Transcript ITED 434 Quality Organization & Management

PTTE 434 - Lecture 1
Quality Assurance,
Organization & Management
Jim Wixson, CVS, CMfgE
[email protected]
(208) 520-2296 (mobile)
(425) 385-8028 (Everett Apartment)
(425) 294-6947 (Boeing Office)
Lecture 1 - Objectives
 Learn the five definitions of quality
 Learn about some of the various quality “movements.
 Understand the concept of “Cost of Poor Quality.”
 Understand the concept of “Continuous Improvement.”
 Talk about some of the continuous improvement leaders and
tools.
 Learn about the importance of defining the problem well
before trying to solve it.
2
Garvin’s Five Definitions of
Quality
 Transcendent Definition (Relative Quality): Quality is
universally recognizable; it is related to a comparison of features
and characteristics of products.
 Product-Based: Quality is a precise and measurable variable.
Differences in quality reflect differences in quantity of some
product attribute.
 User-Based Definition: Quality is “fitness for intended use.”
3
Garvin’s Five Definitions of
Quality (Cont’d)
 Manufacturing-Based Definition: Quality is “conformance to
specifications.”
 Value-Based Definition: Quality is defined in terms of costs
and prices. A quality product is one that provides performance
at an acceptable price or conformance at an acceptable costs.
4
Quality Revolution or Quality
Confusion?
5
Juran’s Approach
 Balanced approach using managerial,
statistical, and technological concepts of
quality
 Operational Framework: Quality Planning,
Control, and Improvement
6
W. Edwards Deming
 Broad Systems view of quality
 14 points focused on four parts:




systems approach
statistical variation
nature and scope of knowledge
psychology and understanding of human
behavior
7
A. V. Feigenbaum
 Emphasized “Total Quality Control” throughout
all functions of the organization.
 Total Quality Control means both planning and
control.
 Provide technical and managerial procedures
to ensure customer satisfaction and an
economical cost of quality.
8
Philip Crosby
 Defined quality as: Conformance to
requirements.
 The only performance standard is ZERO
DEFECTS.
 All levels of employees can be motivated, but,
they need the right tools.
9
Crosby’s Four Absolutes of
Quality Management
 Quality is defined as conformance to requirements,
not as 'goodness' nor 'elegance'.
 The system for causing quality is prevention, not
appraisal.
 The performance standard must be Zero Defects, not
'that's close enough'.
 The measurement of quality is the Price of Non-
conformance, not indices.
10
Kaoru Ishikawa
 Showed the Japanese how to integrate the
many tools of quality, especially the simpler
tools.
 Basic 7 Tools: Histograms, Pareto Charts,
Cause and Effect Diagrams, Run Charts,
Scatter Diagrams, Flow Charts, Control
Charts
11
Six Sigma?
12
Show Film
Carving a Career in Quality, Phillip Cosby and
Assoc., 25 min.
13
It can’t be done!
“Management wants us to add on these quality
activities to our regular duties without giving
us the additional time [to accomplish them] -it can’t be done!”
 Discussion - How can it be done?
 Has your employer implemented any quality
improvement programs?
 How was it done?
14
Quality? - Convincing Management
 Loss of production
 Loss of customers
 Loss of business
 Loss of jobs
 Class - Can you list some more reasons?
15
Hidden costs of poor quality
Reprocessing
Rejects Sorting Inspection
Customer returns
Warranty Downgrading
expenses
of product
Competitor
Lost sales
Process downtime
Extra inventory
Lost discounts
Damaged goods
Overtime to correct errors
Loss of good will
Paperwork errors
Delays
Obsolete inventory
Premium freight costs
Incorrect orders shipped
Customer allowances
Extra process capacity
Competitor
Competitor
16
Quality? - Convincing Management
 Quality is no longer just a technical issue, it is
a business issue.
 In order for a quality program to succeed, top
management must be involved and
committed to its success.
 A company’s success is directly related to
management’s commitment to quality.
17
Opportunity Cost of Attrition
300,000
30,000
$28,000
$26,000
$27,000
$28,500
250,000
Dollars (000s)
25,000
200,000
20,000
150,000
15,000
100,000
10,000
120,000
124,000
125,000
122,500
Number of Households
35,000
50,000
5,000
0
0
1Q
Annual Avg. profit lost (000s)
Households defecting
2Q
3Q
4Q
Quarters
18
Cost per Good Unit of Product
Optimum Cost of Quality
Total
quality costs
per good unit
of product
Failure costs
Optimum cost
Costs of appraisal
plus prevention
0
(No quality)
100
Quality of Conformance %
(Perfection)
19
Two Components of Quality
Manufacturing Industries
Performance
Reliability
Durability
Ease of Use
Service Industries
Product Features
Accuracy
Timeliness
Completeness
Friendliness and Courtesy
Serviceability
Anticipating Customer Needs
Aesthetics
Knowledge of Server
Availability of Options and
Expandability
Reputation
Appearance of Facility and
Personnel
Reputation
Freedom from Deficiencies
Product free of defects and
Service free of errors during
errors at delivery, during use, original and future service
and during servicing
transactions
All processes free of rework
All processes free of rework
loops, redundancy, and other loops, redundancy, and other
waste
waste
20
Quality Progress
21
Little Q and Big Q
Topic
Content of Little Q
(internal view)
Content of Big Q
(external view)
Products
Manufactured Goods
All products, goods, and
service whether for sale, or not
Processes
Processes directly related
to manufacture of goods
All processes; manufacturing
support; business, etc.
Industries
Manufacturing
All industries; manufacturing;
service, government, etc.
whether for profit or not
22
Continuous Improvement
I
Am
My input
My output
Responsible
My
supplier
As a
Requirements
and feedback
My
customer
for Quality
Good
Customer
I will:
1. Agree on and
document my
requirements with my
supplier.
2. Return defective
inputs to my supplier
promptly and
tactfully.
3. Feedback input
quality data to my
supplier.
As a
As a
Good Process
Good
Owner or User Supplier
I will:
1. Learn to apply
the tools of quality teach others.
2. Continuously
improve my process
- reduce defects,
cycle time, and
know benchmarks.
3. Document and
display my process,
defect levels, and CI
projects.
I will:
Requirements
and feedback
1. Understand my
customer
requirements, and
agree on and document
my deliverables.
2. Reduce defects and
variations in my
output.
3. Measure my output
quality from my
customer’s perspective.
23
Competitive Standing
24
Attribute Comparison - Radar Graph
Safety
180
160
140
Plant service
120
100
Performance
80
60
40
20
0
Company image
Quality
Ease of use
Company X
Field service
Competitor A
Competitor B
25
Performance - Satisfaction Map
100
Performance (% satisfied)
Product
Leverage competitive
strength
Maintain Status quo
80
Sales
60
Repairs
Assign little or no
priority on action.
40
Add resources to
achieve improvement
Billing
20
0
17.5
35
Importance
52.5
70
26
Convincing upper management
Return on assets (ROA) = Profit margin x Asset turnover
Assume COPQ* = 10% of sales revenue
Profit margin = 7%
Asset turnover = 3.0
=> ROA = 7% x 3.0 =21%
Assume COPQ reduced to 6% of sales revenue
=> Profit margin = 7% + (10% - 6%) = 11%
Asset turnover = 3.0
=> ROA = 11% x 3.0 = 33%
A 4% reduction in COPQ results in a 12% increase in ROA!!
*Cost of Poor Quality
27
Convincing upper management
 Estimate the size of quality related losses.
 Identify ways of improving quality.
 Estimate the savings and other benefits.
 Calculate return on investment (ROI)
 Use a successful case history to justify a
broader program.
 If all else fails, take pictures of waste and/or
hazards (EIMCO example).
28
Are Quality Approaches
Influenced By Culture?
Quality Approaches are
Influence by Culture
The US approach
has historically been
command-andcontrol oriented.
The Japanese
approach is based on
an ethic of consistency
and emphasis on
reduction of waste.
The Europeans have
adopted broad
standards that can
be adapted to the
diverse nation states
of the EC.
29
National and International Quality
Awards
 Malcolm Baldrige National Quality Award
 Deming Prize
 European Quality Award
 Shingo Prize
The US approach
has historically been
command-andcontrol oriented.
30
The Malcolm Baldrige National
Quality Award
 Malcolm Baldrige National Quality Award


The award is open to small (less than 500 employees)
and large firms (more than 500 employees) in the
manufacturing and service sectors.
There can be only two winners per category each
year. That limits the number of yearly awards to six.
31
The Malcolm Baldrige National
Quality Award
 The President of the United States traditionally presents the
Awards at a special ceremony in Washington, DC. Awards are
made annually to recognize U.S. organizations for performance
excellence. The Award eligibility categories are:





manufacturing businesses
service businesses
small businesses
education organizations
health care organizations
 Recipients are expected to share information about their
successful performance strategies with other U.S. organizations.
32
The Malcolm Baldrige National
Quality Award
 The Award is named for Malcolm Baldrige, who served as
Secretary of Commerce from 1981 until his tragic death in a
rodeo accident in 1987. His managerial excellence contributed
to long-term improvement in efficiency and effectiveness of
government.
33
The Malcolm Baldrige National
Quality Award
 The Malcolm Baldrige National Quality Award was
created by Public Law 100-107, signed into law on
August 20, 1987.
 The Award Program, responsive to the purposes of
Public Law 100-107, led to the creation of a new
public-private partnership.
 Principal support for the program comes from the
Foundation for the Malcolm Baldrige National Quality
Award, established in 1988.
34
The Malcolm Baldrige National
Quality Award
 Key Characteristics of the MBNQA Criteria


The criteria focus on business results.
Companies must show outstanding results in a
variety of areas to win.
The Baldrige criteria are nonprescriptive and
adaptive. Although the focus on the Baldrige
award is on results, the means for obtaining
these results are not prescribed.
35
The Malcolm Baldrige National
Quality Award
 Key Characteristics of the MBNQA (cont.)



The criteria support company-wide alignment
of goals and processes.
The criteria permit goal-based diagnosis.
The criteria and scoring guidelines provide
assessment dimensions.
36
MBNQA Criteria
 The Criteria are designed to help organizations use
an integrated approach to organizational
performance management that results in:




delivery of ever-improving value to customers,
contributing to marketplace success
improvement of overall organizational effectiveness and
capabilities
organizational and personal learning
37
MBNQA Criteria
 The Criteria are the basis for organizational self-
assessments,for making Awards, and for giving
feedback to applicants. In addition, the Criteria have
three important roles in strengthening U.S.
competitiveness:



to help improve organizational performance practices,
capabilities, and results
to facilitate communication and sharing of best practices
information among U.S. organizations of all types
to serve as a working tool for understanding and managing
performance and for guiding organizational planning and
opportunities for learning
38
The Malcolm Baldrige National
Quality Award
Baldrige Award Framework
Customer and Market Focused
Strategy and Action Plans
2
Strategic
planning
5
HR develop. &
management
7
Business
results
1
Leadership
3
Customer and
market focus
6
Process
management
4
Information and analysis
39
The first phase of the Award cycle is to establish that
the applicant meets the eligibility requirements.
Applicants submit an Eligibility Certification Package
certifying that the organization is eligible to apply for
the Award.
In the second phase, Board of Examiners to conduct
a rigorous evaluation of an organization's
performance management system and the results of
its processes.
The third phase of the Award cycle involves the
review of the application package. Applications are
reviewed and evaluated by members of the Board
of Examiners, all of whom adhere to strict rules
regarding conflict of interest. The review is
conducted in three stages:
Stage 1 - Independent Review
Stage 2 - Consensus Review
Stage 3 - Site Visit Review
40
The Malcolm Baldrige National
Quality Award
 Being a Baldrige Examiner


Appointment to the board of Trustees for the
MBNQA Board of Examiners is a very
prestigious designation.
Examiners are unpaid volunteers, and must
be willing to give up approximately 10% of
their year to serve as an examiner.
41
The Malcolm Baldrige National
Quality Award
 For more information on the Malcolm
Baldridge National Quality Award, visit:
http://www.quality.nist.gov/
42
Quality Improvement: The
Japanese Way
The Japanese
approach is based
on an ethic of
consistency and
emphasis on
reduction of waste.
 Deming Prize


The Deming Prize for quality was established
in 1951 by the Japanese Union of Scientists
and Engineers (JUSE).
The Deming Prize is much more focused on
processes than is the Baldrige.
43
What is the Deming Prize?
 The Deming Application Prize
Given to companies or divisions of companies that have achieved distinctive
performance improvement through the application of TQM in a designated year.
 The Deming Prize for Individuals
Given to individuals who have made outstanding contributions to the study of
TQM or statistical methods used for TQM, or individuals who have made
outstanding contributions in the dissemination of TQM.
 The Quality Control Award for Operations Business Units
Given to operations business units of a company that have achieved distinctive
performance improvement through the application of quality
control/management in the pursuit of TQM in a designated year.
44
The Deming Prize
 For more information on the Deming Prize
visit:
http://www.deming.org/demingprize/
45
Other Japanese Contributions to
Quality Thought
 Lean Manufacturing (Toyota Production
System)




Lean is a method of systematically eliminating waste in
a production system.
Lean dramatically reduces cycle time.
Lean focuses on the company’s “value stream” to
identify wasted movement, wasted time, wasted
inventory, and wasted space.
Lean has been adopted by many US manufacturers
and other firms and has aided them in achieving
dramatic improvements in operations
46
Other Japanese Contributions to
Quality Thought - 5 S’s
 Other Japanese Contributions to Quality (cont.)
 The Five S’s. The five Ss are a sequential process
that companies follow to literally “clean up their acts.”
The Ss are:
 Seri (Sort): organizing by getting rid of the
unnecessary.
 Seiton (set in order): neatness that is achieved by
straightening offices and work areas.
 Siso (Shine): cleaning plant and equipment to
eliminate dirtiness that can hide or obscure problems.
 Seiketsu (Standardize): standardizing locations for
tools and other materials.
 Shetsuke (Sustain): discipline in maintaining the prior
four Ss.
47
Other Japanese Contributions to
Quality Thought
 Other Japanese Contributions to Quality
(cont.)

Quality Circles


Are natural work teams made up of workers that
are empowered to improve processes they use.
Total Productive Maintenance (TPM)

The idea behind this concept is that the worst
condition a machine should ever by is on the day
you purchase it.
48
Shingo Prize for Excellence
in Manufacturing
 Named for Japanese industrial engineer Shigeo
Shingo who distinguished himself as one of the
world’s leading experts in improving manufacturing
processes.
 The Prize was established in 1988 to promote
awareness of Lean manufacturing concepts
 Recognizes companies in the United States, Canada,
and Mexico that achieve world-class manufacturing
status.
49
Shingo Prize for Excellence
in Manufacturing
 The Shingo Prize recognizes organizations and research that
is consistent with its mission and model with two types of
prizes:


Business Prize—promotes use of world-class
manufacturing strategies and practices to achieve
world-class results.

Research Prize—promotes research and writing
regarding new knowledge and understanding of
manufacturing processes.
Business Week referred to the Shingo Prize as the “Nobel
prize of manufacturing,” because it establishes the standard
for world-class excellence.
50
Shingo Prize for Excellence
in Manufacturing
 For more information on the Shigo Prize visit:
http://www.shingoprize.org/AboutUs/default.htm
http://www.partnersusu.org/
51
Quality Improvement: The European
Way
 ISO 9000

Is the European standard for quality that has been
expanded worldwide.
 The ISO 9000 family is primarily concerned with
"quality management". This means what the
organization does to fulfil:

the customer's quality requirements, and applicable
regulatory requirements, while aiming to enhance
customer satisfaction, and achieve continual
improvement of its performance
The Europeans have
adopted broad
standards that can
be adapted to the
diverse nation states
of the EC.
52
Quality Improvement: The
European Way
 The ISO 14000 family is primarily concerned
with "environmental management". This
means what the organization does to:

minimize harmful effects on the environment
caused by its activities, and to

achieve continual improvement of its
environmental performance.
53
ISO 9000 and 14000
 ISO 9000 and ISO 14000 are known as generic
management system standards.
Generic means that the same standards can be applied to any
organization, large or small, whatever its product - including whether its
"product" is actually a service - in any sector of activity, and whether it
is a business enterprise, a public administration, or a government
department.
 Management system refers to what the organization does to manage
its processes, or activities in order that the products or services that it
produces meet the objectives it has set itself, such as the following:
 satisfying the customer's quality requirements,
 complying to regulations, or
 meeting environmental objectives.
54
ISO 9000 and 14000
 For more information on the ISO 9000 and
ISO 14000 visit:
http://www.iso.ch/iso/en/iso9000-14000/index.html
55
European Quality Award
 European Foundation for Quality Management
(EFQM) was founded in 1988 by the Presidents of 14
major European companies
 First European Quality Award issued in 1992
 Endorsed by the EU Commission
 Network has more than 700 members
 Formed the European framework for quality
improvement along the lines of the Malcolm Baldrige
Model in the USA and the Deming Prize in Japan.
The Europeans have
adopted broad
standards that can
be adapted to the
diverse nation states
of the EC.
56
European Quality Award
 Europe's most prestigious Award for
organizational Excellence
 Award levels are:

Award Winner

Prize Winners

Finalists

Recognized for Excellence
57
European Quality Award
 Prize Winner categories consist of :
 Leadership and constancy of purpose
 Customer focus
 Corporate social responsibility
 People development and involvement
 Results orientation
 Management by processes and facts
 Continuous learning, innovation and
improvement
 Partnership development
58
European Quality Award
 For more information on the European
Quality Award visit:
http://www.efqm.org/model_awards/eqa/intro.asp
59
Contributions of Various Disciplines
 Finance: Measuring the cost of poor quality
 Industrial Engineering: Design of integrated
systems, measurement, problem solving, work
analysis
 Information Technology: Measurement, analysis,
and reporting on quality
 Marketing Research: Competitive standing on
quality, understanding customer desires
 Operations Management: Management of
integrated systems
60
Contributions of Various Disciplines
(Cont’d)
 Operations research: Analyzing product
design alternatives for optimization
 Organizational Behavior: Understanding
quality culture, making teams effective.
 Organizational Effectiveness: Satisfying
the needs of both internal and external
customers.
61
Contributions of Various Disciplines
(Cont’d)
 Strategic Planning: Quality as a means of
achieving a unique competitive advantage.
 Systems Engineering: Translating customer needs
into product features and process features
 Value Engineering: Analysis of essential functions
needed by customer to find the lowest cost way of
providing these functions that meet quality, reliability,
and performance requirements.
62
Systems Dynamics
 Most process improvement efforts rely on breaking
problems down into smaller, more manageable,
components.
 This “reductionist” approach sometimes fails to
recognize that the problem is greater than the sum of
its parts.
 A “systems thinking” approach to identify interactions
between activities and the unintended consequences
that can arise from well-intended corrective actions.
63
How SD can facilitate the Improvement
Efforts
 SD provides a visual model of the system
under study.
 Changes to the system can be made easily
and quickly analyzed
 Repeated iteration of a SD model can
optimize the system under study
64
Approach for Quality Improvement Projects
 Get a champion
 Prove the need
 Identify Projects
 Organize teams
 Perform the study, or Kaisan
 Document recommendations
 Perform a pilot project
 Document results
 Expand to entire organization
65
Carrying out the project
 Verify project need and mission
 Diagnose the causes
 Provide a remedy and prove its effectiveness
 Deal with resistance to change
 Institute controls to hold the gains
66
Intro to Six Sigma
 Six Sigma Capability: Extremely small
variation in the process mean compared to
the range of the specification limits.
 Even if process mean shifts by 1.5 sigma =>
no more than 3.4 parts per million fall out of
the specification limit.
 Key focus: Y=f(X1…Xn)
67
Breakthrough Improvement
 Verify the project need (Six s: Define)
 Diagnose the Causes (Six s: Measure and
Analyze)
 Provide a remedy and prove its effectiveness
(Six s: Improve)
 Deal with resistance to Change (Six s:
Improve)
 Institute controls to hold the gains
(Six s:
Control)
68
Six Sigma Process Define the
Problem
Measure
Analyze
Click Here
 A) Identify what the customer wants.
 B) Organize an improvement team.
 C) Create a process flow chart - (SIPOC)




A) Select “Critical to Quality Characteristic” metrics.
B) Define Performance Standards.
C) Validate the measurement System.
D) Establish baseline performance in terms of Sigma Capability - Defects per
Million Opportunities.
 A) Identify significant characteristics and establish process capability.
 B) Define performance targets for significant characteristics.
 C) Identify root cause of process variation.
 A) Identify and evaluate potential solutions.
Improve
Control
End
 B) Implement short-term countermeasures.
 C) Implement long term corrective actions.
 D) Identify systemic indirect effects and unintended consequences of
improvement ideas.
 E) Establish operating tolerances for new process.
 A) Verify corrective actions and validate new measurement systems.
 B) Determine process capability.
 C) Establish and implement control plan.
 Move on to next highest priority process.
69
Value Engineering
 Value Engineering (VE) is an intensive, interdisciplinary
problem solving activity that focuses on improving the
value of the functions that are required to accomplish the
goal, or objective of any product, process, service, or
organization.
 VALUE METHODOLOGY
“The systematic application of recognized techniques
which identify the functions of the product or service,
establish the worth of those functions, and provide the
necessary functions to meet the required performance at
the lowest overall cost.”
*John M. Bryant, VM Standard, Society of American Value Engineers, Oct. 1998
70
Value Engineering/Value Analysis - Why is
it important?
 Last 3 years, 2.7 million manufacturing jobs left the




U.S.
The U.S. is loosing the battle to foreign competition.
Labor costs $12 to $30 per hour in U.S., less than $1
elsewhere.
Fewer and fewer people will be required to produce
the world’s goods.
Lean and Six Sigma alone are not enough!
71
Competitive Advantage
 Quality is defined as “conformance to
specification.”
 Value is defined as:
Function
Cost
 You can’t have one without the other!
 Competitive Advantage = Quality + Value
72
Six Step Value Engineering Job Plan
Information
Phase
 Clearly identify the problem(s) to be solved, and
gather information on the background, functions and
requirements of the product, process, or system.
Creativity
Phase
 Brainstorm ideas on how to improve the high cost,
broken, or inadequately performed key functions.
Evaluation
Phase
 Screen ideas for acceptance, score remaining ideas
on a scale and group ideas into categories. Develop
design scenarios, and selection criteria. Rate and
rank ideas.
Planning
Phase
 Plan how to sell ideas to management, identify key
recommendations, plan management presentation.
Reporting
Phase
 Give oral presentation to management, or develop
written report.
Implementation
Phase
 Get management approval for go-ahead, make
management plan, make assignments, implement,73
follow-up.
Mapping VE to 6s
VA/VE
Information
Phase
Creativity Phase
Evaluation
Phase
6s
Define the
Problem
Measure
Analyze
Planning Phase
Reporting Phase
Improve
Implementation
Phase
Control
74
Vilfredo Pareto
Vilfredo Pareto (1848-1923) was an Italian economist
and a political sociologist. He devised the law of the
trivial many and the critical few, known as the 80:20
rule.
Pareto’s Law states that in many business activities
80% of the potential value can be achieved from just
20% of the effort. The remaining 80% of effort shows
relatively little return.
75
Defining the Problem - Pareto Analysis
76
Quality Improvement
Example
Solder Defects
Solder Defects - Pareto Analysis
350
120%
300
100%
250
80%
200
60%
150
40%
100
20%
50
0
Insufficient
Blow Holes Unwetted Unsoldered
Solder
0%
Shorts
Pinholes
Series2
297
73
62
62
45
21
Series1
53%
66%
77%
88%
96%
100%
Defect Type
Cumlative Percent of Defects
Occurence of Defects
Solder Defects
78
Ishikawa or Fishbone Diagram
Flux
Components
Machines
Low-high solids
Placement
Geometry
Temp. control error
Exhaust
Specific gravity
Maintenance
Amount
Contaminated leads
Movement
Activity
Controller
Interpretation
Alloy
Solder Defects
Weight
Orientation
Temperature
Orientation
Validity
Contamination
Metallurgy
Outgassingt
Dross
Temperature
Void in pth
Warped
PWC
Solder
Spec
Back to Specific
Causes
Time
Back to Cause
Catagories
Back to
Problem
Back to Main
Menu
preheat
Print Color
Diagram
79
Process Data
350
300
Region of heat overload on P.C.B.A.
250
Region of cold solder joints
200
1
2
3
4
5
6
7
Seconds
8
9
10
11
12
80
Conclusions
 Either raise solder temperature, or slow down the
conveyor.
 A previous test years ago had been conducted at a
higher temperature, but, resulted in “reflow of tin
under the solder mask.”
 A trial was conducted at a higher temperature
yielding satisfactory results and broke the resistance
to change.
81
Don’t jump to solution!
 An apparel manufacturing company detected
a problem with it’s “fuseable” lining.
 Many customer returns
 Lining falling off after a few washings
 Solution: “We need a new brand of lining.
Our current brand is defective!”
82
Don’t jump to solution! - DOE Fusible
Lining Example
Fusible Lining Experiment
Expected
10
9
Current
8
Successes
7
6
B
5
4
?
3
2
A
1
0
160
170
180
190
200
210
220
230
240
250
260
Temp. deg C.
a
b
Current
Expected
Poly. (Expected)
83
Sporadic v.s. Chronic Problems
 Sporadic problems are dramatic and require
immediate attention.
 Chronic problems are not dramatic, they
occur over a long period of time.
 Chronic problems are difficult to solve.
 Chronic problems are “accepted as
inevitable.”
84
Sporadic v.s. Chronic Problems
 Sporadic problems are solved by fixing the
control process.
 Chronic problems are solved using process
improvement techniques such as Value
Engineering and/or Six Sigma.
 Value Engineering may be applied to
sporadic problems as well, e.g., Boeing
737/757 elevator feel computer problem.
85
Sporadic and chronic quality problems
Loss due to defects
Sporadic departure
from historic level
Historic level
The difference between historic and
improved levels is caused by a chronic
disease that can be eliminated
economically through process
improvement techniques.
Improved level
Time
86