TQM TOOLS

"As much as 95% of quality related problems in the factory can be solved with seven fundamental quantitative tools." - Kaoru Ishikawa

Seven Problem Solving Tools

Cause-and-Effect Diagrams Flowcharts Checksheet Control Charts Scatter Diagrams Pareto Analysis Histograms
2005 Wiley 2

Chapter 15 Seven Tools of Quality Management

The Seven QC Tools

5. Pareto Diagrams: separate the vital few
from the trivial many causes; provide direction for selecting projects for improvement.

6. Cause-and-Effect Diagrams: represent chain of relationships; often called a fishbone diagram. 7. Scatter Diagrams: graphical component of
regression analysis.

Cause and Effect Diagram

Also called the Ishikawa Diagram, or Fishbone Diagram. Problem analysis technique which attempts to identify the root causes for a problem thereby allowing a group to work towards solving the "real" problems and not just symptoms.

A line is drawn across the middle of a sheet of paper to a box on the right hand side. In that box, the problem statement is written. Major possible categories of cause are distributed along the line. From these, lines are drawn sloping to the left. From these lines, contributing issues for each category are placed. From these, additional lines can be drawn. the final result is a tree with all potential causes identified.

Cause-and-Effect Diagrams
Used to identify the cause of a quality problem

Followup: Collect data to verify the cause and develop a plan to eliminate the cause.

Constructing a Fishbone Diagram

Step 1 - Identify the Problem Step 2 - Draw spine and bones Example: High Inventory Shrinkage at local Drug Store

Shrinkage

Constructing a Fishbone Diagram

Step 3 - Identify different areas where problems may arise from Ex. : High Inventory Shrinkage at local Drug Store

employees

Shrinkage

shoplifters

Constructing a Fishbone Diagram

Step 4 - Identify what these specific causes could be
Ex. : High Inventory Shrinkage at local Drug Store

Shrinkage
Expensive merchandise out in the open No security/ surveillance

Anti-theft tags poorly designed

shoplifters

Constructing a Fishbone Diagram

Ex. : High Inventory Shrinkage at local Drug Store employees
attitude training new trainee benefits

practices

Shrinkage
Expensive merchandise out in the open

Anti-theft tags poorly designed

No security/ surveillance

shoplifters

Constructing a Fishbone Diagram

Step 5 Use the finished diagram to brainstorm solutions to the main problems.

Example (1 of 4)
Step 1 & 2:

(backbone)

Poor Service (head)

Example (2 of 4)
Step 3 & 4:
Appearance Responsiveness

Poor Service

Attention

Reliability

Example (3 of 4)
Step 5, 6, & 7:
Appearance equipment personnel Responsiveness time

facility
Poor Service accuracy One on one service dependability Reliability

courtesy

Attention

Example (4 of 4)
Step 8 & 9:
Use tools to analyze and evaluate causes
Pareto diagrams, charts, and graphs Statistical analysis for causes in processes

Decide and take action

Use fishbone diagram, analysis and evaluations to find causes that can be fixed Take action to eliminate and fix problem causes

Cause and Effect Diagram

Product Quality

Service

Order Processing System

Customers are dissatisfied

Order Fulfillment

Distribution System

Fishbone Chart: Airline Customer Service

Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart)

Equipment Personnel
Gate agents cannot process passengers quickly enough Too few agents Agents undertrained Agents undermotivated Agents arrive at gate late Late cabin cleaners Late or unavailable cabin crews Late or unavailable cockpit crews

Aircraft late to gate Late arrival Gate occupied

Other
Weather Air traffic

Mechanical failures Late pushback tug

Poor announcement of departures Weight an balance sheet late Late baggage to aircraft Late fuel Late food service Delayed checkin procedure Confused seat selection Passengers bypass checkin counter Checking oversize baggage Issuance of boarding pass Acceptance of late passengers Cutoff too close to departure time Desire to protect late passengers Desire to help companys income Poor gate locations

Delayed Flight Departure

Material

Procedure

Exercise
Create a Fishbone (cause and effect, Ishikawa) Diagram for the following:
Management at Red MeatIndustries has noticed that the productivity of its workers is well below the standard. After interviewing its employees, it was noticed that a vast majority felt dissatisfied and unhappy with their work. Your boss has asked you and a group of your peers to find the causes of worker dissatisfaction. Include all possible causes to at least the secondary level.

Exercise
Answers should include the following: Worker dissatisfaction as the head of the diagram Major causes should include environment, equipment, and management Secondary causes for environment Worker training, worker empowerment, cleanliness, wages, benefits, etc. Secondary causes for equipment: Effectiveness of equipment, age and maintenance requirements, lack of new technologies, etc. Secondary causes for Management: Leadership qualities, Involvement, Attention, Expertise, human relations, etc.

Flowchart
Used to document the detailed steps in a process Often the first step in Process Reengineering

Flowcharts
Dont Forget to: Define symbols before beginning Stay consistent Check that process is accurate

Flowcharts / Flow Diagram

i.e., how a process flows

1
no

yes

1a

22

Flowchart e.g. Statistical Process Control Steps

Start Produce Good Provide Service Take Sample No Assign. Causes? Yes Inspect Sample Create Control Chart Stop Process Find Out Why

Passenger Arrives

Ticket For Flight

No

Wait for Appropriate Flight

Yes

Check Luggage

Yes

Excess Carry-on No Issue Boarding Pass

Passenger Boards Airplane

Acme Pizza Example (Flowchart)

 Answer: Since we know that 2 slices is the most common order we could possibly add a step between Time to close and take customer order. If we brought two slices up to the window during peak hours this would quicken service. There are multiple improvements that can be made on the process. The class can brainstorm on ways of improving this flowchart. Note that a decision must be made at each triangle before the next step can begin.

Want some practice?

Make a flowchart for: Taking a shower Cooking dinner Driving a car Having a party Creating a Flowchart

Any other processes you can think of?

Check Sheet
A simple checklist that is used to record when something occurs. This is used to identify symptoms and/or potential cases for a problem
Month January February March April May June July August September October November December Total Lost Luggage 1 3 2 4 6 7 4 3 2 4 Departure Delay 2 3 5 5 7 3 6 9 7 11 10 12 44 Mechanical Overbooked Failure 3 3 1 0 1 0 3 2 3 4 4 0 2 3 0 8 1 1 3 0 2 0 3 0 3 0 2 2 3 0 1 0 0 2 0 1 84 24 16 Other

2 1

12

Checksheet
Tool Used to Collect Data for Analysis

Control Charts
Control charts are a means of regulating a process. It tracks the output of a process and its conformance to the companys standards. As long as the process stays within the upper and lower limits then the process is safe and normal. Any observations made outside of the limits are irregular and problematic. They need to be immediately researched to improve quality. A process that consistently stays safe is a good quality process.

Control Charts
Deviation from Mean Upper and Lower Specs Range

Control Charts
Upper Limit

X= mean The majority of observations have fallen close the average. The one thats under the lower limit is irregular, it needs to be examined and fixed.

Lower Limit Unacceptable deviation

Control Charts
Acme Pizza Management wants to get in on the control chart action
Average Diameter = 16 inches Upper Limit = 17 inches

Lower Limit = 15 inches

Acme example Control Monitoring the pizza process, Charts this example shows how
Upper Limit

17 inches

almost every pie is within specifications. The process should be analyzed to discover why the one small pie was produced and corrected to improve quality.

16 inches=

Lower Limit 15 Inches

Small Pie

Acme example #50 Control Charts

Pies within specifications were acceptable
One abnormally small pie is uncommon Should be examined for quality control

Control Chart
Set confidence intervals for the mean and range of a process (usual behavior) LCL = lower control limit, UCL = upper control limit Is process in control (predictable)? Does process have conformance quality?

Scatter Diagrams
A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship

Scatter Diagrams
depict relationships between paired data

Linear Relationship

Thousand Lines of Code

10

15

20

25

Acme Pizza
Minutes Cooking 10 45 30 75 60 20 25

(Scatter Diagram)
Defective Pies 1 8 5 20 14 4 6

In this simple example, you can find the existing relationship without much difficulty

Scatter Diagrams
Easier to see direct relationship
There is a direct relationship between time spent cooking by employees and defects. As Time cooking increases, so does the amount of defects.
25 20 15 10 5 0 0 20 40 60 80

Time Cooking (minutes)

Histogram
A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed

Histogram
Bar chart showing the number of occurrences of some event often derived from the results of a check sheet. It could be a real world event, like late deliveries by month for a year, or it could be the number of time a proposed solution is suggested. It allows a quick prioritisation based on frequency.

Histrogram of Lost Luggage

3.5

2.5

Frequency

1.5

0.5

0 1 2 3 4 5 6 7

Occurrences per Month

Constructing a Histogram
From a set of data compute sum mean (x) Max Min Range (max-min)

Constructing a Histogram
Use range to estimate beginning and end Calculate the width of each column by dividing the range by the number of columns

Range
# of Columns

= Width

Acme Pizza Example

Lets say the owner wants a distribution of Acmes Thursday Night Sales
Data Set from last Thursday(slices)
02122413121224341432232122122142212122121 2121212122212121122231422322212322422441 2223221224212421721223121121222122121222 424

These numbers represent the customers order at the order window at the pizza store. For example, the first customer didnt order any pizza, the second ordered 2 slices, the third ordered 1 and so on. It should be noticed that the highest order was 7 slices and the lowest was 0. This is used to find the range which is used to find the column width for the histogram.

Acme Pizza Example

Mean = 2.032258 Max = 7 Min = 0 Range = 7 Question For 7 columns what would the width be?

Range/Columns=7/7=1 slice

Acme Pizza Example

Histogram
70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 12 0 0 1 33 65

Slices of Pizza

Constructing a Histogram
How is this helpful to Acme? 2 slices of pizza most common order placed Distribution of sales useful for forecasting next Thursdays late night demand If you were an Acme manager how could you apply this information? Most common types of orders placed is valuable information. Knowing that the average customer will order 2 slices of pizza can be implemented into Acmes strategic plan. By taking at least 2 slices up to the window at peak hours, this can improve Acmes customer service and speed. It makes the line move much faster making the perceived quality higher for the customer.

Pareto Analysis
Very similar to Histograms
Vilfredo Pareto (1848-1923) originated the 80/20 Rule, which states that 80% of the problems comes from only 20% of the causes. Pareto Analysis is very similar to Histograms but it incorporates this theory into it. Pareto Analysis adds weight to the most frequently occurring things. Use of percentages to show importance

Pareto Analysis Used to Prioritize Problems

Most important problems should be solved first Prioritize by number of defects or $ cost of defects Often called the 80-20 Rule: Most quality problems are the result of only a few causes.
Example: 80% of the problems caused by 20% of causes

Pareto Diagrams
measures the distribution of quality losses
61%

17%

13%

5%

4%

Pareto Chart
A Pareto chart is usually used to identify the principle drivers to a problem. A checksheet is used to count how often a particular item occurs usually as a cause to a problem (e.g. missing account number on check leads to miss-filing). The items are then charted by the percentage of the occurrences in decreasing order. The resulting chart shows which items had the most influence on the problem. This goes along with the 80-20 rule which states that 80% of the problem are attributable to only 20% of the causes.

Acme Pizza (part 2)

The completed Pareto Analysis results in the following graph:

70 60 50 40 30 20 10 0 1 2 2

3 4

4 3

5 7

6 5

7 6

Slices of Pizza

Managing Quality + Time + Productivity + Capacity = JIT

The objective of JIT is to . . . purchase materials produce products

and deliver products

. . . just when they are needed.

Managing Quality + Time + Productivity + Capacity = JIT

The goal is to manage costs so that the savings associated with JIT exceed the cost of implementing JIT

Cost savings:
Inventory warehouse rent or cost Inventory managers and personnel Less warranty cost

Implementation costs:
Employee retraining

Technology improvement Exposure to work stoppage risks.

Traditional Push Manufacturing - Example

Computer Manufacturer

Forecast Sales

Order components

Store Inventory

Make sales from finished goods inventory

Begin Production in Anticipation of Sales

Prepare Production Schedule

JIT Pull Manufacturing Example

Computer Manufacturer

Customer places an order

Create Production Order

Generate component requirements

Goods delivered just in time

Production begins as parts arrive

Components are ordered