Total Quality Management

1. Total Quality Management Week # 9 Continuous Improvement & Quality Tools Prepared by: Khalid Dahleez Faculty of Commerce – the Islamic University of Gaza This material was collected from different sources Total Quality Management - Spring 2010 - IUG

2. Continuous Improvement • Continuous improvement (CI) is a management philosophy that approaches the challenge of product and process improvement as a never-ending process of achieving small wins. • Steps toward CI • Train employees in the methods of statistical process control (SPC) and other tools. • Make SPC methods a normal aspect of operations. • Build work teams and encourage employee involvement. • Utilize problem-solving tools within the work teams. • Develop a sense of operator ownership in the process. Total Quality Management - Spring 2010 - IUG

3. Continuous Improvement • It is an integral part of a total quality management system. • Continuous improvement seeks continual improvement of machinery, materials, labor utilization, and production methods through application of suggestions and ideas of team members. • Though pioneered by U.S. firms, this philosophy has become the cornerstone of the Japanese approach to operations. • Although management in both Japan and the West historically have implemented CI in manufacturing plants, it has become quite common in services as well. Total Quality Management - Spring 2010 - IUG

4. Tools & Procedures of CI • Varies from simple suggestion system based on brain storming to structured programs utilizing statistical process control tools (SPC Tools) • Deming wheel (PDCA) cycle • Zero defect concept • Bench Marking • Six sigma • Kaizen • SPC Tools (Also known as Tools of TQC) • Check Sheet • Process flow chart • Pareto analysis • Histogram • Scatter diagram • Causes & effect diagram (Fish Bone /Ishikawa Diagram) • Control charts Total Quality Management - Spring 2010 - IUG

5. The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured ACT DO Adopt the change as a permanent modification to the process, or abandon it. Implement the change on a small scale and measure the effects STUDY Study the results to learn what effect the change had, if any. Total Quality Management - Spring 2010 - IUG

6. PDSA cycle- seven steps or phases • Identify the opportunity • Analyze the current process • Develop the optimal solution(s) • Implement changes • Study the results • Standardize the solution • Plan for the future. Total Quality Management - Spring 2010 - IUG

7. Seven Problem Solving Tools • Pareto Analysis • Flowcharts • Checklists • Histograms • Scatter Diagrams • Control Charts • Cause-and-Effect Diagrams Total Quality Management - Spring 2010 - IUG

8. PARETO CHART DEFINITION A Pareto Chart is a vertical bar chart in which the bars are arranged in the descending order of their height starting from the left and prioritize the problems or issues. USES • to prioritize problems • to analyze a process • to identify root causes • to verify that whatever improvement process you implement continues to work Total Quality Management - Spring 2010 - IUG

9. NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 % Pareto Analysis Total Quality Management - Spring 2010 - IUG

10. 70 (64) 60 50 40 Percent from each cause 30 20 (13) (10) 10 (6) (3) (2) (2) 0 Poor Design Defective parts Operator errors Machine calibrations Defective materials Surface abrasions Wrong dimensions Causes of poor quality Pareto Chart Total Quality Management - Spring 2010 - IUG

11. Start/ Finish Operation Operation Decision Operation Operation Operation Start/ Finish Decision Flow Charts • Flow charts are nothing but graphical representation of steps involved in a process. • Flow charts give in detail the sequence involved in the material, machine and operation that are involved in the completion of the process. • Thus, they are the excellent means of documenting the steps that are carried out in a process. Total Quality Management - Spring 2010 - IUG

12. COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT | Check Sheet • Check sheets are nothing but forms that can be used to systematically collect data. • Check sheet give the user a place to start and provides the steps to be followed in • Collecting the data Total Quality Management - Spring 2010 - IUG

13. CHECK SHEET USES • to gather data • to test a theory • to evaluate alternate solutions • to verify that whatever improvement process you implement continues to work STEPS • team agrees on what to observe • decide who collects data • decide time period for collecting data • design Check Sheet • collect data • compile data in the Check Sheet • review Check Sheet Total Quality Management - Spring 2010 - IUG

14. 20 15 10 5 0 1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1 Histogram Histograms help in understanding the variation in the process. It also helps in estimating the process capability. Total Quality Management - Spring 2010 - IUG

15. Y X Scatter Diagram It is a graph of points plotted; this graph is helpful in comparing two variables. The distribution of the points helps in identifying the cause and effect relationship Between two variables. Total Quality Management - Spring 2010 - IUG

16. 24 UCL = 23.35 21 c = 12.67 18 15 Number of defects 12 9 6 LCL = 1.99 3 2 4 6 8 10 12 14 16 Sample number Control Chart A control chart is nothing but a run chart with limits. This is helpful in finding the amount and nature of variation in a process. Total Quality Management - Spring 2010 - IUG

17. Histograms do not take into account changes over time. Control charts can tell us when a process changes Total Quality Management - Spring 2010 - IUG

18. Cause and Effect Diagram • Developed by Dr Kaoru Ishikawa in 1943. It is also known by the name of 1) Ishikawa diagram, 2)Fishbone diagram. • This diagram is helpful in representing the relationship between an effect and the potential or possible causes that influences it. • This is very much helpful when one want to find out the solution to a particular problem that could have a number of causes for it and when we are interested in finding out the root cause for it. Total Quality Management - Spring 2010 - IUG

19. Cause and effect Diagram • The cause and effect diagram is an investigative tool. This is also called Ishikawa Diagram. Because of its shape, the diagram is also termed as Fishbone Diagram. • There is a systematic arrangement of all possible causes which give rise to the effect in Ishikawa diagram. Before taking up problem for a detailed study, it is necessary to list down all possible causes through a brainstorming session so that no important cause is missed. The causes are then divided into major sources or variables. Total Quality Management - Spring 2010 - IUG 19

20. Ishikawa Diagram Total Quality Management - Spring 2010 - IUG

21. Measurement Human Machines Faulty testing equipment Out of adjustment Poor supervision Tooling problems Incorrect specifications Lack of concentration Improper methods Old / worn Inadequate training Quality Problem Inaccurate temperature control Defective from vendor Poor process design Ineffective quality management Not to specifications Dust and Dirt Deficiencies in product design Material- handling problems Environment Materials Process Cause-and-Effect Diagram Total Quality Management - Spring 2010 - IUG

22. Organization 8-10 members Same area Supervisor/moderator Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Problem Identification List alternatives Consensus Brainstorming Solution Problem results Problem Analysis Cause and effect Data collection and analysis Quality Circles Total Quality Management - Spring 2010 - IUG

23. CONCEPT OF KAIZEN Imai has brought together various management theories, philosophies and tools that have been popular in Japan over the years, as a single concept, Kaizen. There are many quality experts, whose principles formed the basis of the Kaizen concept. Kaizen means continuous improvement involving everybody. Total Quality Management - Spring 2010 - IUG

24. CONCEPT OF KAIZEN The term Kaizen originates from the Japanese words, ‘Kai’ that means change, whereas, ‘zen’ means for the better, therefore, it means ‘change for the better’. It signifies constant and gradual improvement, no matter how small it is. It should be taking place all the time in every process, involving everyone from all the ranks of management and the workforce. Total Quality Management - Spring 2010 - IUG

25. CONCEPT OF KAIZEN • In brief, Kaizen system includes: • Total employee involvement starting from top management; • Empowering people; • Listening to them; • Promoting zero investment improvements; and • Focus on efforts rather than results in Kaizen evaluation and performance appraisal. Total Quality Management - Spring 2010 - IUG

26. Definition of KAIZEN • A selection of better means • or a better method for achieving • an objective. • 2.An accumulation of small changes. • A corrective action under constraints. Total Quality Management - Spring 2010 - IUG

27. KAIZEN TECHNIQUES KAIZEN techniques consists of the following steps: • Identifying problem (s) • Examining the problem (s) • Finding ideas to solve the problem (s) • Developing selected proposal (s) • Implementing the proposal (s) Total Quality Management - Spring 2010 - IUG

28. Multiple KAIZEN ideas Problem: • The man cannot reach the tool box on the shelf. • Man is too short to reach the tool box. • The tool box is placed too high. Total Quality Management - Spring 2010 - IUG Idea source: The Japan HR association

29. The interaction between man and tool box generates a problem. Tool Box Man Problem Problem does not exit. Tool Box Man Total Quality Management - Spring 2010 - IUG

30. Multiple KAIZEN ideas • From “man “ stand point, • cannot reach Use footstool. • From “toolbox” stand point, • place it at the lower shelf. Total Quality Management - Spring 2010 - IUG

31. Solution Place the toolbox at a lower shelf Footstool Total Quality Management - Spring 2010 - IUG

32. A man broke a cup at a sink. • Problem: Total Quality Management - Spring 2010 - IUG Idea source: The Japan HR association

33. Interaction Cup Man Sink Way of washing Total Quality Management - Spring 2010 - IUG

34. Total Quality Management - Spring 2010 - IUG

35. Cause and effect diagram Man Method Wash with hands Carelessness Wash quickly Wash together My way Cup broke Hard bottom Breakable materials Deep Weak against heat Sink Cup Total Quality Management - Spring 2010 - IUG

36. KAIZEN Steps - Abolition - Discontinuance - Exclusion - Removal - Simplification - Centralization - Synchronization - Standardization - Management for exceptions - Integration - Combination - Alternation - Exchange - Conversion - Diversification - Separation Total Quality Management - Spring 2010 - IUG

37. Different styles of change 1. Small change --- By individual effort, a better way of proceeding a job is considered. (Idea creation) (KAIZEN) 2. Medium change --- By group effort, a better way is proposed by following predetermined steps (or rule). (Small group activities) 3. Big change --- By investments in new technology or equipment, dramatic alterations are achieved. (Innovation) Total Quality Management - Spring 2010 - IUG

38. 10 Basic Rules for Practicing Kaizen • Prepare people to accept change for the betterment. • Think of how to do it and not why it cannot be done. • Do not make excuses? Start by questioning current practices. • Do not seek perfection? Do it even if for only 50% of target. • Correct mistakes at once. • Do not spend money for Kaizen. • Wisdom is brought out when faced with hardship. • Ask “why”? Five times and seek root causes. • Seek the wisdom of ten people rather than the knowledge of one. • Kaizen ideas are infinite. Total Quality Management - Spring 2010 - IUG

39. More Comments on Kaizen Kaizen is a system of accumulated improvement. The main purpose of Kaizen is to evolve total employee participation and it also helps in building capable work force for an organization. The results of Kaizen are not very drastic but incremental that’s why continuous improvement leads to accumulated improvement. Kaizen is a process-oriented thinking and not result oriented thinking: Total Quality Management - Spring 2010 - IUG