TQM (Module 2)
TQM (Module 2)
Step 1: Select the team members and a leader. Team members knowledgeable about the quality.
Team members focus on the problem under investigation.
Step 2: Write the problem statement on the right hand side of the page, and draw a box around it
with an arrow running to it. This quality concern is now the effect.
Step 3: Brain-storming. The team members generate ideas as to what is causing the effect.
Step 4: This step could be combined with step 3. Identify, for each main cause, its related sub-causes
that might affect our quality concern or problem (our Effect). Always check to see if all the factors
contributing to the problem have been identified. Start by asking why the problem exists.
Step 5: Focus on one or two causes for which an improvement action(s) can be developed using
other quality tools such as Pareto charts, check sheets, and other gathering and analysis tools.
2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can
be adapted for a wide variety of purposes.
The check sheet is a simple document that is used for collecting data in real-time and at the location
where the data is generated. The document is typically a blank form that is designed for the quick,
easy, and efficient recording of the desired information, which can be either quantitative or
qualitative. When the information is quantitative, the check sheet is sometimes called a tally sheet.
A defining characteristic of a check sheet is that data is recorded by making marks (“checks”) on it. A
typical check sheet is divided into regions, and marks made in different regions have different
significance. Data is read by observing the location and number of marks on the sheet. 5 Basic types
of Check Sheets:
Classification: A trait such as a defect or failure mode must be classified into a category.
Location: The physical location of a trait is indicated on a picture of a part or item being evaluated.
Frequency: The presence or absence of a trait or combination of traits is indicated. Also number of
occurrences of a trait on a part can be indicated.
Measurement Scale: A measurement scale is divided into intervals, and measurements are indicated
by checking an appropriate interval.
Check List: The items to be performed for a task are listed so that, as each is accomplished, it can be
indicated as having been completed.
3. Control chart: Graph used to study how a process changes over time. Comparing current data to
historical control limits leads to conclusions about whether the process variation is consistent (in
control) or is unpredictable (out of control, affected by special causes of variation). Control charts
have long been used in manufacturing, stock trading algorithms, and process improvement
methodologies like Six Sigma and Total Quality Management (TQM). The purpose of a control chart
is to set upper and lower bounds of acceptable performance given normal variation. In other words,
they provide a great way to monitor any sort of process you have in place so you can learn how to
improve your poor performance and continue with your successes. The control chart serves to
“sound the alarm” when a process shifts (for instance, a machine suddenly breaking on a factory
floor) or if someone has a breakthrough that needs to be documented and standardized across the
larger organization. Simply put (without taking anomalies into consideration).
4. Histogram: The most commonly used graph for showing frequency distributions, or how often
each different value in a set of data occurs.
Usage of histogram: Let’s see usage of Histogram in context of “Plan Quality Management” and
“Control Quality” for your The Project Management Professional (PMP examination.
Using “Control Quality” we identify causes of poor performance help in improving processes and
their work products. In this way, causes of poor performance analysis make Histogram a powerful
tool to take corrective actions.
5. Pareto chart: A bar graph that shows which factors are more significant. Pareto analysis is a
technique for recording and analysing information relating to a problem or cause, which easily
enables the most significant aspects to be identified. A Pareto diagram is a special form of vertical
bar chart, or column chart, which allows the information to be visually displayed.
When to use it
Separating the 'vital few' from the 'useful many' problems, (80/20 rule).
Selecting major problem areas
Identifying major effects and causes
“First things first" is the thought behind the Pareto diagram; the properly constructed diagram
should suggest on which error or activity resources should be used first to make the best
improvement. Very often the simple process of arranging data may suggest something of
importance that would otherwise have gone unnoticed. Selecting classifications, tabulating data,
ordering data, and constructing the Pareto diagram have often served a useful purpose in problem
investigation. The communication process between people takes on many forms, and Pareto
diagrams are a form of language using a display in a commonly understood format. The continued
use of the Pareto diagram enhances communication between members of staff and through all
levels of management.
Key steps
Also called: scatter plot, X-Y graph The scatter diagram graphs pairs of numerical data, with one
variable on each axis, to look for a relationship between them. If the variables are correlated, the
points will fall along a line or curve. The better the correlation, the tighter the points will hug the
line. This cause analysis tool is considered one of the seven basic quality tools.
2. Draw a graph with the independent variable on the horizontal axis and the dependent variable on
the vertical axis. For each pair of data, put a dot or a symbol where the x-axis value intersects the y-
axis value. (If two dots fall together, put them side by side, touching, so that you can see both.)
3.Look at the pattern of points to see if a relationship is obvious. If the data clearly form a line or a
curve, you may stop because variables are correlated. You may wish to use regression or correlation
analysis now. Otherwise, complete steps 4 through 7
Divide points on the graph into four quadrants. If there are X points on the graph: Count X/2
points from top to bottom and draw a horizontal line.
Count X/2 points from left to right and draw a vertical line.
If number of points is odd, draw the line through the middle point.
5. Add the diagonally opposite quadrants. Find the smaller sum and the total of points in all
quadrants.
N=A+B
Stratification is a way to organize data, and in particular of separating data into meaningful
groups. Stratification is also known as a flow chart or run chart. In stratification, you should include
each data point in only one group, and you should leave no data point(s) out. Below is an example of
stratification.
2. When plotting or graphing the collected data on a scatter diagram, control chart, histogram,
or other analysis tool, use different marks or colors to distinguish data from various sources.
Data that are distinguished in this way are said to be "stratified."
3. Analyze the subsets of stratified data separately. For example, on a scatter diagram where
data are stratified into data from source 1 and data from source 2, draw quadrants, count
points, and determine the critical value only for the data from source 1, then only for the data
from source 2.
5-S PRINCIPLES
The 5S framework was originally developed by just-in-time expert and international consultant
Hiroyuki Hirano. The 5S framework is an extension of Hirano's earlier works on just-in-time
production systems. The 5Ss represent a simple "good housekeeping" approach to improving the
work environment consistent with the tenets of Lean Manufacturing System.
It promotes daily activity for continuous improvement. It fosters efficiency and productivity
while improving work flow. It encourages a proactive approach that prevents problems and
waste before they occur. It provides a practical method for dealing with the real problems that
workers face every day. And it fits with a facility's other efforts, such as total preventive
maintenance, just-in-time manufacturing, pollution prevention, safety initiatives, and lean
manufacturing efforts.
The first step of the "5S" process, Seiri, refers to the act of throwing away all unwanted,
unnecessary, and unrelated materials in the workplace. People involved in Seiri must not feel
sorry about having to throw away things. The idea is to ensure that everything left in the
workplace is related to work. Even the number of necessary items in the workplace must be kept
to its absolute minimum.
There are two main objectives of Seiri; first is the simplification of tasks and effective use of space. In
performing Seiri, this simple guideline is a must:
5. Remove all excess items from working areas, including work pieces, supplies, personal items,
tools, instruments, and equipment.
8. Store items only needed by each individual in his/her own working area.
Its objective includes; the needed items can be easily found, stored and retrieved, supports
efficiency and productivity, First-in first-out (FIFO), and save space and time.
QFD was first developed in Japan by Yoji Akao in the late 1960s while working for
Mitsubishi’s shipyard. It was later adopted by other companies including Toyota and its supply chain.
In the early 1980s, QFD was introduced in the United States mainly by the big three automotive
companies and a few electronics manufacturers. Acceptance and growth of the use of QFD in the US
was initially rather slow but has since gained popularity and is currently being used in
manufacturing, healthcare and service organizations.
Customer Focused: QFD methodology places the emphasis on the wants and needs of the customer,
not on what the company may believe the customer wants. The Voice of the Customer is translated
into technical design specifications. During the QFD process, design specifications are driven down
from machine level to system, sub-system and component level requirements. Finally, the design
specifications are controlled throughout the production and assembly processes to assure the
customer needs are met.
VOC Competitor Analysis: The QFD “House of Quality” tool allows for direct comparison of how your
design or product stacks up to the competition in meeting the VOC. This quick analysis can be
beneficial in making design decisions that could place you ahead of the pack. Shorter Development
Time and Lower Cost: QFD reduces the likelihood of late design changes by focusing on product
features and improvements based on customer requirements. Effective QFD methodology prevents
valuable project time and resources from being wasted on development of non-value added
features or functions.
Structure and Documentation: QFD provides a structured method and tools for recording decisions
made and lessons learned during the product development process. This knowledge base can serve
as a historical record that can be utilized to aid future projects.
House of Quality
HOQ is a summary diagram that is used as part of a structured approach to transform
your voice of customer requirements into actual product specifications. This
approach is called Quality Function Deployment (QFD).
This article will discuss how to build the HOQ, present the benefits of the HOQ and
some best practices to building and using the HOQ to develop your process or
product to meet your customers’ needs and expectations.
House of Quality, or HOQ, is a product planning matrix that is used to show how your
customer requirements relate directly to the actions you can take to achieve those
requirements.
HOQ diagrams resemble the shape of a house and should be created using direct
customer input if applicable. HOQ is considered the primary tool in QFD and serves
as the roadmap for describing the journey from initial idea to final product or service
specifics.
Let’s briefly run through each room, the attic, and the basement to see how you can
build this HOQ.
1. Customer needs: For each critical customer segment, capture customer
feedback and VOC input consisting of your customer’s needs and the priority
or weight of each need.
2. Customer critical requirements: The top row of the house contains the critical
customer requirements (CCRs), also referred to as critical to customer (CTC).
3. Interrelationship matrix: Evaluate the relationship between your customer
needs and CCRs. Determine the relative importance of each CCR.
4. Customer rating of your competitors: How does your customer perceive the
marketplace and your competition’s ability to meet each of their
requirements?
5. Correlation matrix: Compare CCRs to determine if they are in conflict with
each other, leveraging each other, or have no effect on each other.
6. Performance targets: Determine the necessary performance targets (specs)
for each CCR.
Benefits of HOQ
Although it can be a bit of a pain to develop and build your HOQ, the benefits of
having all of the elements in one easy-to-read diagram far outweigh the work and
effort required to develop it.
It is a method of identifying new ideas and new ways of improving processes and hence
meeting customer expectations. A properly designed and implemented benchmarking
program will take a total system approach by examining the company’s role in the
supply chain (looking upstream at the suppliers) and downstream at distribution
channels.
Need of Benchmarking:
It is not based on history or gut feeling, perception and low fit but on the basis of
market reality, objective evaluation and high conformance.
It is not on the basis of lacking external focus, reactive response, and lagging ind ustry
but on the basis of credibility, inarguable, proactive and leading industry goals and
objectives.
Without benchmarking this may be done by pursuing pet projects, strengths and
weaknesses not understood on-route of least resistance. But with benchmarking this is
carried out by solving real problems and understanding outputs of each decision based
on the best industry practices.
4. Becoming Competitive:
This is not carried out on internally focused, evolutionary change, and low commitment.
But it is done on the basis of concrete understanding of competition, new ideas of
proven practices, technology and high commitment.
This is also not done on methods not invented here, few solutions, average of industry
progress and frantic catch up activity. But it is done on the basis of proactive search for
change, many options, business practice breakthrough and superior performance.
BENCH MARKING
5) Strategic benchmarking: Involves observing how others compete. This type is usually
not industry specific meaning it is best to look at other industries.
4. Corporate benchmarking:
marketing division, finance, research team, and testing squad etc to improve the overall
5. Global benchmarking:
For example, Microsoft operating in the USA would compare its accounts division with
Mazda of Japan and found that they have employed 500 employees to do a 5 people job.
6. Collaborative benchmarking:
Collaborative benchmarking is something that happens within the organization. Where the
Information technology team would collaborate with the IT support center to Information
technology division.
Various other team collaborations would also happen by discussing the various team
7. SWOT:
SWOT analysis, this type of benchmarking is something which gathers information about the
better.
8. Best practices:
practices. By doing this type of benchmarking, they would get a clear picture of their
In this type, the leading organization or concern which best carries out its function is
studied.
This is another category that takes into account analysis, collection and related energy
performance data of various activities with the main intention to compare and analyze the
Procedure of benchmarking
The following is an example of a typical shorter version of the methodology:
For instance if one were interested in improving hand offs in addiction treatment he/she
would try to identify other fields that also have hand off challenges. These could include air
traffic control, cell phone switching between towers, transfer of patients from surgery to
recovery rooms.
Look for the very best in any industry and in any country. Consult customers, suppliers,
financial analysts, trade associations, and magazines to determine which companies are
worthy of study.
Companies target specific business processes using detailed surveys of measures and
practices used to identify business process alternatives and leading companies. Surveys
are typically masked to protect confidential data by neutral associations and consultants.
Take the leading edge practices and develop implementation plans which include
identification of specific opportunities, funding the project and selling the ideas to the
organization for the purpose of gaining demonstrated value from the process.
Even though, there are various advantages of benchmarking there are few limitations also
which have to be considered. They are,
Business process can be defined as "a set of logically related tasks performed to
achieve a defined business outcome." It is "a structured, measured set of activities designed to
produce a specified output for a particular customer or market." Improving business
processes is important for businesses to stay ahead of competition in today's marketplace.
Over the last 10 to 15 years, companies have been forced to improve their business processes
because customers are demanding better products and services. Many companies begin
business process improvement with a continuous improvement model. The BPR
methodology comprises of developing the business vision and process objectives, identifying
the processes to be redesigned, understanding and measuring the existing processes,
identifying IT levers and designing and building a prototype of the new process. In this
context it can be mentioned that, some of the biggest obstacles faced by reengineering are
lack of sustained management commitment and leadership, unrealistic scope and
expectations, and resistance to change.