
occurred and stopping the process.
Poka- Yoke (Mistake- Proofing)
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Examples:
 A machine have limit
switches connected to
warning lights that tell the
operator when parts are
positioned improperly in the
machine.
 One production step at
motorola involves putting
alphabetic characters on a
keyboard, and then
checking to make sure
slightly off center, By
holding the template over
the key board, assemblers
can quickly spot mistakes.
 Computer programs display
a warning message if a file
has not been saved to be
closed.

29.  Process simulation has been used routinely
in business to address complex operational
problems, so is no wonder that it is a useful
tool for six sigma applications, especially
those involving customer service
improvement, cycle time reduction, and
reducing variability.
 Process simulation should be used when
the process is highly complex and difficult
to visualized,involves many decision points ,
or when the goal is to optimize the use of
resources for process.
Process Simulation
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It is difficult to perform a
process simulation, even for
such a simple process, without
some type of commercial
simulation software.

30. ENGAGING THE WORKFORCE IN PROCESS IMPROVEMENT
PEOPLE
SKILLS for Team Leaders
 Conflict Management
Resolution
 Team Management
 Leadership Skills
 Decision Making
 Communication
 Negotiation
 Cross-cultural Training
 Shared Vision
 Bahavioral Skills
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31. ENGAGING THE WORKFORCE IN PROCESS IMPROVEMENT
SKILLS for Team Members
Peter Scholtes provides some rules for
effective meetings
 Use Agendas
 Have Facilitator
 Take Minutes
 Draft the Next Agenda
 Evaluate the Meeting
 Meetings
 Shared Decision Making
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32. Thank you
Chapter 10: Tools for Process Improvement
Girlie
TQM
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