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
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 diagram Identify causes that account for quality loss Cause and effect diagram Identify and analyze causes of a given problem Scatter diagram Relationship between two variables Control chart Identifying process variations and signaling corrective actions. Q-7 TOOLS Plan (P) Do (D) Check (C) Act (A) Flow chart Check sheet Histogram Pareto diagram Cause and effect diagram Scatter diagram Control 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. SYMBOL NAME MEANING Terminator Start or end Action Process or Activity or Task Decision Decision Arrow Direction of flow Link Link to another page ALSO 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. ADVANTAGES Distinguishes between fact and opinion. Gathers data about how often a problem occurs. Gathers data about the type of problem that occurs.
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. HISTOGRAM STATISTICS The following are calculated for histogram: Mean Minimum Maximum Standard Deviation Class Width Number Of Classes Skewness Kurtosis TYPES OF HISTOGRAM Bell shaped Double peaked Plateau Comb Isolated peak Edged peak Skewed Truncated 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. 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. STEPS 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. 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. Causes in CE diagram- arranged in 4 major categories: Recommended for Manufacturing- (4 Ms) Man power Methods Materials Machinery Recommended for administration and services Equipment Policies Procedures People
USES: 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. ADVANTAGES: 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. STEPS: Place the problem statement in box on the right. Draw the major causes (4 Ms). 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.
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.
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. 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.
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.
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.
TYPES 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). USES 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. 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.
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.
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 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.
USES It 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. 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. 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. 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. 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. 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. 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. 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.
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. 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 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. 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. USES Used to show relations between individual items in 2 sets of factors. Eg. Used to understand the relations between o Customer satisfaction and product characteristics. o Complaints and product groups. o Complaints and geographical regions. o A products 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) 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. 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. 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. 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 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. 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. 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. 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. 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. 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. SCOPE OF SIX SIGMA Manufacturing Service Industries Hospitals Insurance Call Centre 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. 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. A STEP-BY-STEP APPROACH TO BENCHMARKING TYPES 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. FAILURE 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) 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 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.
FMEA 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 FMEA 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
RISK PRIORITY NUMBER (RPN) RPN is the product of the severity, occurrence, and detection scores. Severity Occurrence Detection RPN X X = PROCESS TO CHANGE OIL IN A CAR Drive car on lift Fill with new oil Take Car off lift Process Complete 3000 miles driven Drain Oil Replace Filter 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 S e v Potential Causes O c c Current Controls D e t R P N Actions Recommended S e v O c c D e t R P N Fill with new oil New Oil Mech anic 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 it RPN Risk Priority Number (multiply Sev, Occ, and Det) 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 S e v Potential Causes O c c Current Controls D e t R P N Actions Recommended S e v O c c D e t R P N Register guest Service Desk Cannot Register in time Complaints 5 Lack of language and communicat ion 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 Inconvenien ce 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 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
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
Course Name: Developing Soft Skills and Personality Course Instructor: Dr. T. Ravichandran Institute Affiliation: Indian Institute of Technology Kanpur Assignment 2