TQM unit 3 TQM TOOLS

Why use tools?
 Measure
 Improve

What are they?
The seven basic tools according to Ishikawa
are:
 Check sheets
 Flow charts
 Cause and effect diagram
 Scatter diagram
 Control chart
 Graphs & Histograms
 Pareto diagram

1.Check sheets
 What is a check sheet?
 A form or sheet used to record data.
 Tools for identifying

Function of Check Sheets
According to Ishikawa 1982, check sheets have the
following functions:
1. Production Process distribution checks
2. Defective item checks
3. Defective location checks
4. Defective cause checks
5. Check-up confirmation checks
6. Others

Example of a simple check sheet. (for car valet
operation)
Car type
Car registration
Ford Focus
W357 PHR
Interior vacuumed √
Upholstery cleaned √
Dash board cleaned √
De odorised √
Body washed √
Washed waxed &
Polished
√
Under car washed √
Wheels washed √
Tyres blacked √
Comments: Front bumper badly
scratched on delivery, this can not be covered
Performed / Checked by
J Bloggs
Date 2 May 2008

Example of a simple process check sheet.
(attributes)
Model XYZC217 Batch
failures 1 2 3 4 5 6 7 8 9
1
0
Power up
1 2 1
Boot up
6 4 2 1 2
Sink test
2 1 1 1
Case damage
1 1 2
Keyboard damage
Monitor damaged
1 2
Bundled s/w included
3 1 3
Checked by
pj
a
m jj [j
l
m
l
m
r
m pj
a
m pj

Tally Lines
Complaints Tally Total
Poor Delivery IIII III 8
Incorrect Invoicing IIII 4
Poor service IIII IIII 10
Irresponsible II 2
Poor Packaging III 3
No qaulity II 2

Flowcharts
2. PROCESS MAPPING
 Process mapping is an essential first step.
 It identifies all of the process activities, sequence and
responsibilities.
 This can either be in a written format, or as a flowchart.

Flowcharting
 Flowcharting is a graphical tool for identifying
processes.
 Constructing flowcharts leads to a better
understanding of processes.
 Better understanding of processes is a essential for
improvement

symbol
Event Symbol Description
operations It means an action
storage It is a stage of finished
good or raw material
waiting for action
Delay or
temporary
storage
It means process has
stopped due to same
reason or waiting for next
event

Symbol
Event Symbol Description
Transport Movement
Inspection Checking the
Quality & Quantity
Operation cum
Transport
Doing the work by
moving
Inspection cum
operation
Automatic process

Flowcharts
Some standard symbols
Start or end
An activity
a decision point in the process.
a point at which the flowchart connects
with another process.
An off page connection
All records are identified

FLOWCHART
SM01 Enquiry Handling / Quotation Process
Sales director Estimator
Customer
Customer sends
enquiry
Sales department
receives enquiry
Enquiry entered
into the electronic
Quote log &
Unique serial
number entered
Can this
enquiry be
Quoted ?
Enquiry allocated
to Estimator
No
Quote prepared
from Price guide
Quote customer
Customer
informed that we
are unable to
quote
No
Prepare Quote
Have the
item (s) been
made before?
Yes
Raise estimate
sheet & plan
process
Organize contract
review to cover
Quality
Contractual &
Manufacturing
aspects

Types of process chat or flow
chart
 Outline process chart
 Two handled process chart
 Flow chart

Outline process chart
 Data are recorded by using

Two handled process chart
 LH RH

Exercise
Draw a flowchart for one of the following processes:
Making a cup of coffee
Enrolling students
Wiring a plug.

3.Cause and Effect
Diagrams (Ishikawa)
A METHOD FOR THE IDENTIFICATION OF THE ROOT
CAUSE OF A PROBLEM.

cause and effect
What is Brainstorming?
 A way to get creative ideas.
 A way to get everyone’s views.
 A way to generate alternatives.

cause and effect
Potential Uses(Brainstorming)
 For identifying areas for improvement.
 For finding potential causes of problems.
 For developing possible preventive actions.

cause and effect
Some Guidelines
(Brainstorming)
 Give wild and unusual ideas.
 Aim for quantity.
 Build on ideas of others.
 Encourage participation.
 Evaluate or criticise.
 Stop to soon.
 Allow domination or idea
ownership.
Do’s Don'ts

cause and effect
Ranking
Ranking can be used after brainstorming to assess the teams
Priority position on a list of ideas. The basic procedure is:
•Each person privately selects 3 to 5 items from the list
•Each person ranks their selection in order of priority
•The marks are then totalled for each item
•The item having the highest total is then judged to have the
highest priority

cause and effect
What is a Cause and Effect
Diagram?
 The process of a cause and effect diagram consists of
defining an effect in terms of possible causes and is
normally carried out in the form of a Brainstorming
session.
 The principal causes are typically Man, Materials,
Methods or Machines.
 These are then reduced to sub-causes.
 Finally, the most likely causes are then circled and are
subject to future examination.
 These relationships are displayed pictorially in the form
of a fishbone structure.

cause and effect
Layout:
Man Method
Materials Machines
Effect
Sub-Cause
Sub-Cause Sub-Cause
Sub-Cause
Sub-Cause
Sub-Cause

Cause & Effect Diagrams
Sample
Incorrect
shipping
documents
Manpower Materials
Methods Machine
Keyboard sticks
Wrong source info
Wrong purchase order
Inefficient info
Didn’t follow
No procedure
No communications
No training
Software problem
Corrupt
data
reluctant

4. Scatter Diagrams
A METHOD FOR THE IDENTIFICATION THE RELATIONSHIP
(EFFECT) BETWEEN TWO FACTORS (CAUSES).

Scatter diagrams
What is it used for?
 Validating "hunches" about a cause-and-effect
relationship between two variables.
 Displaying the direction of the relationship (positive,
negative, etc.)
 Displaying the strength of the relationship

Scatter diagrams
Constructing scatter diagram
 In order to construct a scatter diagram you need two
variables to be plotted against each other. One on
the x axis the other on the y axis.
 The relationship is then plotted.
Variable a
Variable
b
relationship

Scatter diagrams
Constructing scatter diagram
 This process is continued, showing the effect of
changes in one of the variables against the other
variable.
Variable a
Variable
b

Scatter diagrams
Interpreting a scatter diagram
 The diagram below shows a Strong Positive
relationship between the variables (an in crease in a
results in a positive increase in b, which is almost
uniform.)
Variable a
Variable
b

Scatter diagrams
 The diagram below shows a Strong Negative
relationship between the variables (an in crease in a
results in a decrease in b, which is almost uniform.)
Variable a
Variable
b

Scatter diagrams
 The diagram below shows a Weak Positive
relationship between the variables.
Variable a
Variable
b

Scatter diagrams
 The diagram below shows a Weak Negative
Variable a
Variable
b

Scatter diagrams
 The diagram below shows a that there is no
Variable a
Variable
b

5. Control Charts
A METHOD FOR MONITORING A PROCESS FOR
PREVENTING DEFECTS.

Control charts
What are control charts
 Control charting is the most technically
sophisticated tool of the 7 quality tools.
 It was developed in the 1920s by Dr. Walter A.
Shewhart of the Bell Telephone Labs. Dr. Shewhart
developed the control charts as a statistical
approach to the study of manufacturing process
variation.
 The purpose was to improve the process
effectiveness and therefore reduce costs.
 These methods are based on continuous
monitoring of the process variation.

Control charts
Why use control charts
 A Control chart is a device for describing in a
precise manner what is meant by statistical
control.
 it helps the process perform consistently and
predictably.
 it can minimise the variation in output.
 it can help to achieve lower product costs.
 it can help to increase effective capacity.
 it can help to meet customer expectations

Control charts
Types of control charts
 You will come across two types of Control Charts used
in SPC (Statistical Process Control).
1. Attribute SPC
2. Variable SPC

Control charts
Attribute control charts
 Attribute data is based upon two conditions (pass/fail, go/no-go,
present/absent) which are counted, recorded and analysed.
 Control chart techniques are important for the following
reasons:
 Attribute-type situations exist in any process.
 Attribute-type data is already available in many situations –
(existing inspections, repair reasons, reject segregation &
sorting) In these cases, no additional data collection is required,
you just have to convert the data into chart form.
 Where new data must be collected, attribute information is
usually quick and inexpensive to obtain.

Control charts
Variable control charts
 Control charts for variables are used to control the
variation of processes in cases where the characteristic
under investigation is a measurable quantity.

Control charts
Variable control charts
 Xbar&R CHARTS.
 Xbar&R charts are used as a pair;

Control charts
Example of an Attribute control
chart

Control charts
Example of a variable control chart
Moving Range Variable Control Chart (Sub-group Sampling)
Process Characteristic Oven temperature X Bar 181 R Bar UCL R Frequency
Upper Spec: 185.0 Lower Spec 175.0 Upper Control Limit Lower Control Limit 60 Piece Capability Study
X1 182.0 182.0 183.0 176.0 183.5 184.0 183.5 183.0 183.0 170.0 176.0 182 182.5 176.0 183.5 183.0 183.0 184.0 183.0 184.0 183.5 176.0 176.0 176.0 182.0 176.0 178.0 176.0 186.0 187.0 182.0
X2 183.0 176.0 183.0 176.0 176.0 183.5 182.5 182.0 183.0 173.5 176.0 176 182.0 183.5 184.5 184.0 183.5 184.0 183.0 186.0 184.5 183.0 183.0 176.0 176.0 176.0 175.0 176.0 185.0 186.0 176.0
X3 176.0 183.0 184.0 183.5 184.0 182.5 182.0 176.5 184.5 172.0 183.5 176 176.0 184.0 182.5 182.5 180.0 180.0 182.0 184.0 184.0 184.0 183.0 183.0 176.0 175.0 174.0 183.0 183.0 186.0 183.5
X4
X5
X bar 180.3 180.3 183.3 178.5 181.2 183.3 182.7 180.5 183.5 171.8 178.5 178.0 180.2 181.2 183.5 183.2 182.2 182.7 182.7 184.7 184.0 181.0 180.7 178.3 178.0 175.7 175.7 178.3 184.7 186.3 180.5
R 7.0 7.0 1.0 7.5 8.0 1.5 1.5 6.5 1.5 3.5 7.5 6.0 6.5 8.0 2.0 1.5 3.5 4.0 1.0 2.0 1.0 8.0 7.0 7.0 6.0 1.0 4.0 7.0 3.0 1.0 7.5
Op R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc R.Mc
Time
Date 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4 5/4
NEW CALCULATED LIMITS
X bar 180.823 R Bar 4.6094 UCL X 185.524 LCL X 176.121 UCL R 30.089 Cp 0.61 Cpk 0.51 Sigma 2.7274
ESPC coating
0.0
5.0
10.0
15.0
UCL
170
172
174
176
178
180
182
184
186
188
190
UCL
LCL
USL
LSL
xbar
1
2
3
X
bar
R
bar

6. Graphs & Histograms
GRAPHS, EITHER PRESENTATIONAL OR MATHEMATICAL ARE USED TO ALLOW
UNDERSTANDING AND ANALYSIS OF COLLECTED DATA SETS.
TOOLS FOR PRIORITIZING AND COMMUNICATING

Graphs
BAR CHARTS
 This is the data set totalled up and shown
graphically.
 It immediately identifies the major defects for all
to see.
Defects
0
2
4
6
8
10
12
14
16
Power
up
Boot
up
Sink
test
Case
damage
Keyboard
damage
Monitor
damaged
Bundled
s/w
included
Type
Quantity

Graphs
 The below graph shows a factory output for
February. This time it shows specific dates which
could be analysed.
0
10
20
30
40
50
60
70
80
90
100
01/02/03
02/02/03
03/02/03
04/02/03
05/02/03
06/02/03
07/02/03
08/02/03
09/02/03
10/02/03
11/02/03
12/02/03
13/02/03
14/02/03
15/02/03
16/02/03
17/02/03
18/02/03
19/02/03
20/02/03
21/02/03
22/02/03
23/02/03
24/02/03
25/02/03
26/02/03
27/02/03
28/02/03
Output %
Average
Feb production output

Graphs
 The graph below shows the major cause for
customer complaint, the use of the pie chart and
the colours enforce the message.
Customer complaints 2007
by qty
20
60
5
15
Product quality
Shipped Late
Shipped early
Shipped wrong goods

Rules for Graphing
 Use Clear titles an indicate when the data was
collected
 Ensure the scales are clear, understandable and
represent the data accurately.
 When possible use symbols for extra data.
 Always keep in mind the reason why the graph is
being used.

Exercise Graphs
 You are the marketing director of XZY automotive, a new
Scottish company. You have organised a local survey to rate
your car against other small cars.
 30 people were polled and the results are shown below.
 Xzy, ka, Clio, Clio, ka, fiesta, xzy, ka, 206, xzy, fiesta, fiesta, xzy,
polo, fiesta, 206, 206, polo, 206, fiesta, fiesta, fiesta, polo, xzy,
polo, fiesta, xzy, xzy, ka, xzy.
 You recognise the power that graphs produce. And you have
decided to Graph the results as part of you marketing drive.
Explain your choice of graph.

What is a Histogram?
 The Histogram is a graphical representation of data
that is a dimensional measurement of one feature.

 This is the computer defect data set totalled up and
shown graphically, but is it a histogram?
Defects
0
2
4
6
8
10
12
14
16
Power
up
Sink
test
Keyboard
damage
Bundled
s/w
included
Type
Quantity
Checks/only record failures Total
Power up 4
Boot up 15
Sink test 5
Case damage 4
Keyboard damage 0
Monitor damaged 3
Bundled s/w included 7

 The answer to the previous question is NO
 The Histogram is a graphical representation of data
that, is a dimensional
measurement of one feature.

When is a Histogram Used?
 To look at one particular set of results
 To check for patterns in a process
 To examine large amounts of data

Histograms
 The following data was collected when measuring the
bow (warp) of a plastic component. The specification is
0 to 8 x10-3 mm.
 At a glance this tells you very little, but it can be plotted
as a histogram because we have quantities data with
target limits.
Bow measurements
2 5 8 8 2
4 6 6 6 4
4 7 6 6 4
8 7 7 5 9

0
1
2
3
4
5
6
Thou
Frequency
Histograms
Bin Frequency
0 0
1 0
2 2
3 0
4 4
5 2
6 5
7 3
8 3
9 1
More 0

Exercise
 Sort the following data into appropriate sets, then plot
them.
 The limits are 3 volts ± 0.1
 What can you deduce from this?

Exercise
3.00 2.80 2.85 2.80 2.85
3.00 2.80 2.75 2.65 2.90
2.80 2.85 2.90 2.95 2.85
2.85 2.90 2.85 3.00 2.90
2.85 3.05 2.95 3.05 2.95
2.85 2.95 3.00 2.80 2.85
2.90 2.70 2.85 2.85 2.90
2.90 2.90 2.80 2.85 2.85
2.85 3.00 2.85 2.85 2.75
2.80 2.90 3.05 2.85 2.85

7. Pareto Analysis
ARRANGING DATA ACC TO ITS DEFECTS AND CAUSES
80% OF DEFECTS FROM 20% OF CAUSES – VITAL FEW
REMAINING % OF DEFECTS FROM VARIOUS CAUSES –
TRIVIAL MANY/USEFUL MANY

Pareto
What is Pareto Analysis?
 Pareto analysis is a method for prioritising
data.
 It consists of a Bar Chart displayed either
in order of frequency or relative cost.

Pareto
Example:
The information to be represented on a Pareto diagram should already
have been collected in some sort of record.
Houshold repairs over the last 10 years
Problem frequency
Cost £ per
occurance
Total cost
£
Light bulb fails 100 0.6 60
Broken central heating
pump 1 190 190
Broken window 2 50 100
Leaking taps 16 2.5 40
Faulty central heating
boiler 1 3000 3000
Leaking radiators 3 15 45

Pareto
Pareto Chart
House repairs 1998-2008
0
20
40
60
80
100
120
Light
bulb
fails
Leaking
taps
Leakiung
radiators
Broken
window
Broken
central
heating
Faulty
central
heating
Fault
Occurance
frequency
Cum %
The data are then displayed graphically. Firstly in terms of
frequency.....

Pareto
... and then by cost.
House repairs 1998-2008 Total cost £
0
500
1000
1500
2000
2500
3000
3500
Faulty
central
heating
boiler
Broken
central
heating
pump
Broken
window
Light
bulb fails
Leakiung
radiators
Leaking
taps
Total cost £

Exercise Pareto
Plot the following data as a Pareto chart
Model XYZC217 Batch number
Checks/only record failures 1 2 3 4 5 6 7 8 9 10
Power up
1 2 1
Boot up
6 4 2 1 2
Sink test
2 1 1 1
Case damage
1 1 2
Keyboard damage
Monitor damaged
1 2
Bundled s/w included
3 1 3
Checked by
pj am jj [j lm lm rm pj am pj

What are the
New Seven Q.C. Tools
 Affinity Diagrams
 Relations Diagrams
 Tree Diagrams
 Matrix Diagrams
 Arrow Diagrams
 Process Decision Program Charts
 Matrix Data Analysis

History of the
 Committee of J.U.S.E. - 1972
 Aim was to develop more QC
techniques with design approach
 Work in conjunction with original Basic
Seven Tools
 New set of methods (N7) - 1977
Slide 1 0f 2

History of the
 Developed to organize verbal data
diagrammatically.
 Basic 7 tools effective for data analysis,
process control, and quality
improvement (numerical data)
 Used together increases TQM
effectiveness
Slide 2 0f 2

Affinity Diagrams
For Pinpointing the Problem in a Chaotic
Situation and Generating Solution Strategies
 Gathers large amounts of intertwined
verbal data (ideas, opinions, issues)
 Organizes the data into groups based
on natural relationship
 Makes it feasible for further analysis
and to find a solution to the problem.
Slide 1 0f 7

Affinity Diagrams
Advantages of Affinity Diagrams
 Facilitates breakthrough thinking and
stimulate fresh ideas
 Permits the problem to be pinned down
accurately
 Ensures everyone clearly recognizes the
problem
 Incorporates opinions of entire group
Slide 2 0f 7

Affinity Diagrams
Advantages of Affinity Diagrams (cont.)
 Fosters team spirit
 Raises everyone’s level of awareness
 Spurs to the group into action
Slide 3 0f 7
Topic
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Data Card Data Card

Affinity Diagrams
Constructing an Affinity Diagram
Group Method Approach
Slide 4 0f 7
 Select a topic
 Collect verbal data by brainstorming
 Discuss info collected until everyone
understands it thoroughly
 Write each item on separate data card
 Spread out all cards on table

Affinity Diagrams
Group Method Approach (cont.)
Slide 5 0f 7
 Move data cards into groups of similar
themes (natural affinity for each other)
 Combine statements on data cards to
new Affinity statement
 Make new card with Affinity statement
 Continue to combine until less than 5
groups

Affinity Diagrams
Slide 6 0f 7
 Lay the groups outs, keeping the affinity
clusters together
Next, complete the diagram

Affinity Diagrams
Completing an Affinity Diagram
Slide 7 0f 7
Topic
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Data Card Data Card
Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)

Relations Diagrams
For Finding Solutions Strategies by Clarifying
Relationships with Complex Interrelated Causes
 Resolves tangled issues by unraveling
the logical connection
 Allows for “Multi-directional” thinking
rather than linear
 Also known as Interrelationship
diagrams
Slide 1 0f 7

Relations Diagrams
Advantages of Relations Diagrams
 Useful at planning stage for obtaining
perspective on overall situation
 Facilitates consensus among team
 Assists to develop and change people’s
thinking
 Enables priorities to be identified
accurately
Slide 2 0f 7

Relations Diagrams
Advantages of Relations Diagrams (cont.)
 Makes the problem recognizable by
clarifying the relationships among causes
Slide 3 0f 7
Why doesn’t
X happen?
Primary Cause
Primary Cause
Primary Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
Secondary
Cause
Secondary
Cause
Secondary
Cause
Tertiary
Cause
4th level
Cause
Tertiary
Cause
Tertiary
Cause
4th level
Cause
5th level
Cause
6th level
Cause
Tertiary
Cause
Secondary
Cause

Relations Diagrams
Constructing a Relations Diagram
Slide 4 0f 7
 Express the problem in form of “Why
isn’t something happening?”
 Each member lists 5 causes affecting
problem
 Discuss info collected until everyone
understands it thoroughly
 Write each item on a card

Relations Diagrams
Slide 5 0f 7
 Move cards into similar groups
 Asking why, explore the cause-effect
relationships, and divide the cards into
primary, secondary and tertiary causes
 Connect all cards by these relationships
 Further discuss until all possible causes
have been identified

Relations Diagrams
Slide 6 0f 7
 Connect all related groups
 Review whole diagram looking for
relationships among causes

Relations Diagrams
Completing a Relations Diagram
Slide 7 0f 7
Why doesn’t
X happen?
Primary Cause
Primary Cause
Primary Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
Secondary
Cause
Secondary
Cause
Secondary
Cause
Tertiary
Cause
4th level
Cause
Tertiary
Cause
Tertiary
Cause
4th level
Cause
5th level
Cause
6th level
Cause
Tertiary
Cause
Secondary
Cause

Tree Diagrams
For Systematically Pursuing the Best Strategies
for Attaining an Objective
 Develops a succession of strategies for
achieving objectives
 Reveals methods to achieve the results.
 Also known as Systematic diagrams or
Dendrograms
Slide 1 0f 5

Tree Diagrams
Advantages of Tree Diagrams
 Systematic and logical approach is less
likely that items are omitted
 Facilitates agreement among team
 Are extremely convincing with strategies
Slide 2 0f 5
To
Accomplish
Primary means
Constraints
Secondary means
Secondary means
3rd means
3rd means
3rd means
3rd means
4th means
4th means
4th means
4th means
4th means
4th means
4th means

 Discuss means of achieving objective
(primary means, first level strategy)
Tree Diagrams
Constructing a Tree Diagram
Slide 3 0f 5
 Write Relations Diagram topic (Objective
card)
 Identify constraints on how objective
can be achieved
 Take each primary mean, write ob-
jective for achieving it (secondary means)

Tree Diagrams
Constructing an Tree Diagram
Slide 4 0f 5
 Continue to expand to the fourth level
 Review each system of means in both
directions (from objective to means and means to
objective)
 Add more cards if needed
 Connect all levels

Tree Diagrams
Completing a Tree Diagram
Slide 5 0f 5
To
Accomplish
3rd means
3rd means
Primary means
3rd means
3rd means
Constraints
Primary means
Secondary means
Secondary means
Secondary means
Secondary means
3rd means
3rd means
3rd means
3rd means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means

Matrix Diagrams
For Clarifying Problems by “Thinking
Multidimensionally”
 Consists of a two-dimensional array to
determine location and nature of
problem
 Discovers key ideas by relationships
represented by the cells in matrix.
Slide 1 0f 7

Matrix Diagrams
Advantages of Matrix Diagrams
 Enable data on ideas based on extensive
experience
 Clarifies relationships among different
elements
 Makes overall structure of problem
immediately obvious
 Combined from two to four types of
diagrams, location of problem is clearer.
Slide 2 0f 7

Matrix Diagrams
Advantages of Matrix Diagrams (cont.)
 5 types: L-shaped, T-shaped, Y-shaped, X-
shaped, and C-shaped
Slide 3 0f 7
O O =1 O =4 Principal
O =2 O X =5 O Subsidiary
=3 X =6
Efficacy
Practicability
Rank
Site
QC
circle
Section/Plant
QC
circle
supporter
Section/Plant
Manager
Leader
Member
4th lev
el means
from Tree diagram O O 1 O
4th lev
el means
from Tree diagram O O 1 O Hold 4 times/month
4th lev
el means
from Tree diagram O 3 O At ev
ery meeting
4th lev
el means
from Tree diagram O 2 O
4th lev
el means
from Tree diagram O X 5 O At least 3 times/year/person
4th lev
el means
from Tree diagram O O 1 O O
4th lev
el means
from Tree diagram 4 O
Evaluation Responsibilities
Remarks

Matrix Diagrams
Constructing a Matrix Diagram
Slide 4 0f 7
 Write final-level means from Tree
diagram forming vertical axis
 Write in Evaluation categories (efficacy,
practicability, and rank) on horizontal axis.
 Write names along horizontal axis
 Examine final-level means to identify
whom will implement them

Matrix Diagrams
Constructing a Matrix Diagram (cont.)
Slide 5 0f 7
 Label group of columns as “Responsibilities”
 Label right-hand end of horizontal axis
as “Remarks”
 Examine each cell and insert the
appropriate symbol:
Efficacy: O=good, =satisfactory, X=none
Practicability: O=good,=satisfactory, X=none

Matrix Diagrams
Constructing a Matrix Diagram (cont.)
Slide 6 0f 7
 Fill out remarks column and record
meanings of symbol
 Examine cells under Responsibility
Columns, insert double-circle for
Principal and single-circle for Subsidiary
 Determine score for each combination
of symbols, record in rank column

Matrix Diagrams
Completing a Matrix Diagram
Slide 7 0f 7
O O =1 O =4 Principal
O =2 O X =5 O Subsidiary
=3 X =6
Efficacy
Practicability
Rank
Site
QC
circle
Section/Plant
QC
circle
supporter
Section/Plant
Manager
Leader
Member
4th lev
el means
4th lev
el means
from Tree diagram O O 1 O Hold 4 times/month
4th lev
el means
from Tree diagram O 3 O At ev
ery meeting
4th lev
el means
4th lev
el means
from Tree diagram O X 5 O At least 3 times/year/person
4th lev
el means
from Tree diagram O O 1 O O
4th lev
el means
from Tree diagram 4 O
4th lev
el means
4th lev
el means
4th lev
el means
Evaluation Responsibilities
Remarks

Arrow Diagrams
For Working Out Optimal Schedules and
Controlling Them Effectively
 Shows relationships among tasks
needed to implement a plan
 Network technique using nodes for
events and arrows for activities
 Used in PERT (Program Evaluation and Review
Technique) and CPM (Critical Path Method)
Slide 1 0f 7

Arrow Diagrams
Advantages of Arrow Diagrams
 Allows overall task to viewed and potential
snags to be identified before work starts
 Leads to discovery of possible
improvements
 Makes it easy to monitor progress of work
 Deals promptly with changes to plan
 Improves communication among team
Slide 2 0f 7

Arrow Diagrams
Advantages of Arrow Diagrams (cont.)
 Promotes understanding and agreement
among group
Slide 3 0f 7
Strategy
1
Constraints
Activity
2
4
3 5 9
6 8
7
10 13
12
11

Arrow Diagrams
Constructing an Arrow Diagram
Slide 4 0f 7
 From strategies on Tree diagram, select
one (Objective of Arrow Diagram)
 Identify constraints to Objective
 Write all essential activities on separate
cards
 List all activities necessary to achieving
Objective

Arrow Diagrams
Constructing an Arrow Diagram (cont.)
Slide 5 0f 7
 Organize cards in sequential order of
activities
 Remove any duplicate activities
 Review order of activities, find
sequence with greatest amount of
activities
 Arrange parallel activities

Arrow Diagrams
Constructing an Arrow Diagram (cont.)
Slide 6 0f 7
 Record names and other necessary
information
 Examine path, number nodes in
sequence from left to right

Arrow Diagrams
Completing an Arrow Diagram
Slide 7 0f 7
Strategy
1
Constraints
Activity
2
4
3 5 9
6 8
7
10 13
12
11

Process Decisions Program
Charts
For Producing the Desired Result from Many
Possible Outcomes
 Used to plan various contingencies
 Used for getting activities back on track
 Steers events in required direction if
unanticipated problems occur
 Finds feasible counter measures to
overcome problems
Slide 1 0f 7

Advantages of Process Decisions Program
Charts (PDPC’s)
 Facilitates forecasting
 Uses past to anticipate contingencies
 Enables problems to pinpointed
 Illustrates how events will be directed to
successful conclusion
 Enables those involved to understand
decision-makers intentions
Slide 2 0f 7
Charts

Advantages of PDPC’s (cont.)
 Fosters cooperation and communication in
group
 Easily modified and easily understood
Slide 3 0f 7
Charts
Start
GOAL
YES
YES
NO
NO
NO
NO
NO
YES
NO
NO

Constructing a PDPC
Slide 4 0f 7
 Select a highly effective, but difficult
strategy from the Tree diagram
 Decide on a goal (most desirable outcome)
 Identify constraints of objective
 Identify existing situation (Starting point)
Charts
 List activities to reach goal and potential
problems with each activity

Constructing an PDPC (cont.)
Slide 5 0f 7
 Review list. Add extra activities or
problems not thought of previously
 Prepare contingency plan for each step
and review what action is needed if
step is not achieved
 Examine carefully to check for
inconsistencies and all important factors
are included
Charts

Constructing an PDPC (cont.)
Slide 6 0f 7
 Examine to make sure all contingency
plans are adequate
Charts

Completing a PDPC
Slide 7 0f 7
Charts
Start
GOAL
YES
YES
NO
NO
NO
NO
NO
YES
NO
NO
Source: Nayatani,Y., The SevenNew QC Tools (Tokyo, Japan, 3A Corporation, 1984)

Matrix Data Analysis
Principal Component Analysis
 Technique quantifies and arranges data
presented in Matrix
 Based solely on numerical data
 Finds indicators that differentiate and
attempt to clarify large amount of
information
Slide 1 0f 6

Advantages of Principal Component Analysis
 Can be used in various fields (market surveys,
new product planning, process analysis)
 Can be when used when Matrix diagram
does not give sufficient information
 Useful as Prioritization Grid
Slide 2 0f 6

Constructing a Prioritization Grid
Source: Foster, S., Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
Slide 3 0f 6
 Determine your goal, your alternatives,
and criteria for decision
 Place selection in order of importance
 Sum individual ratings to establish
overall ranking (Divide by number of options
for average ranking)
 Apply percentage weight to each option
(all weights should add up to 1)

Constructing a Prioritization Grid (cont.)
Slide 4 0f 6
 Rank order each option with respect to
criterion (Average the rankings and apply a
completed ranking)
 Multiply weight by associated rank in
Matrix (in example, 4 is best, 1 is worst)
 Result is Importance Score
 Add up Importance Scores for each
option

Constructing a Prioritization Grid (cont.)
Slide 5 0f 6
See completed the diagram
 Rank order the alternatives according to
importance

Completing a Prioritization Grid
Slide 6 0f 6
Source: Foster, S., Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
Cost Reliability
Options
Design A
.30 .20
3 3
.90 .60 3.2 1 (tie)
Design B
.40 .10
4 1
1.6 .10 3.0 2
Design C
.25 .25
2 4
.50 1 2.5 3
Design D
.10 .20
1 3
.10 .60 3.2 1 (tie)
1.05 .75
.26 .19
2 4
Importance
Sum Score
Option
Ranking
(least important)
Strength
Importance score
Rank
Percentage weight
Percentage weight
Rank
Importance score
Percentage weight
Rank
Importance score
Percentage weight
Rank
Importance score
Sum of weights
Average weight
Criterion Ranking
Customer Acceptance
(most important)
.40
4
1.6
.30
3
.90
.25
1
.25
0.3
3
.90
1.25
2
.40
.25
.75
.10
1
.10
.20
.95
.24
3
Criteria
.40
4
3
1.6
.31
1

Six Sigma
SET OF TOOLS AND TECHNIQUES FOR
PROCESS IMPROVEMENT

Six Sigma
 Greek Letter represent Standard Deviation in statistics
 Father of Six sigma ‘Bill Smith’ – shared the concept
and theory with Motorola 1987, manufacturing division
 Jack Welch– GE – 1995 - products
 Techniques – improve the capability and reduce
defects
 Perfection
 It allows 3.4 defects/million (99.99% accuracy)
 Defects can be from faulty part to incorrect customer
bill.

Benefits of Six Sigma
Improve the process
Decrease the variation
Maintain consistent quality
Increase in profit, product quality
Customer satisfaction
Organization growth

Concept
Quality Level Meaning
One sigma 6,90,000 defects
Two sigma 3,08,000 defects
Three sigma 66,800 defects
Four sigma 6,210 defects
Five sigma 230 defects
Six sigma 3.4 defects

RDMAICI
Recognize
Define
Measure
Analyze
Improve
Control
Integrate
SWOT
Goals
Set
Difference
Tools
Monitor
Communicate

Implementation Role
 Quality/Apex Council
 Sponsor/Champion
 Master Black Belt
 Black Belt
 Green Belt
 Team Members

Example
 Call Centre
 Medical & Insurance
 Service Sector
 Tata motors
 Wipro Technologies
 Infosys
 Reliance Industries
 Mahindra

Dabbawala Six Sigma
 Successful – simplicity with which this system works,
food delivered on time and every day

Cost of Quality
Three Views of quality Costs
Higher quality means higher cost.
 Quality attributes such as performance and features
cost more in terms of labor, material, design and other
costly resources.
 The additional benefits from improved quality do not
compensate for additional expense.
The cost of improving quality is less than the
resulting savings.
 The saving result from less rework, scrap and other
direct expenses related defects.
 This is said to account for the focus on continuous
improvement of processes in Japanese firms.

Three Views of quality Costs
Quality costs are those incurred in excess
of those that would have been incurred if
the product were built or the service
performed exactly right the first time.
 This view is held by adherents of TQM
philosophy.
Costs include not only those that are direct,
but also those resulting from lost customers,
lost market share and the many hidden costs
and foregone opportunities not identified by
modern cost accounting systems.

Quality Costs
COST OF QUALITY IS THE COST OF
NON QUALITY
1: 10:100 Rule
“A stitch in time saves nine”

Types of Quality Costs
The cost of quality is generally classified into four
categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure

Quality Costs
Cost of Prevention
 Prevention costs include those activities which
remove and prevent defects from occurring in
the production process.
 Included are such activities as quality planning,
production reviews, training, and engineering
analysis, which are incurred to ensure that poor
quality is not produced.
Appraisal
 Those costs incurred to identify poor quality
products after they occur but before shipment to
customers. e.g. Inspection activity.

Quality Costs
Internal Failure
 Those incurred during the production process.
 Include such items as machine downtime, poor
quality materials, scrap, and rework.
External Failure
 Those incurred after the product is shipped.
 External failure costs include returns and
allowances, warranty costs, and hidden costs of
customer dissatisfaction and lost market share.

 Reengineering sometimes called Business Process
Reengineering (BPR), involves a complete rethinking
and transformation of key business processes, leading
to strong horizontal coordination and greater flexibility
in responding to changes in environment. Because
work is originated around processes rather than
function, reengineering often involves a shift to
horizontal structure based on teams.

 Reengineering basically means starting over–throwing
out all the notions of how work was done and
deciding how it can best be done now. It requires
identifying customer needs and them designing how it
can best be done now. It requires identifying customer
needs then designing processes and aligning people
to meet those needs.

 Business Process Reengineering is the radical redesign
of business processes to achieve dramatic
improvements in productivity, cycle times, quality, and
employee and customer satisfaction. Companies start
by assessing what work needs to be done to deliver
customer value.

Reengineering Methodology
 The reengineering methodology involves several steps:
 • Planning and launching the project;
 • Analysis of the company's current situation;
 • Developing the solution;
 • Study of the previously developed solution;
 • Developing the solution;
 • Implementation;
 Continuous development

The Six key Steps of Business Process
Reengineering
 Define Business Processes. Map the current state (work
activities, workflows, roles and reporting relationships,
supporting technology, business rules, etc.).
 Analyze Business Processes. Identify gaps, root causes,
strategic disconnects, etc. in the context of improving
organizational effectiveness, operational efficiency and
in achieving organizational strategic objectives.

 Identify and Analyze Improvement Opportunities.
Identify, analyze and validate opportunities to address
the gaps and root causes identified during analysis.
This step also includes identifying and validating
improvement opportunities that are forward facing –
often strategic transformational opportunities that are
not tethered to current state process.

 Design Future State Processes. Select the improvement
opportunities identified above that have the most
impact on organizational effectiveness, operational
efficiency, and that will achieve organizational strategic
objectives. Make sure to select opportunities for which
the organization has the budget, time, talent, etc. to
implement in the project timeframe. Create a forward-
facing future-state map that comprehends the selected
opportunities.

 Develop Future State Changes. Frequently overlooked
(and a key root cause in failed BPR initiatives), this is
where the above opportunities are operationalized
before implementation. New workflows and
procedures need to be designed and communicated,
new/enhanced functionality is developed and tested,
etc. Changes and opportunities cannot be
implemented until they are operationalized.
 Implement Future State Changes. Classic
implementation based on dependencies among
changes/opportunities, change management, project
management, performance monitoring, etc.

Major Types of changes made in Business
Process Reengineering ar
 1. Work change:
 Work change is any alternation that occurs in the work
environment. Its effect are as follows:
 (a) The whole organization tends to be affected by
change in any part of it.
 (b) Change is a human as well as technical problem.
 (c) Organization tend to achieve an equilibrium in their
social structure. The equilibrium is established when
people develop a relatively stable set of relations with
their environment.

 Planned versus Reactive change:
 Some changes are planned well in advance, while
some other changes come about as a reaction to
unexpected events. Planned change is a change that is
designed and implemented in an orderly and timely
fashion in anticipation of future events. Reactive
change is a piecemeal response to events as they
occur.

 Technological change:
 High technology is one of the most important cause of
organizational change today. As a result of
technological advances, more than half of the existing
jobs will be changed within the next decade and about
30 per cent of the jobs will be eliminated. In the
manufacturing or production technology field,
revolutionary changes have taken place. Robots and
computer-controlled machines manufacture items
while technicians stand by computer controls,
monitoring activities.

Advantages
 It gives an appropriate focus to business as it revolves
around customer needs.
 BPR helps in building a strategic view of operational
procedures by making radical inquiries about how
processes are improved and how things could be
done.
 It eliminates unnecessary activities and thereby helps
in reducing organizational complexity.
 It coordinates and integrates several functions
immediately.

 Provides improved viability and adequacy to an
organization by eliminating the delay and unessential
phases of operations and management.
 Reduced the number of checks/controls and
reconciliation processes.
 It helps overcome short-sighted approaches that
usually emerge from excessive concentration on
functional boundaries.


Limitations
 It doesn’t suit every business need as it depends on
factors like size and availability of resources. It usually
benefits large organizations.
 In some cases, the efficiency of one department was
improved at the expense of the overall process.
 This BPR approach does not provide an immediate
resolution. It concentrates significantly upon long haul
income collaborations of a business which not only
takes some effort to take shape but are hard to gauge
as well

 It might require a substantial investment in IT along
with proper planning, fantastic teamwork, and
exceptional implementation.
 It can replace humans when it comes to getting the
job done error-free hence posing as a real threat to
jobs.

Improvement Strategies (FOUR R’s of TOTAL
IMPROVEMENT)
 A continuous improvement strategy is any policy or
process within a workplace that helps keep the focus
on improving the way things are done on a regular
basis. This could be through regular incremental
improvements or by focusing on achieving large scale
process improvements.


Quality Improvement
Strategies
 1. Repair Strategy: As its name implies, the repair
strategy aims at fixing things right so that to perform
its designed functions.
 There are two levels of repair:
 In the first level, an individual or team identifies the
problem and eliminates the root cause(s) of the
problem and hence it results in a permanent solution.
 In the second level, if a customer receives a faulty
product, the product is either replaced or repaired,
which is a temporary or short-term measure

2. Refinement Strategy
 Refinement strategy involves activities that continually
improve a process that is not broken.
 In this strategy, improvements to processes, products
and services are accomplished on an incremental basis
(Kaizen concept).
 Since refinement improves efficiency and effectiveness,
it should become an integral part of every employee's
job.
 Organizational programs such as process improvement
teas, suggestion systems and empowerment are
combinations repair and refinement strategies.

3. Renovation Strategy:
 Renovation strategy results in major or breakthrough
improvements.
 Innovation and technological advancements are two
key factors in this strategy.
 Compared to repair and refinement strategies,
renovation is more costly and usually it is undertake by
teams rather than individuals.

4. Reinvention Strategy
 Reinvention or re-engineering strategy involves
developing product, service, process or activity using
teams based on a complete understanding of the
customer’s requirement and expectations.
 Reinvention strategy is the most demanding
improvement strategy to maintain competitive
advantage in the market.

TAGUCHI’S
QUALITY
LOSS
FUNCTION
Genichi Taguchi

INTRODUCTION
 Taguchi Methods is a statistical methods developed largely
by GENICHI TAGUCHI to improve quality of
manufactured goods.
 The philosophy of off-line quality control.
 Innovations in the design of experiments.

Taguchi Loss Function Definition
 Taguchi defines Quality as “the loss imparted by the product
to society from the time the product is shipped.”
 LOSS = Cost to operate, Failure to function, maintenance
and repair cost, customer dissatisfaction, poor design, injury
to health, accidents etc.
 Product to be produced closed to the target rather than
“being within specification”

Taguchi’s Vs Traditional Approach
Taguchi’s Traditional
When a product
moves from its Target
will cause the loss
even if the product
lies or not within
Limits
There is Good or Bad
Products only as per
Limits

Taguchi’s Quadratic Quality Loss Function
 Quality Loss Occurs when a product’s deviates from target or nominal
value.
 Deviation Grows, then Loss increases.
 Taguchi’s U-shaped loss Function Curve.

Taguchi’s U-shaped loss Function Curve.
LTL Nominal
Measured
characteristic
UTL
Taguchi loss Fn
Scrap or Rework Cost.
Loss

Formula to find Taguchi’s Loss Fn
Taguchi uses Quadratic Equation to
determine loss Curve
 L (x) = k (x-N)²
Where L (x) = Loss Function,
k = C/d² = Constant of proportionality, where C – Loss associated with sp
limit
d - Deviation of specification from target value
x = Quality Features of selected product,
N = Nominal Value of the product and
(x-N) = Tolerance

Problem
 A part dimension on a power tool is specified as 32.25±0.25.Company
records show±0.25 exceeded & 75% of the returned fo replacement. Cost of
replacement is Rs.12,500.Determine k & QLF.
Solution : Expected Cost of repair
C = 0.75(12500) = Rs 9,375
k = C/d²= 9375/(.25)² = Rs 1,50,000
QLF =L (x) = 1,50,000(x-N)

 L (x) = 4000(x-N)²
If N = 200 mm, determine the value of loss function for tolerances
of
(a) ± 0.25 mm
(b) ± 0.20 mm
 For a tolerance of ± 0.25 mm. The value of the loss function is
L (x) = 4000(0.25)² =Rs. 250
 For a tolerance of ± 0.20 mm. The value of the loss function is
L (x) = 4000(0.20)² =Rs. 160

 L (x) = 7500(x-N)²
C=Rs. 400
Find the tolerance
 K = C/d²
7500 = 400/d²
d² = 400/7500
= .053
d = √.053 = ± 0.23 mm

Role of IT in TQM.
 In the TQM application with information systems, the
technologies play a vital role. These are classified as
current and emerging technologies.

 The objective of the Total Quality Management (TQM)
in the information system design is to assure the
quality of information. This is done by ensuring,
verifying, and maintaining software integrity through
an appropriate methodology choice amongst the
technology, design and architecture. It institutes
appropriate procedures with checks and control in all
the processes of information systems development. It
ensures that the scope and the objective of the system,
choice of the design architecture and development
methodology and further quality ensuring the
processes and planned implementation
methodologies are correctly chosen.

 The quality of the information and the systems which
generate that information will be rated high provided
it assures:

 A precise and an accurate information
 A high level response in an interactive processing
 User friendly operations
 Reliability of information
 An ease of maintenance

James W Cortada measures the
quality of information by seven
parameters.
 They are
 Flexibility,
 Maintainability,
 Reusability,
 Integration,
 Consistency,
 Usability And
 Reliability.

TQM unit 3 TQM TOOLS

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