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QM444 - Coggle Diagram

- - - - demographics
      - technology
      - market changes
      - social & political changes
      - globalisation
      - customers
      - competitors
      - scarcity of resources
      - faster production possibilities
    - - size changes
      - HR problems & prospects
      - demographic & social influences
      - new management concepts
      - inefficient processes & unproductive activities
      - reformulation of corporate strategy
      - organisational development
- - - - increase customer satisfaction
      - meet societal needs
      - make products & services salable
      - exceed competition
      - increase market share
      - provide sales revenue
      - secure premium prices
  - - - reduce error rates
      - reduce rework & waste
      - reduces failures & warranty charges
      - reduce customer dissatisfaction
      - reduce inspection, tests & audits
      - shorten time to develop new products
      - increase yields and capacity
      - improve delivery performance
  - - - fast
      - low cost
      - high quality
  - - - sudden adverse change in status quo
      - dramatic
      - requires remedy by restoring status quo
      - once-off problem
      - attacked by quality control process
    - - long-standing adverse situation
      - requires remedy by changing status quo
      - difficult to solve
      - existence accepted as inevitable
      - addressed through continuous improvement
      - (entire organisation involved)
    - - ensuring a quality future
- - - - customer expectations <<< >>> customer perception of delivery
      - understanding of needs < > design of product < > capability to deliver design < > actual delivery
      - understanding the gap || design gap || process gap || operations gap || perception gap
      - closing these gaps? -> quality planning = quality by design
    - - quality = value
      - quality = best
      - quality = price
  - - - agree & document requirements
      - return defective inputs
      - provide feedback
    - - learn & apply tools
      - continuously improve
      - document & display
    - - understand customer & deliverables
      - reduce defects & variations
      - measure output quality
  - - - use digital technology to enhance traditional business models
      - transform existing business models digitally
      - invent entirely new business models // engagement models
- - - - knowledge of what they are supposed to be doing (eg goals, schedule, specs)
      - knowledge of their performance (actual measurements)
      - means of regulating performance if goals are not met (vary process // conduct)
  - - - elimination of chronic sources of deficiency
      - continuous regulation to minimise variation
      - elimination of sporadic sources of deficiency
  - - - unit of measure
      - method or instrument
      - QC = feedback & early warning
      - QP = quanitifies customer needs & process capabilities
      - QI = motivation, prioritisation, diagnosis of causes
    - - random // assignable // pattern
- - - - why
        
        the need for change
        
        the vision
      - what
        
        what are we trying to do?
        
        what are we dealing with?
      - how
        
        how to address the problems
        
        how to implement change
    - - strategic
      - tactical
      - operational
    - - sound strategy x operational excellence = leading performance
      - we need both in order to achieve leading performance
      - effectiveness vs efficiency
    - - estimate size of chronic waste & related losses
      - estimate savings & other benefits
      - calculate return on investment of implemented improvements
      - use successful case history to justify broader program
  - - - having higher quality product and service features > provides customer satisfaction & revenue
      - achieving freedom from failures > reduce customer dissatisfaction & non-value adding waste. Reduced failures = reduced costs
    - - diagnostic
        
        problem -> symptoms of problem -> theories of causes of symptoms -> testing of theories -> establish root causes
      - remedial
        
        root causes -> designing remedies of causes -> testing and proving remedies under operating conditions -> workable remedies -> deal with predictable resistance to change -> establish new controls to hold gains
    - - 1 - nominate and identify problems = projects
      - 2 - establish project & team
      - 3 - diagnose the causes
      - 4 - remedy the causes
      - 5 - hold the gains
      - 6 - replicate results & nominate new projects
      - upper management responsibilities
        
        establish multifunctional councils/steering teams to prioritise projects
        
        nominate & select breakthrough projects
        
        create project charters (incl problem & goal statements)
        
        provide resources (people & time) to carry out project
        
        assign teams, team leaders, facilitators
        
        review progress // remove barriers // manage cultural resistance
        
        provide recognition and rewards
    - - DMAIC
        
        nutshell
        
        select problem & launch project
        
        define the problem
        
        measure magnitude of the symptoms
        
        analyze information to establish root cause
        
        improve by providing remedy for cause
        
        control to hold gains
        
        Six sigma approach
        
        indicator of efficiency and effectiveness of processes
        
        systematic, data-driven problem-solving method
        
        improvement of operative & productive processes
        
        customer requirements
        
        quality initiative for creating resounding measurable success
        
        7 classic tools
        
        pareto chart || scatter diagram || control chart || flow chart || cause-and-effect || histogram || checklist
        
        cycle
        
        what is the problem?
        
        severity of the problem
        
        reasons
        
        solution
        
        improvement & sustainment
        
        important roles
        
        leadership
        
        champion & master black belt
        
        black belts & green belts
        
        project team & subject matter experts
        
        process owner
        
        DEFINE
        
        nutshell
        
        define problem as clearly as possible
        
        develop project charter
        
        determine customers and CTQs
        
        map high-level process
        
        complete definition
        
        1 - key customers
        
        2 - customer needs as VOC
        
        3 - translate VOC into CTQ requirement statements
        
        4 - define high-level process flow to define the project limits
        
        deliverables
        
        confirmed charter
        
        voice of the customer
        
        CTQ requirements
        
        SIPOC diagram = supplier input process output customer
        
        main points
        
        exact problem (measurable terms)
        
        measurable goal
        
        limits & scope
        
        resources
        
        customers & measurable needs
        
        MEASURE
        
        nutshell
        
        determine current level of performance
        
        determine voice of the customer (VOC)
        
        measure outputs (Ys)
        
        plan for data collection
        
        validate measurement system
        
        measure baseline sigma
        
        identify possible inputs = causes / Xs
        
        measure & document baseline performance
        
        1 - understand & map process
        
        2 - measure baseline performance
        
        3 - plan for data collection
        
        4 - measure Ys & Xs & CTQs
        
        5 - potential failure modes
        
        measurement capability
        
        process capability
        
        Tools
        
        failure mode & effect analysis (FMEA)
        
        cause-effect diagram
        
        deliverables
        
        key metrics
        
        process diagrams
        
        data collection plan (sampling)
        
        confirmed/modified project goal
        
        prioritised list of theories
        
        is process in statistical control? capabilities? possible root causes?
        
        SELECT
        
        deliverables
        
        list of potential projects
        
        evaluation of projects i t o contribution to strategic business objectives
        
        selected projects accompanied by problem, goal statements & charter
        
        formal teams
        
        main points
        
        customer-related issues?
        
        costly quality problems?
        
        likely benefits from tackling projects?
        
        prioritisation?
        
        ANALYZE
        
        nutshell
        
        analyse collected data to determine causes of problem
        
        test hypotheses
        
        determine vital few Xs
        
        analyse response variables & inputs
        
        tools
        
        graphs & plots
        
        hypothesis testing
        
        correlation & regressiokn
        
        ANOVA
        
        deliverables
        
        graphs and diagrams used to determine most important input variables
        
        results of hypothesis testing
        
        vital few process inputs
        
        IMPROVE
        
        nutshell
        
        design solution, controls & design for culture
        
        select right solutions to solve the problem
        
        select solution
        
        quantify cause-effect relationship so that process performance can be predicted, improved & optimised
        
        screening experiments to verify vital few
        
        procedure to define, design & implement improvements
        
        1 - plan designed experiments
        
        2 - screening experiments to identify critical few Xs
        
        3 - conduct designed experiments & establish mathematical model of process performance
        
        4 - optimize process performance
        
        5 - evaluate alternative improvements
        
        6 - design the improvement
        
        key points
        
        specific experiments?
        
        expected cultural resistance to change & contingenecy
        
        pilot plan for implementation
        
        fully implemented solutions & training, procedural changes & revisions to tools + processes
        
        CONTROL
        
        nutshell
        
        hold gains
        
        identify control subjects
        
        develop feedback loops
        
        develop process control plan
        
        document || implement || replicate
        
        activities required
        
        1 - design controls & document improved process
        
        2 - design for culture
        
        3 - validate measurement system
        
        4 - establish process capability
        
        5 - implement & monitor
        
        deliverables
        
        updated FMEA, process control plans & SOPs
        
        production process that accomplished project goal
        
        Deployment roadmap
        
        decide
        
        prepare
        
        launch
        
        expand
        
        sustain
    - - consider maturity of system/culture
      - allow for adaptation
      - use pilot efforts
      - aim >> objectives >> roadmap/methodology >> end goal
  - - - setting up
        
        1 - provide the need = business case
        
        2 - identify projects
        
        3 - organise & launch project teams
      - required tasks
        
        define project scope & charter
        
        diagnose causes
        
        provide remedies/solutions & prove its effectiveness
        
        deal with resistance to change
        
        institute controls to hold gains
- - - - systems perspecitte
      - internal & external customers
      - avoid displacing problems
      - the whole is more than the sum of its parts
  - - - ...should include
        
        APPROACH: organisational approach? intent? design?
        
        DEPLOYMENT: extent of execution/deployment of approach in org
        
        RESULTS: measurable outcomes? are approach & deployment valid
      - observation // date collection // interviews at key functions
    - - = annual monetary loss of products & processes that are not achieving their quality objectives
      - = cost of poorly performing processes
      - WHY?
        
        quantify size of problem in monetary value
        
        identify opportunities for cost reduction
        
        identify opportunities for reducing customer dissatisfaction
        
        identify associated threats to product salability
        
        provides means of evaluating progress of quality improvement initiatives
        
        supports development of a strategic plan
      - cost of nonconformities
      - cost of inefficient processes
      - cost of lost opportunities for sales revenue
      - categories
        
        prevention costs
        
        cost incurred in the process to reduce potential defects & errors eg quality improvement, quality training, planning
        
        appraisal costs
        
        cost of determining the current quality of production processes/services eg inspection
        
        internal failure costs
        
        costs incurred when defects and errors are found before delivery to customer
        
        external failure costs
        
        cost of trying to correct defects and errors after the product/service is delivered to customer
      - optimum cost
        
        where the sum of failure costs & appraisal
        & prevention costs are at a minimum
    - - gives snapshot of standing relative to competition
      - identifies opportunities & threats
      - market research studies
      - !!! important to compare own performance over time as well as comparing performance to competitors... look at improvement relative to industry standard & competitors
    - - for example
        
        malcolm bladridge national quality award
        
        iso standards
        
        regulatory standards
        
        benchmarking