Case Study of Quality

Engineering Productivity

Aulia Ishak, ST, MT, Ph.D

 Agenda
• Motivation
• Evolution of Quality, “survival of the fittest”
– SPC
– Reengineering
– TQM
– Six Sigma
• What’s Next after Six Sigma
• Educational Findings
• Future of the Quality Profession
 Motivation
• January 2006 issue of Quality Progress. After Six
Sigma- What's next? By Søren Bisgaard and
Jeroen De Mast.
• To hope quality management will go away is
wishful thinking.
• The next step for quality professionals should be
to broaden the scope to systematic innovation.
– “We predict a scientific approach to problem solving will remain
the foundation of our profession” (Bisgaard & De Mast 2006)
 Evolution of Quality Profession
• Evolution relies on two fundamental mechanisms:
1. Variation (or change)
2. The selection of the most favorable variant by the principle of
survival of the fittest.
• Current Six Sigma approach- incorporates a wide
variety of ideas that originated from previous
incarnations of quality management.

Some quality principles remain fit!!

(principal of survival of the fittest)
 Evolution of Quality
Quality: Business
Process
Statistical Reengineering
Quality Six Sigma
Control
Total
Quality
Management
Lean
Productivity: Six Sigma
Toyota
Production
System Lean
Ford
Six Sigma
Production Lean
Supply Chain
System
JIT
Supply Chain

Information MRP, ERP

Technology: MRP II CRM
Source: Furterer 2004 (ASQ CQSDI)
 Evolution of Quality
Quality: Business
Process
Statistical Reengineering
Quality Six Sigma
Control
Total
Quality
Management
Lean
Productivity: Six Sigma
Toyota
Production
System Lean
Ford
Six Sigma
Production Lean
Supply Chain
System
JIT
Supply Chain

Information MRP, ERP

Technology: MRP II CRM
Source: Furterer 2004 (ASQ CQSDI)
Statistical Process Control
• A methodology for monitoring a process to
identify special causes of variation and signal
the need to take corrective action when
appropriate.
• Seven tools:
1. Control Charts.
2. Histogram.
3. Pareto Diagram.
4. Cause-Effect Diagram.
5. Check Sheets.
6. Process Flow Diagram.
7. Scatter Diagram.

• Focus: quality control

 SPC & Six Sigma
• Most Fitted Elements:
– SPC tools- provided the foundation for understanding
and reducing variability through application of statistical
theories.

• Least Fitted Elements:

– Focus on quality control only.
– Quality Control departments- main function was
inspection and control to specifications.
 Evolution of Quality
Quality: Business
Process
Statistical Reengineering
Quality Six Sigma
Control
Total
Quality
Management
Lean
Productivity: Six Sigma
Toyota
Production
System Lean
Ford
Six Sigma
Production Lean
Supply Chain
System
JIT
Supply Chain

Information MRP, ERP

Technology: MRP II CRM
Source: Furterer 2004 (ASQ CQSDI)
 Business Process Reengineering
• The radical redesign of business processes for
dramatic improvement.
• Mid- to Late-80’s: global competition.
• Existing tools were no longer improving cost,
poor quality & bad service.
• Good news and Bad news
– Far exceeded expectations
– Unrecognizable
 Business Process Reengineering
& Six Sigma
• Most Fitted Elements:
– Key word “process”: Focus on complete end-to-end
set of activities that together create value for a
customer.

• Least Fitted Elements:

– Key word “radical”: Scratch and start over
 Evolution of Quality
Quality: Business
Process
Statistical Reengineering
Quality Six Sigma
Control
Total
Quality
Management
Lean
Productivity: Six Sigma
Toyota
Production
System Lean
Ford
Six Sigma
Production Lean
Supply Chain
System
JIT
Supply Chain

Information MRP, ERP

Technology: MRP II CRM
Source: Furterer 2004 (ASQ CQSDI)
Total Quality Management

...is the application of quantitative

methods and human resources to
improve all the processes within an
organization and exceed customer needs
now and in the future.
Total Quality Management

Source: Besterfield 2000

 TQM & Six Sigma

• Most Fitted Elements:

– Focus on quality
improvement.
– Firm management of
projects and the attention
to change management
theory and approaches.

• Least Fitted Elements:

– Measurement of success in
terms of activities.
 Evolution of Quality
Quality: Business
Process
Statistical Reengineering
Quality Six Sigma
Control
Total
Quality
Management
Lean
Productivity: Six Sigma
Toyota
Production
System Lean
Ford
Six Sigma
Production Lean
Supply Chain
System
JIT
Supply Chain

Information MRP, ERP

Technology: MRP II CRM
Source: Furterer 2004 (ASQ CQSDI)
 Six Sigma
• Is both a quality management philosophy and a
methodology that focuses on:
1. Reducing variation
2. Measuring defects
3. Improving quality of processes, products, and services
4. Instilling a philosophy of continuous improvement
• Incorporates a wide variety of ideas that originated
from previous incarnations of quality management.
• Phases:

Define Measure Analyze Improve Control

 Design for Six Sigma
DFSS is used to design or re-design a product or service.
DMAIC
• Define the project goals and
customer (internal and external)
requirements.
• Measure the process to determine
current performance.
• Analyze and determine the root
cause(s) of the defects.
• Improve the process by
eliminating defect root causes.
• Control future process
performance.
DMADV
• Define the project goals and
customer (internal and external)
requirements.
• Measure and determine customer
needs and specifications;
benchmark competitors and
industry.
• Analyze the process options to
meet the customer needs.
• Design (detailed) the process to
meet the customer needs.
• Verify the design performance
and ability to meet customer
needs.
The world keeps changing….
• Quality management will therefore always
need to be improved and adapted to the
changing circumstances.
 America’s Imperative
• U.S. Council on Competitiveness, Dec. 2004
“Innovate America: Thriving in a World of Challenge and Change”
• Challenge to long-term global economic
leadership
• Resolved: Innovation will be the single most
important factor in determining America’s success
through the 21st century
• America’s Task: For the past 25 years, we have
optimized our organizations for efficiency and
quality. Over the next quarter century, we must
optimize our entire society for innovation.
 Good News, Bad News
• Bad News: The Council believes, “the manufacturing
strategies introduced over the past two decades of lean,
Six Sigma-esque continuous productivity and quality
improvement are no longer a source of meaningful
competitive advantage.”
What?!
• Good News: We know better than that.
• Unfortunately, the image of our work is our problem.
• Broadening our focus and using more appropriate terms
that better reflect what we do will put quality
professionals in a better position to be part of the
solution.
Six Sigma vs. Systematic Innovation
• Six Sigma: focuses on more than just quality
– Six Sigma applications have evolved to focus on increasing
productivity, reducing cycle time, etc.
• Economists call applications “innovations”
• Not directly related to defect reduction
– Think broader, what we are really doing is improving an
organization’s competitive position, better satisfying our
customers and reducing costs→ INNOVATION!
• Quality improvement is about process and product
innovation.
– It is about improving anything: product designs, process designs,
radical changes, incremental changes or even new ways of
managing.
 Innovation
• Innovation as an economic concept includes
development of new:
– Products and services
– Methods of production or provision
– Methods of transportation or service delivery
– Business models
– Markets
– Forms of organization
• Stereotypically innovation is considered a
product of genius, a flash of light
• Innovation can be systematically planned and
organized
 Systematic Innovation
• The scientific approach to problem solving has
been with us since Shewhart’s days
– Foundation for the quality profession
• Six Sigma body of knowledge can, with minor
adjustments to scope and terminology, be
applied to systematize the innovation process
• Guides upper management to realize the
strategic importance of our work, leading to
better recognition
 Economic Focus
• Ultimate quality award is improved bottom
line profitability (Bisgaard & Freiesleben 2004)
• More than defects and operations
management
• Transition from TQM to Six Sigma:
– Evaluate cost of poor quality
– Project savings
Preparing for the
Future of Quality
 Engineer 2020
• National Academy of Engineering began a study in 2001
to prepare for the future of engineering
– “What will or should engineering be like in the year 2020?”
– “How can engineers best be educated to be leaders, able to balance
the gains afforded by new technologies with the vulnerabilities created
by their byproducts without compromising the well-being of society and
humanity?”
• How they performed the study:
– Scenario-based planning was used that eliminated the need to gain
consensus on a single view of the future.
– The study provided multiple opportunities that can help devise
strategies that can adapt to changing conditions.
 Engineer 2020
• Results reveals some implications to
Engineering Education:
– Broadly educated engineers who view themselves as
global citizens.
– Leaders in business and public service.
– Ethically grounded.
– Five or six year professional degree.
– Case histories incorporated into the curriculum.
Attributes of Future Engineers
 System Perspective
 Strong Analytical Skills
 Practical Ingenuity
 Creativity to Synthesize
 Mutual respect
 Social context / global citizen
 Customer focus
 Case-based learning
Attributes of Future Engineers
 Communication
 Team work, multi-disciplinary teams
 Leadership
 Ethical
 Professional
 Agility, Resilience, Flexibility, Receptive to change
 Lifelong learning
Departmental Reform Grant

• UCF is currently working on a

departmental reform grant from NSF
• Three-round Delphi study to identify…
– desired characteristics of an IE having
completed undergraduate education
– emerging topic areas that should be
incorporated into the reengineered curriculum
 Desired Characteristics
 Adaptable problem solving
 Quantitative/analytical abilities
 Creative and critical thinking
 Interpersonal skills/presence
 Teamwork skills
 Holistic problem solving
 Technical writing ability
 Computer skills
 Process evaluation/analyses
 Decision making ability
 Project management
 Human dimension of
management
 Global perspectives
 General engineering
 Diversity sensitivity
 Leadership awareness
 Emerging Topics
 Ethical Behavior
 Lean Enterprise
 Performance Management/Measurement
 Six Sigma / Design for Six Sigma
 Team Building and Facilitation
 Statistical Methods for Service and Transaction-based
entities
 Leadership
 Service Enterprise/Systems
 Knowledge Management
 Object-Oriented Simulation
 Enterprise Resource Management
 Human-Integrated Systems/Usability
 Preparing for the Future
Engineers’ Attributes TQI Course Component
Problem Solving DMAIC problem solving, case studies

System perspective System, process, statistical knowledge

Teamwork Team building, projects, project management,
brainstorming
Flexibility DMAIC, projects, team work

Leadership, management Responsibility Matrix, Accountability, Change

management, culture change, commitment,
communication plan
Working together Team ground rules, team work, empowerment,
reward, recognition, celebration
Professionalism ASQ Community Good Works Initiative focus
Technical Voice of Customer, QFD, benchmarking,
measurement
 Preparing for the Future
Engineers’ Attributes
Strong analytical skills
Practical ingenuity
Creativity to synthesize
Communication, team work
Ethical
Professional
TQI Course Component
Problem solving, quality and lean tools, statistical
knowledge, process and system focus
QFD, DOE, best practices, problem solving
Critical to Quality, process orientation, project and
team building
Team work, team building, reports and
presentations, mentoring
Quality principles, ground rules
Association with ASQ, all students must be members

Agility, Resilience, Flexibility Practical application on real life problems

Future of the Quality
Profession
 Systematic Innovators
Code name: Black Belt
• Organizations should decentralize quality
departments
• Instead, quality initiatives will be delegated to
innovation agents, namely black belts and
green belts throughout the organization
• Innovation should be seen as an integral part
of everyone’s task rather than the
responsibility of a separate department and a
few specialists
 Core Competencies
• Organizational structure designed to cultivate an
experimental and risk taking attitude
• It is no longer sufficient to be an expert
manager, marketing professional, or engineer.
– Competitors in low-cost countries increasingly also
have experts who are more inexpensive
• In addition to being an expert, professionals
must be well-trained and experienced in Six
Sigma type systematic innovation skills
– Emphasis on scientific approach to problem solving
 Opportunity
• Scientific approach to problem solving…
This is our thing!
• Embrace the idea of being systematic
innovators
• We will be the leading professionals of the
future knowledge economy
Questions or Comments?