TQM TOOLS AND
TECHNIQUES IUNIT III
CONTENT The seven traditional tools of quality
New management tools – Six-sigma: Concepts,
methodology,
Applications to manufacturing, service sector
including IT
Bench marking – Reason to bench mark, Bench
marking process
FMEA – Stages, Types
SEVEN STATISTICAL TOOLS OF QUALITY
TOOLS PURPOSE
Flow chart (Stratification, Run chart) Depicts essential steps of a process
Check sheet Systematic data gathering
Histogram Graphically displays frequency
distribution of numerical data
Pareto diagramIdentify causes that account for quality
loss
Cause and effect diagramIdentify and analyze causes of a given
problem
Scatter diagram Relationship between two variables
Control chartIdentifying process variations and
signaling corrective actions.
RELATIONSHIP BETWEEN Q-7 TOOLS & PDCA CYCLE
Q-7 TOOLSPlan
(P)
Do
(D)
Check
(C)
Act
(A)
Flow chart
Check sheet ü
Histogram ü ü
Pareto diagram ü ü
Cause and effect diagram ü ü
Scatter diagram ü ü
Control chart ü ü
FLOW CHART Also known as Process flow chart, Flow diagram and
Process deployment flow.
Diagrammatic view of various steps in sequential order
that form an overall process in an organization.
Easily understandable.
Simple mapping tool.
Used to document and analyze the connection and
sequence of events in a process.
Creates an integrated understanding of the activities.
FLOW CHARTSYMBOL NAME MEANING
Terminator Start or end
Action Process or Activity or Task
Decision Decision
Arrow Direction of flow
Link Link to another page
FLOW CHART
CHECK SHEETALSO KNOWN AS ‘TALLY SHEET’.
Systematic data gathering and registering to get a clear view of facts. Used to keep track of how often something occurs. Used to indicate the frequency of a certain occurrence.
TYPES OF CHECK SHEETS:
1. Process distribution check sheet.
Used to collect on process variability.
2. Defective item check sheet.
Specifies the variety of defects occurring.
3. Defect location check sheet.
Identify where defect occurs.
4. Defect factor check sheet.
Monitor the input parameters.
CHECK SHEET
ADVANTAGES
Distinguishes between fact and opinion.
Gathers data about how often a problem occurs.
Gathers data about the type of problem that occurs.
CHECK SHEET
HISTOGRAM Specialized type of bar chart showing distribution of variable
quantities.
Simple, graphical view of accumulated data.
Provides easiest way to evaluate the distribution of data.
ADVANTAGES:
Used to show clearly where the most frequently occurring values are
located and data is distributed.
Tool for determining maximum process results.
Enables the analysts to quickly visualize the features of a complete
data set.
Provides an easy-to-read picture of the location and variation in a data
set.
HISTOGRAMHISTOGRAM STATISTICS
The following are calculated for histogram:
Mean
Minimum
Maximum
Standard Deviation
Class Width
Number Of Classes
Skewness
Kurtosis
HISTOGRAMTYPES OF HISTOGRAM
Bell shaped
Double peaked
Plateau
Comb
Isolated peak
Edged peak
Skewed
Truncated
HISTOGRAM
PARETO DIAGRAM
Also known as ‘80/20 rule’ and ‘ABC analysis’.
Wilfredo Pareto – Italian Economist.
Diagnostic tool used for separating the ‘vital few’ from the ‘trivial many’
causes that account for a dominant share of quality loss.
Based on “Pareto Principle” – few (20%) of the defects accounts for most
(80%) of the effects.
PARETO DIAGRAM
ADVANTAGES Used for focusing on critical issues by ranking them in order of
importance and frequency.
It prioritizes problems or causes to efficiently initiate problem-solving.
It analyzes problems or causes by different groupings of data.
Analyzes before and after impact of changes made in a process.
Used as risk assessment technique from activity level to system level.
Clearly prioritizes the magnitude of the problem.
PARETO DIAGRAMSTEPS INVOLVED:
1. Collect data.
2. Arrange data in descending order.
3. Calculate relative percentage of individual data.
4. Calculate cumulative percentage for individual data.
5. Draw a graph with scales on both the axis.
6. In the order of data, draw bars.
7. Using cumulative percentage of data, draw cumulative curve.
8. Identify the vital few.
PARE
TO D
IAG
RAM
CAUSE AND EFFECT DIAGRAM Also known as ‘fish bone diagram’ (because of its appearance) or
‘Ishikawa diagram’ (after the name of the person who developed it in 1943).
A graphical – tabular chart to list and analyze the potential causes of a given problem.
Diagram- Central stem- leading to effect Multiple branches- possible causes. Ishikawa-
Kaoru Ishikawa Japan Pioneered quality management process in the Kawasaki shipyards.
CAUSE AND EFFECT DIAGRAM Causes in CE diagram- arranged in 4 major categories:
Recommended for Manufacturing- (4 M’s) Man power Methods Materials Machinery
Recommended for administration and services Equipment Policies Procedures People
CAUSE AND EFFECT DIAGRAMUSES:
To analyze C & E relationships.
To facilitate the search for solutions of related problems.
To standardize existing and proposed operations.
To educate and train personnel in decision-making and
corrective-action activities.
Used to explore the potential or real causes (inputs) that
result in a single effect (output).
To search for the root causes, identify areas where there may
be problems and compare the relative importance of different
causes.
CAUSE AND EFFECT DIAGRAMADVANTAGES:
Identifies the potential causes of a problem or an issue in
an orderly way.
Summarizes the major causes under 4 categories.
Has unlimited application in research, manufacturing,
office operations, services and so forth.
CAUSE AND EFFECT DIAGRAMSTEPS:
Place the problem statement in box on the right.
Draw the major causes (4 M’s).
Place the brainstormed ideas in appropriate major causes.
Branch off the main causes to sub/sub/sub causes.
Look for causes that appear repeatedly.
Determine critical causes.
Work out counter actions.
CAUSE AND EFFECT DIAGRAM
CAUSE AND EFFECT DIAGRAM
SCATTER DIAGRAM A graphical tool to depict the relationship between two variables:
o Horizontal axis- Cause (Independent variable)
o Vertical axis- Effect (Dependent variable)
Displays paired data as a cloud of points. Density and direction of
the cloud – indicates how 2 variables influence each other.
Indicates the existence and strength of the relationship.
Used as follow-ups to CE analysis- to determine whether a stated
cause has impact on quality characteristics.
TYPES
Positive correlation
Negative correlation
No correlation
Negative correlation may exist
Correlation by stratification
Curvilinear relationship.
SCATTER DIAGRAM
USES
Scatter diagram are mostly used to find the pattern of
relationship between 2 variables, like:
Cutting speed and tool life
Breakdown and equipment age
Training and errors
Speed and gas mileage
Production speed and the number of defective parts.
SCATTER DIAGRAM
ADVANTAGES
Validating ‘hunches’ about CE relationship between
types of variables.
Displays direction (+,-,….) and strength of relationship.
Used to understand, why particular variations occur and
how they can be controlled.
SCATTER DIAGRAM
STEPS
Select variables which are related to each other.
Collect data.
Create scatter diagram – X axis- cause and Y- axis-
effect.
Examine the shape of cloud of points.
Determine the type and strength of the mutual
relationships.
SCATTER DIAGRAM
SCATTER DIAGRAM
SCAT
TER
DIA
GRA
M
CONTROL CHART Invented by Walter.A.Shewart, most widely used tool in SPC.
A graph that displays data taken over time and the variations of this data.
Used to check whether the process is being controlled statistically.
Illustrates dynamic performance of the process.
Based on a series of random samples taken at regular intervals.
Chart- has 3 horizontal lines:
Centre- set at normal design value.
LCL- Lower Control Limit- (-3) S.D of sample mean.
UCL- Upper Control Limit- (+3) S.D of sample mean.
If sample lies between these lines- process is in control, sample lies outside-
out of control.
CONTROL CHART
CONTROL CHART
CONTROL CHARTTYPES
Control charts for variables- for measurable data (time,
length, temperature, weight, pressure, etc)
Control charts for characteristics- for qualifiable data
(number of defects, typing errors in a report).
CONTROL CHARTUSES
To identify when the process has gone oyt of control-
thus signaling need for some action.
Used to show the sources of variations and eliminate
them in order to control the process.
Used to evaluate process stability and to decide when
to adjust the process.
NEW SEVEN MANAGEMENT TOOLS
Seven Management and Planning tools (MP tools).
Seven basic tools- for quantitative problems,
Seven MP tools- for qualitative problems.
Uses subjective information and are used for the following:
o Process improvement,
o Cost reduction,
o Policy deployment,
o New product development.
Used to find the root cause of the problem by focusing on the process.
Develops critical thinking.
NEW SEVEN MANAGEMENT TOOLS
Helpful for managers to
• Organize large amounts of non-quantitative data,
• Create hypothesis,
• Clarify inter- relationships,
• Establish priorities.
Very useful for top and middle level managements for strategic
planning, goal setting and problem solving.
Procedure adopted – as follows:
• Describe the problem clearly,
• Keep asking ‘why’ till root cause is obtained.
NEW SEVEN MANAGEMENT TOOLS
AFFINITY DIAGRAM
RELATIONSHIP DIAGRAM
TREE DIAGRAM
MATRIX DIAGRAM
MATRIX DATA ANALYSIS
DECISION TREE (PDPC)
ARROW DIAGRAM (PERT)
S.NO MANAGEMENT TOOLS PURPOSE
1 AFFINITY DIAGRAM For synthesizing, classifying, organising indefinite ideas
2 RELATIONSHIP DIAGRAM For isolating cause and effect relationship
3 TREE DIAGRAM For deploying general concepts into details
4 MATRIX DIAGRAM For correlating in logical form, in order to evaluate, select, and decide
5 MATRIX DATA ANALYSIS For quantifying relationship
6 DECISION TREE (PDPC) For identifying alternatives
7 ARROW DIAGRAM For planning
NEW SEVEN MANAGEMENT TOOLS
Also known as ‘ KJ Diagram’Tool to collect a large amount of verbal expressions and organize them in groups according to natural relationships between individual items.Special kind of brain storming tool.
USESIt is used To provide a visual representation of large amount of ideas. To determine logical priorities. To extract large amount of useful information from few or scattered
data, or from unrelated ideas. To understand and organize unclear problems. To create new concepts.
AFFINITY DIAGRAM
AFFINITY DIAGRAM
AFFINITY DIAGRAM
ADVANTAGES
A participative exercise which generates commitment.
Identifies common view in thinking within a group.
Provides valuable ideas which can be refined by using other
tools.
Excellent for preliminary planning purposes, particularly in
addressing poorly defined areas where the problem is to
identify the problems.
AFFINITY DIAGRAM
STEPS
Define problem.
Generate ideas.
Record ideas on cards.
Display cards in random order.
Arrange cards in groups.
Create headers for groupings.
Draw the affinity diagram.
AFFINITY DIAGRAM
Also known as ‘Inter-relationship diagraph’. Tool to find causes to a problem. Same logic as CE diagram. Not only clarifies relationship between cause and effect, but also
between various causes. A graphical representation of all factors in a complicated problem,
system or situation. A creative process, which allows for ‘multi-directional’ thinking rather
than ‘linear’ thinking. The header cards from affinity diagram are used as the starting point for
relations diagram. It reveals the following:
Relationship between causes, Multiple routes from cause to effect, Relative importance of the causes.
RELATIONSHIP DIAGRAM
RELATIONSHIP DIAGRAM
USES
To generate a visual representation of the relations between
an effect and its causes as well as inter-relationship between
different causes of the problem.
Can be used to
Identify key problem from a list of important problems.
Identify the root cause of existing problem.
Identify key factors needed to make a decision.
RELATIONSHIP DIAGRAM
STEPS
Identify ‘effect’ – in centre.
Conduct brainstorming – to identify immediate cause-
around the effect.
Connect with an arrow mark with a head, towards effect.
Most outgoing arrows- indicate root cause
Most incoming arrows- indicate key outcome or result.
RELATIONSHIP DIAGRAM
Also known as ‘systematic diagram’.
Adaptation of the Fundamental Analysis System Technique (FAST) in value
engineering.
It systematically breaks down a topic into its component elements, and shows the
logical and sequential links between these elements.
Outlines the spectrum of paths and tasks that must be carried out to achieve a goal.
Serves the purpose of developing the essential means to achieve an objective or
goal.
Used when the causes that influence the problem are known, but a plan and method
for resolving the problem has not been developed.
According to Mizuno, this method searches for the most appropriate arid effective
means of accomplishing objectives.
TREE DIAGRAM
TREE
DIA
GRA
M
TYPES
Constituent-component-analysis diagram breaks down the main
subject into basic elements and depicts their relationships to the
objectives and the means of obtaining those objectives.
The plan-development diagram systematically shows the means and
procedures necessary to successfully implement a given plan.
TREE DIAGRAM
STEPS
State the problem to be studied.
Brainstorm all possible causes (for why-why diagram) OR
methods of addressing the problem (for how-how diagram).
Identify and list the primary, secondary and tertiary means
from brainstorm.
Arrange and re-arrange the elements in proper order in
boxes.
TREE DIAGRAM
USES Helps to breakdown complex issues into sub issues. Useful in planning a new program, a new service or a new product. Enables developing a sequence of steps that depend on each other
and from the solution to a problem. Used when missing a key step in implementing the solution to a
problem can lead to serious consequences. Purpose is to explore the ways and means to achieve the objective,
develop a list of alternative means and to present them in visual understandable form.
Helps to develop a systematic, step-by-step strategy to achieve an objective
TREE DIAGRAM
Also known as ‘multi-dimensional matrices’ or ‘quality table’.
Tool used to systematically organize information that must be
compared on a variety of characteristics in order to make a
comparison, selection or choice.
Depicts the relation between 2, 3 or 4 sets of factors in the
form of table or a matrix.
Starting point in building a ‘house of quality’.
Clarifies problematic spots through multi-dimensional
thinking.
Identifies corresponding elements involved in a problem
situation or event.
MATRIX DIAGRAM
MATRIX DIAGRAM
MATRIX DIAGRAM
L-shaped 2 groups AB or AA
T-shaped 3 groups BAC but not BC
Y-shaped 3 groups ABCA
C-shaped 3 groups All three simultaneously (3D)
X-shaped 4 groups ABCDA but not AC or BD
Roof-shaped 1 group AA when also AB in L or T
TYPES
STEPS
Determine the factors.
Select the type of matrix to be used.
Select the relationship symbol to be used.
Complete the proper matrix using appropriate factors and
symbols.
Examine the matrix and draw the appropriate conclusion.
MATRIX DIAGRAM
USES Used to show relations between individual items in 2 sets of factors. Eg.
Used to understand the relations betweeno Customer satisfaction and product characteristics.o Complaints and product groups.o Complaints and geographical regions.o A product’s performance in the market and promotional inputs into it.
QFD:o Quality Function Deployment.o A popular methodology based on matrix-style representation.o Column- “how”- different things that can be done to achieve the
objectives. (‘how to accomplish’).o Row- “what”- customer requirements or objectives (‘what to
accomplish’)
MATRIX DIAGRAM
Prioritization matrix.
Similar to matrix diagram but numerical data is used
instead of symbols indicating the existence and strength of
relationship.
Only tool among “New 7 MP tools” which uses numerical
data and produces numerical results.
It is a multivariate analysis technique called “Principal
Component Analysis”.
Used when matrix chart does not give detailed information
sufficiently.
MATRIX DATA ANALYSIS
MATRIX DATA ANALYSIS
STEPS
Decide the 2 factors whose relations are to be analyzed.
Check the number of individual items in 2 factors.
Prepare a matrix to accommodate all items of 2 factors.
Enter numerical data in the matrix.
Analyze the final results.
MATRIX DATA ANALYSIS
USES
Analyzes production process where factors are complexly intertwined.
Analyzes causes of non-conformities that involve a large volume of
data.
Grasps the desired quality level indicated by the results of the market
survey.
Classifies sensory characteristics systematically.
Accomplishes complex quality evaluations.
Analyzes curvilinear data.
MATRIX DATA ANALYSIS
Process Decision Programme Chart (PDPC).
An adaptation of the Operations Research methods.
A planning tool to outline every conceivable and likely
occurrence in any planning.
A very useful and powerful method to overcome an
unfamiliar problem or a goal
DECISION TREE
CHARACTERISTICS
A simple graphical tool used to mitigate risk in virtually any undertaking.
Helps to determine which processes to use to obtain desired results by
evaluating the progress of events and the variety of conceivable outcomes.
Establishes an implementation plan for mgmt by objectives.
Establishes an implementation plan for technology development themes.
DECISION TREE
DECISION TREE
STEPS
Prepare a ‘normal’ flow chart of process with all expected events as
steps in the chart.
Identify various possibilities of the process not going as per the plan due
to any abnormal occurrences.
Write these occurrences on flow chart through branching at appropriate
locations
Identify the ways and means to counts the effects due to abnormal
occurrences.
Write these counter measures connecting the corresponding abnormal
occurrences on one side and the process objectives on the other.
DECISION TREE
USES
Useful when one wants to plan all possible chains of events
that might occur during a project.
Used in new product development, building and equipment,
and data processing programs.
Used in decision making when the task is new, complex and
unique.
DECISION TREE
Also known as ‘activity network’ or CPM critical path method.
Graphical description of the sequential steps that must be
completed before a project can be completed.
Best known arrow diagram – PERT (Program evaluation and
review technique).
A planning tool that determines the critical path of a process or a
project.
It is a technique of planning, scheduling and control of activities
of a project.
ARROW DIAGRAM
ARROW DIAGRAM
TYPES
Activity on arrow (AOA) diagram – widely used.
Activity on node (AON) diagram.
STEPS
Identify and list each activity to be done in the project.
Determine the sequence of activities.
Construct a network reflecting the precedence relationships.
Write the activity time under the arrow leading from it.
ARROW DIAGRAM
USES Helps understand and manage a complex project (task). Enables understanding and managing a project in which multiple
activities take place and must be managed simultaneously. Enables explaining the project status to others. Helps implement plans for new product development and also to
develop product- improvement and respective follow-up activities. Helps establish daily plans for experimental trials and also for increase
in production and their follow-up activities. Helps synchronize the preceding plans for QC activities. Helps develop plans for a facility move and for monitoring follow-up. Helps analyze a manufacturing process and draw up plans for improved
efficiency.
ARROW DIAGRAM
SCOPE OF SIX SIGMA
Manufacturing
Service Industries
Hospitals
Insurance
Call Centre
SIX SIGMA
BENCHMARKING
Process of determining who is the very best, who sets the
standard and what the standard is.
It is a systematic method by which organizations can measure
themselves against the best industry practices.
It is finding the secrets of any given function or process so that a
company can learn from the information and improve on it.
It helps the company close the gap with the best-in-class
performer without having to reinvent the wheel.
BENCHMARKING
DEFINITION
“The process of identifying, understanding and adapting outstanding
practices and processes from organizations anywhere in the world to
an organization to improve its performance”. – APQC (American
Productivity and Quality Centre).
“The continuous process of measuring products, services and
practices against the toughest competitors or those companies
recognized as industry leaders”. -David Kearns.
“The systematic comparison of elements of performance of an
organization against those of other organizations, usually with the
aim of mutual improvement”. –Thore.
BENCHMARKINGA STEP-BY-STEP APPROACH TO BENCHMARKING
BENCHMARKINGTYPES OF BENCHMARKING
Based on the OBJECT to be benchmarked.
Product benchmarking.
Performance benchmarking.
Process benchmarking.
Strategic benchmarking.
Generic benchmarking.
Based on ORGANISATION against whom one is benchmarking.
Internal benchmarking.
External benchmarking.
Industry benchmarking.
Competitive benchmarking.
Best-in-class benchmarking.
Relationship benchmarking.
FMEAFAILURE MODE EFFECT ANALYSIS
A Failure Mode is:
The way in which the component, subassembly, product, input,
or process could fail to perform its intended function
Failure modes may be the result of upstream operations or
may cause downstream operations to fail
Things that could go wrong
Why?
Methodology that facilitates process improvement
Identifies and eliminates concerns early in the development of a
process or design
Improve internal and external customer satisfaction
Focuses on prevention
FMEA may be a customer requirement (likely contractual)
FMEA may be required by an applicable
Quality Management System Standard (possibly ISO)
FMEA
FMEA
BENEFITS
Allows us to identify areas of our process that most impact
our customers
Helps us identify how our process is most likely to fail
Points to process failures that are most difficult to detect
FMEA Manufacturing: A manager is responsible for moving a
manufacturing operation to a new facility. He/she wants to be
sure the move goes as smoothly as possible and that there are
no surprises.
Design: A design engineer wants to think of all the possible
ways a product being designed could fail so that robustness can
be built into the product.
Software: A software engineer wants to think of possible
problems a software product could fail when scaled up to large
databases. This is a core issue for the Internet.
FMEAFMEA PROCEDURE
1. For each process input (start with high value inputs), determine
the ways in which the input can go wrong (failure mode)
2. For each failure mode, determine effects Select a severity level for each effect
3. Identify potential causes of each failure mode Select an occurrence level for each cause
4. List current controls for each cause Select a detection level for each cause
FMEAFMEA PROCEDURE
5. Calculate the Risk Priority Number (RPN)
6. Develop recommended actions, assign responsible persons,
and take actions Give priority to high RPNs
MUST look at severities rated a 10
7. Assign the predicted severity, occurrence, and detection levels
and compare RPNs
FMEARISK PRIORITY NUMBER (RPN)
RPN is the product of the severity, occurrence, and detection scores.
Severity Occurrence Detection RPNX X =
FMEA
PROCESS TO CHANGE OIL IN A CAR
Drive caron lift
Fill withnew oil
Take Car off lift Process
Complete
3000 miles driven
Drain Oil ReplaceFilter
FMEA WORKSHEET
Process or Product Name
Change Oil in Car Prepared by: Leon Page _1____ of __1____
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil—Mechanic
Wrong type of oil
Engine wear
No oil added
Engine Failure
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
FMEA
Process or Product Name: Hotel Service at Special Olympics Prepared by: Page _____ of ______
Person Responsible: Joe Quality Date (Orig) ___________ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Register guest
Service Desk
Cannot Register in time
Complaints 5 Lack of language and communication skills, support of volunteers not sufficient
4 No plan on training content; training and volunteer support sufficient
3 72
Provide Guest Services
Guest Support
Lack of barrier-free facility
Inconvenience and injury
10 Cannot provide barrier-free facility
3 Providing barrier-free facility
7 210
Provide Meals
Food Service
Food goes bad
Disease or injury
10 Past shelf life
6 No control of raw material
8 240
Provide Medical Service
Medical Service
Service not in time
Illness changes for worse
10 No 24 Hour service
6 12 hour service
3 180
FMEA
FMEA identifies risk in our processes Impact/Severity Probability of Occurrence Detection
Helps identify what can go wrong and what we should fix
Can be used in multiple stages of process improvement
FMEA
SUMMARY
FMEA identifies risk in our processes
Impact/Severity
Probability of Occurrence
Detection
Helps identify what can go wrong and what we should fix
Can be used in multiple stages of process improvement