Chapter 6:

TQM Tools and

Techniques.
Objectives
At the end of this topic, you should be able
to DEFINE and EXPLAIN QFD,
Benchmarking, Kanban, JIT. DESCRIBE,
EXPLAIN and DEMONSTRATE Quality
Tools
Why need Quality tools?
 Most decision point and root causes remain
unclear until valid data are studied and
analyzed.
 Collecting and analyzing data using total
quality tools make the task easy for
everyone.
Why need Quality tools?
 No matter where you fit into organization in
future, you may use all or some of these
tool and employers will serve you well for
better prospects.
 This chapter will explain the most widely
used of quality tools.
1. Pareto Chart
 Pareto charts are useful for separating the
important from the trivial.
 Named after Italian economist and sociologist
Vilfredo Pareto.
 Pareto charts are important because they can
help an organization decide where to focus limited
resources.
 On a Pareto chart, data are arrayed along an X-
axis and a Y-axis.
Example
 In a factory, 20% of problems will produce
80% of defects --> 80% of defect’s cost will
be assigned to only 20% of the total
number of defect types occurring.
 So, 80% of defect costs will spring 20% of
total cost element.
Purpose of Pareto
 Pareto can show you where to apply your
resources by “revealing few from the trivial
many”..  (Highlight few most important
issues out of many)
Pareto Chart

Figure 15-1
Pareto Chart
 Figure 15-1 represents customers A,B, C,
D, E and All others.
 75% sales are from 2 customers; A,B
 All others include many more customers
but brings insignificant sales (>5%)
 Which customers should be kept happy?
Pareto Chart
Pareto Chart
 Figure 15-2 shows sales of particular model of
automobile by age group of the buyers.
 The manufacturer has limited budget in
advertising.
 The chart reveals the most logical choice to target
to advertise.
 Concentrating on advertising on 26-45 age will
result in the best return of investment. (75%)
 The significant few  26-45 age
 The insignificant many are those under 26 &
above 45
Pareto Chart
 Figure 15-3
Pareto Chart
 Figure 15-3 shows 80% of the cost was related
to 5 defect causes.
 All the other (about 30 more) were insignificant.
 The longest bar ($70k) accounted for 40%, if
solved, immediate reduction in rework cost will
happen.
 After eliminate the longest bar, the team sorted
data again to develop level 2 Pareto Chart
*Read page 484-489 for further understanding
Pareto Chart
 Figure 15-4
Steps in Constructing Pareto Chart
1. Select the subject of the chart
2. Determine what data to be gathered
3. Gather the data related to the quality problem
4. Make a check sheet of the gathered data, record the total
numbers in each category.
5. Determine total numbers of nonconformities, calculate
percentage each.
6. Select scales of the chart
7. Draw PARETO Chart from largest category to smallest.
8. Analyze the chart
Exercise
Cause and Effect
Diagrams
Cause and Effect Diagrams
 Use to identify and isolate causes of a
problem. Developed by Dr. Kaoru Ishikawa.
 Also called Ishikawa Diagram / Fishbone
Diagram.
Cause and Effect Diagrams
 Benefits;
 Creating the diagram – enlightened, instructive
process.
 Focus a group, reducing irrelevant discussion.
 Separate causes from symptoms
 Can be used with any problems
Cause and Effect Diagrams
Cause and Effect Diagrams
 From figure 15-8, the spine points to the
effect.
 The effect is the problem we are interested
in.
 The lower level factors affecting major
factor branch.
 Check Figure 15-7 to see whether the
major causes can be identified.
Cause and Effect Diagrams
 E,g: Machine soldering defects
 Six major groupings of causes are;
 Solder machine itself
 Operators
 Materials
 Methods/procedures
 Measurement of accuracy
 Environment
Cause and Effect Diagrams

Solder
Defects
Cause and Effect Diagrams
 Normally created by teams to brainstorm the
cause/effect.
 Completed diagram reveals factors & relationship
which not been obvious.
 Some problems previously were isolated now can
be identified.
 Therefore, further action shall be taken.
 Cause and Effect Diagrams serve as a reminder.
Cause and Effect Diagrams
 Exercise;
 In 15 minutes, create a group of 4-5.
 Create a ‘Cause-and-Effect Diagram’ for
 a car does not start.
 An upset stomach (stomach ache)
 Long-line at supermarket.
 Death rate increased 20% in 2007 in Malaysia.
FIVE WHYs
 The ‘5 Whys’ is a question-asking method used to
explore the cause/effect relationships underlying a
particular problem.
 Objective: To determine a root cause of a defect
or problem.
 The technique was originally developed by Sakichi
Toyoda and was later used within Toyota Motor
Corporation during the evolution of their
manufacturing methodologies.
 Part of Toyota Production System activities.
Example of 5 whys
 My car cannot start. (the problem statement)
 Why? - The battery is dead. (first why)
 Why? - The alternator is not functioning. (second why)
 Why? - The alternator belt has broken. (third why)
 Why? - The alternator belt was well beyond its useful service
life and has never been replaced. (fourth why)
 Why? - I have not been maintaining my car according to the
recommended service schedule. (fifth why, root cause)

This example could be taken further to a sixth, seventh, or even

greater level.
How To Complete The 5 Whys
1. Write down the specific problem. Describe it completely. It
also helps a team focus on the same problem.
2. Ask Why the problem happens and write the answer down
below the problem.

3. If the answer doesn't identify the root cause of the problem

that you wrote down in step 1, ask Why again and write that
answer down.

4. Loop back to step 3 until the team is in agreement that the

problem's root cause is identified. Again, this may take
fewer or more times than five Whys.
 5 Whys Examples
Problem Statement: Customers are unhappy because they are
being shipped products that don't meet their specifications.

1. Why are customers BEING SHIPPED BAD PRODUCTS?

- Because manufacturing built the products to a specification that is
different from what the customer and the sales person agreed to.
2. Why did manufacturing build the products to a different
specification than that of sales?
- Because the sales person expedites work on the shop floor by
calling the head of manufacturing directly to begin work. An error
happened when the specifications were being communicated or
written down.
3. Why does the sales person call the head of manufacturing directly
to start work instead of following the procedure established in the
company?
- Because the "start work" form requires the sales director's approval
before work can begin and slows the manufacturing process (or stops
it when the director is out of the office).
4. Why does the form contain an approval for the sales director?
- Because the sales director needs to be continually updated on
sales for discussions with the CEO.
5 WHYs Problems: Machine blow
 Why machine stop? FUSE BLOW
 Why FUSE BLOW? Because fuse was
WRONG SIZE
 Why WRONG SIZE? Engineer PUT IT IN
THE BOX
 Why ENGINEER DO that? Supply room
ISSUE WRONG SIZE FUSE
 WHY ? The stock bin was MISLABELLED.
Possibly be done in a Tree Diagram called TREE ROOT CAUSE
ANALYSIS
5 whys exercise
 Form in a group 0f 5,
 Identify the problem statement below using
5 whys method.
 Students do not perform well in examinations
 Students feel sleepy at class
 Death rate in Malaysia  50% covered by
middle ages (25-35 years old). Why?
 Check sheets
 Many organizations:
They are :”DATA RICH, INFORMATION
POOR”
 Check sheet can be a valuable tool in wide
applications.
 Purpose: To make it easy to collect data for
specific purposes or to convert into
valuable information.
E.g; Weekly Summary of Shaft
Dimensional Tolerance Results
Check sheet
 Figure 15-11 reports how the works being
produced relates to the shaft length
specifications.
 Machine setup limits 1.120 – 1.130 inches.
Outside range  waste!
 So Figure 15-12 is the check sheet set up
to display useful information.
 It produces histogram.
 Histograms
 Used to chart frequency of occurrence. (How often
does something happen?)
 Commonly associated with processes: attributes
and variables

DATA EXAMPLES
TYPES
Attributes Has / has not
Good / bad
Pass / fail
Accept / Reject
Conform / non-conform

Variables Measured values (Dimension, weight,

voltage, surface, etc.)
Histograms
 Figure 15-14
Histograms
 Attribute data: Go/no go information.
 Variable data: measurement information.
 Looking at Figure 15-14, we are using attributes
data; either they passed or they failed the
screening.
 But, it does not reveal about the process
contributing to the adjustment.
 Also, does not tell the robust process. This is why
variables data is needed.
Histograms and Statistics
 Example: textbook – page 500
BEAD EXPERIMENT

There are 900 white beads, 100 red beads.

1. The beads mixed thoroughly.

2. 50 beads are drawn at random. – Count how many red beads.
– Check mark is entered in histogram.
3. All the beads are put back into container and mixed again.
4. Repeat Step 1  Step 3

The process does not change, but the output changed!

If these steps are taken over and over, Histogram as in Figure 15-
15 will occur
Histograms and Statistics

 Figure 15-15 and Figure 15-16

Histograms and Statistics
 The flatter and wider the frequency
distribution curve, the greater the process
variability.
 Taller and narrower the curve, the less
process variability.
 2 things in process variability;
 Standard deviation, σ
 Mean, μ
 Histograms and Statistics
 Mean is the sum of the observations divided by the number
of observations
 Also describes the central location of the data in the chart,

 Standard Deviation describes the spread.

Calculating the Mean, μ

μ=ΣX÷n
X=product of the number of beads in a sample times the number
of samples containing the number of beads.

*See Figure 15-17b, page 503 for further understanding.

Histograms and Statistics

μ =ΣX÷n
=510 ÷ 100
=5.1
Histograms and Statistics
Histograms and Statistics
 Calculating Standard Deviation, σ

d = The deviation of any unit from the mean

n = the number of units sampled.

 From Figure 15-17c,

 n(100)

σ = 1.49, 2 σ = 2.99, 3 σ = 4.47

 Figure 15-18
Shapes of Histograms
Figure 15-19
 Process A is much tighter, normal distribution, favorable.
 Process B greater variances.
 C and D are not centered, skewed to left and right, product
will be lost.
 F – someone has discarded. Take out the reject, and only
collect data within acceptable range.
 G –the vendor has screened out the parts, took out the best to
other customers.
 H – a proper normal distribution between upper and lower
limits.
 I and J skewing! Significant loss of product…
 K until P shifting… why???
Run Charts and Control Charts
Run Chart
 Run Chart records output results of a process over
time.
 The chart in Figure 15-26 can be continued
indefinitely to keep aware of its performance.
 Whether is it improving? Staying the same? Or
losing ground?
 Scales may have to change for clarity.
 E.g; if we consistently found defects are always 2%, so it is
make sense to change the y-axis to 0-2% maximum.
 Longer term chart, can change to weekly, monthly etc.
Run Chart vs Control Chart
 In run chart – does not show if the variation
is the result of the special causes.
 Control chart is an appropriate tool to
monitor process.
 It is important to distinguish between;
“Special Causes” & “Common Causes”
 Control Chart

 Figure 15-27 shows a basic of control chart.

 Data stay between Upper Control Limit (UCL) and Lower Control Limit
(LCL)
Control Chart
 As long as the plots stay between the limits, and don’t congregate on 1 side
or the other of the average line, the process is in STATISTICAL
CONTROL.
 Common causes/chance: Small random changes in the process that
cannot be avoided
 Varying out of the centerline of the process
 Result of the sum of numerous small resources of natural variation that are always
part of the process.
 Eg; Setting on machines, environment, methods etc.
 Special causes/Assignable causes: Variations in the process that can be
identified as having a specific cause.
 A plot point breaks through UCL or LCL
 OR there a several points in a row above/below the lines.
 Result of the factors that are not part of the process and only occur is special case.
 Eg: New operator involve, electricity blackout, shipment faulty of material etc.
Control Chart
 Only after the special has been identified, it
should be corrected, and restart the
process.
 How to correct? (By eliminating root cause)
 Control chart is usually operated under
Statistical Process Control (SPC) – Chapter
18.
Control Chart - Statistical Process Control (SPC)
 What is SPC?

SPC is a statistical method of separating

variation resulting from special causes
resulting from natural causes, to eliminate
the special causes, and to establish and
maintain consistency in the process,
enabling process improvement.
Control Chart
 Common factors that can affect output are;

5M’s
Machines and environment employed
Material used
Methods (work instructions)
Measurements taken
Manpower (People who operate the process)

If these factors are perfect; this means;

1. Environment facilitates quality work and there are no misadjustments
in the machines
2. No flaws in materials
3. Follow work instruction accurate and precisely
4. Accurate and repeatable measurements
5. People work with extreme care – follow instructions extremely well
 From Figure 18-5,
The average, x is; Average Range, R is

x  xk Average of subgroup range, R is

k  number of sub groups R  Rk
x  subgroup average R  (Max value of x  Min value of x)
So, x  1200.8  12 So, R   68  12  5.667
 100.067

A2 is the confidence level for the

UCL  x  A2 R data, the larger the value of A,
the farther the control limits.
LCL  x  A2 R
 From Figure 18-6;

n=10, so UCL and LCL in x-bar chart is;

UCLx  100.067  (0.31 5.667)  101.82377

LCLx  100.067  (0.31 5.667)  98.31023

And UCL and LCL for the values in R chart;

UCLR  D4 R  1.78  5.667  10.08726
LCLR  D3 R  0.22  5.667  1.2467
Figure 18-7 (a)
Figure 18-7 (b)
Control Chart
 Suppose that we have been setting up a new process (not stable).

It would look like in Figure 18-8
In Figure 18-8;

 Subgroup 7 was out of limits.

 Can we ignore? NO!
 Because-control limit has been calculated with the data inclusive of
special cause event. (E.g: result of untrained operator etc)
 We MUST determine and eliminate the cause.
 After eliminate it, flush out SUBGROUP 7 and recalculate the
process average (x-bar) and the control limits.
 We will find narrower limit, Figure 18-9
Figure 18-9

 If still penetrates the new out of limits, repeat the same action.. Until the
points are all well between the limits.
 X-bar chart is used to show the center of
the process measurements (accuracy).
 R chart is to show the spread of the data
(precision).
 Without Range, it would not be able to
understand the PROCESS CAPABILITY of
the chart.
Advantages of a Stable Process
 Stable process?? It is a process that exhibits
only common variation.
 Advantages;
1. Management knows the process capability, so they can
predict cost well.
2. Productivity MAX, cost MIN
3. Management can measure effect faster and more
reliable.
4. Got data if management wants to alter spec limits.
5. Stable process is basic requirement for process
improvement efforts.
State of Control

1. About 34% of the plotted points in an imaginary

band between 1 standard deviation on both
standard deviation on both sides of the central
line.
2. 13.5% of the plotted points between 1 and 2
standard deviation
3. 2.5% of the plotted points between 2 to 3
standard deviations.
4. NO POINTS BEYOND CONTROL LIMIT
Statistical error: Type I and Type II

 Statisticians speak of two significant sorts

of statistical error.
 Type I error: An incorrect decision to
REJECT something when it is true.
 False alarm
 Type II error: An incorrect decision to
ACCEPT something when it is true.
 Oversight
 Common Use Control Chart for attribute data
(Counted values)
 P chart – No. of defects in samples of varying size
as a percentage of fraction.
 (e.g anywhere defects can be counted)
 np chart- no. of defective pieces in samples of
fixed size.
 C chart – No. of defects in a single product. (e.g:
blemish, deform, scratches in one part)
 U chart – No. of defects per-unit area. (Carpet
area, lenght)
Exercise
Quality Function Deployment (QFD)
 Quality Function Deployment (QFD)
 QFD – “Voice of the customer…”
 QFD is a planning process and for guiding the
design and redesign of a product or service.
 QFD seeks to bring the voice of customers into
the process of designing and developing a
product or service.
 QFD can point out areas of strength as well as
weaknesses in both existing or new products.
 When a company uses QFD, they stop
developing products/services on their own
interpretation.
Main benefits of QFD
1. Customer focused – QFD gives information which is then
translated into a set of specific customer requirements.
2. Time efficient – Time is not wasted on developing features
that have no value to customers.
3. Teamwork oriented – All decisions are based on
consensus and involve in-depth discussion and
brainstorming
4. Documentation oriented – QFD forces the issue of
documentation. This document changes as new information
gained. Having up-to-date information about customer
requirements, will be very helpful.
 QFD

 In a simple words – QFD clearly shows

what the customer wants and how to
achieve those wants.
 Structure of QFD
Most widely used analogy for explaining QFD is structured in a ‘house’.
1. Customer Input.
Customer requirements relating to the product are determined.
2. Performance Specifications (Ceilings of house)
3. Wall of the house
The planning matrix. Component used to translate customer requirements into plans
for meeting or exceeding those requirements
4. Middle of the house
Customer requirements are converted into manufacturing terms. E.g; if customers
want the life cycle to be 12 months instead of 6 months, what materials to be
used? The design? Manufacturing processes?
5. Bottom of the house
Manufacturers critical process requirement are prioritized. Which process
requirement is most important? Which is next?
6. Roof of the house
Trade-off identified relating to manufacturer's requirement. In view of customer
requirement and manufacturer capability, what is the best can the organization
do?

See Figure 17-1

Figure 17-1
QFD tools

 Figure 17-6
Affinity Diagram
Used to promote creative thinking
Mostly used when;
 The issue in question is so complex and the
known facts so disorganized
 When it is important to build a consensus for a
proposed solution.
Interrelationship Digraph

 Used to bring logic to the process of

identifying relationships among the various
ideas recorded on the affinity diagram.
Tree Diagram

 Shows the tasks that must be

accomplished to solve the problem in
question.
Matrix Diagram
 Most widely used of QFD tools
 To identify and graphically displaying
connections among responsibilities, task,
functions and so forth.
 The most widely used is L-shaped matrix –
shown in Figure 17-11.
QFD sample
 Thank you