Quality Management Flashcards
Why do we care about quality? Best Case scenario
higher transformation costs (rework, scrap, etc)
best case is people still wanna buy from you, but you will have costs of scrap and the costs of fixing the products!! this will also be higher warranty costs
What is the worst case scenario of poor quality>
there are lawsuits
what are the range of things than can happen in poor quality?
- hihger transformation costs (rework, scrap, etc);
- higher warranty costs (Returns, reparis, etc);
- loss of sales (short term);
- loss of reputation (long term)
- lawsuits
Best case scenario: no profit
Worst case scenario: bankruptcy
Best case scenario: no profit
Worst case scenario: bankruptcy
what are the three parts to quality management
1) alarm bell
2) investigate
3) prevent
this is howyou get better at quality management
alarm bell, investigate, prevent, which is most quantitative
alarm bell
how can quality be very costly (as high as 25% of rev and 40% operating expenses) but also be free?
money is spent upfront will prevent problems in the future!! this will have positive benefit
what are two types of quality costs?
1) control costs (proactive)
-prevention costs: failsafing, traningin
-appraisal costs: insprection labour + equipment
2) failure costs (reactive)
-internal failure costs: rework, downtime, scrap
-external failure costs: returns, warranty lawsuits. reputation
how do accounitng systems miss quality costs-
-where does proactively spent money go?
-where does appraisal expense go
-where does INTERNAL reactive costs go?
-where does EXTERNAL reactive cossts go?
=HR expenses (training etc)
=asset expense (for goods that are tested) and also HR cuz of the inspector pay
=internal failure costs are measured in downtime (time the machines arent functional) this IS NOT RECORDED BY BOOKS
=cost of lost customers are never recorded
How do you show the total quality costs curve?
line going from the left to right increasing curve= failure costs
line going from right to left decreasing curve= control costs
sum them up= total quality costs curve
How to analyze the total quality costs curve?
draw a horizontal line from the y axis and look at it!
company A (on red curve) is spending this much on failure costs
company B (on green curve) is spending this much on control costs
THE SAME AMOUNT OF MONEY IS BEING SPENT! WHAT IS DIFFERENT IS THE MIX OF WHERE THE MONEY IS GOING
is it better to be on the green curve for control or red curve for failure
green curve !
can companies with higher fialuer costs become like companies with higher control costs?
yes! short term expenses will be incurred but long run it is better to have hgiher quality control costs and less failure cosst
tradiitonal view of quality control
-hire an inspector for appraisal
this will make quality go up, but also costs are increased cuz of the paying of inspector
Demings view of quality control
prevention!!!
when you idiot proof something or use a checklist, the quality will go up
but costs go down!!! not paying someone extra to inspect
why is demings view better than the trad view of quality control?
because qualtiy goes up but costs go down
honda 5 preventative measures
1) During assembly take the doors off the cars; they paint the car with the doors on and they then take it off to go through the assembly phase, then afterrr they put it back on
2) Put a white plastic film on the car for shipping protection, and they put this on the paint department, so in assembly you don’t get any chips and scratches on the machine
3) Improve the material that is used for the cars so there is no deformation of the car during manufacturing, cuz if employees are leaning against the car it doesn’t have deformation
4) Giving ring and watch guards to the employees so their personal jewelry doesn’t scratch the car! Very low cost
5) Magnetic “Label” template for location and leveling of the civic logo, this is a very cheap piece of plastic in an L shape that is used to align the logo properly
A380
->Technicians test the toilet by stuffing things down the toilet and seeing if it will jam
->IF THE TOILETS JAM ON THE FLIGHT, PEOPLE WILL REMEMBER FOR YEARS!!!
-> So tecnicians devised plumbing capable of handling such insane things, cuz it only takes one person to flush glasses, spoons, towels
Gas Stations: delivery company mixed up gas and diesel
-> they are using IDIOT PPROOFING TO PREVENT THE MISTAKES!
what is failsafing
creating a control condition wehre the customer or employee can NOT make a mistake
airplane bathroom door failsafe
bathroom light only turns on when door is locked
recycling bins fill too quickly failsafe
only small slot for contrainers
employee accidentally copying and pasting a wrong cell in excel
lock certain cells
saw stop system fail safe
stops the saw as soon as human skin is detected
cold war failsafe
had two keys that needed to work, and one key said war and peace
Slide Notes:
1) the syringe breaks after it is used for the first time, this prevents it being used again Syrringes are often reused and the cross contamination can infect a lot of other people
2) Therefore these self destructing syrrings are so very important so there is no cross contaimination
-Children can become HIV positive because unskilled practitioners re-use
-people are recycling and re-using syringes and these should not be re-used
-New syringes, these are 5 cents and they are the same price as regular syringes, but after one use they break!
Slide Notes:
1) the syringe breaks after it is used for the first time, this prevents it being used again Syrringes are often reused and the cross contamination can infect a lot of other people
2) Therefore these self destructing syrrings are so very important so there is no cross contaimination
-Children can become HIV positive because unskilled practitioners re-use
-people are recycling and re-using syringes and these should not be re-used
-New syringes, these are 5 cents and they are the same price as regular syringes, but after one use they break!
failsafe: syringes
5 cents self destrcucting syringes!
failsafe: stork craft crib recall
you could buikld this crib in a way that babies could slide and suffocate, these were recaleled
failsafe should have been ou shouldnt be able to construct the cirb wrong way at all
Slide Notes:
IDIOT PROOFED
1) The address is on the letter inside the envelope, the window solves the problem. There are not specific envelopes that you need to use
->This saves labour too! Because now you don’t have to worry about matching envelopes
2) The money doesn’t come until the card has been taken out
Cant put money in either until the card withdrawn
3) There is now a bar that hangs down, this is the “clearance bar”, if you hit this you will hit that
4) Speed bumps that forces car to slow down
5) If one drawer is opened than the other one will not open
Slide Notes:
IDIOT PROOFED
1) The address is on the letter inside the envelope, the window solves the problem. There are not specific envelopes that you need to use
->This saves labour too! Because now you don’t have to worry about matching envelopes
2) The money doesn’t come until the card has been taken out
Cant put money in either until the card withdrawn
3) There is now a bar that hangs down, this is the “clearance bar”, if you hit this you will hit that
4) Speed bumps that forces car to slow down
5) If one drawer is opened than the other one will not open
two methods of prevention (quality management)
failsafe
checklist
pros of checklists
1) effective and effiecint
2) showcase the past lessons learned
3) share best practices
4) improve things
what two industries use checklist successfully
construction and aviation
top 3 causes of death in hopsital
heart disease
cancer
medical errors
why need checklistss?
humans are flawed decision makers
what are 4 components of good checklists?
1) pause point: have a clear point in time where you pause to make sure everything is good
2) speedy: each checklist should take <60s to complete; have 5-9 killer items OR IMPORTNAT ITEMS
3) supplement to existing knoweldge: each item should be a short reminder that triggers ur knowledge
4) field testsed and updated: practical and is relevant!
did neil armstrong use a checklist
yes! oof what to do on the mon
quality manangement philosophies
1) Six sigma
2) PDCA cycle
what is six sigma goal
to reduce VARIATION, so there is only max 3.4 defects per million
6 sigma meaning
basically says that even if we go out 6 standard deviations from the goal, there is no defects still!!!!!
6 sigma
-if there are high process variation, what is visual?
-if there is low process variation, what is visual?
wide graph, defects regularly occuring
narrow graph, defect occur extremely rarely
what is DMAIC in 6 sigma
methodolgoy and framework to improve qulaity managemnt
define
measure
analyze
improve
cotnrol
what is 6 sigma black belt
certificaiton! people can become experts in quality management!!! and they can work in a company continually thinking of ways to improve qquality
what is the PDCA cycle
popular on engg isde, this is a method of quality anapgement
-plan, do, check, act
pdca steps
change for bsiness
plan: the improvement
do: implement improvements
check: compare actual results vs plan
act: adjust the actions so meeting planned results
for busienss we add a first step-> observe: we need to analyze the current conditions and then analyze the problem
what are quality certificairnos
8.20=8.22
What are quality control graphical tools
1) pareto analysis
2) scatter diagrams
3) root cause analysis- fishbone diagram
what is pareto analysis
-80/20 RULE
-CHECKSHEETS
If 80% of prcoess works, then we can change 20%
-checksheets are what we tally makrs on
-keep track of the mistakes that happen regularly and use tick marks to mark them
-at the end of the week analyze where the mistakes occured
-fix the mistakes that happen the most
pareto analysis visual
histogram (bar chart) of frequences (this is decreasing)
line graph (this is increasing
bars: represent the problems
line: how many problems are solved/fixed (CUMULATIVE so going to 100)
pareto analysis steps
Slide Notes:
First thing to do: structure the data! Sort from highest to lowest occurrence of mistakes
Then organize them as % of total mistakes
Cumulative total: add from the first to the second then 3rd then 4th, then continue…
The histogram/bar chart is from the % of total column
The cumulative % of total is the line that increase over time
How is this our alarm bell? This helps visualize where the problem is and then helps you find what to solve first. This helps us diagnose what went wrong, and then we can see what our next steps should be
Why do we need the data: This is what you need to facilitate change management (change management= how you make people want change), when people in shipping get asked to implement change in their processes, people might be defensive and not want to change, but once they see the data they can feel better informed and better facilitating change
MORAL: this graph is good to be an alarm bell and also a good communicaiton tool
what are FAQs an example of
pareto analysis
is it good to have high faqs?
no!! means something is wrong in their instructions
sprint example
the company is cutting off excessive calling customers, they went thorugh the Pareto analysis, found the small amount of numbers that complain too much and were clogging up the phone lines and wait times, and then this improved customer service
what are scatter diagrams and pareto analysis and example of
an alarm tool
what are scatte diagrams?
plot data points visually and interpret results
scatter diagram of server wait times
customers are happiest when you give them 4-6 mins to order
what is root cause anlaysis
fishbone diagram analysis/ cause and effect diagram
how do you do fishbone diagram analysis?
keep askign why till you get to the root cause of a problem
fishbone analyssi
Slide Notes:
This is the investigation tool!!!
We want to find the root cause of a problem, Keep asking why? And move down the scales of the fish
Server was rude, why? Too many tables, why? Poor table assignment, so the root cause is the poor table assignment
Server attitude complaints, why? Confused server, but why? New server who had inadequate training
Generally asking why 3-7 times will give you the root cause of your problem
People were complaning about environment, why? Inadequate hosekeeper trianig, and there was infrequent cleaning, why? Soiler carpets?…
THERE IS A LOT OF TEMPLAATES OF THIS! BECAUSE FISHBONE ANALYSIS IS VERY COMMON
what is SQC
statistical quality control
two types of stastical quality control
1) acceptance sampling
2) statistical process control (SPC)
What is acceptance sampling
a form of appraisal, and there is acceptance or rejection of goods which already exist
waht is staistical process control (SPC)
a FORM OF PREVENTION, this sets standards to indicate when adjustments should be made while the service or good is being produced
what is statistics
study of numerical data to better understand the characteristics of a population or process
how can we use statisticalmeasures for quality ocntrol
1) measures of central tendency
2) measures of dispersion
what is central tendendcy
the mean or general value that is most common
what is dispersion
the spread, or standard deviation
What are two measures of central tendency
Sample mean and grand mean
what is sample mean
sum of individual observations/ number of observations
-> this is the average mean of all the sample (x bar)
what is the grand mean
sum of all sample means/ number of times that smapling was done
at a local chip producer, a qualtiy control employee pulls 5 bags of chips 4 times daily to measure the contents,
what is the vlaue of M, waht is the value of n
n= 5
m= 4
what is the n
sample mean
what is the m
grand means
Slide Notes:
The Sample range: is the range in the sample= Largest observation of the sample-the smallest observation of the sample
Sample Standard Deviation: comparing all the values found in the sample to the mean!
Slide Notes:
The Sample range: is the range in the sample= Largest observation of the sample-the smallest observation of the sample
Sample Standard Deviation: comparing all the values found in the sample to the mean!
what is the sample range (R)
largest x - smallest x
what is the sample standard deviation (S)
comparing all the values found in the sample to the mean
what is the central limit theorem
if we calculate sample mean (x bars) rather than just individual observations, then for large n the distribution of the xbars will tend to normality
Slide Notes:
Central Limit Theorem: regardless of individual samples, you can always get a normal curve!
Individual observations may not always be a normal curve, but when the N values are increased it will eventually be a perfectly normal curve
The rolling dice example: roll a dice 600 times, in theory you should have 100 of the each number come up of each number
By CLT: make groupings
Logic: If you want to have an average of 6, after rolling a dice 10 times, you will VERY RARELY GET THIS NUMBER!! LOTS OF 6’s mayne one 5
Logic: If you want to have an average of 1, after rolling a dice 10 times, you will VERY RARELY GET THIS NUMBER!! Lots of 1’s maybe one 2, this is rare
Logic: Most often you will likely get 3-4
Logic: Maybe a bit less likely is having an average of 5
If you plot out all this averages you will get a normal curve
Slide Notes:
Central Limit Theorem: regardless of individual samples, you can always get a normal curve!
Individual observations may not always be a normal curve, but when the N values are increased it will eventually be a perfectly normal curve
The rolling dice example: roll a dice 600 times, in theory you should have 100 of the each number come up of each number
By CLT: make groupings
Logic: If you want to have an average of 6, after rolling a dice 10 times, you will VERY RARELY GET THIS NUMBER!! LOTS OF 6’s mayne one 5
Logic: If you want to have an average of 1, after rolling a dice 10 times, you will VERY RARELY GET THIS NUMBER!! Lots of 1’s maybe one 2, this is rare
Logic: Most often you will likely get 3-4
Logic: Maybe a bit less likely is having an average of 5
If you plot out all this averages you will get a normal curve
who founded pie charts
florence nightingale, she founded nursing, she displayed data cuz she was in the war, reduced moratilty rate from 42% to 2.2%
EVIDENCE BASED MEDICINE
