Transcript Quality Management Slides

MGMT 19105
Quality
Management
Geoff
Higgins
MGMT 19105
Quality Management
Week 10 Important Terms – Problem Solving

Existent Problems –
Problems we already have.
Initially the response is ‘reactive’.

Latent Problems –
Problems we are yet to experience
(but which we are able to predict).
Initially the response is ‘proactive’.
Geoff
Higgins
MGMT 19105
Quality Management
(Goetsch & Davis 2006, p. 539)
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Week 10 Outcome of Problem Solving
A problem is solved ‘only when its
occurrence has become impossible
or significantly less probable’.
(Goetsch & Davis 2006, p. 537)
Geoff
Higgins
MGMT 19105
Quality Management
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Week 11
Geoff
Higgins
MGMT 19105
Quality Management
Quality Function
Deployment &
Continual
Improvement
Module Objectives
1.
2.
3.
4.
5.
6.
7.
8.
9.
Identify the key differences between quality function
deployment and continual improvement;
Draw and explain the ‘house of quality’;
Trace a customer requirement through the house of quality to
the related process requirement in the product design;
Describe the process of implementing quality function
deployment;
Explain the use of the affinity diagram and the interrelationship
digraph;
Describe what is meant by ‘continual improvement’;
Identify the steps in implementing continual improvement;
Explain the Japanese concept of the five Ms and apply it to a
production situation; and
Describe the purpose and focus of the ‘theory of constraints’.
Geoff
Higgins
MGMT 19105
Quality Management
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Readings
Study Guide Module 11
Textbook
Goetsch & Davis (2006)
Chapter 17 Quality Function Deployment (QFD)
Chapter 19. Continual Improvement
Electronic journal articles
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Sanford, JL 2005, ‘How useful is QFD?’
(About – QFD done by highschoolers – a worked example.)
Dalgleish, S 2005, ‘Variation as a continual improvement tool’
(About – Intentionally introducing variation.)
Warriner, W, Goldratt, EM, Cox, J, and Bertain, L et al. 1994,
‘Story time’
(About – Extracts from Business Fiction.)
Miller, B 2000, ‘Applying TOC in the real world’
(About – The theory of constraints and continuous improvement.)
Geoff
Higgins
MGMT 19105
Quality Management
(Available on Proquest)
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Quality Function Deployment
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A process pioneered by Yoji Akao and Shigeru
Mizuno at a Mitsubishi shipyard in Kobe , Japan,
in the late 1960s and 1970s (Sanford, 2005).
Also used by Toyota and Hewlett-Packard.
Gives the customer a voice, and seeks to design
customer satisfaction into the product.
Used for designing and developing new
products, and designing improvements into
existing products.
Geoff
Higgins
MGMT 19105
Quality Management
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The House of Quality
The Key Components:
1. Customer Input
2. Current Product Specifications
3. Planning Matrix
4. Relationships
5. Prioritised Process Requirements
6. Trade-offs (Current Specifications)
Geoff
Higgins
MGMT 19105
Quality Management
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The House of Quality
The Key Components:
1.
Customer Input
The ‘voice of the customer’.
2.
Current Product Specifications
(Inc. requirements for suppliers.)
3.
Planning Matrix
Prioritised customer requirements & competitive evaluation.
4.
Relationships
…between the voice of the customer and the manufacturer’s
current specifications.
5.
Prioritised Process Requirements
The ‘result’ of the House of Quality.
6.
Trade-offs in the Current Specifications
(or relationships between the different current specifications)
Geoff
Higgins
MGMT 19105
Quality Management
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The Rest of QFD
Geoff
Higgins
Focus:
 Structured collection of information
about customer needs and wants used
to develop products and services.
A range of tools:
 Affinity Diagrams (from Week 5)
 Interrelationship Digraphs
 Tree Diagrams
 Matrix Diagrams
MGMT 19105
Quality Management
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Affinity Diagram
Small Group
You have a 1978 Toyota in
good condition. You have
advertised it for 4 weeks on
the Internet. It has not sold.
1. State the issue as a
question.
2. Brainstorm a large
number of potential
answers.
3. Write the answers in
point form on sticky
notes.
Do an Affinity Diagram
for the question:
4. Move the sticky notes to
sit beside closely related
answers.
“Why can’t I sell my car?”
5. Write a ‘head note’ with
a name for each
grouping.
Geoff
Higgins
MGMT 19105
Quality Management
6. Write up an Affinity
Diagram.
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Interrelationship Digraphs
Extends the analysis of a problem.
 Involves using the Affinity Diagram
‘answer cards’.
 Involves:

Identifying the degree of influence of the
answer on the problem.
 Identifying ‘causal’ links between the various
answers and the problem.

Geoff
Higgins
MGMT 19105
Quality Management
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Interrelationship
Digraph
Small Group
Continuing with the 1978
Toyota …
Do a Relationship Digraph
for the question:
“Why can’t I sell my car?”
Geoff
Higgins
MGMT 19105
Quality Management
1. Take a card and write
the problem on it.
2. Take the ‘answer cards’
from the Affinity
Diagram.
3. Place the answer cards
beside the ‘problem
card’, with the cards
most closely related to
the problem closest and
those least related
furthest away.
4. Draw causal arrows
showing what
contributes to what.
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Other QFD Tools
Tree Diagrams – show the tasks required
to accomplish the outcomes identified
through the Affinity Diagram and
Relationship Digraph.
 Matrix Diagrams – show the tasks to be
performed in association with the
people/departments responsible for them
(showing the ‘degree of responsibility’).

Geoff
Higgins
MGMT 19105
Quality Management
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QFD & Productivity
Politis (2005) examined productivity, QFD
and creativity, and found that QFD
(a structured approach to product
improvement) contributed better to
productivity than creativity (an unstructured
approach to product improvement).
Geoff
Higgins
MGMT 19105
Quality Management
Politis, JD 2005, ‘QFD, organisational creativity
and productivity’, The International Journal of
Quality & Reliability Management, vol. 22, no. 1,
pages unknown (online, Proquest).
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QFD Success Criteria
Successful organisations using QFD:
 Demonstrate top management commitment to QFD;
 Facilitate worker-supervisor collaboration in QFD efforts;
 Institute internal processes and strategies for QFD;
 Establish effective use of information and data to support
QFD actions;
 Build relationships with customers;
 Enable employees to develop and utilise their capacity to
deliver value to customers; and
 Enhance QFD team-building, consensus-oriented, and
flexibly disciplined approach that structures synthesising
new ideas.
Geoff
Higgins
MGMT 19105
Quality Management
Source: Politis 2005
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Continual Improvement
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Also known as ‘continuous improvement’ or
kaizen (in Japanese.)
Is a way of thinking about what we do to ensure
quality.
Many different approaches can be taken, with
the goal being improvement of people,
processes and products/services.
W. Edwards Deming (cited in Goetsch & Davis
2006) states that just fixing things that are wrong
is not improvement, that is getting the thing to
where it was going to be before it broke!
Geoff
Higgins
MGMT 19105
Quality Management
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Critical Aspects
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Leadership must be involved (not just supportive).
Structural initiatives are required, including a quality
council and sub-committees.
A scientific approach must be taken, including data
collection and a process for addressing potential
opportunities.
We must focus on, and improve, processes through
standardisation, streamlining, reducing sources of
variation and bringing processes under statistical
control.
The use of the tools covered in the earlier module
‘Tools for Total Quality Management’.
Geoff
Higgins
MGMT 19105
Quality Management
(Goetsch & Davis 2006)
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The Scientific Approach
1.
2.
3.
4.
Collect meaningful data.
Identify root causes of problems.
Develop appropriate solutions.
Plan and make changes.
(Also, more detailed process on p. 648; and
additional strategies on p. 651.)
Geoff
Higgins
MGMT 19105
Quality Management
(Goetsch & Davis 2006)
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The 5 Ms
A simple checklist to focus attention:
1.Man (Operator)
2.Machine
3.Material
4.Methods
5.Measurement
Geoff
Higgins
MGMT 19105
Quality Management
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The 5 Ms
Small Group
We have a small furniture manufacturing
company. We are struggling to meet demand
for couches.
“Using the 5Ms, describe what problems we
might have in meeting demand for couches.”
Geoff
Higgins
MGMT 19105
Quality Management
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Breakthrough vs
Continual Improvement
Goetsch and Davis’s (2006) describe kaizen as being
about continual incremental improvement.
 Rao et al (1986) provide a distinction between
continuous improvement and ‘breakthrough
improvement’. Breakthrough improvement typically
involves the implementation of new technologies or
radically different processes.
 The Japanese do not distinguish between incremental
and radical improvement. The goal is improvement, and
the scale can be of any magnitude.
 (Rao et al suggest it is desirable to have a continuous
process of incremental improvement punctuated at
intervals by breakthrough improvements.)
Geoff

Higgins
MGMT 19105
Quality Management
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The Theory of Constraints
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Geoff
Higgins
An alternative view of a manufacturing system.
Using throughput, inventory and operating
expense to measure success (rather than profit
and return on investment).
Focussed on reducing the impact of constraints
on the organisation.
Involves the concept of critical chain thinking –
where the organisational process is a series of
interlinked chains. As we make an improvement
in one area, we are likely to cause new
problems elsewhere.
MGMT 19105
Quality Management
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TOC at Virginia Semiconductor Inc
Step 1: Identify the system's constraints.
Step 2: Decide how to exploit the system's
constraints.
Step 3: Subordinate everything else to the
above decision.
Step 4: Elevate the system's constraints.
Step 5: If a constraint has been broken, go
back to Step 1.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
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TOC at Virginia Semiconductor Inc
Step 1: Identify the system's constraints.

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Find the backlogged pile of work in
process (ie, in-process stockpile).
VC: the polishing process.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
25
TOC at Virginia Semiconductor Inc
Step 2: Decide how to exploit the system's
constraints.
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Figure out how best to exploit the
constraint’s resources.
VC: left a buffer of waiting work to
indicate urgency; and prioritised the
work.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
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TOC at Virginia Semiconductor Inc
Step 3: Subordinate everything else to the
above decision.

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Focus all surrounding work activity
on supporting the efforts to eliminate
the constraint.
VC: facilitated flow to polishing (by
making some people slow down);
published backlog on the wall.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
27
TOC at Virginia Semiconductor Inc
Step 4: Elevate the system's constraints.

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Improve the capacity of the
constraining area.
VC: Increased resources.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
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TOC at Virginia Semiconductor Inc
Step 5: If a constraint has been broken, go
back to Step 1.


(As it says.)
VC: sales and marketing.
Geoff
Higgins
MGMT 19105
Quality Management
Electronic journal article by Miller (2000).
29
The Theory of Constraints
Small Group
“Describe how the Theory of
Constraints can be applied in a
‘services’ organisation.”
Geoff
Higgins
MGMT 19105
Quality Management
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Summing It All Up
Small Group
“What is the difference between
QFD and Continual Improvement?”
Geoff
Higgins
MGMT 19105
Quality Management
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QFD & Continual Improv’t
Quality Function Deployment
Continual Improvement
 A set of tools that support
quality management.
 Focussed on designing
products that are aligned with
customer needs and wants.
 Tools:
o House of quality
o Affinity diagrams
o Interrelationship digraphs
o Tree diagrams
o Matrix diagrams
 A mindset that is supported by
a toolset
 Focussed on improving people,
processes and products.
 Tools:
(See earlier module.)
o Pareto Charts
o Ishikawa Diagrams (also
known as Cause and Effect
Diagrams and Fishbone
Diagrams)
o Check Sheets
o Histograms
o Scatter Diagrams
o Run Charts
o Control Charts.
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Higgins
MGMT 19105
Quality Management
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Conclusion
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Recap of Module 10
Quality Function Deployment
The House of Quality
Affinity Diagram and Interrelationship Digraphs
QFD and Productivity
QFD Success Criteria
Continual Improvement
The Scientific Approach
The 5 Ms
Breakthrough vs Continual Improvement
Theory of Constraints
Difference Between QFD and CI
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Higgins
MGMT 19105
Quality Management
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Next Week
 Week
12
“Total Quality and Benchmarking and
the Future for the Total Quality
Approach”.
 Study Guide
 Goetsch & Davis (2006)
Chapter 20. Benchmarking
 Four (4) electronic journal articles (Proquest)
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Higgins
MGMT 19105
Quality Management
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Questions?
Geoff
Higgins
MGMT 19105
Quality Management
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