Shai's Quality Management 3

Kaizen
It is the process of continuous improvement in small increments that make the process more efficient, effective, under control and adaptable.
Improvements are usually accomplished at little or no expense without sophisticated techniques or expensive equipment

Kaizen

KAIZEN Focuses on… • ‘MUDA’ the seven classes of waste Over production Delay Processing Inventory Defective parts.

Transportation Wasted motion

• The ‘ 5 S ’ for workplace of organization proper arrangement Seiko orderliness Seiton personal cleanliness Seiketso cleanup Siso discipline Shitsuke • ‘POKA YOKE’ for detecting errors and mistake proofing.

Japanese Perception of Job KAIZEN

TM INNOVATION MM KAIZEN LM W

MAINTENANCE

Kaizen • • • • • • • • • •

Value added and non value added activities Muda – 7 classes of waste Principles of motion study Principles of material handling Documentation of standard operating procedures 5S – Seiko, Seiton, Seikitso, Seiso, Shitsuke Just in Time Visual displays Poka Yoke Team Dynamics

Kaizen • Continuous improvement • Process driven and not results driven, get process under control • Standardization • Getting things right first time • Jidhoka – Automatic stopping of machines on problem identification

Advantages of Kaizen • • • • • • • • •

Puts people first Attention on process Rewards achievement Method of active problem solving Delegates responsibility Builds quality into the product Zero defects Group activity Aims to reduce waste

Poka Yoke • Poka-yoke means "fail-safing" or "mistakeproofing" — avoiding (yokeru) inadvertent errors (poka)) is a behavior-shaping constraint. • It is a method of preventing errors by putting limits on how an operation can be performed in order to force the correct completion of the operation. • The concept was originated by Shigeo Shingo as part of the Toyota Production System. • Originally described as Baka-yoke, but as this means "fool-proofing" (or "idiot proofing") the name was changed to the milder Poka-yoke.

Example of Poka Yoke

Poka Yoke additional Examples • An example of this in general experience is the inability to remove a car key from the ignition switch of an automobile if the automatic transmission is not first put in the "Park" position, so that the driver cannot leave the car in an unsafe parking condition where the wheels are not locked against movement. • In the IT world another example can be found in a normal 3.5" floppy disk: the top-right corner is shaped in a certain way so that the disk cannot be inserted upsidedown.

Poka Yoke additional Examples • In the manufacturing world an example might be that the jig for holding pieces for processing only allows pieces to be held in one orientation, or has switches on the jig to detect whether a hole has been previously cut or not, or it might count the number of spot welds created to ensure that, say, four have been executed by the operator

Benchmarking
Benchmarking is the systematic search for best practices, innovative ideas, and highly effective operating procedures.
Benchmarking considers the experience of others and uses it

Benchmarking

Benchmarking Process • Decide what to benchmark – Processes causing trouble, processes contributing to customer satisfaction, processes differentiating from competitors • Understand current performance – Quantify and document current performance • Plan – type of benchmarking, type of data collection, method of collection

Benchmarking Process • Study Others – how best in class processes are practiced and measurable results of these practices • Learn from Data – gaps in performance, what gap and how much, why gaps, resulting improvement on closing the gap • Use the findings – specify tasks, sequence tasks, determine resource needs, establish task schedule, assign responsibility for each task, describe expected results, specify methods for monitoring results

Strategic and Operational Dimensions of Excellence

Bench marking • Consist of • Analysis Breaking down an issue into components • Comparison Component by component to find difference • Synthesis Recombination of components with ideas simulated from differences.

Benchmarking Types Based on objects to be benchmarked • Product Benchmarking Comparison of products and services • Performance Benchmarking Comparison of performance indicators • Process Benchmarking Comparison of processes • Strategic Benchmarking Study of corporate level business strategies

Benchmarking Types Based on organizations against whom is benchmarked • Internal Benchmarking – comparison between departments, plants, subsidiaries within country • Industry Benchmarking – comparison of organizations producing same class of products and services – comparison of • Competitive benchmarking performance against direct competitors • Best in class benchmarking – Comparison of best practices irrespective of products or services • Relationship Benchmarking – comparison with company’s already having a relationship.

Six Sigma • Six Sigma is a Total Quality Management process that uses process capability analysis as a way of measuring progress.

Variations • In any process NO two objects are ever made exactly alike or no two customers are getting exactly the same type of service. • Variations are inherent in any process • Magnitude of variations can be large or small • Variations in nature and industry follows the NORMAL FREQUENCY DISTRIBUTION

Sources of variation

Material •Assemblies •Components •Suppliers •Consumables

Methods •Procedures •Policies •Accounting

Environment •Noise level •Humidity •Temperature •Lighting

Variation

People •Training •Experience •Skill •Attitude

Machine •Technology •Variability •Tooling •Fixtures

Measurement •Counting •Instruments •Gauging •Tests

PROCESS CAPABILITY AND SPECIFICATIONS • Process capability measures are indicative of the limits of the natural variations which can occur in a process • Specifications, on the other hand, are the permissible variation in the individual values as decided by design engineers or customers

Relationship Of Limits, Specifications And Distributions in a Normally distributed Process

Process Capability and Variations • Premise of Sources of variation can be: – Identified – Quantified – Eliminated or Controlled Inadequate Process Capability

Unstable Parts & Materials

LSL

Defects

Inadequate Design Margin

USL

Acceptable

Process Capability

Defects

3 SIGMA THINKING

3σ

• Natural processes are truncated at 3 sigma points . • The tails beyond 3 sigma are considered outliers. • Control limits are used to identify process outliers.

UCL = µ + 3 σ LCL = µ - 3 σ

3σ QUALITY MEANS !!!! • 20000 wrong drug prescriptions every year • 15000 babies accidentally dropped by nurses and Doctors each year • 500 incorrect surgical operations each week • 20000 lost pieces of mail each year • 27 parts in an assembled aircraft consisting of 10000 parts will be defective. • No Electricity or Water for one full day in New Delhi each year

6 SIGMA THINKING Process window is not approximated to 3 sigma . The Gaussian curve stretches to infinity. Accordingly the process variation can be perceived upto 6 sigma, 9 sigma, 12 sigma, 18 sigma or upto any point on the curve.

0.45 0.4 0.35 0.3 0.25

1σ

0.2 0.15 0.1 2σ

0.05

3σ

4σ

5σ

6σ

7σ

8σ

9σ

10σ

11σ

12σ

13σ

14σ

15σ

14

15

0 0

1

2

3

4

5

6

7

8

9

10

11

12

13

3 SIGMA PROCESS 0.14 0.12

Key Mean = 0

0.1

Std. Dev = 10/3 = 3.33

0.08

USL = 10 % 0.06

LSL = 10 %

0.04 0.02

-25.00

-20.00 -15.00

-10.00

-5.00

0 0.00

5.00

10.00

15.00

20.00

25.00

Process Risk Calculation Left Tail

=

0.001349967

Right Tail

=

0.001349967

Process Risk in Fraction

= =

Left Tail Area +Right Tail Area 0.002699934

in Percentage =

0.269993445

in PPM

2699.934446

=

6 SIGMA PROCESS 0.3

Key

0.25

Mean = 0

0.2

Std. Dev = 10/6 =1.67 0.15

USL = 10 % LSL = 10 %

0.1

0.05

-25.00

-20.00 -15.00

-10.00

-5.00

0 0.00

5.00

10.00

15.00

20.00

25.00

-0.05

Process Risk Calculation Left Tail

=

0.000000001

Right Tail

=

0.000000001

Process Risk in Fraction

= =

Left Tail Area +Right Tail Area 0.000000002

in Percentage =

1.98024E-07

in PPM

0.001980244

=

Process Capability Nominal value

Six sigma Four sigma Two sigma Lower specification

Upper specification

Mean

Figure 5.13

Non conformance rate and process capability when the process is centered ----------------------------------------------------------------------------------------------Specification Percent Nonconformance Process Limit Conformance Rate (ppm) Capability(Cp) ----------------------------------------------------------------------------------------------±1σ 68.7 317300 0.33 ±2σ 95.45 45500 0.67 ±3σ 99.73 2700 1.00 ±4σ 99.9937 63 1.33 ±5σ 99.999943 0.57 1.67 ±6σ 99.9999998 0.002 2.00 -----------------------------------------------------------------------------------------------

Drift in Process • According to the six-sigma philosophy, processes rarely stay centered • The center tends to “shift” above and below the target, µ

Non conformance rate and process capability - process is off centre +1.5σ ----------------------------------------------------------------------------------------------Specification Percent Nonconformance Process Limit Conformance Rate (ppm) Capability(Cpk) ----------------------------------------------------------------------------------------------±1σ 30.23 697700 -0.167 ±2σ 69.13 308700 0.167 ±3σ 93.32 66810 0.500 ±4σ 99.3790 6210 0.834 ±5σ 99.97670 233 1.167 ±6σ 99.9996600 3.4 1.500 -----------------------------------------------------------------------------------------------

NORMALLY DISTRIBUTED CENTERED PROCESS WITH USL = +6σ & LSL= -6σ

A process which is off centre + 1.5 σ USL=Mean + 6 σ, LSL = Mean – 6σ

3 Sigma Vs 6 Sigma 6 Sigma curve

LSL

USL 3 Sigma curve

1

2

3

4

5

6

7

8

9

10

11 12 13

14

15

In a 3 sigma process the values are widely spread along the center line, showing the higher variation of the process. Whereas in a 6 Sigma process, the values are closer to the center line showing less variation in the process.

16

Amount of process shift allowed 1.5 SD

1.5 SD LSL

USL SD = 1

1

2

3

4

5

6

7

8

9

10

11 12 13

14

15

16

Six Sigma -- Practical Meaning 93.32% Good (3 Sigma)

99.99966% Good (6 Sigma)

• 20,000 lost articles of mail per hour

• Seven articles lost per hour

• Unsafe drinking water for almost 15 minutes each day

• One unsafe minute every seven months

• 5,000 incorrect surgical operations per week

• 1.7 incorrect operations per week

• Two short or long landings at most major airports each day

• One short or long landing every five years

• 200,000 wrong drug prescriptions each year

• 68 wrong prescriptions per year

• No electricity for almost seven hours each month

• One hour without electricity every 34 years

Six Sigma Quality • In this era of liberalization and globalization one or two sigma performance is down right non competitive. • Zero defects are philosophical benchmark or standards of excellence in quality proposed by Philip Crosby. • In 1987 Motorola adopted and pioneered the six sigma concept as a modification to the zero defects programme.

6σ QUALITY AND COST • Six Sigma focuses on improving quality (i.e., reduce waste) by helping organizations produce products and services better, faster and cheaper. • Six Sigma identifies and eliminates costs which provide no value to customers, waste costs

Cost of quality at various levels of Sigma Sigma 6

Defect rate(PPM) 3.4

Cost of quality <10%

5

233

10-15%

4

6210

15-20%

3

66811

20-30%

2

308770

30-40%

1

697672

Competitive level

>40%

World Class

Industry Average

Non Competitive

Visible and Hidden Costs of Quality Visible costs

•Scrap •Rework •Warranty

Hidden Costs • Conversion efficiency of materials • Inadequate resource utilization • Excessive use of material • Cost of redesign and re-inspection • Cost of resolving customer problems • Lost customers / Goodwill • High inventory

Costs

Cost of Quality and Six Sigma Internal & External Failure Costs

σ is a measure of how much variation exists in a process

Prevention & Appraisal Costs

Old Belief

Old Belief 4σ

High Quality = High Cost

Quality

New Belief High Quality = Low Cost

Costs

Internal & External Failure Costs

Prevention & Appraisal Costs

4σ New Belief

5σ 6σ

Quality

What is Six Sigma Philosophy?  Know

What’s Important to the Customer (CTQ)

 Reduce  Center

Defects (DPMO)

Around Target

(Mean)  Reduce

Variation (Standard Deviation)

?

Applicability to Business Functions SERVICE

ADMIN.

DESIGN

PURCH. 6 Sigma Methods

QA

Marketing

MFG.

MAINT.

As long as there is a process that produces an output, whether it is a manufacturing or service…, the Six Sigma Breakthrough Strategy could be applied. For these processes to perform to a customer standard they require correct inputs!!!

The Strategy USL

LSL

•

Characterize

•

Optimize

•

Breakthrough

T

USL

LSL

T

USL

LSL

T LSL’

USL’

Customer Focused - Both Internally & Externally

BREAKTHROUGH STRATEGY

The Six Sigma roadmap- Breakthrough strategy Stage

Phase

Identification

Define

Identify key business issues

Characterization

Measure Analyze

Understand current performance levels

Optimization

Improve Control

Achieve breakthrough improvement

Institutionalization

Standardize

Objective

Integrate Six Sigma in day to day functioning.

6σ σ DMAIC Process Institutionalize Improvement Control Deployment

Develop Charter and Business Case

Quantify Financial Results

Map Existing Process

Present Final Project Results and Lessons Learned

Collect Voice of the Customer Specify CTQs / Requirements

Close Project

Control

Select Solution (Including Trade Studies, Cost/Benefit Analysis)

Define

Improve

Measure Analyze

Measure CTQs / Requirements Determine Process Stability Determine Process Capability

Design Solution

Calculate Baseline Sigma

Pilot Solution

Refine Problem Statement

Implement Solution Identify Root Causes Quantify Root Causes Verify Root Causes

DMAIC = Define, Measure, Analyze, Improve and Control

DMAIC – Methods and Tools DEFINE

Problem statement, SIPOC Map, Product chart, Flow Chart, VoC, Gemba, QFD

MEASURE Sampling, Check sheet, Control charts, Histogram, Distributions

ANALYSE Stratification, Pareto, Process Capability, Cause and effect analysis, Hypothesis testing

IMPROVE Brain storming, Value engineering, JIT Methods, DoE, SMED, 5S, Poka – yoke, FMEA

CONTROL Process Quality information systems, PDCA Cycle, Process capability, Control charts

The Six Sigma Process - DMAIC DEFINE Out of tolerance range

-----

Determine Benchmarks, Set baseline, determine customer requirements, get customer commitment

↓ MEASURE Key internal processes critical to quality.

-----

Develop defect measurement, Develop data collection process, collect data, create forms, compile display data

-----

Verify data, Draw conclusions from data, Test conclusions, Determine improvement opportunities, Determine root causes

-----

Create improvement ideas, create models, Experiment, set goals, create problem statement, create solution statement, Implement improvement methods

-----

Monitor improvement programmes, Measure improvement statistical assess effectiveness, Make needed adjustments

↓ ANALYSE Why defects occur ↓ IMPROVE The process to stay within tolerance. ↓ CONTROL The process to stay within goals

People Power and Training • From the CEO to the shop-floor worker, everybody should be involved in the Six Sigma training process. • The deployment involves training team members to become champions, black belts and green belts.

People Power for Six Sigma

Champions

Master Black Belt

Black Belts

Mentor, trainer, and coach of Black Belts and others in the organization.

Leader of teams implementing the six sigma methodology on projects.

Green Belts

Team Members Quality Fundamentals/ Kaizen Now

Deployment Champions

Delivers successful focused projects using the six sigma methodology and tools.

Participates on and supports the project teams, typically in the context of his or her existing responsibilities.

Responsible for supporting the Deployment Strategy within Line of Business/Customer Segment or Golden Thread

Six Sigma Improvement Model • Define the current process using characteristics critical to customer satisfaction and determine gaps • Measure the work processes that affect the gap • Analyze the data focusing on process analysis • Improve the process • Control the revised process to maintain new performance levels

Six Sigma Implementation

ASQ 6 Sigma Forum

• Top Down Commitment • Measurement Systems to Track Progress • Tough Goal Setting • Education • Communication • Customer Priorities

Six Sigma at Motorola

BENEFITS OF SIX SIGMA • • • • • • •

Fewer defects High customer focus – Voice of customer(VOC) Lower costs High Employee focus Data driven better decision making Effective management vision Multiply benefits by integration with ERP etc

Organizations who adopted Six Sigma

Motorola - the pioneers General electric Ford Motor Company Johnson Controls Xerox Honeywell Bank of America IBM Kodak and Many More….

Indian Organizations TVS Motors Wipro Technologies Bharti Broadband Tata Consultancy Services ITC And many more…….