1. Quality Tools

2. Plan Act Do Study The PDSA Cycle

3. Select a process Document Study/document Evaluate Seek ways to Improve it Implement the Improved process Design an Improved process The Process Improvement Cycle

4. Process Improvement Tools • There are a number of tools that can be used for problem solving and process improvement • Tools aid in data collection and interpretation, and provide the basis for decision making

5. Seven Basic Quality Tools • Check sheets • Flowcharts • Scatter diagrams • Histograms • Pareto analysis • Control charts • Cause-and-effect diagrams

6. Check Sheet Monday • Billing Errors • Wrong Account • Wrong Amount • A/R Errors • Wrong Account • Wrong Amount

7. Flowchart Process Process Process Good? Good? Process

8. Scatter Diagram Variable B Variable A

9. Histogram frequency A B C D E

10. Number of defects Offcenter Smeared print Missing label Other Loose Pareto Analysis 80% of the problems may be attributed to 20% of the causes.

11. 1020 UCL 1010 1000 990 LCL 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Control Chart

12. Methods Materials Cause Cause Cause Cause Effect Cause Cause Environment Cause Cause Cause Cause Cause Cause People Equipment Cause-and-Effect Diagram

13. UCL UCL UCL LCL LCL Additional improvements made to the process LCL Process centered and stable Process not centered and not stable Tracking Improvements

14. Seven Management Tools • Affinity Diagram • Interrelationship Diagraph • Tree Diagrams • Prioritization Matrices • Matrix Diagram • Process Decision Program Chart • Activity Network Diagram

15. Methods for Generating Ideas • Brainstorming • Quality circles • Interviewing • Benchmarking • 5W2H

16. A Brief History of Quality

17. America Re-discovers Deming

18. … and Juran

19. Rediscovering the Gurus • Deming • Emphasis on Statistical Control • 14 Points for Management • Juran • Quality Planning and Analysis • Managerial Breakthrough • Quality Control Handbook

29. Statistics

31. What Types of Companies Can Benefit from Six Sigma? • Companies that benefit from structured organizational improvement • Companies that need to improve customer satisfaction • All types of companies can benefit: • Manufacturing • Service • Non-profit • Educational

32. What is Six Sigma? • Customer Focus – Focus on what is critical to customers • Data Driven – Extensive use of statistical tools • Robust Methodology – Tools plus implementation methods to make success more likely

33. What is Six Sigma?Key Concepts • Critical to Quality: What attributes are most important to the customer? (CTQ, CTC, CTD) • Defect: Failing to deliver what the customer wants / expects (DPMO) • Variation: The level of unpredictability the customer experiences

34. What is Six Sigma?Key Concepts • Process Capability: What your process can deliver – consistently • Stable Operations:Stable ops are predictable • Design for Six Sigma:Designing to meet customer needs and process capability

35. DMADV - DMAIC Existing Processes New Processes

36. Statistics LiteCentered 3sProcess LSL USL

37. Statistics LiteCentered 3sProcess LSL USL s

38. Statistics LiteCentered 3sProcess Non-conforming Product 1,300 DPMO LSL USL s

39. Statistics LiteCentered 3sProcess Non-conforming Product 2,600 DPMO LSL USL s

40. Statistics LiteShifted 3sProcess LSL USL s 1.5 s mean shift

41. Statistics LiteShifted 3sProcess Non-conforming Product 66,800 DPMO LSL USL s 1.5 s mean shift

42. Statistics LiteShifted 3sProcess Cost to your company – 15-30% of sales Non-conforming Product 66,800 DPMO LSL USL s 1.5 s mean shift

43. Cost of Poor Quality 5-8% of Sales Inspection Overtime Downtime Rejects Rework 15-22% of Sales Lost sales Long cycle times Cost of Capital Late delivery (less obvious) Redundant Operations Lost Opportunity Inaccurate Reports Expediting costs Excessive Planning Lost Customer Loyalty

44. LSL USL s Statistics LiteCentered 6sProcess

45. Statistics LiteShifted 6sProcess LSL USL s 1.5 s mean shift

46. Statistics LiteShifted 6sProcess Non-conforming Product 3.4 DPMO LSL USL s 1.5 s mean shift

47. Why Six Sigma? 99% (3.8 Sigma) 99.99966% (6 Sigma) • Seven articles lost per hour • 2 incorrect operations per week • One short or long landing every five years • 70 wrong prescriptions per year • One hour without electricity every 34 years • 20,000 lost articles of mail per hour • 5,000 incorrect surgical operations per week • Two short or long landings at most major airports each day • 200,000 wrong drug prescriptions each year • No electricity for almost seven hours each month

48. Six Sigma Breakthrough Strategy • Define • Measure • Analyze • Improve • Control

49. DMADV - DMAIC New Processes Existing Processes

50. Define - Selecting Projects • The project must relate to customer satisfaction • The project’s results must reduce defects by some threshold amount • The project should achieve some threshold of cost savings.