Total Quality Management

Quality SystemsISO 14000

Malcolm Maldrige National Quality Awards

Six Sigma

by: Aimee D. Cabantacaimeecabantac@yahoo.com

Total Quality Management

Quality SystemsISO 14000

Malcolm Maldrige National Quality Awards

Six Sigma

by: Aimee D. Cabantacaimeecabantac@yahoo.com

Total Quality Management

Quality SystemsISO 14000

Malcolm Maldrige National Quality Awards

Six Sigma

by: Aimee D. Cabantacaimeecabantac@yahoo.com

ISO 14000Environment Management Standard

Launched in 1996

A series of standards that enables a company to improve environmental management voluntarily

A guide for environmentally concious companies to lessen their impact on the environment

Benefits of ISO 14000

Minimized the harmful effects on the environment caused by it's activities

Achieved continual improvements of it's environment performance

Improved corporate image among regulator's customers and the public

Reduced raw material/resource useReduced energy consumptionImproved process efficiency

Reduced waste generation and disposal costutlization of recoverable resources

2 Main Classifications of ISO 14000

Organization/Process Oriented Standards

Product Oriented Standards

6 Topic Areas of ISO 14000

Evironmental Management SystemEnvironmental Performance Evaluation

Environmental AuditingLife Cycle AssessmentEnvironmental Labeling

Environmental Aspects in Product Standards

ISO 14000 Process-Oriented Document Requirements

ISO 14001ISO 14004ISO 14010ISO 14011ISO 14012ISO 14014ISO 14015ISO 14031ISO 14020ISO 14021

ISO 14000 Product-Oriented Document Requirements

ISO 14022ISO 14023ISO14024ISO 1402XISO 14040ISO14041ISO14042ISO 14043ISO 14050

ISO Guide 64

The Malcolm Baldrige National Quality Award

Established in 1987 by United State Congress

Named after former US Sec. of Defense (1981 1987)

Sets national standard for quality excellence (ASQ)

Important Factors in any Organization

Productivity

Quality

Safety

Cost

Core Values and Concept

Visionary leadershipCustomer-driven excellence

Organizational and personal learningValuing employees and partners

AgilityFocus on the future

Managing for innovationManagement by factSocial responsibility

Focus on results and creating valueSystem perspective

The Award is open to the ff. Areas:

TelecommunicationsBanking

AutomotiveHospitality industryBuilding products

ManufacturingEducation

Health Care

System of Qualification

1. application2. examination of an applicant3. qualificationsof each examiner are

compared and contrast with the criteria and up to 300 hours4. site visit stage – a comp. /org. may have been examined for as many as 1000 hours 5. winner proclamation – the information is non-proprietary with US organization of all kinds, but practices are communicated and shared

Benchmarking – is a continuous process of measuring products, services and practices against

competitors or industry leaders.

Baselining – is measuring the current level of quality in an

organization.

Malcolm Baldrige National Quality Award Criteria Categories, 2007

1.0 Leadership1.1 Senior Leadership1.2 Governanace and Social Responsibility

2.0 Strategic Planning2.1 Strategy Development2.2 Strategy Deployment

3.0 Customer and Market Focus3.1 Customer and Market Knowledge3.2 Customer relationships and Satisfactions

4.0 Measurement, Analysis and Knowledge Management

4.1 Measurement, Analysis and Improvement of Organizational Performance

4.2 Management of Information Technology and Knowledge

Malcolm Baldrige National Quality Award Criteria Categories, 2007

5.0 Human Resources Focus5.1 Workforce Engagement5.2 Workforce Environment

6.0 Process Management6.1 Work Systems Design6.2 Work Process Management and Improvemen

7.0 Results7.1 Product and Service Outcomes7.2 Customer-Focused Outcomes7.3 Financial and Market Outcomes7.4 Workforce-Focused Outcomes7.5 Process Effecctiveness Outcomes7.6 Leadership Outcomes

What is expected after?

Increased the value an organization provides to its customer and stakeholders.

Improved communication,collaboration, empowerment, commitment and trust among its

employees.Improved the organization public image with a

commensurate increase in customer confidence

The Six Sigma Is a business management

strategy originally developed by Engr. Bill Smith of Motorola, USA in 1981

A process in which 99.99966% of products manufactured are free of defects.

Is about results. Its focus is to do the right things right.

Is based on knowledge.

Six Sigma Assessments

improved quality + efficiency = Profitability

customer knowledge + core process improvements efforts = improvement in company sales and revenue growth

Need to have a holistic view on reliabilty and quality, and then developed a strategy for improving both.

Six Sigma Assessments

Increase in complexity of systems and products = creation of higher-than-desired system failure rates

Solution: to increase reliability and reduced failure rates the components in complex systems and products have to have individual failure rates approaching zero.

Training Typically Required for Greenbelt Certification

Quality PhilosophiesPerformance Measures/MetricsProblem SolvingProcess MappingCheck SheetsPareto AnalysisCause-and-Effect Diagram AnalysisScatter DiagramFrequency DiagramHistograms

Training Typically Required for Greenbelt Certification

StatisticsData Collection: Data types andsampling

techniquesX and R ChartsProcess Capability AnalysisP, u, c chartsRoot Cause AnalysisVariation ReductionSix Sigma PhilosophyGreenbelt Project

Training Typically Required for Black Belt Certification

Variables Control ChartsProcess Capability AnalysisHypothesis TestingDesign of ExperimentsGage R&RReliabilityISO 9000, MBNQAAttribute Control ChartsVoice of Customer: Quality Function DeploymentRegression AnalysisBlack Belt Project

Master Blackbelt

Individuals with extensive trainingwho have a large scale improvement project,

usually say $1,000,000Must a master degree from accredited university

is a requirementProvides training and guides trainees during their

projectsMentors, teachers, coaches and explorers

Six Sigma Responsibility Matrix ResponsibiltyPhase

ManagementRecognizeMngt./Master Blackbelt DefineBlack Belts/ Green Belts MeasureBlack Belts/ Green Belts AnalyzeBlack Belts/ Green Belts ImproveBlack Belts/ Green Belts ControlManagementStandardizeManagementIntegrate

8 Essential Phases of Six Sigma Projects

RecognizeDefine

MeasureAnalyzeImproveControl

StandardizedIntegrate

The Six Sigma Problem Solving Steps

Define - PlanMeasure - PlanAnalyze - Plan

Improve - Do

Control- Study - Act

Benefits of Six Sigma

Better understading of their key business process and its process flow improvement(reduced cycle time, elimination of defects, increased capacity and productivity rate)

Improvements reduce cost and waste while increasing product and service reliability

Improved value for the customer

mproved performance for the company

Criticisms

Does not offer anything new

Limited only to large firm

Costly to implement

Focus is on defective per million

Mathematical Designation Of Six Sigma

Cp = USL-LSL6σ

When 6σ = USL – LSLCp = 1

When this happens, the process is considered to be operating at Three Sigma (3σ)

3 Standard Deviation should be added to ave. value in both sides

3 Sigma PresentationLSL Target

USL

-3 -2 -1 0 12 3

6σ < USL-LSL

EX. 25% Design marginCp = 1.33

1.33 = 4 Sigma= 4 standard deviation should be added to ave.

value will equal to USL; 4 SD should be subtracted from the ave. value will equal to LSL

The concept can be repeated for 5 Sigma.Cp = 1.66

When Cp = 22 = 6 Sigma

Six SD added to ave. value will equal to USL; Six SD subtracted to

ave. value will equal to LSL

This provides adequate protection against the possibilities of

aprocess mean shift or in increase in variation.

6 Sigma Presentation

LSL Target USL

-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6

Comparison of Six Sigma Performance to other Sigmas

SIGMA DEFECTS (M) YIELD (%) COST OF QUALITY

1 690,000 30.90 Noncompetitive

2 308,000 69.20 Noncompetitive

3 66,807 93.30 25-40% of sales

4 6,210 99.40 15-25% of sales

5 320 99.98 5- 15% of sales

6 3.4 99.9997 < 1% of sales

Comparison of ISO, MBNQA, Quality Engieneers and Six Sigma

ISO Baldrige Award Quality Engineers Six Sigma

Scope Quality Management SystemContinuous Improvement

Quality of Management

Quality of Management and Corporate Citizenship

Systemetic Reduction of Process variability

Basis for defining Quality

Features and characteristics of product or service

Consumer driven Customer driven Defects per million opportunity

Assessment Requirement based

Performance based

Based on total organizational commitment to quality

Defects per million opportunity

Focus International trade, Quality links bet. Suppliers and purchaser

Customer SatisfactionCompetitive Comparison

Processes needed to satisfy internal and external customer

Locating and eliminating sources of process error

Standard Deviation

Summarizes how far the average values typically are.

This measure is related to mean but gives equal importance to all.

(When the standard deviation is small, it shows that the average distance between the scores and

the mean is small and vice versa)

S = √‾s²