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This is an overview of the basic concepts to quality management and process
improvement – knowing them will allow you to achieve the ability…
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To be conversant
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To understand the tools and how to apply them
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To understand the fundamental concepts, enablers and issues
AND to support the Basic Concepts Exam which occurs on
Week 4.
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Walter A. Shewhart
W. Edwards Deming
Joseph M. Juran
Armand V. Feigenbaum
Philip B. Crosby
 Quality in Japan/Their Contribution
 Kaoru Ishikawa
 Japan's Contributions
 Definition of TQ or TQM,
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Employee Empowerment
Teams
Data Measurement, Evaluation & Communication
Process, Process Improvement
Process Mapping and Process Capability
Quality Focus
 A Kaizen Event consists of a team of those most impacted by a
process that they want to improve. The team starts by
mapping the process and then with analysis and
brainstorming to develop the improvements. Kaizen events are
organized regularly to keep the focus on continuous
improvement.
 Effects of Poor Quality
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Financial Issues: It costs money!
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Employee Issues
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Lost customers
Wasted effort and wasted materials…
It wastes effort
It lowers morale
It lowers productivity
Customer Issues
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Loses them
Costs them money
Loses referrals they may provide
Causes them to produce negative third party feedback…
 Cost of Prevention
 Cost of Appraising/Checking for
quality
 Cost of failures/errors…
Selling top management
• Plans for quality improvement
• Installation of standards, methods, and procedures
• Installation of tools
• Quality training and education
• Quality awareness and motivation
• Preventive maintenance
• Other quality improvement projects
• Report of quality status
• Quality assurance consultation
• Quality assessments
• Evaluation of vendors and subcontractors
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• Walkthroughs and inspections
• Preparation for reviews
• Quality reviews
• Preparation for product testing
• Product testing
• Quality audits
• Cost of recalling faulty products
• Repair and rework
• Staff turnover caused by quality problems
• Lost production due to quality problems
• Cost of projects canceled because of quality
problems
• Assets lost because of quality problems
• Benefits lost because of quality problems
• Legal liability from poor quality
 Conformance to Specifications or
Requirements - Quality means “meets
requirements.” or meets specifications
 ISO International Standard 8402: Quality
is the
totality of features and characteristics of a
product or service that bear on its ability to
satisfy stated or implied needs.
 (ISO 9000): A set of Audited Quality Standards
 The consumer is the most important part of the production line so….
 Quality applies to all physical products, all information products, and all service
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and products. Because it applies to all products, effective quality improvement
must be organization-wide.
Quality is an investment, a profitable investment—you invest today and reap the
benefits in the future.
Quality must be part of the organization's basic belief system. This means
changing the culture to make quality a principle in all operations.
Each individual is responsible for the quality of his or her work products.
To achieve quality, an organization must convince its people to make a
commitment to quality. Doing things right is a matter of having proper systems,
procedures, instructions, raw materials, equipment, and training. But it is also a
matter of attitude.
Work in an organization is accomplished through processes. Therefore, the way to
improve quality is to improve all of the organization's processes - They should be
documented to stabilize them, measured to learn their behavior, and improved to
make them more effective. To accomplish these ends, a structure for managing
change must be in place.
Know
This
1. Identify what you think the problem is
Define
Do
Plan
2. Analysis
3. Problem Description/Definition
Deming
Cycle Check
Act
ID Root
Cause/
Plan
4. Identify Potential Root Causes of Problems
5. Development of alternative Solutions/Actions
ACT
6. Decision and Implementation Plan
7. Measurement and Follow up plan
Verify
 a logically related collection of actions or operations that work together to
produce a specific result
 They transform inputs into outputs, or products. The actions or operations
might be performed by people, by machines/computers, or both
 A process requires certain inputs, which are then transformed by the process
into outputs.
 • Every process must be constructed; the task of constructing a process is an
example of a project..
 A system facilitates a process.
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an accounting system helps facilitate the Accounts Receivable process.
 KEY ISSUE:
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A process has to do with what is accomplished
A system with how it is accomplished.
 Improvement / Continuous Improvement
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Project-by-project improvement is a basic strategy for improving quality.
Innovate
 Re-engineer
Delay or
Wait
Process Step
Direction of Flow…
Predefined Process
Black box,
several steps in one
Remove hamburger from freezer, unwrap, thaw,
form into patties… becomes: Prepare Beef for grill
Start(name of process)
End, Continuation…
Measurement
Point
Consider the major factors that are responsible for potentially
causing the problem or which may be responsible for meeting
the goal… Generally, this means selecting several of the
following:
 People
 Machines
 Methods/Processes
 Materials
Environment
 Information
Label your selection as primary ‘limbs’ along the main arrow with the most important
toward the right or front.
Product Lead
Times are 2
weeks too long
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Ideal group size: 4 to 7 people
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At least 10 minutes (but typically not longer than 25 minutes)
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Quantity focus, get as many ideas down
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Start off problem statement with clear visibility with
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In what ways can we…
Used for coming up with creative and possible breakthrough
ideas and to get all involved.
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No rationalizing, defending, criticizing- just ideas.
Quality cannot be assessed, and quality cannot be improved
without measurements. You need the relevant data.
YOU need to properly collect it, classify it, analyze it and use &
present it.
Key ISSUES:
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Whatever is important is measured, but it is also true that whatever is
measured becomes important.
A product or service is produced by a process, and the most effective way
to achieve a quality result is to improve the process.
A requirement for a product or service have a specification that not only
describes the attribute or function, but this requirement, to be effective
must also state the standard against which the it will be judged and the
process to measure it.
Data can be quantitative (expressed in numbers) or qualitative (verbal, or
nonnumeric).
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Why collect data?
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Manage a Process
Understanding a process: (errors, times, process map,
key is data…)
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Controlling a process: Feedback data to adjust an input,
feedback data from quality control activities…
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Improving a process: to improve productivity,
profitability, quality, data is key
 Special (Assignable) vs. Common (Random)
Causes
 Deming’s 2 “famous” experiments/demos
50 Marbles
 Funnel
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 Every process (everything actually) exhibits
variability, which may be due to either SPECIAL
causes or COMMON (random) causes.
 Tampering with a stable (special causes
eliminated and controlled) system will increase
process variation.
 Tampering with a single result or a snapshot of a
process where you don’t know it’s capability or if
under control usually makes things worse.
What do we mean when we say
that we have to control our
processes and how might we go
about it?
Map & Line up
the Value Stream
of Activities
Flow
Pull
Define the
Value Added
Perfection
START
 Six Sigma companies focus on total customer satisfaction
and to do this view failure rates in terms of Defects Per
Million Opportunities. Their Six-Sigma goal is a 3.4 DPMO
level!
 But Six Sigma, besides it statistical meaning, is a
comprehensive mindset and set of problem-solving
guidelines designed to get entire organizations focused on
and dedicated to producing nearly perfect products and
services to achieve super high customer satisfaction and
profit levels.
 It focuses on understanding processes and on reducing
variation!
 It is being used by thousands of organizations and has
resulted in payoff in the billions of $$.
 Focus on customer satisfaction by reducing variation
 Improve performance project by project permanently always
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focusing on the next best way to improve.
Prioritize based on impact to the business
Projects focused on defects or errors based on hat matters
most to the customer
Manage an organization as a system of connected processes
Use the Scientific Approach (Deming Cycle): PDCA/CAPDo
and the DMAIC process improvement steps.
Make decisions and problem-solve based on fact- on data
using the full range of statistical tools
Build upon knowledge, experience and dedication of people
throughout the organization.
 Master Black, Black and Green belts: Different levels of
experience, knowledge and certified execution experience
with Six Sigma principles.
 DMAIIC: The standard steps for improving an existing
process:
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Define it (Map it)
Measure performance and outcomes
Analyze
Improve
Implement
Control
 DPMO: Defects Per Million Opportunities
 DMAIIC
Define: Check to find a process in need of an improvement so you qualify
project, determine approach, define outcomes, select team and launch.
 Measure: Check current performance by defining the current process,
addressing low hanging fruit, confirming current customer requirements,
gathering initial data, establish cost/benefit and developing project charter
 Analyze: Act to analyze gaps by developing cause and effect model,
gathering causal data and determining and validating root causes
 Improve: Act to develop changes to the plan by identifying breakthrough
opportunities, selecting practical approaches, designing future states,
establishing performance targets…
 Implement: Do the changes and check the results by gaining approval and
buy-in to implement, training, executing, measure results, develop control
methods and managing change.
 Control: Act to incorporate successful changes to the plan by reporting on
results, applying PDCA, identifying replication opportunities and moving
forward…
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…Then start all over again with the next opportunity.
 Yield: Basic measurement of process quality
that measures proportion of first quality
product or service produced
Measures of central tendency attempt to describe the central point about
which the data is arranged. This is called the MEAN or AVERAGE.
The second class of descriptive statistics consists of measures of variability or
spread. These measures describe the extent to which the data is concentrated
about its central point. The larger the value of such a measure, the more spread
or variability in the data. Two common measures of variability are:
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The variance, which is based on the squared difference between the data elements
and the average.
The standard deviation, which is the square root of the variance.
Mathematically, the variance is the sum of the square of the differences
between each observation and the Mean. The standard deviation is the Square
Root of the Variation and is in the same units as the mean (and so more
practically used)., It turns out that for NORMAL distributions, roughly twothirds of the observations will lie within one standard deviation from the
average. Roughly 95 percent of the observations will lie within two standard
deviations from the average, and almost all observations will lie within three
standard deviations from the average.
 A normal random variable is one whose values are distributed according to a
bell-shaped curve, the “normal” distribution (most common and assumed in
Six Sigma)
 The normal distribution depends on only two parameters, the mean and the
standard deviation of the distribution. The maximum height of the curve is
attained at the point that is the mean of the distribution, and the curve is
symmetric about this point
 Because of the close relationship between the spread of the curve and its
standard deviation, it is possible to make the following statements:
68 percent of the population lies within one standard deviation of the mean.
95 percent of the population lies within two
standard deviations of the mean.
 99.7 percent of the population lies within
three standard deviations of the mean.
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 Random Sampling (The process of selecting
members from the population). ISSUES:
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Sample size,
The sample average is used as an estimate of the
population mean and…
The sample standard deviation is used as an estimate
of the population standard deviation,
Issue is to be able to distinguish between
special/assignable causes and random or common
causes of VARIATION
Statistical Quality Control- branch of applied statistics with tools to help control
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quality of products and improve processes for producing products and service
Control charts:
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Graphical tool that is visual and easy to understand, explain…
Provides an easy to follow process/discipline to help achieve quality
Provides evidence on which action can be taken
To apply, you need to know what is being controlled, standards to be used,
measurements to be taken, how to take them and what will be done with them.
Several types but most common is the x-bar chart or mean chart where each sample
of 4 or 5 is charted at regular intervals.
Using statistical guidelines, one draws an upper control limit and a lower control
limit on the chart. For a process under control, almost all observed averages fall
between the lower and upper control limits. This is a stable process- no assignable
causes…
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If an average falls outside the limits of “normal”
variability, this typically means that there was a change
in the process and that a special cause is
responsible ….
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 Other Control Charts
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The p-chart is a time-sequence plot of consecutive proportions of defectives.
Typically, a product must meet certain specifications that are established by
the customer. Product specifications usually are given in terms of a target
value ( Tg ), a lower specification limit ( LSL ), and an upper specification limit (
USL ). They are called the “specs” or the “tolerances” of the product. If the
products meet the specifications, then we say that we are dealing with a
process that is capable of producing according to the given specifications.
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A simple way to check process capability is to construct a dot diagram of the
measurements. The target value and the lower and upper specification limits
can be added to this graph, and the proportion of values that are outside these
limits can be calculated. Of course, no (or very few) values should be outside
these limits.
 When someone experiences a bad customer
service “event”, how many people do they tell on
average? ____
 In turn, how many people do these people tell?
_________
 What percent of people, when they are
dissatisfied with a service or product, complain
to the organization? ______
 What’s the concept of a “coffee stain” in quality?