-​ Build quality into the process from

MODULE 1
start to finish.
-​ Don't just find what you did wrong –
eliminate the "wrongs" altogether.
-​ Use statistical control methods – not
physical inspections alone – to prove
that the process is working.

Point 4: Stop Making Decisions Purely on

Point 1: Create a Vision and Demonstrate
the Basis of Cost
Commitment
-​ The supplier and manufacturer must
-​ An organization must define its
be considered as a macro
values, mission, and vision of the
organization.
future to provide long-term direction
-​ Deming urged businesses to
for its management and employees.
establish long-term relationships
-​ Businesses should not exist simply
with fewer suppliers, leading to
for profit; they are social entities
loyalty and opportunities for mutual
whose basic purpose is to serve their
improvement.
customers and employees.

Point 5: Improve Constantly and Forever

Point 2: Learn the New Philosophy
-​ Improved design of goods and
-​ Companies must take a services comes from understanding
customer-driven approach based on customer needs and continual
mutual cooperation between labor market surveys and other sources of
and management and a never-ending feedback, and from understanding
cycle of improvement. the manufacturing and service
delivery process.
-​ Improvements in operations are
Point 3: Stop depending on inspections
achieved by reducing the causes and
-​ Inspections are costly and unreliable impacts of variation, and engaging
– and they don't improve quality, all employees to innovate and seek
they merely find a lack of quality.
 ways of doing their jobs more fear of relinquishing control, and
efficiently and effectively. fear of change.
-​ Deming chain reaction: When -​ Fear encourages short-term thinking
quality improves, productivity -​ Fear is a cultural issue for all
improves and costs decrease. organizations
-​ Continuous improvement

Point 9: Break down barriers between

Point 6: Institute Training departments.

-​ Training -​ Build the "internal customer"

-​ results in improvements in quality concept – recognize that each
and productivity department or function serves other
-​ adds to worker morale departments that use their output.
-​ demonstrates to workers that the -​ Build a shared vision.
company is dedicated to helping -​ Use cross-functional teamwork to
them and investing in the future build understanding and reduce
adversarial relationships.

Point 7: Institute Leadership -​ Focus on collaboration and

consensus instead of compromise
-​ The job of management is
leadership, not supervision.
Point 10: Get rid of unclear slogans.
Supervision
-​ Let people know exactly what you
-​ simply overseeing and directing
want – don't make them guess.
work
"Excellence in service" is short and
Leadership memorable, but what does it mean?
-​ providing guidance to help How is it achieved? The message is
employees do their hobs with less clearer in a slogan like "You can do
effort. better if you try."
-​ Don't let words and nice-sounding
phrases replace effective leadership.
Point 8: Drive Out Fear
Outline your expectations, and then
-​ Fear is manifasted in many ways: praise people face-to-face for doing
fear of failure, fear of the unknown, good work.
 -​ Organizations must invest in their
Point 11: Enumerate Numerical Quotas and people at all levels to ensure success
Management by Objective (MBO) in the long term

-​ Many organizations manage by the -​ Developing the worth of the

numbers. individual is a powerful motivation

-​ Goals are useful, but numerical method

goals set for others without

incorporating a method to reach the Point 14: Take Action
goal generate frustration and
-​ Any culture change begins with top
resentment. management and includes everyone
-​ Management must understand the -​ Team-based approach
system and continually try to
improve it, rather than focus on
short-term goals.

MODULE 2
Point 12: Remove Barriers to Pride in
Workmanship

-​ Allow everyone to take pride in their QUALITY MANAGEMENT

work without being rated or -​ In today’s business environment,
quality can be broadly defined as
compared.
the extent to which a product or
-​ Treat workers the same, and don't service meets or exceeds a
make them compete with other customer’s expectations.
-​ For any product, the quality of
workers for monetary or other
that product is determined by
rewards. Over time, the quality two primary factors.
system will naturally raise the level -​ These are DESIGN quality and
PROCESS quality.
of everyone's work to an equally
high level. TWO PRIMARY FACTORS
1.​ Design Quality
2.​ Process Quality
Point 13: Encourage Education and
Design quality
Self-Improvement
-​ can be described as the quality
-​ Continuing, broad education for that a product has in terms of the
self-improvement
 actual characteristics of the -​ He was an American engineer,
product. statistician, professor and author.
-​ Dr. Deming has an extensive list
of published works
-​ most well known for Deming’s
14 points and the Deming Cycle.

DEMING CYCLE
-​ -​ The Deming Cycle or Deming
Wheel is also known as PDCA,
Process quality or “Plan, Do, Check, Act.”
-​ refers to the ability of the -​ It is a version of continuous
organization to produce the good improvement that emphasizes the
or service having perfect quality continuous nature of process
at each stage of the process, or in improvement.
other words, manufacturing
defect- free products.

QUALITY GURUS

1.​ WALTER SHEWMART

(1891-1967)
-​ Dr. Shewhart was an American
physicist, engineer and
statistician. 3.​ JOSEPH JURAN (1904-2008)
-​ He is known as the father of -​ Joseph Juran also came upon the
statistical quality control and work of Vilfredo Pareto (1848-
spent much of his career 1923) and made the Pareto
researching variation and is Principle, also known as the
credited with the creation of the 80/20 rule, well known today as
first control chart. a tool for problem solving and
-​ His work focused around the continuous improvement.
need to reduce variation in order -​ Other examples of the 80/20 rule
to improve quality.
• 80% of a company’s profits are
2.​ EDWARD DEMING generated by 20% of the products or
(1900-1993) services sold.
-​ Dr. Deming is likely the most • 80% of the continuous improvement
well known of the Quality Gurus. ideas are generated by 20% of the
employees
 -​ Examples include quality
improvement initiatives,
4.​ PHILIP CROSBY (1926-2001) employee training, upgrading of
-​ Crosby was an American equipment, implementing quality
businessman and author. procedures and making proactive
-​ He published Quality is Free in design changes.
1979. He believed that the costs
of quality are often understated. 2.​ Appraisal Cost
-​ He coined the phrase zero defects -​ All money spent in checking and
and felt that there was no reason testing of product during the
for any errors. production process would be
-​ He taught that it is less considered Appraisal costs.
expensive to do it right the first -​ Wages of inspectors when
time rather than to pay for extra defined as part of the process,
inspection, scrap, rework and testing labs and equipment,
repairs. gauging, and process control,
would be included in this
5.​ ARMAND FIEGENBAUM category.
(1920-2014)
-​ Dr. Feigenbaum was an 3.​ Internal Failure Cost
American quality engineer and -​ Once a defect has been produced,
businessman. with any luck the organization
-​ He was the Director of will detect the error before it
Manufacturing Operations at leaves the building and is sent to
General Electric from the customer.
1958-1968. -​ Often, defective products can be
-​ He devised the concept of total repaired, but all of the extra time
quality control, which later spent on the rework is considered
became total quality management internal failure costs.
(TQM).
4.​ External Failure
COST OF QUALITY -​ Once a defective product has
The various costs of quality can be been shipped to the customer,
broken down into the following four the costs then become external
categories: prevention costs, appraisal failure costs.
costs, and failure costs, which are further -​ Replacement product, expedited
classified as internal failure costs and shipping, potential law suits,
external failure costs. product recalls, and of course
loss of future business are all
1.​ Prevention Cost external failure costs.
-​ Prevention costs include all the
funds spent to prevent the QUALITY SYSTEMS
occurrence of defects.
Three common quality systems that identify quality, efficiency, and other
many organizations use in work-related problems, to propose
order to manage their quality are: solutions, and to work with management
• Total Quality Management (TQM) in implementing their recommendations.
• International Organization for
Standardization (ISO) 3. Continuous Improvement
• Six Sigma An integral part of TQM is continuous
improvement: the commitment to
1.​ TOTAL QUALITY making constant improvements in the
MANAGEMENT design, production, and delivery of
-​ To compete today, companies goods and services. Improvements can
must deliver quality goods and almost always be made to increase
services that satisfy customers’ efficiency, reduce costs, and improve
needs. customer service and satisfaction.
-​ This is the objective of quality Everyone in the organization is
management. constantly on the lookout for ways to do
-​ Total quality management things better
(TQM), or quality assurance,
includes all the steps that a 2.​ ISO / The International
company takes to ensure that its Organization for
goods or services meet or Standardization (ISO)
exceed the customers defined -​ The International Organization
specifications and are of for Standardization (ISO) is an
sufficiently high quality to meet international standard- setting
customers’ needs. body composed of
representatives from various
Generally speaking, a company standards organizations.
adheres to TQM principles by -​ Founded on 23 February 1947,
focusing on three tasks: the organization promotes
worldwide proprietary, industrial
1. Costumer Satisfaction and commercial standards.
Companies that are committed to TQM -​ It is headquartered in Geneva,
understand that the purpose of a business Switzerland, and works in 164
is to generate a profit by satisfying countries.
customer needs. They encourage
customers to tell them how to make the -​ ISO is an independent, non-
right products, both goods and services, governmental organization and is
that work the right way. the largest developer of voluntary
international standards. Use of
2. Employee Involvement these standards assists
In many companies, employees who organization to create products
perform similar jobs work as teams, and services that are safe, reliable
sometimes called quality circles, to and of good quality.
 -​ The standards help businesses 5.​ Control the improved process
increase productivity while and future process performance.
minimizing errors and waste.

3.​ Six Sigma

-​ is a set of techniques and tools TOOLS FOR QUALITY
for process improvement. IMPROVEMENT
-​ It was introduced by engineer
Check sheets Control Charts ​
Bill Smith while working at
Motorola in 1980. Histograms ​ Scatter Diagrams
-​ It is a comprehensive quality Pareto Charts​ Cause and
system for achieving business Effect Diagrams
success by minimizing variation
in business processes. 1.​ CHECK SHEETS
-​ Unique to Six Sigma is the -​ This is a custom designed form
DMAIC Improvement Model. used to record the number of
-​ In Six Sigma, improvements are occurrences of a particular
made by the use of project teams. outcome of interest.
A team may be assembled in -​ It may collect basic information
order to fix a quality issue, to such as how many incidents
streamline an old process or to occurred, the timing, or the
develop a new process. measurement that was
non-conforming.
The team will use the DMAIC model,
which is an acronym that stands for 2.​ HISTOGRAMS
Define, Measure, Analyze Improve and -​ Raw data from a check sheet may
Control. be put into a histogram.
-​ Data that is continuous in
nature can be put into a
DMAIC Histogram that contains ranges of
1.​ Define the problem, the data.
improvement activity, -​ It will show an accurate
opportunity for improvement, the representation of the distribution
project goals, and customer of the data
(internal and external)
requirements. 3.​ CONTROL CHARTS
2.​ Measure process performance. -​ In order to monitor the
3.​ Analyze the process to determine performance of a process over
root causes of variation and poor time, a control chart is the
performance (defects). appropriate tool.
4.​ Improve process performance by -​ A Control Chart includes an
addressing and eliminating the Upper Control limit and a lower
root causes. Control limit, which are used to
 control the quality dimension
that is measured.

4.​ PARETO CHART

-​ A special type of bar chart that
shows the number of occurrences
of a particular characteristic,
ordered from highest to lowest.
-​ A Pareto analysis helps us focus
our attention on the defects that
occur the most frequently and to
allocate the resources
accordingly.

5.​ SCATTER DIAGRAM

-​ A simple diagram helps to figure
out if there is a relationship
between two variables.

6.​ CAUSE & EFFECT

DIAGRAM
-​ Also known as a Fishbone
diagram, it was developed by Dr.
Ishikawa to help identify the
causes of a problem.
Module 3: STATISTICAL PROCESS -​ SPC tools and procedures can
CONTROL help you monitor process
behavior, discover issues in
internal systems, and find
Module 3 introduces statistical process solutions for production issues.

control, an important topic in statistical Statistical process control is often

used interchangeably with
quality control.
statistical quality control (SQC).
Statistical process control (SPC)

-​ is a useful statistical procedure

to achieve high-quality products
and services.
-​ With the use of control charts,
you will be able to

The Basics of Statistical Process

SPC Control

-​ is an essential part of quality

Control Charts for Attributes
management.
-​ Many companies, committed to
Control Charts for Variables
quality management, provide
extensive and continual training
Control Chart Patterns
in SPC methods to nearly all their
workers.
SPC with Excel and OM Tools
-​ They make extensive use of SPC
for their continuous process
Process Capability
improvement.

SPC TOOLS

Statistical process control (SPC)

A popular SPC tool

-​ is defined as the use of statistical

-​ is the control chart, originally
techniques to control a process or
developed by Walter Shewhart in
production method.
the early 1920s.
A control chart (independent variables). Although both
terms are often used interchangeably,
-​ helps one record data and lets
SQC includes acceptance sampling
you see when an unusual event,
where SPC does not.
such as a very high or low
observation compared with
"typical" process performance, THE 7 QUALITY CONTROL (7-QC)
occurs. TOOLS

Control charts attempt to distinguish

In 1974, Dr. Kaoru Ishikawa brought
between two types of process variation:
together a collection of process

​ Common cause variation, improvement tools in his text Guide to

which is intrinsic to the Quality Control. Known around the

process and will always be world as the seven quality control

present (7-QC) tools, they are:

​ Special cause variation, which ​ Cause-and-effect diagram (also

stems from external sources called Ishikawa diagram or
and indicates that the process fishbone diagram)
is out of statistical control
​ Check sheet

Various tests can help determine when ​ Control chart

an out-of-control event has occurred. ​ Histogram

However, as more tests are employed, ​ Pareto chart
the probability of a false alarm also ​ Scatter diagram
increases. ​ Stratification

SQC VERSUS SPC THE 7 SUPPLEMENTAL (7-SUPP)

TOOLS
Statistical quality control (SQC) is
defined as the application of the 14 In addition to the basic 7-QC tools, there
statistical and analytical tools (7-QC and are also some additional statistical
7-SUPP) to monitor process outputs quality tools known as the seven
(dependent variables). Statistical process supplemental (7-SUPP) tools:
control (SPC) is the application of the
same 14 tools to control process inputs ​ Data stratification
 ​ Defect maps plotted point represents the
​ Events logs algebraic sum of the previous

​ Process flowcharts ordinate and the most recent

​ Progress centers deviations from the target.

​ Randomization ​ Exponentially Weighted Moving

Average (EWMA) charts: Each
​ Sample size determination
chart point represents the
HISTORY OF SPC weighted average of current and
all previous subgroup values,
A marked increase in the use of control
giving more weight to recent
charts occurred during World War II in
process history and decreasing
the United States to ensure the quality of
weights for older data.
munitions and other strategically
important products. The use of SPC
methods diminished somewhat after the
war, though was subsequently taken up
with great effect in Japan and continues
to the present day. (For more
information, see the History of Quality.)

Many SPC techniques have been

adopted by organizations throughout the
globe in recent years, especially as a
component of quality improvement
initiatives like Six Sigma. The
widespread use of control charting
procedures has been greatly assisted by
statistical software packages and
sophisticated data collection systems.

Additional process-monitoring tools

include:

​ Cumulative Sum (CUSUM)

charts: The ordinate of each