ABCQ CQIA 2006 Instructor

QUALITY COUNCIL OF INDIANA
CQIA 2006
INTRO-1 (1)
THE
QUALITY IMPROVEMENT
ASSOCIATE PRIMER
Second Edition - June, 2006
by Quality Council of Indiana - All Rights Reserved
Bill Wortman
Quality Council of Indiana
602 West Paris Avenue
West Terre Haute, IN 47885
TEL: (812) 533-4215
FAX: (812) 533-4216
qci@qualitycouncil.com
http://www.qualitycouncil.com
008
CQIA 2006
INTRO-5 (2)
CQIA Primer Contents
I. CERTIFICATION OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
CQIA EXAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3
CQIA BODY OF KNOWLEDGE . . . . . . . . . . . . . . . . . . . . . . . . . . I-7
II. QUALITY CONCEPTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1
QUALITY DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-2
QUALITY DEFINED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3
ORGANIZATIONAL QUALITY STEPS . . . . . . . . . . . . . . . . . . II-4
QUALITY TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-7
QUALITY PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-12
QUALITY PRINCIPLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-14
QUALITY POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-15
STRATEGIC QUALITY GOALS . . . . . . . . . . . . . . . . . . . . . . . II-16
TACTICAL QUALITY GOALS . . . . . . . . . . . . . . . . . . . . . . . . II-17
QUALITY MATURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-18
IMPORTANCE OF EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . II-20
INDIVIDUAL INVOLVEMENT . . . . . . . . . . . . . . . . . . . . . . . . II-20
EMPLOYEE EMPOWERMENT . . . . . . . . . . . . . . . . . . . . . . . II-21
QUALITY OF WORK LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . II-23
SYSTEMS AND PROCESSES . . . . . . . . . . . . . . . . . . . . . . . . . II-25
VARIATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31
SYSTEM VARIATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31
SPECIAL VS COMMON CAUSE . . . . . . . . . . . . . . . . . . . . . . II-33
SOURCES OF VARIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . II-35
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-37
III. QUALITY BENEFITS & PHILOSOPHIES . . . . . . . . . . . . . . . . . III-1
BENEFITS OF QUALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2
STAKEHOLDER GROUPS . . . . . . . . . . . . . . . . . . . . . . . . . . III-2
STAKEHOLDER QUALITY BENEFITS . . . . . . . . . . . . . . . . . III-4
MBNQA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-7
QUALITY PHILOSOPHIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-9
PHILIP CROSBY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-9
W. EDWARDS DEMING . . . . . . . . . . . . . . . . . . . . . . . . . . . III-16
JOSEPH M. JURAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-28
COMPARISONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-36
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-40
CQIA 2006
INTRO-5 (3)
IV. TEAM ROLES & RESPONSIBILITIES . . . . . . . . . . . . . . . . . . . . IV-1
TEAM PURPOSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-2
TEAM BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-3
TYPES OF TEAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-4
SYNOPSIS OF TEAM APPLICATIONS . . . . . . . . . . . . . . . . . IV-7
ROLES AND RESPONSIBILITIES . . . . . . . . . . . . . . . . . . . . . . . IV-8
SPONSOR/CHAMPION ROLE . . . . . . . . . . . . . . . . . . . . . . . IV-9
LEADER ROLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-9
FACILITATOR ROLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-10
TEAM MEMBER ROLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-12
MEASUREMENT OF PERFORMANCE . . . . . . . . . . . . . . . . . IV-13
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-16
V. TEAM FORMATION & DYNAMICS . . . . . . . . . . . . . . . . . . . . . . . . . V-1
INITIATING TEAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-2
TEAM BUILDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-3
TEAM ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-4
TEAM CHARTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-6
TEAM GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-7
TEAM MEETING STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . V-8
REWARD & RECOGNITION . . . . . . . . . . . . . . . . . . . . . . . . . V-10
SELECTING TEAM MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . V-12
TEAM SIZE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-12
TEAM DIVERSITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-13
TEAM STAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-14
TEAM BARRIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-17
COMMON TEAM PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . V-18
GROUPTHINK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-19
CONFLICT RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . V-21
DECISION MAKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-24
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-26
VI. CONTINUOUS IMPROVEMENT . . . . . . . . . . . . . . . . . . . . . . . . . VI-1
INCREMENTAL & BREAKTHROUGH . . . . . . . . . . . . . . . . . . . . VI-2
INCREMENTAL IMPROVEMENT . . . . . . . . . . . . . . . . . . . . . VI-3
BREAKTHROUGH IMPROVEMENT . . . . . . . . . . . . . . . . . . . VI-4
REENGINEERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-5
SIX SIGMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-6
KAIZEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-8
NON-VALUED-ADDED ACTIVITIES . . . . . . . . . . . . . . . . . . . VII-9
CQIA 2006
INTRO-5 (4)
MISTAKE PROOFING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-11
CYCLE TIME REDUCTION . . . . . . . . . . . . . . . . . . . . . . . . . VI-12
CONCURRENT ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . VI-14
IMPROVEMENT CYCLES (PDCA/(PDSA) . . . . . . . . . . . . . . . VI-15
PROBLEM SOLVING PROCESSES . . . . . . . . . . . . . . . . . . . . VII-17
CLASSICAL STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-18
DMAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-20
ROOT CAUSE ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . VII-23
IMPROVEMENT BARRIERS . . . . . . . . . . . . . . . . . . . . . . . . . . VI-25
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-25
VII. BASIC QUALITY TOOLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-1
CAUSE-AND-EFFECT DIAGRAMS . . . . . . . . . . . . . . . . . . . . . . VII-2
FLOW CHARTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-4
DATA TYPES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-7
CHECK SHEETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-8
HISTOGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-11
PARETO DIAGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-16
SCATTER DIAGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-20
CONTROL CHARTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-24
VARIABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-27
ATTRIBUTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-35
INTERPRETATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-43
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-50
VIII. QUALITY MANAGEMENT TOOLS . . . . . . . . . . . . . . . . . . . . . VIII-1
BRAINSTORMING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-2
AFFINITY DIAGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-3
BENCHMARKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-5
QUALITY COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-8
COST CATEGORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-10
COST IMPROVEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-15
COST BASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-16
QUALITY AUDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-21
TYPES OF AUDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-22
AUDIT RESPONSIBILITIES . . . . . . . . . . . . . . . . . . . . . . . . VIII-27
AUDIT PREPARATION/EXECUTION . . . . . . . . . . . . . . . . VIII-29
AUDIT REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-30
AUDIT TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-31
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-34
CQIA 2006
INTRO-5 (5)
IX. CUSTOMER-SUPPLIER RELATIONSHIPS . . . . . . . . . . . . . . . . IX-1
INTERNAL CUSTOMERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-2
INTERNAL CUSTOMER FEEDBACK . . . . . . . . . . . . . . . . . . . . IX-6
EXTERNAL CUSTOMERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-7
CUSTOMER EXPECTATIONS . . . . . . . . . . . . . . . . . . . . . . IX-11
CUSTOMER NEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-12
CUSTOMER SATISFACTION . . . . . . . . . . . . . . . . . . . . . . . IX-14
CUSTOMER SERVICE PRINCIPLES . . . . . . . . . . . . . . . . . IX-15
QUALITY FUNCTION DEPLOYMENT . . . . . . . . . . . . . . . . . IX-20
EXTERNAL CUSTOMER FEEDBACK . . . . . . . . . . . . . . . . . . . IX-25
INTERNAL SUPPLIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-31
INTERNAL SUPPLIER FEEDBACK . . . . . . . . . . . . . . . . . . . . IX-32
EXTERNAL SUPPLIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-33
SUPPLIER RATINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-35
SUPPLIER COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . IX-36
SUPPLIER CERTIFICATION . . . . . . . . . . . . . . . . . . . . . . . . IX-42
EXTERNAL SUPPLIER FEEDBACK . . . . . . . . . . . . . . . . . . . . IX-44
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-48
X. APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X-1
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X-3
ANSWERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X-17
CQIA 2006
INTRO-6 (6)
CQIA Primer Question Contents
Primer Section
Questions
% Exam Primer CD
I. Certification Overview
II. Quality Concepts 13% 13 52 130
III. Quality Benefits &
Philosophies
12% 12 48 120
IV. Team Roles &
Responsibilities
9% 9 36 90
V. Team Formation &
Dynamics
16% 16 64 160
VI. Continuous Improvement 12% 12 48 120
VII. Basic Quality Tools 13% 13 52 130
VIII. Quality Management Tools 13% 13 52 130
IX. Customer-Supplier
Relationships
12% 12 48 120
Total 100% 100 400 1000
Comparison B/T the CQIA Primer & ASQs BOK
Primer II III IV V VI VII VIII IX
ASQ
BOK
I.
A
I.
B & C
II.
A & B
II.
C
III.
A, B & C
III.
D
III.
D
III.
E
CQIA 2006
I. CERTIFICATION OVERVIEW
I-1 (7)
I KNOW OF NO MORE ENCOURAGING
FACT THAN THE UNQUESTIONABLE
ABILITY OF MAN TO ELEVATE HIS
LIFE BY A CONSCIOUS ENDEAVOR.
HENRY DAVID THOREAU
Professionalizing Quality Education
CQIA 2006
I-2 (8)
Preface
This text is designed to provide quality professionals
with a review of fundamental knowledge and skills. It is
also intended to be a Primer for those interested in
taking the certification examination offered twice a year
by the American Society for Quality.
Test questions are provided at the end of each Section.
The majority of these questions were created by the
author and QCI associates. Some questions are derived
from ASQ certification brochures and modified
published examinations. These test questions and
answers must be removed if this text is to be used as a
reference during a certification examination. They are
printed on blue paper for easy distinction.
CQIA 2006
I-3 (9)
Certified Quality Improvement
Associate Exam
Objective
To provide recognized fundamental quality training
and to prepare persons interested in taking the CQIA
examination. ASQ believes that this knowledge will
help advance the use of quality tools throughout
organizations.
Certification
Certification is the independently verified prescribed
level of knowledge as defined through a combination
of experience, education and examination.
The Certified Quality Improvement Associate
The CQIA examination is designed to assess basic
knowledge of quality tools and their uses by
individuals who are involved in quality improvement
projects, but do not necessarily come from traditional
quality areas. This program is in response to the
rapid spread of quality principles and practices
throughout organizations, and covers the basics of
quality at a fundamental level in a way that is not
exclusively addressed in any of the existing
certification exams.
CQIA 2006
I-3 (10)
CQIA Exam (Continued)
Eligibility
CQIA participants must register with ASQ
headquarters. Eligibility is two years of general work
experience or at least an Associates Degree from a
post-secondary school.
Cost
The national test fee is determined by ASQ and is
detailed in the CQIA brochure.
Location
Proctors are provided by local ASQ Sections.
Duration
The test lasts three hours and will begin at an advised
time (typically 8:00 or 9:00 A.M.)
CQIA 2006
I-4 (11)
Other Details
Additional information can be obtained from ASQ at
1-800-248-1946 or downloaded from the ASQ web site.
Bibliography Sources
The reference sources cited in the CQIA brochure are
excellent. The authors recommend the following
references in approximately the order presented:
(1) Quality Dictionary
(2) The Team Handbook, 2nd ed.
(3) The Quality Improvement Handbook
(4) The CQIA Handbook
(5) The Management and Control of Quality, 4th ed.
(6) Total Quality Management, 2nd ed.
(7) Quality Management, Introduction to Total Quality
Management for Production, Processing, and
Services, 3rd ed.
(8) Jurans Quality Handbook, 5th ed.
CQIA 2006
I-5 (12)
Study
The authors recommend that this Primer be taught by
a qualified CQE, CQA, CMQ/OE or CQIA using
classroom lecture, study assignments and a review of
test questions. Training may vary from 20 hours to 40
hours. Additionally, the student should spend about
50 hours of individual study on the Primer, test
questions, and other bibliography sources. If the
student studies unaided, a minimum of 80 hours of
preparation is suggested.
Exam Hints
The CQIA applicant should take into the exam:
C Several #2 pencils
C A calculator
C The CQIA Primer (without test questions)
C Any other selected bibliography sources
C Scratch paper
CQIA 2006
I-5 (13)
Exam Hints (Continued)
Arrive early, get a good seat, and organize materials.
Answer all questions. There's no penalty for wrong
answers.
Save difficult questions until the end.
Use good time management. If there are 100
questions, and the exam lasts 3 hours, a student must
average 1.8 minutes/question.
Some tests begin with difficult questions, avoid panic.
Keep test question numbers and the answer sheet
aligned.
Bring any exam errata to the proctor's attention.
Mentally note weakness categories in case you have
to take the exam again. ASQ will report only flagrant
areas.
CQIA 2006
I-7 (14)
CQIA Body of Knowledge
I. Quality Basics (25 Questions)
A. Terms, Concepts, and Principles
1. Quality (Apply)
Define and know how to use this term correctly.
2. Quality planning (Understand)
Understand a quality plan and its purpose for the
organization as a whole and who in the
organization contributes to its development.
3. The importance of employees (Understand)
Understand employee involvement and employee
empowerment, and understand the benefits of
both concepts; distinguish between involvement
and empowerment.
CQIA 2006
I-7 (15)
CQIA BOK (Continued)
4. Systems and processes (Analyze)
Define a system and a process; distinguish
between a system and a process; understand the
interrelationship between process and system;
and know how the components of a system
(supplier, input, process, output, customer, and
feedback) impact the system as a whole.
5. Variation (Understand)
Understand the concept of variation and common
and special cause variation.
B. Benefits of Quality (Understand)
Understand how improved process, product and/or
service quality will benefit any function, area of an
organization, or industry. Understand how each
stakeholder (e.g., employees, organization,
customers, suppliers, community) benefits from
quality and how the benefits may differ for each
type of stakeholder.
CQIA 2006
I-8 (16)
C. Quality Philosophies (Remember)
Understand each of these philosophies and how
they differ from one another.
1. Deming (14 points)
2. Juran (Trilogy)
3. Crosby (Zero defects)
II. Teams (25 Questions)
A. Understanding Teams
1. Purpose (Apply)
Understand the definition of a team, when to use
a team and for how long.
2. Characteristics and types (Apply)
Recognize characteristics and types of teams and
how they are structured; know how teams differ
and how they are similar; know which type of
team to use in a given situation.
CQIA 2006
I-8 (17)
3. Value (Understand)
Understand how a teams work relates to the
organizations key strategies and the value of
using different types of teams.
B. Roles and Responsibilities (Understand)
Identify major team roles and the attributes of good
role performance for champions, sponsors, leaders,
facilitators, timekeepers, and members.
C. Team Formation and Group Dynamics
1. Initiating teams (Apply)
Apply the elements of launching a team: clear
purpose, goals, commitment, ground rules,
schedules, support from management, and team
empowerment.
2. Selecting team members (Apply)
Know how to select team members who have
appropriate skill sets and knowledge (e.g.,
number of members, experti se, and
representation).
CQIA 2006
I-9 (18)
3. Team stages (Understand)
Describe the classic stages of team evolution
(forming, storming, norming, and performing).
4. Team barriers (Analyze)
Understand the value of conflict, know how to
resolve team conflict, define and recognize
groupthink and how to overcome it, understand
how poor logistics and agendas as well as lack of
training become barriers to a team.
5. Decision making (Apply)
Understand and apply different decision models
(voting, consensus, etc.).
CQIA 2006
I-9 (19)
III. Continuous Improvement (50 Questions)
A. Incremental and Breakthrough Improvement
(Understand)
Understand how process improvement can identify
waste and non-value-added activities. Understand
how both incremental and breakthrough
improvement processes achieve results. Know the
steps required for both types of improvement.
Recognize which type of improvement approach is
being used in specific situations. Know the
similarities and differences between the two
approaches.
B. Improvement Cycles (Analyze)
Define various improvement cycle phases (e.g.,
PDCA, PDSA) and use them appropriately.
C. Problem Solving Process (Apply)
Apply the basic problem solving steps: understand
the problem, determine the root cause,
develop/implement solutions and verify
effectiveness.
CQIA 2006
I-10 (20)
D. Improvement Tools (Apply)
Use, interpret, and explain flowcharts, histograms,
Pareto charts, scatter diagrams, run charts, cause
and effect diagrams, checklists (check sheets),
affinity diagrams, cost of quality, benchmarking,
brainstorming, and audits as improvement tools.
Understand control chart concepts (e.g.,
centerlines, control limits, out-of-control
conditions), and recognize when control charts
should be used.
E. Customer-Supplier Relationships
1. Internal and external customers (Understand)
Know how customers are defined. Understand the
importance of working with customers to improve
processes and services, and how customers
influence organizational processes. Know how to
distinguish between different external customer
types (consumers and end-users).
CQIA 2006
I-10 (21)
2. Customer feedback (Understand)
Know the different types of customer feedback
(e.g., surveys, complaints) and understand the
value in using the data to drive continuous
improvement activities.
3. Internal and external suppliers (Understand)
Understand the value in communicating
expectations and the impact of supplier
performance. Understand the value of working
with suppliers to improve products, processes, or
services.
4. Supplier feedback (Understand)
Know the different types of supplier feedback
(e.g., surveys, complaints, ratings) and
understand the value in using the data to drive
continuous improvement activities.
CQIA 2006
I-12 (22)
Levels of Cognition
Based on Blooms Taxonomy
In addition to content specifics, the subtext for each
topic in this BOK also indicates the intended complexity
level of the test questions for that topic. These levels
are based on Levels of Cognition (from Blooms
Taxonomy - Revised, 2001) and are presented below in
rank order, from least complex to most complex.
Remember (Knowledge Level)
Recall or recognize terms, definitions, facts, ideas,
materials, patterns, sequences, methods, principles,
etc.
Understand (Comprehension Level)
Read and understand descriptions, communications,
reports, tables, diagrams, directions, regulations, etc.
Apply (Application Level)
Know when and how to use ideas, procedures,
methods, formulas, principles, theories, etc.
CQIA 2006
I-12 (23)
Levels of Cognition (Continued)
Analyze (Analysis Level)
Break down information into its constituent parts and
recognize their relationship to one another and how
they are organized; identify sublevel factors or salient
data from a complex scenario.
Evaluate (Evaluation Level)
Make judgments about the value of proposed ideas,
solutions, etc., by comparing the proposal to specific
criteria or standards.
Create (Synthesis Level)
Put parts or elements together in such a way as to
reveal a pattern or structure not clearly there before;
identify which data or information from a complex set
is appropriate to examine further or from which
supported conclusions can be drawn.
CQIA 2006
II. QUALITY CONCEPTS
II-1 (24)
QUALITY IS ABOUT PASSION
AND PRIDE
T. J. PETERS/N. AUSTIN (1986)
CQIA 2006
QUALITY DEFINITIONS
II-2 (25)
Quality Concepts
Quality Concepts (Basics) are presented in the following
topic areas:
C Quality definitions
C Quality planning
C Importance of employees
C Systems and processes
C Variation
CQIA 2006
QUALITY DEFINITIONS
II-2 (26)
Quality Defined
Some definitions of quality include:
C Dr. W. Edwards Deming (1986) said that Quality
control does not mean achieving perfection. It
means the efficient production of quality that the
market expects.
C Dr. Joseph M. Juran (1992) defines quality as
Fitness for use.
C Philip Crosby (1979) defines quality as
Conformance to requirements.
C The American Society for Quality defines quality as
The totality of features and characteristics of a
product that bear on its ability to satisfy a given
need.
CQIA 2006
QUALITY DEFINITIONS
II-3 (27)
Determinants of Quality
Listed below are some of the attributes and descriptors
that consumers associate with quality:
Products Services
Performance Reliability
Features Responsiveness
Reliability Competence
Conformance Access/Courtesy
Durability Communication
Serviceability Credibility
Aesthetics Security/Safety
Perceived quality Knowing the customer
CQIA 2006
QUALITY DEFINITIONS
II-4 (28)
Organizational Quality Steps
For Total Quality to succeed in an organization, a
structured process should be used. According to Juran
(1992), the process should include:
C A Quality Council
C Quality Policies
C Strategic Quality Goals
C Deployment of Quality Goals
C Resources for Control
C Measurement of Performance
C Quality Audits
CQIA 2006
QUALITY DEFINITIONS
II-7 (29)
Quality Terms
The following terms and definitions are pertinent to
understanding and communicating quality.
Attribute A characteristic or property that is
appraised in terms of whether it
does or does not exist, with respect
to a given requirement.
Audit Standard An authentic description of essential
characteristics of audits which
reflects current thought and
practice.
Capability The ability to perform designated
activities and to achieve results
which fulfill specified requirements.
CQIA 2006
QUALITY DEFINITIONS
II-7 (30)
Quality Terms (Continued)
Corrective Action An action taken to eliminate the
causes of an existing nonconformity,
defect or other undesirable situation,
to prevent recurrence.
Defect The nonfulfillment of intended usage
requirements. The departure or
absence of one or more quality
characteristics from intended usage
requirements.
Documentation The use of documentary evidence;
the documents used.
Inspection The pr ocess of measur i ng,
examining, testing, gaging or
otherwise comparing a unit with
requirements.
CQIA 2006
QUALITY DEFINITIONS
II-8 (31)
Instructions Detailed, written, or spoken
directions given in regard to what is
to be done.
Lot A definite quantity of a product or
material accumulated under
conditions that are considered
uniform for sampling purposes.
Nonconformity A depar t ur e of a qual i t y
characteristic from its intended level
or state that occurs with a severity
sufficient to cause an associated
product or service not to meet a
specification requirement.
Objective Information which can be verified,
Evidence based on facts and obtained through
observation, measurement, or test.
CQIA 2006
QUALITY DEFINITIONS
II-9 (32)
Preventive Action An action taken to eliminate the
causes of a potential nonconformity,
defect or other undesirable situation,
to prevent occurrence.
Procedure A specified written way to perform
an activity.
Process A set of interrelated resources and
activities which transform inputs
into outputs with the aim of adding
value.
Product The result of activities or processes.
A product can be tangible or
intangible, or a combination of both.
CQIA 2006
QUALITY DEFINITIONS
II-10 (33)
Quality The totality of features and
characteristics of a product or
service that bear on its ability to
satisfy given needs.
Quality All those planned or systematic
Assurance actions necessary to provide
adequate confidence that a product
or service will satisfy given needs.
Quality Audit A systematic and independent
examination to determine whether
quality activities and related results
comply with planned arrangements
and whether these arrangements are
implemented effectively and are
suitable to achieve objectives.
CQIA 2006
QUALITY DEFINITIONS
II-10 (34)
Quality Control The operational techniques and
activities which sustain a quality of
product or service that will satisfy
given needs; also the use of such
techniques and activities.
Quality The actions taken to increase the
Improvement value to the customer by improving
the effectiveness and efficiency of
processes and activities throughout
the organizational structure.
Quality The totality of functions involved in
Management the determination and achievement
of quality.
Quality Manual A document stating the quality
policy and describing the quality
system of an organization.
CQIA 2006
QUALITY DEFINITIONS
II-11 (35)
Quality Planning Establishing and developing the
objectives and requirements for
quality and the requirements for the
quality system application.
Quality Policy The overall quality intentions and
direction of an organization
regarding quality, as formally
expressed by top management.
Record A document which furnishes
objective evidence of activities
performed or of results achieved.
CQIA 2006
QUALITY DEFINITIONS
II-11 (36)
Reliability The probability that an item will
perform its intended function for a
specified interval under stated
conditions.
Rework The a c t i on t a k e n on a
nonconforming item so that it will
fulfill the originally specified
requirements.
Sample A group of units or observations
taken from a larger collection of
units or observations that serves to
provide an information basis for
making a decision concerning the
larger quantity.
System Several components (or processes)
integrated together to perform a
function.
CQIA 2006
QUALITY PLANNING
II-12 (37)
Strategic Planning
A short outline of the strategic planning process should
include the following:
C Develop a company vision and purpose statement
C Review previously gathered environmental data
C Consider corporate strengths and weakness
C Make assumptions about outside factors
C Establish appropriate goals
C Develop strategic and tactical implementation steps
C Evaluate performance to goals
C Reevaluate the above steps for perpetual use
CQIA 2006
QUALITY PLANNING
II-12 (38)
DEVELOP THE SPECIFIC TACTICS
DEVELOP BROAD STRATEGIC OBJECTIVES
DEVELOP THE GUIDING PRINCIPLES
DEVELOP THE MISSION
DEVELOP THE VISION
Strategic Planning (Continued)
The traditional specific strategic planning steps
(adapted from Goetsch, 2000) include:
CQIA 2006
QUALITY PLANNING
II-13 (39)
The Quality Plan
Quality planning, at the highest level of the organization,
will provide more recognition and commitment to the
quality effort. Quality planning at the strategic level can
be described as strategic quality planning.
Quality Planning is:
A systematic process for defining the methods
needed to meet the requirements for a particular
product, process, or standard.
Quality can be addressed by a organization in their
vision or mission statements. In most cases, one or
more quality elements will be included as guiding
principles. Often these principles are formalized into
one or more quality policies.
CQIA 2006
QUALITY PLANNING
II-14 (40)
Quality Principles
The term principles means a basic foundation of
beliefs, truths, etc., upon which others are based. One
method for the leaders of an organization to gain the
truth, would be to study the literature of the quality
gurus.
Information and materials on the Malcolm Baldrige
National Quality Award and ISO 9001 will also be of
benefit.
The integration of study with Quality Council
(Management steering committee) involvement will
result in a collective philosophy about quality.
Some commonly quality principle statements include:
Total dedication to the customer (Ciampa, 1992)
Quality must be built into each design and each
process. It cannot be created through inspection.
(Ishikawa, 1985)
CQIA 2006
QUALITY PLANNING
II-14 (41)
Quality Principles (Continued)
An organizations principles may stress some of the
following points:
C Customer satisfaction is a key
C Defects must be prevented
C Manufacturing assumes responsibility for quality
C The process must be controlled
C Everyone participates in quality
C Quality is designed into the product
C Total quality is a group activity
CQIA 2006
QUALITY PLANNING
II-15 (42)
Quality Policies
A quality policy represents the overall quality intentions
and direction of an organization regarding quality, as
formally expressed by top management.
Quality policies often include several of the following
thoughts:
C The only acceptable level of defects is zero
C We will meet or exceed customer expectations
C Defective products will not be shipped
C We will build a relationship with our suppliers to
ensure a quality product
C We will engage in a revolutionary rate of quality
improvement
CQIA 2006
QUALITY PLANNING
II-15 (43)
Quality Policies (Continued)
Quality policies are often developed by top management
in order to link together policies among all departments.
A quality policy set by the top management will ensure
that a systems approach will be undertaken.
To carry the quality policy down the organization, each
individual department can also develop its own quality
policy. The quality policy should support the overall
corporate policy. The department quality policy will
allow each department to personalize the message.
CQIA 2006
QUALITY PLANNING
II-16 (44)
Strategic Quality Goals
Quality goals of a strategic nature, become a part of the
strategic business plan.
The quality goals are specific, quantified, and
scheduled. We will achieve 99% ratings from all of our
designated customers by August, 2006 would fit a
strategic quality goal definition.
Quality goals may be linked to product performance,
service performance, customer satisfaction, quality
improvement, or quality costs.
CQIA 2006
QUALITY PLANNING
II-16 (45)
Strategic Quality Goals (Continued)
Strategic quality goals cut across many departments
and address issues that are applicable organization
wide. The following are examples:
C Company vision, mission statement, quality policy
C Shared Total Quality philosophy
C Effects of quality systems...ISO, MBNQA
C Emergence of new competitors
C Highlights of new quality techniques and tools
C Field intelligence on the competition
CQIA 2006
QUALITY PLANNING
II-16 (46)
Strategic Planning Elements and Timing
Purpose Output Time Frames
Direction C Vision(s)
C Mission
C Strategic Focus
C Critical Success
Factors
C 10 - 20 Years
C Open ended
C 5 Years
C 3 - Years
Expectations
(Measurables)
C Business Objectives
C Performance Goals
C 5 - 10 Years
C 1 - 5 Years
Action C Strategies
C Tactics
C Budgets
C Performance Plans
C 1 - 5 Years
C 1 - 3 Years
C 1 - 3 Years
C 3 - 12 Months
CQIA 2006
QUALITY PLANNING
II-17 (47)
Tactical Quality Goals
Tactical quality goals are the many detailed subgoals
that are derived from strategic quality goals.
C Status of customer complaints, returns, warranty
claims
C Results of customer surveys, mailings
C In-house scrap, rework, defective rates
C Supplier ratings, deliveries
Examples of some departmental quality tactical goals
could be:
C We will reduce the response time of our
departmental laboratory testing from 5 days to 1
day.
C We will reduce total quality costs by 7 percent
during the next financial period.
CQIA 2006
QUALITY PLANNING
II-18 (48)
Quality Maturity Development
Strategic or long term quality plans and objectives may
be grouped into stages of developmental maturity of the
quality system.
Listed below are some steps in order of advancing
maturity:
C Inspection, appraisal and detection stage
C Process control and prevention stage
C A solid quality system in place
C Conformance with external quality system
requirements
C Voluntary product compliance goals
C Total quality management
C Malcolm Baldrige National Quality Award
C World class quality
CQIA 2006
IMPORTANCE OF EMPLOYEES
II-20 (49)
Introduction
Management has the responsibility of setting the tone
for organizational empowerment. The purpose of this
action is to engage the entire workforce in the activity of
making things better. The need for continuous
improvement includes: productivity, cost containment,
product and service quality, customer treatment, and
respect for all employees of the company.
CQIA 2006
II-20 (50)
Individual Involvement
A successful organization motivates its employees at
every level and gets the most out of their investment.
Although there are many motivational theories, no one
approach is applicable for all situations.
People have different levels of needs. All people can't
be motivated by the same set formula. Often, an
organization and its employees have different goals. A
company which treats its employees as individuals and
shows a sincere desire in individual development,
stands the best chance of benefitting the most from
employee involvement.
A recognition system, both monetary as well as non-
monetary, is essential.
CQIA 2006
II-20 (51)
Individual Involvement (Continued)
Involvement is the act of engaging a participant. It
implies some professional, personal or emotional
attachment.
Involving the employees in the operations of the
company and allowing them to contribute more than
their muscle to the success of the company, is very
important. There is a need to tap the creativity and
knowledge of all of the employees for the mutual benefit
of the company.
A level of trust and honesty must be evident so that
employees work to help satisfy the customer. One
approach includes treating all employees as partners in
the business.
CQIA 2006
II-21 (52)
Employee Empowerment
Organizations find that with empowerment, solutions are
better, decisions have better acceptance, and
performance is increased. French (1999) provides the
following definition of empowerment:
To empower is to give someone power, which is
done by giving individuals the authority to make
decisions, to contribute their ideas, to exert influence,
and to be responsible.
CQIA 2006
II-21 (53)
Employee Empowerment (Continued)
Goetsch (2000) points out that empowerment is
employee involvement that matters. The employees
have authority and responsibility to make things
happen. Some of the methods to increase participation
and involvement include:
C Quality circles
C Team building
C Survey feedback
C Culture audit
C Autonomous work groups
C Quality of work life programs
C Search conferences
C Open-book management
(French, 1999)
CQIA 2006
II-21 (54)
Barriers To Empowerment
The resistance to a change to empowerment comes
from several sources:
C Employees (another management program that will
go away)
C Unions (long distrust and suspicion of management
motives)
C Management (lack of commitment, training, values,
or insecurity)
C Middle management (first and middle level
managers are not involved)
CQIA 2006
II-22 (55)
Erasing Barriers To Empowerment
Senior management has to do a better job in erasing the
barriers to empowerment through:
C Providing more support
C Providing training
C Being facilitators
C Being role models
C Managing by walking around
C Responding quickly to recommendations
C Recognizing employee accomplishments
(Goetsch, 2000)
CQIA 2006
II-22 (56)
0
10
20
30
40
50
60
70
80
90
100
INFORMATION
SHARING
OPINION
SURVEYS
EMPLOYEE
TRAINING
SUGGESTION
SYSTEMS
TASK FORCE
COMMITTEES
PROBLEM
SOLVING
TEAMS
KAIZEN
CI TEAMS
SELF MANAGED
PLANT DESIGN
AWARENESS
UNDERSTANDING
SUPPORT
COMMITMENT
OWNERSHIP
EMPOWERMENT
IMPACT
PROGRESSIVE APPROACHES
SELF
REGULATING
WORK TEAMS
Organizational Empowerment
Organizational empowerment generally consists of
steps or stages. Very few companies would attempt to
advance from employee awareness directly to employee
ownership.
Organizational Empowerment Steps
CQIA 2006
II-23 (57)
Quality of Work Life Initiatives
It is through providing a better work environment via
empowerment that the quality of work life can be
improved. Empowerment activities at some companies
can be comprised of job redesign to reduce or enhance
the work experience. The various job design
approaches include:
C Job Simplification
C Job Rotation
C Job Enlargement
C Job Enrichment
(Schermerhorn, 1993)
CQIA 2006
II-23 (58)
Job Simplification
Job simplification employs standardized work
procedures with narrow job scopes and highly
specialized tasks. The jobs are easier to learn and
require less employee skills. The responsibilities and
opportunities for individual decision making are
minimized. Employees can be bored with their work,
become unhappy, have higher turnover, and perform
poorly.
Job Rotation
Job rotation consists of moving employees among jobs
involving different functions or skills. The content of
each task can vary from each other, helping to broaden
employees understanding of other jobs and linkages to
the company. Employees can be included in the
scheduling effort for involvement.
CQIA 2006
II-23 (59)
Job Enlargement
The concept of job enlargement is to combine related
jobs and assign them to one employee. The employee
will have a larger job by having more varied task
elements.
Job Enrichment
In this job design, jobs that are boring or lack content
are given elements that will satisfy and enrich the
employee. That is, more responsibilities are added to
the job. Perhaps this could include elements of
planning, evaluating options, making decisions, or team
building.
CQIA 2006
II-24 (60)
Job Enrichment (Continued)
Methods to recognize if a job is in need of enrichment
opportunities:
C Skill variety: a variety of tasks, types of skills,
number of skills needed
C Task identify: ability to do the complete job or just
portions of it
C Task significance: the impact of the job on the firm
C Autonomy: freedom from supervision, ability to
schedule ones own work
C Job feedback: can a person see the direct results of
their work?
CQIA 2006
II-24 (61)
Job Enrichment (Continued)
A manager can enhance his/her ability to use
empowerment concepts in normal work activities.
Among the various concepts the manager can use are:
C Involving people in making their own work
assignments
C Encouraging others to obtain the results of work
assignments
C Providing an environment of cooperation and
information sharing
C Sharing the ownership of results
C Encouraging others to take initiative in the
workplace
C Allowing others to make decisions and solve their
own problems
C Letting others implement their ideas
C Recognizing successes and contributors
(Schermerhorn, 1993)
CQIA 2006
SYSTEMS AND PROCESSES
II-25 (62)
Systems
From an organizational standpoint, a system is defined
as a series of actions, activities, elements, components,
departments, or processes that work together for a
definite purpose.
System effectiveness is a measure of the degree to
which a system can be expected to achieve a set of
specific (mission) requirements, that may be expressed
as a function of performance (availability, dependability
and capability).
Subsystems
Subsystems are major divisions of a system that are still
large enough to consist of more than one process.
CQIA 2006
II-25 (63)
Processes
Processes are definable portions of a system or
subsystem that consists of a number of individual
elements, actions, or steps. Omdahl (1997) defines a
process as a set of interrelated resources and activities
which transform inputs into outputs with the objective
of adding value.
CQIA 2006
II-25 (64)
PROCESS 1
PROCESS 2
PROCESS 3
PROCESS 4
PROCESS 5
INPUTS
DATA
IDEAS
ORDERS
SPECS
MONEY
NEEDS
OTHERS
OUTPUTS
PRODUCTS
SERVICES
REMEDIES
DESIGNS
SOLUTIONS
TRAINING
OTHERS
FEEDBACK
CUSTOMERS SUPPLIERS
FEEDBACK
A Hypothetical System Schematic
CQIA 2006
II-26 (65)
OBTAIN CQIA
BODY OF KNOWLEDGE
DIVIDE BOK
INTO THREE
SEGMENTS
AUTHOR A AUTHOR B AUTHOR C
REWRITE
OK
DESIGN
ADVERTISEMENT
& FLYER
IDENTIFY
TAB
NAMES
OK
PLACE
ORDER
OK
PLACE
TAB
ORDER
OK
TYPIST
MATERIAL
OK
COMPLETED
TEXT
COMPLETED
PRIMER
SELL PRIMER
DESIGN
BINDER
OK
PLACE
BINDER
ORDER
OK
NO
YES
YES
YES YES
NO
NO
NO
NO
YES
EDITOR
YES
NO
NO
System Flow Chart
CQIA 2006
II-27 (66)
Process Documentation
The activities relative to any process of importance,
should be documented and controlled.
When required by customers, by ISO registrars, or by
good manufacturing practices, procedures and simple
work instructions are used to detail repetitive activities.
A procedure includes details such as who and where
and a work instruction expands the procedure to include
how and when.
CQIA 2006
II-27 (67)
Written Procedures
A procedure is a document that specifies the way to
perform an activity. For most operations, a procedure
can be created in advance by the appropriate
individual(s). Consider the situation where a process
exists, but has not been documented. The procedure
should be developed by those responsible for the
process. Some procedures may be developed by the
quality department for use by other operating
departments. Generally, these departments provide
input. A procedure for the control of nonconforming
material is presented in the Primer.
CQIA 2006
II-29 (68)
Work Instructions
Procedures describe the process at a general level,
while work instructions provide details and a step-by-
step sequence of activities. Flow charts may be used
with work instructions to show relationships of process
steps. Controlled copies of work instructions are kept
in the area where the activities are performed.
Some discretion is required in writing work instructions,
so that the level of detail included is appropriate for the
background, experience, and skills of the personnel that
would typically be using them. Typically, the people that
perform the activities described in the work instruction
should be involved in its creation. The wording and
terminology used should also match that used by the
personnel performing the tasks.
A work instruction example and flow chart are presented
in the Primer.
CQIA 2006
VARIATION
II-31 (69)
Key Variation Considerations
When investigating variation, there are situations where
special or assignable causes must be addressed. In
many of these cases, workers and floor level
supervisors can make corrections.
There are situations where common or chance causes
can be improved by a variety of activities. These system
changes are the responsibility of management.
There are situations where people (both management
and workers) make the situation worse by tweaking it
and, thus, widen the natural variation in a process.
CQIA 2006
VARIATION
II-31 (70)
System Variation
Variation is seldom considered a vital or strategic
management issue but it should be.
In understanding variation, the difference between
common and special causes must be resolved.
Common causes occur in most processes and may
produce a system that is stable and predicable in
outcome.
Deming felt that 94% of all process problems are due to
common cause variation. Usually a decrease in
common cause variation will require corrective
management action.
Fundamental changes in the process are necessary to
reduce or remove the common causes. This means
changing equipment, machinery, methods, materials, or
other factors related to the process.
CQIA 2006
VARIATION
II-32 (71)
CASE 1
NO ADJUSTMENT
CASE 2
ADJUST TO TARGET
CASE 3
OVER ADJUST
FOR WINDAGE
CASE 4
JUST LIKE THE LAST
THE SYSTEM IS STABLE
ABOUT 40% MORE VARIATION
THAN CASE 1
DEMING CALLED
THIS CASE THE
MILKY WAY
System Variation (Continued)
One of the best ways to illustrate what happens when a
stable system is inappropriately adjusted is the Nelson
funnel.
LIFE
EXAMPLES
C WORKERS
TWEAKING THE
MACHINE
C MANAGERS
TAMPERING WITH
WORKER
PERFORMANCE
LIFE LIFE
EXAMPLES EXAMPLES
C US TAX C WORKER TRAINING
POLICY WORKER
C SOME C USING PAINT
CORPORATE MATCHES FROM
RIGHT SIZING PRIOR RUN
C SOME CORPORATE
CULTURES
Nelson Funnel Illustrations
CQIA 2006
VARIATION
II-33 (72)
SCRAP
RATE
TIME
SCRAP
RATE
TIME
Special Versus Common Cause
An important consideration, on the road to process
improvement, is the differentiation between special and
common causes.
Special Cause Example
Common Cause Example
CQIA 2006
VARIATION
II-34 (73)
Process Centering
In some situations savings can be realized by simply
centering the process. Equally as important, if the
process spread can be tightly controlled, a company can
sometimes save a considerable amount of money by
purposely skewing the centering of the process.
CQIA 2006
VARIATION
II-34 (74)
Specification
Rejected
Material
Rejected
Material
Specification
Rejected
Material
Rejected
Material
Process Centering (Continued)
CQIA 2006
VARIATION
II-35 (75)
Sources of Variability
Absolutely everything on earth varies if one measures it
closely enough. The data can be either quantitative
(numbers) or qualitative (counts). All data will vary!
CQIA 2006
VARIATION
II-36 (76)
Within Lot Variation
Lot-to-Lot Variation
Within Stream Variation
Stream-to-Stream Variation
Minus
Minus
Within Time Variation Time-to-Time Variation
Within Piece Variation Piece-to-Piece Variation
Inherent Process Variation
Error of Measurement
Equipment Human
Process Spread
Minus
Minus
Minus
Sources of Variability (Continued)
CQIA 2006
QUESTIONS
II-39 (77)
2.2. Without prior approval, an employee spent $500 of company money
to purchase a device that simplifies work flow in his area. This is an
example of:
a. Management lack of control
b. Worker waste
c. Employee empowerment
d. Employee involvement
2. 7. The "quality function" of a company is best described as:
a. The degree to which the company product conforms to a design or
specification
b. That collection of activities through which "fitness for use" is
achieved
c. The degree to which a class or category of product possesses
satisfaction for people generally
d. Where the quality department fits in the organizational chart
2. 9. The purpose of a quality manual is to:
a. Provide a basis for every quality decision
b. Standardize the methods and decisions of a department
c. Optimize company performance and the effectiveness of the quality
department
d. Make it possible to handle every situation in exactly the same manner
Answers: 2.2. c, 2.7. b, 2.9. c
CQIA 2006
QUESTIONS
II-40 (78)
2.13. In planning for quality, an important consideration at the start is:
a. The relation of the total cost of quality to the net sales
b. The establishment of a company quality policy or objective
c. Deciding precisely how much money is to be spent
d. The selling of the quality program to top management
2.14. The company has a good SPC program in manufacturing, however,
a customer has a product failure in his hands. The cause was a
result of changing vendors. This would be a/an:
a. Vendor cause problem
b. Common cause
c. Assignable cause
d. Bad inspection procedure
2.19. Any process of importance or complexity should have:
a. A written documented procedure
b. An established measurement of nonconforming product
c. A method of achieving corrective action
d. A connection to the organization's mission statement
Answers: 2.13. b, 2.14. c, 2.19. a
CQIA 2006
QUESTIONS
II-41 (79)
2.23. A work instruction does NOT give information about which one of the
following?
a. The steps necessary to perform certain work
b. Which specifications are applicable
c. The identity of the person who does the work
d. Normal set-up information
2.28. Which of the following descriptors is LEAST likely to apply to service
quality?
a. Reliability
b. Attractiveness
c. Responsiveness
d. Competency
2.30. Consider the following statements about processes and systems.
Which statement would be most correct?
a. Processes are generally smaller in scope than subsystems
b. Input is required for processes but not for systems
c. A product or service can be the input data for a process
d. Only the end customer can provide effective process feedback
Answers: 2.23. c, 2.28. b, 2.30. a
CQIA 2006
QUESTIONS
II-42 (80)
2.35. Which of the following quality planning process elements would be
LEAST likely to be measured?
a. Strategic quality goals
b. Tactical quality plans
c. Quality mission statements
d. Short-term quality goals
2.36. A twenty year veteran of the paint dip line explained to a rookie that
the only way to get consistent thickness is to adjust the speed based
on the last piece checked. This technique will have what effect on
process variation?
a. Minimize it
b. Reduce it
c. No effect
d. Increase it
2.40. Assigning an individual to assume the combined duties of what were
formerly several different, but related, jobs is an example of:
a. Job enrichment
b. Job rotation
c. Job enlargement
d. Job simplification
Answers: 2.35. c, 2.36. d, 2.40. c
CQIA 2006
QUESTIONS
II-43 (81)
2.43. The authoritative act of documenting compliance with agreed
requirements is known as:
a. Objective evidence
b. Certification
c. Sampling plan
d. Quality control
2.44. A "failure to meet the specified requirement, supported by evidence"
is best described as a:
a. Discrepancy
b. Rework
c. Characteristic
d. Deviation
2.45. Which of the following statements regarding systems is NOT true?
a. Flow charts are required for all procedures
b. A work instruction expands upon a procedure to include "how" and
"when"
c. A process transforms inputs into outputs with the objective of adding
value
d. A procedure includes details such as "who" and "where"
Answers: 2.43. b, 2.44. a, 2.45. a
CQIA 2006
QUESTIONS
II-44 (82)
2.49. Which document details specific quality practices, resources, and
sequences of activities to ensure that customer requirements, needs,
and expectations are met?
a. Tactical plan
b. Control plan
c. Quality plan
d. Strategic plan
2.51. A key to management understanding the system variation is their
ability to distinguish the difference between:
a. Material and non-material errors
b. Common and special causes
c. Environmental and procedural influences
d. Routine and special processes
2.52. In many situations, the easiest means to achieve savings by
minimizing rejected material is:
a. Process centering
b. Control charting
c. Kaizen
d. Seiri
Answers: 2.49. c, 2.51. b, 2.52. a
CQIA 2006
III. QUALITY BENEFITS AND PHILOSOPHIES
III-1 (83)
OUR PLANS MISCARRY
BECAUSE THEY HAVE NO AIM.
WHEN A MAN DOES NOT
KNOW WHAT HARBOR HE IS
MAKING FOR, NO WIND IS THE
RIGHT WIND.
SENECA (4BC - AD65)
CQIA 2006
BENEFITS OF QUALITY
III-2 (84)
Quality Benefits and Philosophies
Quality Benefits and Philosophies is presented in the
following topic areas:
C Benefits of quality
C Quality philosophies
CQIA 2006
BENEFITS OF QUALITY
III-2 (85)
Stakeholder Groups
Many organizational activities require stakeholder
support. This includes allocation of people, resources,
money, and time to assure success.
The relevant stakeholders are those parties or groups
that have an interest in the welfare and operation of the
company. These stakeholders include: stockholders,
customers, suppliers, company management,
employees and their families, the community and
society.
CQIA 2006
BENEFITS OF QUALITY
III-2 (86)
S
U
P
P
L
I
E
R
S
C
U
S
T
O
M
E
R
S
Company Stakeholder Interactivity
SOCIETY
STOCKHOLDERS OR OWNERS
INTERNAL COMPANY
PROCESSES
MANAGEMENT AND EMPLOYEES
Communication within the entire stakeholder community
is channeled through internal company processes.
CQIA 2006
BENEFITS OF QUALITY
III-3 (87)
Aligning Goals With Stakeholder Needs
Stockholders benefit from successful ventures because
of the increased revenue and profits generated.
Management and employees have a vested interest in
continuing their source of income, recognition, and
enrichment through such activities as new products,
processes, construction or services.
Suppliers gain through the increased sales and
relationships with the company.
The benefits to the customer include the use of the new
product, facility, or service, and the assumption that the
completion of the activity will further progress toward
their own corporate or personal objectives.
CQIA 2006
BENEFITS OF QUALITY
III-4 (88)
Supplier Quality Benefits
C A greater opportunity to build long term
relationships
C Potential training in areas that are mutually
beneficial
C A greater likelihood of shared beneficial information
C Synergy with the customer in technical areas
C Association with an end product with a good
reputation
C A customer that can more clearly state
requirements
C More predictability and certainty of future orders
C More predictability in scheduling and shipping
C Financially viable customers for services or
products
CQIA 2006
BENEFITS OF QUALITY
III-4 (89)
Community Quality Benefits
C Organizations that are able to expand and provide
jobs
C Organizations which pay property taxes
C Safe products for the user or consumer
C Organizations that enhance neighborhood property
values
C Organizations that engender community pride
C Organizations that practice good business ethics
C Organizations and products that protect public
health
C Products that make more efficient use of all
resources
C Products that are more energy efficient
C Organizations that utilize environmentally friendly
methods
CQIA 2006
BENEFITS OF QUALITY
III-5 (90)
Employees Quality Benefits
C Job security
C Better likelihood of pay increases
C Enhancement of knowledge and skills
C More prestige
C Improved products or services
C Predictability in work assignments
C Reduced cycle times which improves workflows
C More respect from company management and peers
C Fewer departmental confrontations and
disagreements
C Better communications and information flow
C More valuable company information
C Potentially a more environmentally friendly place to
work
C Greater pride of workmanship
C Individual self-fulfillment
C Satisfaction, development and well-being
CQIA 2006
BENEFITS OF QUALITY
III-5 (91)
External Customer Quality Benefits
C Higher quality products
C Products that are more convenient to use
C Products that are easier to maintain
C Products that are more reliable
C Products that offer greater value
C A supplier that can more quickly respond to needs
C A product or service that has perceived value
C Products or services with enhanced features
C A supplier that has better service
C Better individual treatment in a variety of ways
C A supplier better trained to handle complaints
C Wider availability of products and services
C Warranties that are honored
C Quicker corrective action responses
CQIA 2006
BENEFITS OF QUALITY
III-6 (92)
Organizational Quality Benefits
C A better reputation in the business community
C Increased market share by attracting new
customers
C Greater profitability without raising prices
C An ability to charge premium prices
C A greater ability to pay and train all employees
C Greater capacity and flexibility to handle change
C An ability to attract top notch employees
C More pride at all organization levels
C More loyalty among customers
C An ability to weather tough economic times
C Faster response to technological change
C Better competitive position
C A greater probability of raising capital
C A higher stock price
CQIA 2006
BENEFITS OF QUALITY
III-6 (93)
Stockholder Quality Benefits
C Increased stock value
C Better returns on an investment
C A more widely respected business investment
C More investment stability
C More timely, accurate, and thorough annual reports
C An organization which is technologically advanced
C A company with greater capacity to handle change
C Visionary leadership among company managers
C An organization with a strong focus on the future
C A company that analyzes critical processes
C Investment performance in key areas
C An organization with an ability to improve
C An investment that is cost effective
CQIA 2006
BENEFITS OF QUALITY
III-7 (94)
Malcolm Baldrige National Quality Award
The Malcolm Baldrige National Quality Award was
modeled after the Deming Prize in Japan and focuses on
organizational excellence. The systems model is now
called the Baldrige National Quality Program (BNQP) but
the presented award is still called the MBNQA. Core
values and concepts are based on:
C Visionary Leadership: Senior leaders set directions,
create a customer focus, create methods for
achieving excellence, and build knowledge and
capabilities.
C Customer Driven Focus: Understanding todays
customer desires and anticipating future customer
desires and marketplace offerings.
C Organizational and Personal Learning: Adopting a
well-executed approach to learning including
continuous improvement and adaptation to change.
C Valuing Employees and Partners: Committing to
employee satisfaction, development, and well-being.
Building internal and external partnerships to better
achieve overall goals.
CQIA 2006
BENEFITS OF QUALITY
III-7 (95)
MBNQA (Continued)
C Agility: Creating a capacity for rapid change and
flexibility.
C Focus on the Future: A strong future orientation and
willingness to make long-term commitments to key
stakeholders. Seeking opportunities for innovation.
C Managing for Innovation: Making meaningful
changes to improve products, services, and
processes. Creating new value for stakeholders.
C Management by Fact: Measurement and analysis of
performance, critical data, key processes, outputs,
and results.
C Public Responsibility and Citizenship: Adopting a
practice of good citizenship, business ethics and
protection of health, safety, and the environment.
C Focus on Results and Creating Value: Developing
performance measurements that focus on key
results and create value for all stakeholders.
C Systems Perspective: Managing the whole
enterprise, to achieve performance improvement.
CQIA 2006
BENEFITS OF QUALITY
III-8 (96)
MBNQA (Continued)
The Malcolm Baldrige 2006 categories, items, and point
values. are shown in the table below.
2006 Categories/ Items Point Values
1 Leadership 120
1.1
1.2
Senior Leadership
Governance and Social Responsibility
70
50
2
Strategic Planning 85
2.1
2.2
Strategy Development
Strategy Deployment
40
45
3
Customer and Market Focus 85
3.1
3.2
Customer and Market Knowledge
Customer Relationships and Satisfaction
40
45
4
Measurement, Analysis, and Knowledge Management 90
4.1
4.2
Measurement, Analysis, and Review of Organizational
Performance
Information and Knowledge Management
45
45
5
Human Resource Focus 85
5.1
5.2
5.3
Work Systems
Employee Learning and Motivation
Employee Well-Being and Satisfaction
35
25
25
6
Process Management 85
6.1
6.2
Value Creation Processes
Support Processes and Operational Planning
45
40
7
Results 450
7.1
7.2
7.3
7.4
7.5
7.6
Product and Service Outcomes
Customer-Focused Outcomes
Financial and Market Outcomes
Human Resource Outcomes
Organizational Effectiveness Outcomes
Leadership and Social Responsibility Outcomes
100
70
70
70
70
70
Total Points 1000
CQIA 2006
QUALITY PHILOSOPHIES
III-9 (97)
Philip B. Crosby
(1928 - 2001)
Philip B. Crosby was corporate vice president of ITT for
14 years. He consulted, spoke, and wrote about
strategic quality issues.
Awards: Fellow, ASQ
Past president of ASQ
Books: Quality Is Free
Quality Without Tears
Running Things
The Eternally Successful Organization
The Art of Getting Your Own Sweet Way
Quality is Still Free
Statement on quality:
Quality is conformance to requirements.
CQIA 2006
III-9 (98)
Philip B. Crosby (Continued)
Crosby believed that quality is a part of the company
and senior managers must take charge of it.
He believed the quality professional must become more
knowledgeable and communicative about the business.
Crosby stated that corporate management must make
the cost of quality a part of the financial system of their
company.
CQIA 2006
III-10 (99)
Crosbys Message
Crosby's name is best known in relationship to the
concepts of Do It Right First Time and Zero Defects.
He considered traditional quality control, acceptable
quality limits and waivers of sub-standard products to
represent failure rather than assurance of success.
Crosby, therefore, defined quality as conformance to the
requirements which the company itself has established
for its products based directly on its customers' needs.
CQIA 2006
III-10 (100)
Crosbys Message (Continued)
Crosby does not believe that workers should take prime
responsibility for poor quality; the reality, he says, is
that responsibility resides with management.
In the Crosby approach, the Quality Improvement
message is spread by creating a core of quality
specialists within the company. There is strong
emphasis on the top-down approach, since he believes
that senior management is entirely responsible for
quality.
The ultimate goal is to train all the staff and give them
the tools for quality improvement and to apply the basic
precept of Prevention Management in every area.
CQIA 2006
III-11 (101)
Crosby's Four Absolutes
1. Quality means conformance to requirements.
2. Quality comes from prevention.
3. Quality performance standard is Zero Defects (or
defect-free).
4. Quality measurement is the price of
nonconformance.
Crosby divided the cost of quality into two areas -
the price of nonconformance (PONC) and the
price of conformance (POC).
CQIA 2006
III-12 (102)
Crosbys 14 Steps to Quality Improvement
Step 1. Management commitment
Step 2. The quality Improvement team
Step 3. Measurement
Step 4. The cost of quality
Step 5. Quality awareness
Step 6. Corrective action
Step 7. Zero defects (ZD) planning
Step 8. Employee education
Step 9. ZD day
Step 10. Goal setting
Step 11. Error cause removal
Step 12. Recognition of good quality work
Step 13. Quality councils
Step 14. Repetition
CQIA 2006
III-15 (103)
Crosby's Comments
The key things to remember are:
C People will take quality just as seriously as the
management takes it, no more.
C Integrity is unrelenting; it can't be done in short bursts
of enthusiasm stemming from regret.
C The tools of quality control are not designed to cause
prevention throughout the organization.
C Think about quality improvement in terms of earnings
per share. A well-established process will double it.
C Every individual in the company needs continual
education concerning his or her role in getting things
done right the first time.
CQIA 2006
III-16 (104)
Dr. W. Edwards Deming
(1900 - 1993)
Education: BS, University of Wyoming;
MS, University of Colorado; PhD, Physics,
Yale
Awards: Shewhart Medal, ASQ, 1955
Second Order Medal of the Sacred
Treasure, first American, 1960
Honorary Member, ASQ, 1970
Numerous other awards
Books: Over 200 papers, articles, and books were
published, including:
Quality, Productivity, and Competitive
Position
Out of the Crisis
He was the founder of the third wave of the
industrial revolution.
CQIA 2006
III-16 (105)
Dr. W. Edwards Deming (Continued)
W. Edwards Deming is the one individual whose name
stands for quality and what it means.
He is a national folk hero in Japan and perhaps the
leading speaker for the quality revolution in the world.
He visited Japan several times between 1946 and 1948,
for the purposes of census taking. He developed a
fondness for the Japanese people during that time.
JUSE (Japanese Union of Scientists and Engineers)
invited Deming back in 1950 for executive courses in
statistical methods.
He refused royalties on his seminar materials and
insisted that the proceeds be used to help the Japanese
people. JUSE named their ultimate quality prize after
him.
CQIA 2006
III-17 (106)
The Fourteen Obligations of Top Management:
1. Create constancy of purpose toward improvement
of product and service
To be competitive, a company must constantly
improve the products or services offered.
2. Adopt the new philosophy
We are in a new economic age. Western
management must awaken to the challenge, must
learn their responsibilities, and take on change
leadership.
American companies and American people need to
adopt a new philosophy considering cost reduction,
team work, quality and leadership.
CQIA 2006
III-17 (107)
The Fourteen Obligations (Continued)
3. Cease dependence on inspection to achieve quality
Eliminate the need for inspection on a mass basis
by building quality into the product in the first place.
4. End the practice of awarding business on the basis
of price tag
A company must minimize total cost.
5. Improve constantly and forever the system of
production and service
Continuous improvements in the system will help
lower costs through increased productivity and
efficiency.
CQIA 2006
III-18 (108)
6. Institute training on the job
Continuous improvement of the work force will
contribute greatly to the success of the
organization.
7. Institute leadership
The aim of supervision should be to help people,
machines and processes perform better.
Leadership empowers everyone.
8. Drive out fear, so that everyone may work
effectively for the company
Fear is both a motivator and de-motivator. The
economic loss from fear is appalling. It is
necessary for better quality and productivity that
people feel secure.
CQIA 2006
III-19 (109)
9. Break down barriers between departments
People in research, design, sales, and production
must work as a team. One department's goals may
cause trouble for another.
10. Eliminate slogans, exhortations, and targets for the
work force
Exhortations, like zero defects, only create
adversarial relationships.
11. Eliminate work standards (quotas) on the factory
floor
Substitute leadership for quotas. Quotas take
account only of numbers, not quality or methods.
CQIA 2006
III-19 (110)
12. Remove barriers to pride of workmanship
People are eager to do a good job and distressed
when they can't. Too often, misguided supervisors,
faulty equipment, and defective materials stand in
the way.
13. Institute a vigorous program of education and self-
improvement
Increase the flexibility of an organization's work
force by training employees to perform a number of
different jobs.
14. Put everybody in the company to work to
accomplish the transformation
CQIA 2006
III-20 (111)
Seven Deadly Diseases
That Management Must Cure:
1. Lack of constancy of purpose
2. Emphasis on short-term profits
3. Evaluation by merit rating or annual review of
performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive warranty costs
Diseases 6 and 7 are pertinent only to the United
States.
CQIA 2006
III-21 (112)
Deming Identified Some Obstacles:
1. Neglect of long-range planning and transformation
2. Love of technological toys
3. The search for examples
4. Our problems are different
5. Obsolescence in schools
6. Poor industrial use of statistical methods
7. Quality by inspection
8. Reliance on quality control departments
CQIA 2006
III-22 (113)
Some Obstacles (Continued)
9. Blaming the workforce for problems
10. False starts
11. We installed quality control
12. The unmanned computer
13. Meeting specifications is good enough
14. The fallacy of zero defects
15. Inadequate testing of prototypes
16. Anyone that comes to try to help us must
understand all about our business.
CQIA 2006
III-24 (114)
Parable of the Red Beads
Deming is well known for the use of a sampling bowl
containing about 20% red beads in a predominantly
white bead mixture. Willing workers are hired,
motivated, harassed, and fired for producing red beads.
This exercise illustrates the need for a systems change.
The 94% - 6% Rule
Confusion between common causes and special
causes leads to frustration of everyone, and leads to
greater variability and to higher costs, exactly contrary
to what is needed.
I should estimate that in my experience most troubles
and most possibilities for improvement add up to
proportions something like this:
94% belong to the system (responsibility of
management)
6% special
(Deming, 1986)
CQIA 2006
III-25 (115)
The 94% - 6% Rule (Continued)
In the American style of management, when something
goes wrong the response is to look around for someone
to blame or punish or to search for something to fix
rather than to look to the system as a whole for
improvement. The 94% - 6% Rule holds that 94 percent
of what goes wrong is with the system and only 6
percent with the individual person or thing. Deming
originally thought that the system percentages were
85% and 15% (85 - 15 Rule). (Deming, 1986)
CQIA 2006
III-26 (116)
CHECK
ACT
DO
PLAN
The PDCA/PDSA Cycle
Americans are accustomed to seeing work projects in a
linear fashion, with a beginning and end. Continuous or
never-ending improvement requires instead a circular
approach. Actually, the circle or cycle should become
a helix, by spiraling upward towards continually higher
performance levels.
Dr. Deming introduced a product design cycle to the
Japanese years ago. He called it the Shewhart Cycle.
The Japanese refer to it as the Deming Cycle.
Plan-Do-Check-Act Cycle
The PDCA cycle is reviewed to a greater extent in
Section VI of this Primer.
CQIA 2006
III-27 (117)
Demings Chain Reaction
Deming shared the following chain reaction with Japan
in the summer of 1950:
Improve quality Decrease costs (less rework, fewer
delays) Productivity Improves Capture the market
with better quality and price Stay in business
Provide jobs.
Demings chain reaction is summarized by Delavigne
(1994) as:
1. The quality and productivity rise
2. Costs decrease
3. The time required for development and production
is reduced
4. Management begins to know their cost; they have
a system
5. Increased division of labor and specialization
occurs
6. The near-term future is more predictable
7. The standard of living rises
8. The system has a future and can provide jobs and
more jobs
CQIA 2006
III-28 (118)
Dr. Joseph M. Juran
(1904 - )
Founder and Chairman Emeritus of The Juran Institute
Education: BS, University of Minnesota; JD, Loyola
University; Numerous Honorary Doctorates
of Science, Engineering and Law.
Numerous Awards
Books: Over 15 books
Juran's Quality Handbook, 5th ed.
Quality Planning & Analysis
Juran on Quality by Design
Juran on Planning for Quality
Juran on Leadership for Quality
Adopt a revolutionary rate of improvement in
quality, making quality improvements by the
thousands, year after year.
CQIA 2006
III-29 (119)
Dr. Joseph M. Juran (Continued)
Jurans basics for success can be described as follows:
C Top management must commit the time and
resources for success. CEOs must serve on the
quality council.
C Specific quality improvement goals must be in the
business plan and include:
C The means to measure quality results against
goals
C A review of results against goals
C A reward for superior quality performance
C The responsibility for improvements must be
assigned to individuals
C People must be trained for quality management and
improvement
C The workforce must be empowered to participate in
the improvement process
CQIA 2006
III-29 (120)
Dr. Joseph M. Juran (Continued)
Juran (1988) states that The recipe for action should
consist of 90% substance and 10% exhortation, not the
reverse. His formula for obtaining results is to:
C Establish specific goals to be reached
C Establish plans for reaching the goals
C Assign clear responsibility for meeting the goals
C Base the rewards on results achieved
CQIA 2006
III-29 (121)
Jurans Quality Trilogy
The three quality processes of The Juran Trilogy are
interrelated, each one providing a structured method for
achieving specific quality objectives:
C Quality planning designs new goods and services.
It ensures that the right set of service features is
delivered to the appropriate customers and that
service deficiencies are kept to a minimum.
C Quality control ensures that the results of the first
two processes are sustained over time.
C Quality improvement reduces deficiencies in
existing goods, services, or processes. Reaching
this new level of performance is frequently referred
to as breakthrough.
CQIA 2006
III-30 (122)
The Juran Trilogy
The graph below illustrates The Juran Trilogy , using
the data of a hypothetical organization.
CQIA 2006
III-31 (123)
Verify the Goal
Identify Customers
Determine Customer Needs
Develop Product
Develop Process
Transfer to Operations
The Quality Planning Process
CQIA 2006
III-33 (124)
Establish
Standard
Measure
Actual
Performance
Compare
To
Standard
Regulate
Process
OK
NOT OK
Quality Control Feedback Loop
Quality control relies on a feedback loop, which can be
illustrated as follows:
Quality control holds the gains once a quality
improvement has been made.
CQIA 2006
III-33 (125)
Quality Improvement
The quality improvement process is designed to reduce
or eliminate the chronic waste associated with ongoing
deficiencies.
The following are typical quality improvement projects:
C Reduce the number of defects in a product
C Reduce the design cycle time for new services
C Minimize errors in invoices
C Reduce set-up times of machines
CQIA 2006
III-34 (126)
The Six Steps of Quality Improvement
C Identify a Project
C Establish the Project
C Diagnose the Cause
C Remedy the Cause
C Hold the Gains
C Replicate Results and Nominate New Projects
Each of the six quality improvement steps encompasses
a number of activities.
CQIA 2006
III-35 (127)
Jurans Quality Trilogy Detail
Quality Planning
C Verify the goal
C Identify who the customers are
C Determine customers needs
C Develop a product that can
respond to those needs
C Develop a process which is able
to produce the product
C Optimize the process
C Transfer to operations
Quality Control
C Establish standards
C Compare actual performance to
the standard
C Regulate the process when
necessary
Quality
Improvement
C Identify a project
C Establish the project
C Diagnose the cause
C Remedy the cause
C Hold the gains
C Replicate results
C Nominate new projects
CQIA 2006
III-36 (128)
Deming, Juran, and Crosby Comparison
Newton (2000) proposes that Crosby, Deming, and Juran
all define quality in the same terms, albeit from different
perspectives: the user, the manufacturer, and the
manager.
CQIA 2006
III-39 (129)
Comparison of Deming, Juran, and Crosby
Element W. E. Deming J.M. Juran P. Crosby
Basic
orientation
toward quality
Technical Process Motivational
What is
quality?
Nonfaulty
systems
Fitness for use;
freedom from
trouble
Conformance to
requirements
Who is
responsible for
quality?
Management Management Management
Importance of
customer
requirements
as standard
Very important
Very important;
customers at each
step of product
life cycle
Very important
Goal of quality
Continuous Improvement
Meet/exceed
customer needs
Please customer Zero defects
Methods for
achieving
quality
Statistical;
constancy of
purpose;
cooperation
Cost of quality;
quality trilogy:
planning, control,
improvement
14-point
framework
Chief elements
of
implementation
14-point
program
Breakthrough
projects;
quality council;
quality teams
14-step program;
cost of quality;
quality
management
maturity grid
Role of training
Very important
for managers
and workers
Very important for
managers and
employees
Very important
for managers
and employees
CQIA 2006
QUESTIONS
III-41 (130)
3.1. When Deming encouraged the elimination of numerical quotas, he
was emphasizing which of the following?
a. Good workers already know what is expected
b. Not to sacrifice quality for quantity
c. That zero defects are unrealistic
d. A detection system adds to rework
3.7. Community or society quality benefits would NOT include which of
the following?
a. Safe products to use
b. Enhanced ability to pay taxes
c. Prestige and self-fulfillment
d. An expansion of job openings
3.12. Dr. Juran's Quality Trilogy involves all of the following, EXCEPT?
a. Quality control
b. Quality design
c. Quality improvement
d. Quality planning
Answers: 3.1. b, 3.7. c, 3.12. b
CQIA 2006
QUESTIONS
III-42 (131)
3.16. Of all of an organization's stakeholder groups, which would be
considered the most removed from internal processes?
a. Society
b. Stockholders
c. Suppliers
d. Customers
3.20. Why does Crosby emphasize quality improvement in terms of money
to such a great extent?
a. He believes that it would lower costs to the customer
b. He believes that it will capture the attention of management
c. He believes that it will prompt corrective action
d. He believes that it will require the creation of quality cost reports
3.23. Why does Juran suggest that chronic waste in an organization will
often go unnoticed by management.
a. Management is so engrossed in long term planning they lose touch
with basics
b. These wastes are built into the standards and become accepted
c. Management is so concerned with control they fail to implement
breakthrough projects
d. Quality planning focuses on control items to the exclusion of
improvement ideas
Answers: 3.16. a, 3.20. b, 3.23. b
CQIA 2006
QUESTIONS
III-43 (132)
3.25. A thorough review of the work of the major quality gurus would
indicate which of the following to be the most effective way to create
quality?
a. Effective problem solving
b. Continuous process improvement
c. Modern statistical control techniques
d. Benchmarking the best comparable processes
3.31. Within the evaluation of the Malcolm Baldrige 2006 Criteria for
Performance Excellence, which of the following criteria categories
carries the greatest point value?
a. Leadership
b. Process Management
c. Customer and Market Focus
d. Strategic Planning
3.34. Dr. Deming attributed what percentage of responsibility for quality
related problems to management?
a. 28%
b. 56%
c. 94%
d. 100%
Answers: 3.25. b, 3.31. a, 3.34. c
CQIA 2006
QUESTIONS
III-44 (133)
3.38. The quality management perspective, user perspective, and
manufacturer's perspective are respectively associated with:
a. Juran, Deming, and Crosby
b. Deming, Crosby, and Juran
c. Deming, Juran, and Crosby
d. Crosby, Deming, and Juran
3.43. Deming felt that slogans and exhortations should be:
a. Used extensively, because they motivate people
b. Eliminated, because they're meaningless
c. Emotional, because they will have more impact
d. Objective, because they will be better accepted
3.48. A supplier to an organization:
a. Is also a stakeholder of the organization
b. Cannot be a stockholder of the organization
c. Uses their stakeholder position to direct the organization's activities
d. Initiates the purchase contract for goods or services
Answers: 3.38. d, 3.43. b, 3.48. a
CQIA 2006
IV. TEAM ROLES AND RESPONSIBILITIES
IV-1 (134)
TWO HEADS ARE BETTER
THAN ONE.
Old English Proverb
CQIA 2006
TEAM PURPOSES
IV-2 (135)
Team Purposes
Team Roles and Responsibilities are presented in the
C Team purposes
C Teams benefits
C Types of teams
C Roles and responsibilities
C Performance measurement
CQIA 2006
TEAM PURPOSES
IV-2 (136)
Team Purposes (Continued)
A team is a group of people organized to complete an
activity, solve a problem or accomplish a specific
objective.
The fundamental purpose of establishing teams is to
improve the internal and external efficiencies of a
company. This is done through the efforts of the team
members to improve quality, methods, and/or
productivity. If teams are properly functioning, they will:
C Improve worker morale
C Remove areas of conflict
C Develop creative skills of members
C Improve communication skills of members
C Improve leadership skills of members
C Develop problem solving techniques
C Improve the attitudes of all parties
C Indicate to members that management will listen
C Demonstrate that workers have good ideas
C Improve union relations (where applicable)
A participative style of management is the best
approach to ensure employee involvement in the
improvement process.
CQIA 2006
TEAM BENEFITS
IV-3 (137)
Company Team Benefits
Usually team members have diverse skills and
experience and may represent various departments and
functions in the organization. What they share in
common is their involvement in the problem to be
addressed.
Diversity is important for most improvement teams. A
single person trying to remove a problem or deficiency,
no matter how skilled, has rarely mastered the
intricacies of an entire work process.
CQIA 2006
TEAM BENEFITS
IV-3 (138)
Company Team Benefits (Continued)
Improvement teams:
C Can usually tackle larger issues than an individual
working alone
C Can build a fuller understanding of the process
needing improvement
C Can have immediate access to the technical skills
and knowledge of all team members
C Can rely on the mutual support and cooperation that
arises among team members as they work on a
common project
CQIA 2006
TEAM BENEFITS
IV-3 (139)
Individual Team Benefits
Teamwork offers some obvious benefits to team
members, including:
C An opportunity for greater understanding of work
issues
C Chances to be creative and share ideas
C The opportunity to forge stronger relationships with
colleagues
C The opportunity to learn new skills and enhance
existing ones
C A chance to work on a project with the full support
of upper management
C The satisfaction of solving a chronic problem
CQIA 2006
TYPES OF TEAMS
IV-4 (140)
Types of Teams
The following types of teams are used by industries
throughout the world today:
Improvement Teams
A group belonging to any department chooses to solve
a quality or productivity problem. It will continue until a
reasonable solution is found and implemented.
Process Improvement Team
For a process improvement team, employees may be
drawn from more than one department to look into a
product or process objective.
Six Sigma Teams
Six sigma teams closely follow the description of project
and ad hoc teams that follow, with the addition of black
and master black technical belt support. Companies
use a variety of team membership arrangements and
provide technical skills training based upon their
desired objectives.
CQIA 2006
TYPES OF TEAMS
IV-4 (141)
Types of Teams (Continued)
Project Teams/Task Forces/Ad Hoc Teams
Members are selected based on their experience and
directed by management to look into specific areas such
as the modernization of a piece of equipment or solution
to a customer complaint. These teams are generally ad
hoc and disband upon the completion of their
assignments. Team membership can be all
management, all work area, or a composite of the two.
Cross Functional Teams
Cross functional teams are made up of individuals who
represent different departments or functional areas in
the organization. Individuals who represent a
department or functional area should be subject matter
experts. They should be very knowledgeable about the
policies, practices, and operations of their department
or functional area.
CQIA 2006
TYPES OF TEAMS
IV-5 (142)
Self Directed Teams
Self directed teams operate with minimal day-to-day
direction from management. These teams are often
asked to accomplish objectives within time frames that
are truly stretch objectives. Management must give the
team the maximum latitude possible to achieve their
objectives.
Cellular Teams
Cellular teams are a variant of natural work teams. The
name derives from the work cell arrangement in which
a number of employees either fabricate or assemble
parts. These teams can be led by a supervisor or may
be self directed.
CQIA 2006
TYPES OF TEAMS
IV-6 (143)
Quality Circles
A quality circle is a means of allowing and encouraging
people on the production floor to participate in
decisions that will improve quality and/or reduce
manufacturing costs. Department members voluntarily
participate to improve departmental performance.
Quality circles are effective forums to exchange
suggestions and find solutions. Since membership is
voluntary, people are highly motivated to continue the
improvement process.
CQIA 2006
TYPES OF TEAMS
IV-6 (144)
Quality Teams
The fundamental purpose of establishing quality teams
is to improve the internal efficiencies of the company
and both internal and external products and service
quality. This is done through the efforts of the team
members to improve quality, methods, and/or
productivity.
Natural Work Teams
In natural work teams, leadership is usually given to the
area supervisor. Members of teams come from the
supervisors work force. Outside members, from
specialist organizations, can be included in the
membership, either as active members or as
contributing guests. Often, a facilitator is utilized,
particularly during team start-up.
CQIA 2006
TYPES OF TEAMS
IV-7 (145)
Synopsis of Team Applications
Team Types Structures Best Applications
Improvement
Teams
May be 8 to 10
members f rom a
single department
Can work on quality or productivity
issues. A process improvement team can
consist of multi-department membership
and focus on process flow and product
issues.
Quality
Teams
May be 8 to 10
members f rom a
single department
May initially work on quality topics or
overall department performance. Can
evolve into self directed teams.
Project
Teams
Can have broad or
speci f i c member
selection and may
consist of all or part
management
Works on specific projects such as the
installation of a conveyor system. Can
also focus on material related items like
an improved inventory control system.
Usually disbands upon the completion of
a project.
Six
Sigma
Teams
Generally 8 to 12
members with black
belt or master black
belt support
Works on specific process or customer
based projects of importance. Usually
disbands upon project completion.
Cross
Functional
Teams
8 to 12 members
from different areas,
depar t ment s , or
disciplines
Member s ar e car ef ul l y sel ect ed.
Knowledgeable people are required. Very
similar to project teams. Tends to deal
more wi th pol i ci es, practi ces and
operations.
Self Directed
Teams
6 to 15 members.
Generally a natural
work area team and
may need st af f
support
Requires consi derabl e training and
exposure. Can be given objectives or
develop their own. Some companies
select people with cooperative skills to
help with success.
CQIA 2006
ROLES AND RESPONSIBILITIES
IV-8 (146)
Steering Committee Role
Establishing a steering committee is a logical first step
when an organization launches an improvement
initiative. The steering committee is usually composed
of upper management. In some companies, middle
management and hourly employees are also
represented.
Some of the steering committee key roles include:
C Setting goals
C Identifying projects
C Selecting teams
C Supporting project teams
C Monitoring progress
Various companies call this committee the quality
council or the executive steering committee.
CQIA 2006
IV-9 (147)
Sponsor/Champion
The sponsoring manager is responsible for defining
objectives for the team - the what that the team needs
to accomplish. To the largest extent possible, how the
team accomplishes the objectives should be left to the
team to decide.
The relationship between the team and sponsoring
management should be mutually supportive. The team
delivers what management needs in the way of results.
Management delivers what the team needs in terms of
resources, political support, and recognition.
CQIA 2006
IV-9 (148)
The Leader Role
Some teams have both leaders and facilitators. This is
common for manufacturing line teams. As a general
rule, the team leader focuses on the team product (the
results) and the facilitator is most concerned with the
team process.
The team leader:
C Provides direction
C Acts as a communication hub
C Acts as a liaison with management
C Suggests assignments
C Handles administrative details
C Ensures that individual needs are considered
C Conducts meetings
C Recommends meeting agendas
C Assesses group progress
C Takes steps necessary to ensure success
CQIA 2006
IV-10 (149)
Other Leadership Qualities
The leaders role is not to boss the team but to ensure
implementation of the team mission and charter. The
leader also:
C Has an ability to encourage participation
C Is open minded and listens well
C Is genuinely concerned about people
C Is encouraging and supportive
C Is accepting and tolerant of mistakes
C Works with, not over participants
C Sticks to the task at hand
CQIA 2006
IV-10 (150)
The Facilitator
As a resource or coach for the group, the facilitator
must understand problem solving techniques, and be
able to teach these skills to the group members.
Facilitators are useful in assisting a group in the
following ways:
C Providing group training or skill building
C Resolving an impasse before the task is completed
C Providing feedback on group effectiveness
C Summarizing points made by the group
C Enabling each member to provide inputs
C Supporting team meetings
C Securing or providing resources
C Being a neutral party, or providing perspective
C Clarifying points of view or issues
C Keeping the team on track with the process
C Helping with interpersonal difficulties that may arise
CQIA 2006
IV-10 (151)
The Facilitator Must Avoid:
C Judging team members or their ideas, comments,
opinions
C Taking sides or becoming caught-up in the subject
matter
C Dominating the group discussions
C Solving a problem or giving an answer
C Making suggestions on the task instead of on the
process
CQIA 2006
IV-11 (152)
The Facilitator Role
C Focuses on progress
C Assesses the change process
C Cultural barriers (attitudes, personalities)
C How well groups are accomplishing their purpose
C What is required (training, resources)
C Coaches the leader(s) and provides support
C Shows by example
C Asks for feelings
C Provides direction
C Helps the leader to do his/her job more easily
C Helps with content (contributes to solving the task)
C Provides feedback to the leaders and participants
CQIA 2006
IV-11 (153)
TEAM MEMBERS
(COMBINED)
LEADER
FACILITATOR
TIME
Plot of Team Roles Over Time
CQIA 2006
IV-12 (154)
The Team Member Role
Each team member is responsible for:
C Participating in training to become an effective team
member
C Attending team meetings, usually weekly
C Completing assignments between meetings
C Participating actively during meetings by
contributing information and ideas
C Encouraging active participation by other team
members
C Benefitting from the experience, expertise and
perspectives of others
C Applying the steps of the quality improvement
process
CQIA 2006
IV-12 (155)
The Recorder Role
The Team Recorder/Secretary is normally a full-fledged
team member. The recorder maintains the teams
minutes and agendas.
The recorder:
C May or may not participate as a member
C Takes clear notes including project responsibilities
C Publishes and distributes the minutes
C May ask for clarification of issues (for the record)
CQIA 2006
IV-12 (156)
The Timekeeper
C Advises team of the remaining time to review a
project
C Enforces any time norms of the team
C An optional role, sometimes the responsibility of the
facilitator
CQIA 2006
PERFORMANCE MEASUREMENT
IV-13 (157)
Measurement of Performance
Teams are established to accomplish something within
a timeframe. A clear understanding of the team's
objectives is a very important element of creating
successful teams.
Teams are often chartered to improve performance in
some way. Performance is associated with speed,
quality, cost and effectiveness. Finding good measures
on these variables is not always easy.
Finding out what is important to your customers and
building a set of measures around these variables is
usually much more effective than counting what can be
easily counted.
CQIA 2006
IV-13 (158)
Team Relationship Factors
Well Functioning Teams
1. There is a team identity.
2. There is emphasis on conflict resolution.
3. Conflict is openly discussed: there is growth and
learning.
4. Team members support each other.
5. Members enjoy each other.
Poorly Functioning Teams
1. Members not willing to be identified with the team.
2. There is covert conflict between members.
3. There are severe personality conflicts.
4. Relationships are competitive.
5. Members are defensive.
CQIA 2006
IV-14 (159)
Team Process Factors
1. Decisions are made by consensus.
2. Meetings are efficient and task oriented.
3. All members participate in discussions and
meetings.
4. Members are kept informed. Minutes are kept.
5. There is feedback regarding performance.
6. Members listen well.
1. Decisions are a crisis, decisions made by a few.
2. Meetings are unproductive with minor points
debated.
3. Members are late, do not attend, or take passive
roles.
4. No record of progress is kept.
5. No feedback until the end of the project.
6. There are frequent interruptions.
CQIA 2006
IV-14 (160)
Team Goal Factors
1. Team members help set objectives.
2. Objectives are understood by all members.
3. Objectives are set and met realistically.
1. Most goals predetermined for teams.
2. Most goals are unclear or not communicated well.
3. Members are oblivious to team goals.
CQIA 2006
IV-14 (161)
Team Environmental Factors
1. Team members are in close physical proximity and
meet regularly.
2. Adequate skills and authority levels are present.
3. The team has management and worker support.
1. Physical separation prevents members from
meeting frequently.
2. Inadequate resources to do the job.
3. There is a lack of organizational recognition.
CQIA 2006
IV-15 (162)
Team Role Factors
1. There is strong effective leadership with clear
responsibilities.
2. Roles are understood by all and are supported.
3. Members have constancy of purpose and work as a
team.
1. No clear leader is identified. Members engage in
power plays.
2. There is buck-passing of responsibility.
3. Members act i ndependent l y wi t hout
interdependency.
CQIA 2006
IV-15 (163)
Team Process Checklist
Establish Agenda
Clarity about goals Uncertainty about
and content goals and content
Stick to Subject
Always to the point Frequently gets off
track
Only One Person Talks
No interruptions Multiple
conversations
Build on Positive
Comments are Focuses on what's
additive wrong
Active Listening
No Comments that
misunderstandings show lack of clarity
Participation
Active participation Opinions only, no
data
Consensus
Buy-in on all issues People stampeded
CQIA 2006
QUESTIONS
IV-17 (164)
4.6. Individual team members benefit from team work by:
a. Sharing ideas and being creative
b. Forging stronger working relationships with management
c. Implementing widely held beliefs
d. Receiving time off from day-to-day operations
4.8. Each team member is most responsible for:
a. Applying the steps of the improvement process
b. Completing assignments at the meetings
c. Encouraging dominant members
d. Discussing ideas between meetings
4.10. A facilitator would most likely be considered:
a. A team leader
b. A catalyst
c. A trainer
d. A reformer
Answers: 4.6. a, 4.8. a, 4.10. b
CQIA 2006
QUESTIONS
IV-18 (165)
4.13. A skilled facilitator will:
a. Intervene when progress ceases
b. Correct the group when their ideas are wrong
c. Take sides when one side is correct
d. Publish and distribute team meeting minutes
4.15. Which of the following would be considered the three most important
team roles?
a. Member, supervisor, manager
b. Leader, member, timekeeper
c. Facilitator, consultant, member
d. Facilitator, member, recorder
4.19. A team commissioned to design and install an automated part
degreaser would be considered:
a. A self-directed team
b. An autonomous team
c. An improvement team
d. A project team
Answers: 4.13. a, 4.15. d, 4.19. d
CQIA 2006
QUESTIONS
IV-19 (166)
4.23. The greatest value a team can provide to an organization is:
a. Implementing solutions
b. Having well planned meetings
c. Identifying organization-wide problems
d. Meeting at least once a week
4.26. The type of team that draws its members from a natural work area is
generally called a:
a. Cross-functional team
b. Process improvement team
c. Self-directed team
d. Project team
4.30. The team member generally responsible for taking concise and
understandable notes of the proceedings of the team is:
a. The assistant team leader
b The recorder
c. The facilitator
d. The timekeeper
Answers: 4.23. a, 4.26. c, 4.30. b
CQIA 2006
QUESTIONS
IV-20 (167)
4.32. Which of the following would be indicative of a poorly functioning
team?
a. Conflict is openly discussed
b. All team members participate in deliberations and meetings
c. Goals of the team have been predetermined without negotiation
d. Decisions are made by consensus
4.34. Over the life of a team, the involvement of a facilitator generally
decreases because:
a. Team members' leadership capabilities increase over time
b. The team tires of the facilitator's involvement
c. Team members' resentment of the facilitator increases over time
d. Resource hours become more costly as the team progresses
4.36. Lack of expertise on the part of which of the following would be most
detrimental to the team functioning effectively?
a. Champions
b. Facilitators
c. Team members
d. Managers
Answers: 4.32. c, 4.34. a, 4.36. b
CQIA 2006
V. TEAM FORMATION AND DYNAMICS
V-1 (168)
ITS EASY TO GET THE
PLAYERS. GETTINEM TO
PLAY TOGETHER, THATS THE
HARD PART.
CASEY STENGEL
CQIA 2006
INITIATING TEAMS
V-2 (169)
Team Formation and Dynamics
Team Formation and Dynamics is presented in the
C Initiating teams
C Selecting team members
C Team stages
C Team barriers
C Decision making
CQIA 2006
INITIATING TEAMS
V-2 (170)
Initiating Teams
The team process can be a highly effective, people-
building, potential-releasing, goal-achieving social
system that is characterized by:
C A climate of high support
C An open communication process
C Organizational goal achievement
C Creative problem solving
C Individual achievement
C Commitment
CQIA 2006
INITIATING TEAMS
V-2 (171)
Why are Teams Successful?
C If management has sanctioned teams, this means
that they will be more apt to listen to the ideas of
team members.
C The team procedure allows all members to
communicate and exercise creative expression.
C The concept of teams is supported by modern
motivational theories:
C Maslow's higher level of human needs
C McGregor's theory Y which recognizes the worth
of an individual
C Herzberg's theory that true motivation is found in
the work itself
CQIA 2006
INITIATING TEAMS
V-3 (172)
Team Building
Team building involves trust, respect, and support.
Team members need to be coached in the need to trust
and support each other. Support involves actively
demonstrating a willingness to help each other when
needed--even when it might not be requested. Team
members encourage each other to stretch beyond their
comfort zone by offering advice or assistance when
asked, or when it is obvious that the fellow team
member needs it. Teams should strive to improve the
quality of their teamwork, as well as the quality of their
output.
CQIA 2006
INITIATING TEAMS
V-3 (173)
The Team Approach
The major advantages of having a team approach to
problem solving are:
C If one person in the group knows the answer, then
all benefit
C All of us are smarter than some of us
Disadvantages of working in teams include:
C It takes more time than individual decisions
C The ability to work together may be difficult
C There might be issues of confidentiality
C The group must have some subject knowledge
C There may be peer pressure to avoid certain issues
CQIA 2006
INITIATING TEAMS
V-4 (174)
Team Activities
Activities that improvement teams may undertake
include:
C Awareness and education
C Data collection and presentation
C Problem solving and decision making
C Organizing breakthroughs
CQIA 2006
INITIATING TEAMS
V-5 (175)
Team Empowerment
Team empowerment implies that team members have
control over the team's performance and behavior.
Control is one source of power. Most power derives
from the organization's management authority. A team
is empowered by virtue of the power that is granted to it
by management. A team charter is a very useful tool for
helping both the team and management understand just
exactly what the team is empowered to do.
Information and access to resources are other important
sources of power.
Management supports the team process by:
C Ensuring a constancy of purpose
C Reinforcing positive results
C Sharing business results
C Giving people a sense of mission
C Developing a realistic and integrated plan
C Providing direction and support
CQIA 2006
INITIATING TEAMS
V-5 (176)
Team Resources
Resources are time, talents, money, information, and
materials. Considerable resources are necessary for the
proper development of productive teams. Newly formed
teams want to maximize the resources available to them.
The team charter is the best place to outline the
resources that will be available to help the team reach
its objectives.
CQIA 2006
INITIATING TEAMS
V-6 (177)
Team Charter
A critical element in the establishment of a team is the
development and acceptance of the team charter.
A team charter is a written document that defines the
team's mission, scope of operation, objectives, time
frame, and consequences.
Charters can be developed by top management and
presented to teams, or teams can create their own
charters and present them to top management.
A good charter might contain a section describing top
management's support and commitment.
CQIA 2006
INITIATING TEAMS
V-6 (178)
Team Charter (Continued)
A team charter provides the following advantages:
C Eliminates any confusion
C Defines the subject boundaries
C Identifies areas which should not be addressed
C Identifies the deliverable product
C Provides a basis for team goal setting
CQIA 2006
INITIATING TEAMS
V-6 (179)
Initial Project Selection
C Must have broad appeal to team members,
co-workers and management
C Initially fairly simple - but not trivial
C Initially select an item to show some quick benefit (3
months)
C Within the group's control
C Consider time and resource constraints
C There are two activities present:
C Learning the teamwork process
C Improving the work process
CQIA 2006
INITIATING TEAMS
V-7 (180)
Typical Team Operating Guidelines
C Team agenda
C Attendance
C Meetings
C Decision process
C Minutes and reports
C Leader role
C Behavioral norms
C Confidentiality
C Guests
C Meeting audits
C Facilitator role
C Conflict
C Recommendations
C Commitments
CQIA 2006
INITIATING TEAMS
V-8 (181)
For Effective Team Meetings
1. Develop an agenda
2. Distribute the agenda in advance
3. Start on time
4. Appoint a recorder to record minutes
5. Use visual aids liberally
6. Reinforce:
C Participation
C Consensus building
C Conflict resolution
C Problem solving process
CQIA 2006
INITIATING TEAMS
V-8 (182)
For Effective Team Meetings (Continued)
7. Summarize and repeat key points throughout
8. Put unfinished items on next agenda
9. Review assignments and completion dates
10. Finish on time
11. Distribute minutes promptly
12. Critique meeting effectiveness periodically
CQIA 2006
INITIATING TEAMS
V-9 (183)
Sample Meeting Forms
A number of sample meeting forms are illustrated on
Page V-9 of the Primer. One is shown below:
Agenda/Minutes
Team name __________ Facilitator _____________ Date ______
Leader __________ Recorder _____________
Members Present Others Present
1. 4. 1.
2. 5. 2.
3. 6. 3.
I. Current problem or project: III. Decision/action items:
II. Key discussion points: IV. Next week's agenda:
CQIA 2006
INITIATING TEAMS
V-10 (184)
Recognition and Reward
Recognition and rewards for teams and team members
can be grouped into types of rewards or recognition.
These include:
C Material Items of significant value or equivalent
C Material items of incidental value or equivalent
C Intangible Items
Team rewards, which are material items and are given to
the team, should be the same for all members of the
team.
The ultimate reason that rewards and recognition are
given is to provide positive reinforcement for correct
behavior.
Rewards and recognition are best received when they
are personal to the individual receiving them.
CQIA 2006
INITIATING TEAMS
V-11 (185)
Management Presentations
Objectives
C Display skills
C Show accomplishments
C Summarize the project
C Gain necessary approvals
C Open lines of communication
C Know your customer's true needs!
CQIA 2006
INITIATING TEAMS
V-11 (186)
Management Presentations
Guidelines
C Have a handout report
C Have a leader
C Introduce everyone and give all a chance to speak
C Capture key problems and action steps
C Indicate cost and benefits of recommendations
C Present an implementation plan
C Use visual aids
C Emphasize achievements and accomplishments
C Start and end on time (one-half hour duration)
C Present no sudden surprises!
C Be professional
CQIA 2006
SELECTING TEAM MEMBERS
V-12 (187)
Team Size
A team can consist of members from only one area or it
can be made up of a group of representatives from
different parts of the organization.
Conventional wisdom is that teams over 20 people,
some think over 15, become too unwieldy and lose the
active participation of all team members.
Teams of 4 people or less may not generate enough
ideas.
A major change management principle embraces the
notion that people will more readily accept and support
a change if they are included in the development of the
solution.
CQIA 2006
V-12 (188)
Team Member Selection
When selecting a team, upper management identifies
those parts of the organization that are associated most
closely with the problem. There are four places to look:
C Where the problem is observed or the pain is felt
C Where sources or causes of the problem might be
found
C Among those with special knowledge, information,
or skill
C In areas that can be helpful in developing the
remedy
CQIA 2006
V-13 (189)
Adding New Team Members
Care must be taken when adding new people to existing
teams.
The rule is not to impose an individual on a team. This
can be handled by involving the entire team in the
selection process.
CQIA 2006
V-13 (190)
Removing Team Members
Sometimes, despite everyone's best efforts, a team
member will need to be taken off the team.
There are any number of reasons why this situation
could occur.
The result is a very delicate situation for the leader or
manager responsible for the team.
Both the team and the sponsoring manager should have
a series of frank discussions with the individual.
CQIA 2006
V-13 (191)
Team Diversity
To achieve optimum performance a team often needs
diversity in the orientation of its individual team
members.
Some team members will be needed who are primarily
oriented towards task and target date accomplishment.
Other team members will be needed who hold process,
planning, organization and methods in the highest
regard.
Productive teams are sensitive to the viewpoints of all
members.
CQIA 2006
TEAM STAGES
V-14 (192)
Team Evolutionary Stages
Most teams go through four development stages before
they become productive: forming, storming, norming,
and performing.
These stages can also be cyclical. Individuals may be
storming with one teammate and performing with
another.
Bruce W. Tuckman (1965) first identified the four
development stages.
CQIA 2006
TEAM STAGES
V-14 (193)
Forming
Forming is the beginning of team life. Expectations are
unclear. Members test the water. Interactions are
superficial. This is the honeymoon stage.
CQIA 2006
TEAM STAGES
V-14 (194)
Storming
The second phase consists of conflict and resistance to
the group's task and structure.
There are healthy and unhealthy types of storming.
This is the most difficult stage for any team to work
through.
Teams realize how much work lies ahead and feel
overwhelmed. They want the project to move forward
but are not yet expert at team improvement skills.
Team members often cling to their own opinions and
resist seeking the opinions of others.
CQIA 2006
TEAM STAGES
V-14 (195)
Norming
During the third phase, a sense of group cohesion
develops.
Team members use more energy on data collection and
analysis as they begin to test theories and identify root
causes.
Members accept other team members and develop
norms for resolving conflicts, making decisions, and
completing assignments.
CQIA 2006
TEAM STAGES
V-15 (196)
Performing
This is the payoff stage.
The group has developed its relationships, structure,
and purpose.
The team begins to tackle the tasks at hand.
The team begins to work effectively and cohesively.
During this stage, the team may still have its ups and
downs.
Occasionally, feelings that surfaced during the storming
stage may recur.
CQIA 2006
TEAM STAGES
V-15 (197)
Time
Forming
Members are:
inexperienced
excited
anxious
proud
Storming
Members:
have confrontation
think individually
are learning roles
have divided loyalties
Norming
Members:
cooperate
talk things out
focus on objectives
have fewer conflicts
Performing
Members:
show maturity
focus on the process
achieve goals
operate smoothly
Team Development Phases
CQIA 2006
TEAM STAGES
V-16 (198)
Effectiveness
Develop
Build
Optimize
Time
Team Life Cycle Characteristics
Another representation of team development stages:
CQIA 2006
TEAM STAGES
V-16 (199)
Build Phase (Forming/Storming)
C Group will be uncertain
C Group lacks cohesiveness
C Group will not easily develop consensus
C Leader exhibits a high task/ high relationship style
CQIA 2006
TEAM STAGES
V-16 (200)
Develop Phase (Norming)
C Task related work is assumed by the group
C The group must work to involve any non-
participating members
C Leader exhibits a low task/high relationship style
C Team focuses on presentations, tasks and
relationships
CQIA 2006
TEAM STAGES
V-16 (201)
Optimize Phase (Performing)
C Members prioritize and perform tasks
C Members work out decisions in a caring way
C Conflict is accepted, but cooperation is preferred
C Team leader is a delegator and exhibits a
low-task/low-relationship style
C Team exhibits a high-task/high-relationship style
CQIA 2006
TEAM BARRIERS
V-17 (202)
Team Precautions
Management must give more than passive team support.
This means that management and especially mid-
management must be educated so that they are
enthusiastic about the team concept.
The implementation of project schedules and solutions
originating from teams should be given precedence. In
order for teams to be successful, management must
recognize that there will be additional work created by
their efforts.
Leaders, facilitators, and team members should be
thoroughly trained in a variety of quality and
improvement techniques.
CQIA 2006
TEAM BARRIERS
V-17 (203)
Team Opposition
In spite of the potential benefits, some people are
skeptical of the long term success of teams. These
arguments are further explained in the following
statements:
C Some managers make the point that their company
practices are already consistent with the benefits
that improvement teams bring.
C Other opponents of teams in the United States point
out that improvement teams work better in other
countries because of their consensus cultures.
C Many of the companies that adopt teams do so as a
desperation move.
C Another area of concern is in companies where
strong unions exist.
CQIA 2006
TEAM BARRIERS
V-18 (204)
Common Team Problems
Problem Examples How to Fix
Floundering C Team direction is unclear
C Members seem overwhelmed
C Decisions are postponed
C Leader must provide clarity
C Review the team purpose
C Ask How can we proceed?
Dominant
Participants
C Members interrupt others
C Members dominate the conversation
C Promote equal participation
C Structure the discussion
Overbearing
Participants
C A member has excessive influence
C A member has legitimate authority
C A member is an expert
C Reinforce team concepts
C Ask the expert to lead the group
C Have a private discussion with expert
Negative
Nellies
C Members say we tried that already
C Members defend their turf
C Members are negative of suggestions
C Reinforce the positive
C Ask for other points of view
C Separate idea generation from criticism
Opinions as
Facts
C Members present opinions as facts
C Members make unfounded assumptions
C Self assurance seen as unquestionable
C Ask for support data
C Question opinions and assumptions
C See groupthink discussion
Shy Members C Members are reluctant to speak
C Members afraid of making mistakes
C Structure group participation
C Direct conversation their way
Jump to
Solutions
C Members rush to accomplish something
C Members avoid data collection and analysis
C Members want immediate decisions
C Reinforce the need for data analysis
C Ask for alternate solutions
C Slow the process down
Attributions C Members make casual inferences
C Members dont seek real explanations
C Members make psychological judgments
C Challenge assumptions
C Challenge judgments
C Ask for data to support conclusions
Put-downs
(Discounts &
Plops)
C A members comments are ignored
C Members are not listening
C The meaning of a suggestion is missed
C Sarcasm is noted
C Encourage active listening
C Encourage equal participation
C Talk to parties privately
C Promote uniform idea consideration
Wanderlust
(Tangents &
Digressions)
C Conversations stray from the main topic
C Sensitive issues are avoided
C Group pursues tangents
C Follow a written agenda
C Reinforce team operating guidelines
C Redirect the discussion
Feuding C Win-lose hostilities emerge
C The team takes entrenched sides
C Some members become spectators
C Confront the adversaries alone
C Reinforce team operating guidelines
C Replace the guilty parties if necessary
Risky-Shift C Expansive and expensive remedies are
suggested (using company money)
C Ask If this were my personal money
would I still spend it?
CQIA 2006
TEAM BARRIERS
V-19 (205)
Groupthink
One aspect of group cohesiveness can work to a teams
disadvantage.
Strong feelings of group loyalty can make it hard for
members to criticize and evaluate others ideas and
suggestions.
Desires to hold the group together and avoid
disagreements may lead to poor decision making.
Psychologist Irving Janis (1971) calls this phenomenon
groupthink, the tendency for highly cohesive groups to
lose their critical evaluative capabilities.
CQIA 2006
TEAM BARRIERS
V-19 (206)
Eight Symptoms of Groupthink
1. Illusion of Invulnerability: Feeling that the group
is above criticism or beyond attack.
2. Belief in the Inherent Morality of Group: Feeling
that the group is inherently right and above any
reproach by outsiders.
3. Collective Rationalization: Refusing to accept
contradictory data or to consider alternatives
thoroughly.
4. Out-Group Stereotypes: Refusing to look
realistically at other groups.
CQIA 2006
TEAM BARRIERS
V-19 (207)
Eight Symptoms of Groupthink (Cont'd)
5. Self-Censorship: Refusing to communicate
personal concerns to the group as a whole.
6. Illusion of Unanimity: Accepting consensus
prematurely, without testing its completeness.
7. Direct Pressure on Dissenters: Refusing to
tolerate a member who suggests the group may
be wrong.
8. Self-Appointed Mindguards: protecting the group
from hearing disturbing ideas or viewpoints from
outsiders.
CQIA 2006
TEAM BARRIERS
V-20 (208)
Risky - Shift
Many people think that the proposed solutions to team
projects would be fairly conservative.
Teams often get swept up into expansive and expensive
remedies.
Ask the question, If this were our personal money
would we still risk it on the proposed solution.
CQIA 2006
TEAM BARRIERS
V-20 (209)
Team Problem Areas
The following problem areas are frequently
encountered:
C Waning management support
C Inadequate documentation of meeting results
C Inadequate time or training given to team members
C Teams expose problems viewed as a threat by mid-
management
C Controversies develop between facilitators and
leaders
C Teams may tackle problems outside their
responsibility
C Unproductive conflict among team members
C Idea generation and evaluation are not kept
separate
C Facts and opinions are not distinguished
C Failure to assign specific responsibilities
CQIA 2006
TEAM BARRIERS
V-21 (210)
Conflict Resolution
Conflict is the result of mutually exclusive objectives or
views, manifested by emotional responses such as
anger, fear, frustration and elation. Some conflicts are
inevitable in human relationships.
Common causes of conflict include:
Organizational structure
Value differences
Role pressures
Perceptual differences
Divergent goals
Status threats
Personality clashes
Differences in ideals
Changes
Discrepancies in priorities
CQIA 2006
TEAM BARRIERS
V-21 (211)
Categories of Conflicts:
Intrapersonal - within an individual
Interpersonal - between any two people
Intragroup - within a group
Intergroup - between groups
Interdepartmental - between departments
Intercompany - between companies
CQIA 2006
TEAM BARRIERS
V-21 (212)
Positive Conflicts
Positive conflicts result in:
A combined desire to unite and improve
Win - win situations
Creative ideas brought forth
Better understanding of tasks and problems
Better understanding of other's views
A wider selection of alternatives
Increased employee interest and participation
Increased motivation and energy
CQIA 2006
TEAM BARRIERS
V-22 (213)
Negative Conflicts
Negative conflicts result in:
Hostile, impulsive drives to destroy
Win - lose situations
Lose - lose situations
Undesirable consequences
Isolation
Loss of productivity
CQIA 2006
TEAM BARRIERS
V-22 (214)
Conflict Resolution Matrix
COMPETING COLLABORATING
COMPROMISING
AVOIDING ACCOMMODATING
UNCOOPERATIVE COOPERATIVE
A
S
S
E
R
T
I
V
E
N
E
S
S
U
N
A
S
S
E
R
T
I
V
E
A
S
S
E
R
T
I
V
E
CQIA 2006
TEAM BARRIERS
V-22 (215)
Thomas-Kilmann Conflict Modes:
Avoiding is unassertive and uncooperative - the
individual withdraws from the situation. (You lose,
I lose).
Accommodating is unassertive but cooperative - the
individual yields to the wishes of others. (You win,
I lose).
Competing is assertive and uncooperative - the
individual tries to win, even at the expense of
others. (You lose, I win).
Collaborating is assertive but cooperative - the
individual wants things done their way, but is willing
to explore solutions. (You win, I win).
Compromising is intermediate in both assertiveness
and cooperativeness. (Neither win or lose).
CQIA 2006
TEAM BARRIERS
V-23 (216)
Conflict Handling Applications
The following are general applications for the various
conflict handling methods:
Avoiding is appropriate for less important issues or
when the potential damage from conflict outweighs
the benefits of the goal.
Accommodating is suitable when one party is
wrong or the issue is more important to the others
than it is to yourself.
Competing is applicable when quick decisions are
needed and a stronger influence is held by one side.
Collaborating is used when both views are
important and an integrated solution is desired.
Compromising is used when two opponents have
equal power and the goals are not worth the effort
or disruption of mutually exclusive solutions.
CQIA 2006
TEAM BARRIERS
V-23 (217)
Handling Conflict
According to D. Tjosvold (1984) the following guidelines
can be used to resolve conflict:
C Determine how important the issue is to all involved
C Determine if the issue can be discussed by all
involved
C Select a private meeting place
C Make sure that all parties understand their
responsibilities
C The parties must deal with both the problem and
solution
C Let all parties make opening comments
C Let parties express their concerns, feelings, ideas,
etc.
CQIA 2006
TEAM BARRIERS
V-23 (218)
Handling Conflict (Continued)
C Guide all parties toward a clear problem definition
C Encourage participants to propose solutions
C Examine the problem from a variety of perspectives
C Discuss any and all proposed solutions
C Evaluate the costs versus the gains for all proposed
solutions
C Choose the best solution
C Reflect on the process by asking participants how
it might be improved
CQIA 2006
DECISION MAKING
V-24 (219)
Team Consensus
Unlike majority rule, there is no team vote with
consensus. Consensus implies that the proposed
action has general team support. The decision may not
be every team member's first choice. It is a course of
action that all can live with and not die over.
CQIA 2006
DECISION MAKING
V-24 (220)
Nominal Group Technique
The nominal group technique, limits initial interaction
among team members. The concept is to prevent social
pressures from influencing the generation of ideas. The
term nominal is used to describe the limiting of
communications. To conduct a NGT problem solving
meeting:
C A facilitator or moderator leads the discussion
C A group of five to nine individuals are assembled
C A problem is presented
C All members create ideas silently and individually
C The facilitator then requests ideas in sequence
C Each idea is recorded until ideas are exhausted
C No discussion is allowed at this point
C Idea clarification and evaluation is permitted
C Expanding on the ideas of others is encouraged
C Voting for the best solution idea is then conducted
C Several rounds of voting may be needed
The chief advantage of this technique is that the group
meets formally, and yet encourages independent
thinking.
CQIA 2006
DECISION MAKING
V-25 (221)
Multivoting
Multivoting is a popular way to select the most popular
or potentially most important items from a previously
generated list. Often there are too many items for a
team to work on at a single time. It is often worthwhile
to narrow the field to a few items worthy of immediate
attention. Multivoting is useful for this objective and
consists of the following steps:
1. Generate and number a list of items
2. Combine similar items, if the group agrees
3. If necessary, renumber the list
4. Allow members to choose several items that they
feel are most important.
5. Members may make their initial choices silently.
The votes are then tallied.
6. To reduce the list, eliminate those items with the
fewest votes.
The items receiving the largest number of votes are
usually worked on or implemented first. The original list
should be saved for future action.
CQIA 2006
DECISION MAKING
V-25 (222)
Voting
Voting is similar to the multivoting approach except that
only one vote is permitted per team member. Voting can
result in majority or unanimous decisions. In some
immature team environments, voting can lead to
conflict. This is why consensus decisions are usually
preferred.
CQIA 2006
QUESTIONS
V-27 (223)
5.1. The most common management argument against improvement
teams is:
a. They believe that the teamwork concept is invalid
b. They believe workers do not have worthy ideas
c. They believe unions will not tolerate them
d. They believe that the U.S. industrial climate will not support them
5.6. During the team building phase, which of the following best
describes the actions of the team?
a. The group is uncertain of their duties
b. Members prioritize and perform tasks
c. Members operate smoothly
d. The team leader is usually a delegator
5.9. What primary activities take place during most team meetings?
a. Conflict between the leader and the team members
b. Taking detailed minutes and publishing the information promptly
c. Learning the teamwork process and improving the work process
d. Consensus building and conflict resolution
Answers: 5.1. d, 5.6. a, 5.9. c
CQIA 2006
QUESTIONS
V-28 (224)
5.11. When data alone cannot drive a team decision, consensus may be the
strongest option. One would define consensus as:
a. Unanimity of position among team members
b. A majority vote among team members
c. Complete satisfaction by all team members
d. A decision that all team members can support
5.14. The team's charter describes the team's:
a. Leader, facilitator, recorder, and timekeeper
b. Meeting dates, milestones, and targets
c. Mission, scope, and objectives
d. Members, sponsors, and facilitators
5.22. When team members' desires for unanimity overrides a realistic
appraisal of alternatives, this is called:
a. Wanderlust
b. Bonding
c. Groupthink
d. Risky-shift
Answers: 5.11. d, 5.14. c, 5.22. c
CQIA 2006
QUESTIONS
V-29 (225)
5.23. When two team members express strong opposite views, the
remaining team members should:
a. Ask both members to leave
b. Vote that the leader stop the discussion
c. Have the two clearly state their positions
d. Use the sponsor to clarify the situation
5.28. Groupthink is:
a. Beneficial to evaluating ideas
b. An impediment to appraising alternatives
c. Enhancing to independent critical thinking
d. An inability to pressure dissenters
5.34. An endorsed team charter should:
a. Authorize expenditures of corporate resources
b. Leave boundaries of the project subject to later resolution
c. Specify detailed metrics for completion
d. Require approval by the facilitator
Answers: 5.23. c, 5.28. b, 5.34. a
CQIA 2006
QUESTIONS
V-30 (226)
5.38. The proper sizing of a team is:
a. Something that senior management should determine in the team
charter
b. Best based upon including representatives of all affected parties
c. A straightforward management decision
d. A complex balancing of considerations of inclusion and
manageability
5.40. Divided member loyalties, having personal confrontations, thinking
individually, and learning team members roles are indicators that a
team is in which evolutionary stage?
a. Forming
b. Storming
c. Performing
d. Norming
5.45. In order to be a member of a team, a person should have all of the
following prerequisites, EXCEPT:
a. An emotional interest in the problem
b. A reason for working on the team
c. An acceptance of interdependency
d. An acceptance of team values
Answers: 5.38. d, 5.40. b, 5.45. a
CQIA 2006
QUESTIONS
V-31 (227)
5.49. When the team is creating their guidelines, the issue of what
information will be shared outside the team is called:
a. Brainstorming
b. Conflict resolution
c. Confidentiality
d. Empathic listening
5.51. Keeping records of team meetings is important because:
a. Single meeting progress may be slow
b. Time must be justified
c. Rewards will be based on them
d. Participation is encouraged
5.53. Rewards are given because:
a. Employees expect them
b. Companies want to reinforce correct behavior
c. They generate team competition
d. They match what other organizations do
Answers: 5.49. c, 5.51. a, 5.53. b
CQIA 2006
QUESTIONS
V-32 (228)
5.59. When an organization confers recognition and rewards for a team's
excellent performance, it should be given to:
a. All team members
b. The leader
c. The team champion
d. The team sponsor
5.62. Identify the facilitation technique that would most likely result in team
conflict:
a. Multi-voting
b. Voting
c. Consensus
d. Nominal group technique
5.64. When a team has a tendency to jump immediately to problem
solutions, a facilitator should take all the following actions, EXCEPT:
a. Slow the process down
b. Reinforce the need for data
c. Strive for quicker decision making
d. Ask for alternate solutions
Answers: 5.59. a, 5.62. b, 5.64. c
CQIA 2006
VI. CONTINUOUS IMPROVEMENT
VI-1 (229)
OPPORT UNI T I ES ARE
USUALLY DISGUISED AS
HARD WORK, SO MOST
PEOPLE DONT RECOGNIZE
THEM.
ANN LANDERS
CQIA 2006
INCREMENTAL AND BREAKTHROUGH IMPROVEMENT
VI-2 (230)
Continuous Improvement
Continuous Improvement is presented in the following
major topic areas:
C Incremental and breakthrough improvement
C Improvement cycles
C Problem solving processes
C Barriers to continuous improvement
Incremental and breakthrough improvement is reviewed
in the following topic areas:
C Incremental improvement
C Breakthrough improvement
C Reengineering
C Six sigma
C Non-value-added activities
C Kaizen
C Mistake proofing
C Cycle time reduction
C Concurrent activities
CQIA 2006
VI-3 (231)
Continuous Improvement (Continued)
Features Incremental
Improvement
Breakthrough
Improvement
People Process workers Managers, engineers,
specialists
Sizes Small changes Big changes
Types of
changes
Practices,
procedures,
modifications,
simplification,
process
foolproofing
Technology, new
equipment, major
process upgrades,
process reengineering
Results Small
improvements
Leaps in performance
Project
Costs
Low, generally
included in
operating budget
High, may involve
capital investment
CQIA 2006
VI-3 (232)
CUSTOMER
PERCEIVED
VALUE
TIME
COMPANY B
Incremental Improvement
The plotting of a process may indicate that improvement
is up, down, or as close to some normal value as
possible.
From an internal perspective, Company A is making
progress. They are proceeding along at a steady
improvement rate.
Without competition, Company A is in good shape.
However, Company B is proceeding at a faster
evolutionary rate and will soon have all but the most
loyal of Company As customers.
CQIA 2006
VI-4 (233)
CUSTOMER
PERCEIVED
VALUE
TIME
COMPANY B
COMPANY D
COMPANY C
COMPANY A
Breakthrough Improvement
Some companies fail when making either evolutionary
or revolutionary progress. This could certainly be the
case if a competitor enters the market with an entirely
new concept.
Companies producing tube-style television sets or
mainspring watches were shocked when solid state TVs
and quartz crystal watches took their markets away.
CQIA 2006
VI-4 (234)
Revolutionary Breakthrough
Revolutionary breakthrough implies improvement
resulting from process redesign rather than corrective
action. The improvement is often radical and may be
due in part from large investments in technology and/or
equipment.
CQIA 2006
VI-5 (235)
Reengineering
The definition of reengineering by Lowenthal (1994) is:
The fundamental rethinking and redesign of
operating processes and organizational structure,
focused on the organization's core competencies to
achieve dramatic improvements in organizational
performance.
Hammer (1994) also provides this definition:
Reengineering is the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical contemporary
measures of performance, such as cost, quality,
service, and speed.
CQIA 2006
VI-5 (236)
Reengineering (Continued)
Normally, companies would approach reengineering
because of 3 basic factors:
C The company needs dramatic improvement. Quality
is bad and costs are high! A high order of
magnitude (X 10) improvement is needed.
C The company has foresight and sees major trouble
coming. They recognize a chance to overhaul vital
processes.
C The company is in peak form, no serious problems;
but management sees reengineering as an
opportunity to further their performance.
CQIA 2006
VI-6 (237)
Six Sigma
Six sigma is a management strategy to use statistical
tools and project work to achieve breakthrough
profitability and quantum gains in quality. It has been
stated that product characteristics with six sigma
process capabilities (Cpks) are of world class
performance. The average American company is at the
four sigma level. Snee (1999) describes six sigma as:
A business improvement approach that seeks to find
and eliminate causes of mistakes or defects in
business processes by focusing on outputs that are
of critical importance to customers.
CQIA 2006
VI-6 (238)
Six Sigma (Continued)
Motorola Chairman, Bob Galvin, encouraged the use of
statistical tools to improve product quality level. At the
six sigma level (Motorola modified the probabilities for
possible shifts), the defect level is 3.4 parts per million
(ppm).
Sigma Level ppm
6 sigma 3.4 ppm
5 sigma 233 ppm
4 sigma 6210 ppm
3 sigma 66,807 ppm
2 sigma 308,537 ppm
1 sigma 690,000 ppm
(Harry, 1998)
CQIA 2006
VI-6 (239)
Potential black belts undertake a 4 month training
program consisting of one week of instruction each
month. A set of software packages are used to aid in
the presentation of projects, including Excel or Minitab
for the statistics portion. Black belts will receive
coaching from a master black belt to guide them
through a project. Lesser amounts of training will
qualify individuals for the green belt or yellow belt titles.
CQIA 2006
VI-7 (240)
The six sigma steps are described as DMAIC:
Define: Define the area needing improvement
Measure: Measure the appropriate variable
Analyze: Identify the root causes of problem
Improve: Reduce variability or eliminate the cause
Control: After improvement, monitor the process
CQIA 2006
VI-7 (241)
Six Sigma Results
Harry (1998) reports that the average black belt project
will save about $175,000. Snee (1999) provides some
reasons why six sigma works:
C Bottom line results
C Senior management is involved
C A disciplined approach is used (DMAIC)
C Short project completion times (3 to 6 months)
C Clearly defined measures of success
C Infrastructure of trained individuals (black belts)
C Customers and processes are the focus
C A sound statistical approach is used
CQIA 2006
VI-8 (242)
Kaizen
The term Kaizen is taken from the Japanese kai
change and zen good, and understood to connote
gradual unending improvement of all areas of a
company not just quality. The Kaizen approach, applies
to doing little things better and setting and achieving
increasingly higher standards.
Kaizen accomplishes improvements at little or no
expense without the purchase of sophisticated
equipment. It breaks down complex processes into
simpler components and improves them.
CQIA 2006
VI-8 (243)
Kaizen (Continued)
The Kaizen improvement process as presented by
Besterfield (1999) focuses on:
1. Value-added and non-value added activities
2. Principles of motion study and material handling
3. Documentation of standard operating procedures
4. Visual display management (kanban)
5. Just-in-time principles (right quantity, right time)
6. Poka-yoke techniques to prevent or detect errors
7. Team problem solving techniques
8. Muda, which refers to seven classes of wastes
9. The five Japanese S words for organization:
C Seiri (proper arrangement)
C Seiton (orderliness)
C Seiso (cleanup)
C Seiketsu (personal cleanliness)
C Shitsuke (personal discipline)
The approximate American equivalents are:
C Sort: Separate out all that is unneeded
C Straighten: Put everything in order
C Scrub (Shine): Clean everything
C Systematize (Standardize): Make cleaning routine
C Sustain: Commit to the previous 4 steps and
improve on them
CQIA 2006
VI-9 (244)
Non-Value-Added Activities
Non-value-added activities are classified as muda. This
is a Japanese term for waste which exists in the
process. Useful activities that the customer will pay for
are considered value-added. The other activities are not
important to the customer or they contain elements that
the customer will not pay for. Seven muda categories
are:
C Overproduction
C Inventory
C Repair/rejects
C Wasted motion
C Additional processing
C Waiting
C Transport
CQIA 2006
VI-11 (245)
Mistake Proofing
Shigeo Shingo (1986) is widely associated with a
Japanese concept called Poka-Yoke (pronounced poker-
yolk-eh) which means to mistake proof the process.
The success of poka-yoke is to provide some
intervention device or procedure to catch the mistake
before it is translated into nonconforming product.
There are numerous adaptive approaches. Gadgets or
devices can stop machines from working if a part or
operation sequence has been missed by an operator.
CQIA 2006
VI-11 (246)
Design Improvement
Other design improvements to error proof the process
include:
C Elimination of error-prone components
C Amplification of human senses
C Redundancy in design (back-up systems)
C Simplification by using fewer components
C Consideration of environmental factors
C Providing failsafe cut-off mechanisms
C Enhancing product producibility and maintainability
C Selecting components and circuits that are proven
CQIA 2006
VI-12 (247)
Cycle Time Reduction
Based on specific applications, the reduction of cycle
time can have a considerable impact on the containment
of costs and improvement in productivity. Particularly
in the forging and molding industries, the SMED (Single
Minute Exchange of Dies) process had received
attention from the production and engineering
professionals in this country, based on outstanding
success in countries like Japan.
CQIA 2006
VI-12 (248)
Cycle Time Reduction (Continued)
Cycle time is the amount of time required to complete
one transaction of a process. The reduction in cycle
time is customarily undertaken for many of the following
reasons:
C To please a customer
C To reduce internal or external waste
C To increase capacity
C To simplify the operation
C To reduce product damage (improve quality)
C To remain competitive
Several cycle time reduction examples are presented in
the Primer.
CQIA 2006
VI-14 (249)
Concurrent Activities
Process mapping or flow charting allow for concurrent
activities to occur. In the design or modification of
equipment and processes, this activity may be referred
to as concurrent engineering.
The break-up of a project into manageable parts and the
concurrent planning, design, construction and
installation of these parts, reduces project completion
time tremendously. This is not a new concept. The
construction of the Eiffel tower and the Pyramids at Giza
utilized concurrent engineering. However, the engineers
of the day used other terms to describe their planning.
CQIA 2006
IMPROVEMENT CYCLES
VI-15 (250)
Plan/Do/Check/Act
The historical evolution of the PDCA problem solving
cycle is interesting. Kolsar (1994) states that Deming
presented the following product design cycle (which he
attributed to Shewhart) to the Japanese in 1951:
1. Design the product (with appropriate tests)
2. Make the product (tested both in laboratory and
production)
3. Put the product on the market
4. Test the product in service through market
research
5. Redesign the product, in light of consumer
reaction and continue the cycle
CQIA 2006
IMPROVEMENT CYCLES
VI-15 (251)
1. PLAN
2. DO 3. CHECK
4. ACT
PDCA (Continued)
Perhaps from this concept, the Japanese evolved a
general management control process called PDCA.
Refer to the Figure below:
The PDCA cycle is very popular in many problem
solving situations because it is a graphical and logical
representation of how most individuals already solve
problems.
CQIA 2006
IMPROVEMENT CYCLES
VI-16 (252)
Plan/Do/Study/Act
Deming (1986) was somewhat disappointed with the
Japanese PDCA adaption. He proposed a PDSA
continuous improvement loop (actually a spiral), which
he considered principally to be a team oriented problem
solving technique.
1. Plan - What could be the most important
accomplishment of this team? What changes are
desirable? What data is needed?
2. Do - Carry out the change or test decided upon,
preferably on a small scale.
3. Study - Observe the effects of the change or the
test.
4. Act - Study the results. What was learned? What
can one predict from what was learned?
5. Repeat step 1 with new knowledge accumulated.
6. Repeat step 2 and onward.
Deming (1986)
Both PDCA or PDSA are very helpful techniques in
product and/or process improvement projects. They
can be used with or without a special cause being
indicated by the use of statistical tools.
CQIA 2006
PROBLEM SOLVING PROCESSES
VI-17 (253)
Problem Solving Processes
This Primer is laden with a variety of quality, quality
management, planning, and statistical tools to assist
with problem solving. Carrying out each improvement
project involves:
C Verifying the project need
C Diagnosing the causes
C Providing a remedy and proving its effectiveness
C Dealing with any resistance to change
C Instituting controls to hold the gains
(Juran, 1993)
CQIA 2006
VI-17 (254)
Problem Solving Processes (Cont'd)
The problem or project statement must be clearly
defined:
C Problem statements are often fuzzy.
C The true problem location must be clearly identified.
There is often a tendency to work on a downstream
symptom of an upstream problem.
C A problem is the gap between:
C What is? and what should be?
C Current results and desired results.
C A clearly defined problem statement that is
measurable should be the initial product.
Frequently, a target timetable is included.
C Consider the team to be working on a problem that
is scheduled for solution.
CQIA 2006
VI-18 (255)
Classic Problem Solving Steps
1. Identify business or customer problems; select one
to work on.
2. Define the problem; if it is large, break it down to
smaller ones and solve these one at a time.
3. Investigate the problem. Collect data and facts.
4. Analyze the problem. Find all the possible causes;
decide which are major ones.
5. Solve the problem. Choose from available
solutions. Select the one that has the greatest
organizational benefit. Implement the solution.
6. Confirm the results. Was the problem fixed?
CQIA 2006
VI-19 (256)
ACT PLAN
CHECK DO
SELECT CONDITION(S)
NEEDING IMPROVEMENT
STUDY CURRENT PROCEDURES
IS THE PROJECT
MISSION & SCOPE
APPROPRIATE?
YES
DETERMINE THE POTENTIAL CAUSES
(CANDIDATE FOR DATA COLLECTION)
COLLECT DATA
ANALYZE DATA
DOES
THE ANALYSIS
POINT TO A
SOLUTION?
YES
IMPLEMENT SOLUTION
CATEGORY
A
B
C
FREQUENCY
ACT PLAN
CHECK DO
NO
NO
YES
NO
MORE
DETAIL
NECESSARY?
Classic Problem Solving Steps (Cont'd)
CQIA 2006
VI-20 (257)
DMAIC Process
The DMAIC process steps are detailed below:
Define the customer, their critical to quality (CTQ)
issues, and the core business process involved.
C Define who the customers are
C Define customer requirements and expectations
C Define project boundaries
C Define the process by mapping the process flow
Measure the performance of the core business process
involved.
C Develop a data collection plan
C Collect data to determine the current status
C Collect customer survey results
CQIA 2006
VI-20 (258)
DMAIC Process (Continued)
Analyze the data collected and process map to
determine root causes of defects and opportunities for
improvement.
C Identify gaps between current and goal performance
C Prioritize opportunities to improve
C Identify excessive sources of variation
C Identify objective statistical limits
Improve the target process by designing creative
solutions to fix and prevent problems.
C Create innovative solutions using technology
C Develop and deploy improvement plans
Control the improvements to keep the process on the
new course.
C Prevent reverting back to the old way
C Develop an ongoing monitoring plan
C Institutionalize the improvements
CQIA 2006
VI-21 (259)
Corrective Action
Many companies and organizations now require at least
two improvement activity responses for each corrective
action request; temporary (short term), and permanent
(long term).
There can be as many as three corrective action steps:
C Immediate Actions (Actions taken to stop the
problem immediately)
C Temporary Actions (Actions taken to stop the
problem in the near term)
C Permanent Actions (Actions taken to stop the
problem forever)
When a floor level employee takes care of a problem, the
actions are usually limited to immediate actions.
Temporary and permanent actions are missed.
CQIA 2006
VI-21 (260)
Short-Term Containment Activities
C Clearly define the problem
C Develop an immediate action plan
C Determine the following:
C How to contain? How to repair? How to inspect?
C What tools or gages are needed?
C Who will perform sorting, and/or repairing?
C Put the short-term plan into effect quickly
C Document the containment activity and results
C Notify the appropriate personnel
CQIA 2006
VI-22 (261)
Long-Term Corrective Actions
C Organize the appropriate team members
C Investigate and verify the problem
C Clearly define the problem statement
C Inform the team of any short term activities
C Present all known evidence
C Reach consensus on potential cause(s)
C Delegate investigative and problem solving
activities
C Perform investigation
CQIA 2006
VI-22 (262)
Long-Term Corrective Actions (Continued)
C Perform an analysis
C Present results when necessary
C Perform any further investigation if needed
C Clearly define the suspect root cause(s)
C Determine action(s) to correct the root cause
C Implement action to correct root cause(s)
C Verify the effect of corrective action(s)
C Report the results
CQIA 2006
VI-22 (263)
When the Result is Ineffective
Check the method of corrective action implementation.
If unsatisfactory, repeat the process.
Seek assistance from other problem solving sources.
CQIA 2006
VI-22 (264)
When the Result is Effective
Assign follow-up verification using periodic checks.
Check similar processes or applications and implement
the same solution where applicable.
Standardization is the act of identifying other systems or
processes with similar nonconformance problems and
applying the same corrective action, once it has been
proven effective.
CQIA 2006
VI-23 (265)
Root Cause Analysis
An individual or team is given the responsibility of
determining the root cause of a deficiency and
correcting it. The solution to some problems may be
complex and difficult.
See the illustration below:
SITUATION IMMEDIATE
ACTION
INTERMEDIATE
ACTION
ROOT CAUSE
ACTION
The dam
leaks
Plug it Patch the dam Find out what
caused the leak so it
won't happen again.
Then rebuild the
dam.
Parts are
oversized
100%
Inspection
Put an oversize
kickout device
in line
Analyze the process
and take action to
eliminate the
production of
oversize parts.
Most of us tend to focus on a downstream symptom of
an upstream problem.
CQIA 2006
VI-23 (266)
Common Root Cause Analysis Tools
Subjective Tools:
C Ask why, ask why again ...
C Brainstorming
C Process Flow Analysis
C Plan-do-check-act
C Nominal Group Technique
C Operator Observation
C Fishbone Diagrams
Analytical Tools:
C Data Collection and Analysis
C Pareto Analysis
C Scatter Diagrams
C Check Sheets
C Process Capability Analysis
C Simple Trials
There are numerous other tools.
CQIA 2006
VI-24 (267)
Trend Analysis
Data can be presented in either summary (static) or time
sequence (dynamic) fashion.
For many business activities, trend charts will show
patterns that indicate if a process is running normally or
whether desirable or undesirable changes are occurring.
It should be noted that normal convention has time
increasing across the page (from left to right) and the
measurement value increasing up the page.
Obviously investigation should be conducted for both
unusually good or bad events.
CQIA 2006
VI-24 (268)
1 5 10 15 20
0
20
40
60
80
100
UPWARD TREND
1 5 10 15 20
0
20
40
60
80
100
DOWNWARD TREND
PROCESS SHIFT
1 5 10 15 20
0
20
40
60
80
100
UNUSUAL VALUES
1 5 10 15 20
0
20
40
60
80
100
CYCLES
1 5 10 15 20
0
20
40
60
80
100
INCREASING VARIABILITY
1 5 10 15 20
0
20
40
60
80
100
Trend Examples
CQIA 2006
VI-25 (269)
Barriers to Continuous Improvement
The following are difficulties in many organizations:
C Concern about Who gets the credit?
C NIH: Not Invented Here; therefore the idea has no
merit
C A reluctance to increase training expenditures
C Worker errors due to inadequate training or
necessary skills
C Separate departments competing for limited
budgeted dollars
C Poorly designed incentive and reward systems
C Managements avoidance of the need for statistical
thinking
Other examples are shown on Primer page VI-25.
CQIA 2006
QUESTIONS
VI-27 (270)
6.1. Consider the steps in a product life cycle. Which of the following
most closely aligns with the study or check element?
a. Based on feedback, modify the product
b. Design the product and test it
c. Make the product and put it on the market
d. Test the product in service and observe usage
6.5. A lowered rejection rate following corrective action:
a. Gives a positive indication that performance has improved
b. May be unrelated to the corrective action
c. Indicates that the corrective action was directly related to the
problem
d. Has no significance
6.7. Which of the following actions or techniques is used to determine the
original fundamental cause of a product or process
nonconformance?
a. Continuous improvement
b. Reengineering
c. Root cause analysis
d. Preventive action
Answers: 6.1. d, 6.5. b, 6.7. c
CQIA 2006
QUESTIONS
VI-28 (271)
6.14. What does the Japanese concept of poka-yoke mean?
a. Root cause analysis
b. Standardizing corrective actions
c. Mistake proofing
d. Reengineering
6.15. Why is the PDCA cycle so readily accepted by most American teams
and individuals?
a. It is the natural way that most people already approach problems
b. It was promoted by Dr. Deming who has a wide American following
c. It was successful in Japan and American companies adapted it
d. It requires much less work than comparable improvement techniques
6.21. Which two of the following actions would most likely result in
breakthrough improvement?
a. Reengineering and six sigma
b. Kaizen and ergonomic design improvement
c. PDCA and mistake proofing
d. Concurrent engineering and Kaizen
Answers: 6.14. c, 6.15. a, 6.21. a
CQIA 2006
QUESTIONS
VI-29 (272)
6.22. What can be wrong with one department making a small improvement
in a process without advising others in the organization?
a. The change may go unnoticed and top management might not
recognize their effort
b. The small departmental improvement might cause increased
difficulties or expenses in another department
c. There would be a lost opportunity for sister departments to
benchmark the change and make similar improvements
d. Others in the organization might really see how the small
improvement can be expanded into a larger improvement
6.25. The best, simplified, definition of Kaizen is:
a. Error cause identification
b. Continuous improvement
c. A system of cards associated with material flow
d. Breakthrough improvement
6.28. A Japanese word referring to the seven classes of waste is:
a. Muda
b. Mela
c. Muesli
d. Mikado
Answers: 6.22. b, 6.25. b, 6.28. a
CQIA 2006
QUESTIONS
VI-30 (273)
6.40. Using unique connectors for each input/output on a personal
computer is an example of:
a. Kanban c. Poka-yoke
b. PDCA d. Work simplification
6.42. One weakness of Kaizen is:
a. Costs associated with this process can be substantial
b. It does not produce breakthrough improvements
c. The process must be halted while changes are being made
d. Changes typically involve the purchase of expensive new technology
6.45. Cycle time reduction must be balanced with:
a. Reduced product lead times
b. Associated increased (life cycle) costs
c. Any related DOE expenses
d. Concurrent engineering difficulties
Answers: 6.40. c, 6.42. b, 6.45. b
CQIA 2006
VII. BASIC QUALITY TOOLS
VII-1 (274)
MAN IS A TOOL USING ANIMAL ...
WITHOUT TOOLS HE IS NOTHING,
WITH TOOLS HE IS ALL.
THOMAS CARLYLE
SARTOR RESARTUS
1833-1834
CQIA 2006
INTRODUCTION
VII-2 (275)
Basic Quality Tools
Problem solving tools include the seven quality
tools (plus data types):
C Cause-and-effect diagrams
C Flow charts
C Data types
C Check sheets
C Histograms
C Pareto diagrams
C Scatter diagrams
C Control charts
CQIA 2006
INTRODUCTION
VII-2 (276)
Cause-and-Effect Diagrams
The relationships between potential causes and
resulting problems are often depicted using a cause-
and-effect diagram which:
C Breaks problems down into bite-size pieces
C Displays many possible causes in a graphic manner
C Is also called a fishbone, 4-M, or Ishikawa diagram
C Shows how various causes interact
C Follows brainstorming rules when generating ideas
Generally, the 4-M (manpower, material, method,
machine) version of the diagram will suffice.
Occasionally, an expanded version must be used. In a
laboratory, measurement is a key issue. When
discussing the brown grass in the lawn, environment is
important.
CQIA 2006
INTRODUCTION
VII-2 (277)
Method
Problem
Statement
Manpower Environment
Machine Material Measurement
Cause-and-Effect Diagrams (Cont'd)
A 5-M and E schematic is shown below.
CQIA 2006
INTRODUCTION
VII-3 (278)
Material Machine Man
Measurement
Environment
Method
SUSPECT PAN
TARE WEIGHTS
TARE WEIGHTS
NOT ON PANS
SCALE CALIBRATION
THREE DIFFERENT
SCALES
SCALE# 2 MORE
ACCURATE THAN
SCALE# 1
AIRFLOW
DEBRIS
VENDOR COUNTS ACCEPTED
NON-STANDARD SAMPLING
PROCEDURE (INADEQUATE
SAMPLE QUANTITY)
WRONG PART NUMBERS
FROM DEPARTMENTS
INTERRUPTIONS
REDUCE INCOMING RECEIPT
ERRORS FROM
4% TO 1% OF
TRANSACTIONS
INSUFFICIENT TRAINING
KEYPUNCH ERRORS
OVER ISSUE UPDATES
NOT MADE
PULLED WRONG PARTS
FROM LOCATION
WEAR AND TEAR
1. WORN NUMBERS
ON SCALE KEYS
2. CONTAINERS
BROKEN
VARIATION IN
TOLERANCE
1. PLATING
2. MATERIAL
THICKNESS
3. SCRAP AND
FOREIGN ELEMENTS
4. LENGTHS
Cause-and-Effect Example
A fishbone session is divided into three parts:
brainstorming, prioritizing, and development of an
action plan.
CQIA 2006
FLOW CHARTS
VII-4 (279)
Flow Charts
A flow chart or process map is useful both to people
familiar with a process and to those that have a need to
understand a process, such as an auditor. A flow chart
can depict the sequence of product, containers,
paperwork, operator actions or administrative
procedures. A flow chart is often the starting point for
process improvement. Flow charts are used to identify
improvement opportunities.
CQIA 2006
FLOW CHARTS
VII-4 (280)
Process Flow Applications
Purchasing Processing purchase orders, placing
actual purchases, vendor contract
negotiations
Manufacturing Processing returned goods, handling
internal rejections, production
processes, training new operators
Sales Making a sales call, taking order
information, advertising sequences
Administration Correspondence flow, processing
times, correcting mistakes, handling
mail, typing letters, hiring employees
Maintenance Work order processing, p.m.
scheduling
Laboratory Delivery of samples, testing steps,
selection of new equipment, personnel
qualification sequence, management
of workflow
CQIA 2006
FLOW CHARTS
VII-5 (281)
Process Mapping
There are advantages to depicting a process in a
schematic format. The major advantage is the ability to
visualize the process being described.
Process mapping or flow charting has the benefit of
describing a process with symbols, arrows and words
without the clutter of sentences. Many companies use
process maps to outline new procedures and review old
procedures for viability and thoroughness.
Most flow charting uses standardized symbols.
CQIA 2006
FLOW CHARTS
VII-5 (282)
Process
Alternate
Process
Deci sion Data
Predefined Process
Document
Delay
Manual
Input
Manual
Operation
Deci sion or
Preparation
Magnetic
Disk or
Storage
Connector
Off Page
Connector
Terminator
Merge
Extract
Display
Common Flow Chart Symbols
Some common flow chart or process mapping symbols
are shown below:
CQIA 2006
FLOW CHARTS
VII-6 (283)
Material received
Visual
inspection
Visual
defects?
Inform purchasing
of rejection.
Generate
corrective
action report
Return to
supplier
Dimensional
inspection
required?
Dimensional
inspection
Acceptable?
Place in inventory
Start
No
Yes
Yes
No
End
Yes
No
End
Flow Chart Example
CQIA 2006
DATA TYPES
VII-7 (284)
Data Types
The two previously reviewed quality tools do not
necessarily require data for applications. The remaining
five quality tools do require the use of data. The three
types of data are attribute data, variable data and
locational data. Of these three, attribute and variable
data are more widely used.
Attribute Data
Attribute data (counted data) is the result of asking how
many or how often.
Variable Data
Variable data answers questions like how long, what
volume, how much time and how far. This data is
generally measured with some instrument or device.
Locational Data
The third type of data is known as locational data, which
simply answers the question where. Charts that utilize
locational data are often called measles charts.
CQIA 2006
CHECK SHEETS
VII-8 (285)
Check Sheets
Check sheets are tools for organizing and collecting
facts and data. By collecting data, individuals or teams
can make better decisions, solve problems faster and
earn management support.
CQIA 2006
CHECK SHEETS
VII-9 (286)
Recording Check Sheets
Illustrated below is an example of a meeting process
check sheet used to evaluate the productivity of a
meeting. This is subjective data, but is very useful in
some circumstances. Measured data is physically
measured information, such as: the pH, the air pressure
in psi or the amount of downtime in hours.
Scale:
(1=Poor/10=Excellent)
Member
#1
Member
#2
Member
#3
Member
#4
Member
#5
On Track
Participation
Listening
Leadership
Decision Quality
CQIA 2006
CHECK SHEETS
VII-9 (287)
Checklists
The second major type of check sheet is called the
checklist. A grocery list is a common example of a
checklist. On the job, checklists may often be used for
inspecting machinery or product. Checklists are also
very helpful when learning how to operate complex or
delicate equipment.
Date: ______ Area
Visual
Inspection
Washed Once
per Week
Supervisor
(Operator)
Preheat House
#2 Tub Room
#3 Tub Room
A Press Room
B Press Room
Finishing Room
Roll Mill Room
CQIA 2006
CHECK SHEETS
VII-10 (288)
Measles Charts
The third type of check sheet is used to collect
locational data and is called a measles chart,
concentration chart, or defect location check sheet.
Generally, these check sheets are pictures, illustrations
or maps onto which the data is collected.
X EYES
XXXXX
X
XX
XXX

X
BACK X
XXXXX X X X
XXXXX
XX X
X
XX
X X X
CQIA 2006
HISTOGRAMS
VII-11 (289)
Histograms
Histograms are frequency column graphs that display a
static picture of process behavior. Histograms usually
require a minimum of 50-100 data points in order to
adequately capture the measurement or process in
question.
A histogram is characterized by the number of data
points that fall within a given bar or interval. This is
commonly referred to as frequency. A stable process
is most commonly characterized by a histogram
exhibiting unimodal or bell-shaped curves. A stable
process is predictable.
Column Graph Bar Graph Normal Histogram
Data Presentation Examples
CQIA 2006
HISTOGRAMS
VII-11 (290)
MEASUREMENT (INCHES)
Histogram Construction Example
Frequency Tally Specification Limits 0.50 - 0.60
CQIA 2006
HISTOGRAMS
VII-12 (291)
Histogram Examples
Histogram with Bimodal Histogram
Special Causes (May Also Be Polymodal)
LSL USL
Negatively Skewed Distribution Truncated Histogram
(After 100% Inspection)
CQIA 2006
HISTOGRAMS
VII-12 (292)
Histogram Comments
C As a rule of thumb the number of cells should
approximate the square root of the number of
observations.
C An unstable normal distribution process is often
characterized by a histogram that does not exhibit
a bell-shaped curve.
C For a normal distribution, variation inside the bell-
shaped curve is chance or natural variation. Other
variations are due to special or assignable causes.
C There are many distributions that do not follow the
normal curve. Examples include the Poisson,
binomial, exponential, lognormal, rectangular, U-
shaped and triangular distributions.
CQIA 2006
HISTOGRAMS
VII-13 (293)
Histogram - Classroom Exercise
Foil Pouch Powder Weights (in Grams)
19.5
19.6
19.6
21.3
21.6
21.4
19.4
19.5
19.8
21.3
21.3
21.3
21.4
21.4
21.5
19.7
21.5
21.0
21.1
21.4
21.3
21.3
21.4
21.3
20.4
21.5
21.4
21.3
21.3
21.2
20.2
19.5
21.4
19.5
21.3
21.4
21.4
20.3
19.3
19.6
21.3
21.4
21.5
19.7
21.4
21.4
21.4
21.2
21.2
21.3
21.4
21.3
21.2
21.4
19.9
21.6
19.8
19.7
21.1
21.0
21.3
21.3
19.8
21.4
21.4
21.5
21.3
21.5
21.4
21.6
19.7
21.5
21.5
21.4
19.8
19.4
21.3
21.4
21.3
20.0
21.3
21.3
21.0
21.4
21.4
21.4
21.3
19.9
21.6
21.4
21.4
19.7
21.4
21.2
19.6
21.4
21.4
21.3
21.5
21.4
21.2
20.9
20.6
19.9
21.4
19.8
19.7
21.5
21.4
21.5
20.1
21.3
21.3
21.4
21.3
21.4
21.5
21.3
19.6
19.7
21.4
19.5
21.5
21.3
19.6
19.8
20.1
19.6
19.8
20.2
21.3
19.5
21.5
21.4
19.7
19.6
21.4
19.6
21.3
19.8
21.4
21.3
19.7
19.8
21.5
21.2
19.9
21.2
21.3
19.4
21.4
21.5
21.3
21.3
20.2
21.2
19.5
21.2
21.4
21.3
21.4
21.5
21.3
19.8
21.2
21.3
21.3
21.4
19.4
21.1
21.5
21.5
19.8
21.3
21.4
19.2
21.4
19.8
19.7
21.6
What can you determine by visual examination of the
above data?
Answer: For most people; nothing.
CQIA 2006
HISTOGRAMS
VII-13 (294)
Column Intervals Tally Sheet
1 19.2 - 19.39
2 19.4 - 19.59
3 19.6 - 19.79
4 19.8 - 19.99
5 20.0 - 20.19
6 20.2 - 20.39
7 20.4 - 20.59
8 20.6 - 20.79
9 20.8 - 20.99
10 21.0 - 21.19
11 21.2 - 21.39
12 21.4 - 21.60
Histogram Classroom Exercise (Cont.)
Column Selection
N K
31 - 50 5 - 7
51 - 100 6 - 10
101 - 250 7 - 12
OVER 250 10 - 20
Does the above tally sheet indicate two distinct
populations? The data represents returns.
CQIA 2006
HISTOGRAMS
VII-15 (295)
Min Value Max Value
Average
A Normally Distributed Process
C Most of the points (data) are near the average
C The centerline divides the curve into two
symmetrical halves
C Some of the points approach the minimum and
maximum values
C The normal histogram exhibits a bell-shaped
distribution
C Very few points are outside the bell-shaped curve
CQIA 2006
HISTOGRAMS
VII-15 (296)
68.26%
95.44%
99.73%
: 3F : 2F : F : : + F : + 2F : + 3F
How Are Normal
Distributions Predictable?
When all special causes of variation are eliminated, the
process will produce a product that, when sampled and
plotted, has a bell-shaped distribution. If the base of the
histogram is divided into six (6) equal lengths (three on
each side of the average), the amount of data in each
interval exhibits the following percentages:
CQIA 2006
PARETO DIAGRAMS
VII-16 (297)
Pareto Diagrams
Pareto diagrams are very specialized forms of column
graphs. They are used to prioritize problems (or
opportunities) so that the major problems (or
opportunities) can be identified.
Briefly stated, the principle suggests (in most situations)
that a few problem categories (approximately 20%) will
present the most opportunity for improvement
(approximately 80%).
CQIA 2006
PARETO DIAGRAMS
VII-16 (298)
Pareto Diagrams (Continued)
Pareto diagrams are used to:
C Analyze a problem from a new perspective
C Focus attention on problems in priority order
C Compare data changes during different time periods
C Provide a basis for the construction of a cumulative
line
CQIA 2006
PARETO DIAGRAMS
VII-17 (299)
Cumulative Line
Problem Categories
300
200
100
A B C D E F G H I J K L M N
100
75
50
25
0
Typical Pareto Diagram
The defects for a book product are shown in Pareto form
below:
A. Emulsion - glue . 67
B. Grease/oil/dirt . . 59
C. Hot melt - glue . . 30
D. Sewing thread . . 29
E. Gilding defects . 28
F. End sheet . . . . . . 25
G. Case damage I . . 17
H. Square variation 17
I. Head bands . . . . . 6
J. Case damage . . . . 5
K. Case damage II . . 4
L. Upside down . . . . 2
M. Torn pages . . . . . . 0
N. All others . . . . . . 23
CQIA 2006
PARETO DIAGRAMS
VII-17 (300)
Typical Pareto Diagram (Continued)
Note that the all others category is placed last.
Cumulative lines are convenient for answering such
questions as, What defect classes constitute 70% of all
defects?
First things first is the thought behind the Pareto
diagram. Our attention is focused on problems in
priority order.
The simple process of arranging data may suggest
something of importance that would otherwise have
gone unnoticed.
CQIA 2006
PARETO DIAGRAMS
VII-18 (301)
Weighted Pareto Analysis
Pareto analysis is very helpful in assisting improvement
teams with the selection of serious problems. The
Pareto method assumes that there will be segregation of
the significant few from the trivial many. In many cases,
the Pareto diagram is constructed based upon the
number of event occurrences. However, criticality (or
potential safety or economic loss) factors might result
in a different Pareto alignment.
An example is illustrated in the Primer.
CQIA 2006
SCATTER DIAGRAMS
VII-20 (302)
Scatter Diagrams
A scatter diagram is a graphic display of many data
points which represent the relationship between two
different variables. It is also referred to as a correlation
chart.
For example, temperature changes cause contraction or
expansion of many materials. Both time and
temperature in a kiln will affect the retained moisture in
wood. Examples of such relationships on the job are
abundant. Knowledge of the nature of these
relationships can often provide a clue to the solution of
a problem.
Scatter diagrams can help determine if a relationship
exists and how to control the effect of the relationship
on the process.
In most cases, there is an independent variable and a
dependent variable. By tradition, the dependent variable
is represented by the vertical axis and the independent
variable is represented by the horizontal axis.
CQIA 2006
SCATTER DIAGRAMS
VII-20 (303)
Scatter Diagram Examples
Low-positive High-positive
No-correlation High-negative
CQIA 2006
SCATTER DIAGRAMS
VII-21 (304)
Scatter Diagrams (Continued)
The ability to meet specifications in many processes are
dependent upon controlling two interacting variables
and, therefore, it is important to be able to control the
effect one variable has on another.
The dependent variable can be controlled if the
relationship is understood. Correlation originates from
the following:
C A cause-effect relationship
C A relationship between one cause and another
cause
C A relationship between one cause and two other
causes
CQIA 2006
SCATTER DIAGRAMS
VII-21 (305)
Scatter Diagrams (Continued)
Not all scatter diagrams reveal a linear relationship. The
examples below definitely portray a relationship
between the two variables, even though they do not
necessarily produce a straight line.
As one may suspect, there is an entire domain of
analysis to develop the algebraic equations which
represent the best fit for the lines and curves.
Examples of Non-linear Relationships
CQIA 2006
SCATTER DIAGRAMS
VII-22 (306)
Example Scatter Diagram
How would you interpret this diagram?
Which variable is independent?
CQIA 2006
SCATTER DIAGRAMS
VII-23 (307)
Concluding Comments
C A correlation analysis seeks to uncover
relationships. Common sense must be liberally
applied.
C The line of best fit can be obtained by calculating
a regression line. However, to make a decision
whether or not there exists a relationship, the line
can be fitted by eyeball.
C Scatter diagrams should always be analyzed prior
to making decisions in correlation statistics.
CQIA 2006
CONTROL CHARTS
VII-24 (308)
Control Charts
Control charts are the most powerful statistical tools to
analyze variation in most processes. They are line
graphs that display a dynamic picture of process
behavior.
Control charts require approximately 100 data points to
calculate upper and lower control limits but require little
additional data to continue to monitor the process.
A process which is under statistical control is
characterized by points that do not exceed the upper or
lower control limits. A predictable process is in control.
Upper control
limit (UCL)
Process
average
Lower control
limit (LCL)
Typical Control Chart
CQIA 2006
CONTROL CHARTS
VII-25 (309)
UPPER SPECIFICATION
LOWER SPECIFICATION
DISTRIBUTION OF
INDIVIDUAL VALUES
DISTRIBUTION OF
AVERAGES
USL
UCL
:
LSL
LCL
CONTROL
LIMITS
PROCESS
SPREAD
3 S
X
3 S
P
Comparison of Control Limits
and Specifications
In the Figure below, one can see that the control limits
are determined by process average values. One can
also see the process spread of the individual values.
The process spread of the individuals can then be
compared directly to the specifications to determine if
the product is within specification.
CQIA 2006
CONTROL CHARTS
VII-25 (310)
Standard Deviation of the Process
The following calculation will determine the approximate
standard deviation of the process, if the R bar is known
from a control chart.
d
2
is based on the sample size and comes from a factor
table.
CQIA 2006
CONTROL CHARTS
VII-26 (311)
Types of Charts
There are many variations of possible control charts.
The two primary types are:
Control Charts for Variables
Plots specific measurements of a process.
X - R charts (when data is readily available)
Run charts (limited single-point data)
MX - MR charts (limited data)
X - MR charts (limited data)
X - S charts (when sigma is readily available)
Median charts
Short run charts
CQIA 2006
CONTROL CHARTS
VII-26 (312)
Control Charts for Attributes
Plots a general measurement of the total process.
p Charts
np Charts
c Charts
u Charts
Short run varieties of the above four charts
Charts for variables are generally more costly since
each separate variable must have data gathered and
analyzed. In some cases, the relatively larger sample
sizes associated with attribute charts can prove to be
more expensive.
CQIA 2006
CONTROL CHARTS / VARIABLES
VII-27 (313)
X and R Chart Terms
n Sample size (subgroup size)
X A reading (the data)
X Average of readings in a sample
Average of all the X's. It is the value of the X
central line on the X chart.
R The range. The difference between the largest
and smallest value in each sample.
R Average of all the R's. It is the value of the
central line on the R chart.
UCL Upper and Lower control limits. The control
LCL boundaries for 99.73% of the population.
They are not specification limits.
CQIA 2006
VII-27 (314)
X
Average
R
Range
20.5
20.0
19.0
19.5
18.5
18.0
17.5
4.5
4.0
3.0
3.5
2.5
2.0
1.5
1.0
.5
1
0
5 10 15 30 25 20
1 5 10 15 30 25 20
UCL
X
= 20.0
X = 18.9
LCL
X
= 17.8
UCL
R
= 4.0
R = 1.9
LCL
R
= 0
Typical X - R Control Chart
CQIA 2006
VII-28 (315)
Steps for Constructing X - R Charts
1. Determine the sample size (n = 3, 4, or 5) and the
frequency of sampling.
2. Collect 20 to 25 sets of time - sequenced samples
(at least 60 to 100 individual data points.)
3. Calculate the average for each set of samples,
equals X.
4. Calculate the range for each set of samples,
equals R.
5. Calculate (the average of all the X's). This is X
the center line of the X chart.
6. Calculate R (the average of all the R's). This is the
center line of the R chart.
CQIA 2006
VII-28 (316)
Steps for Constructing X - R Charts
7. Calculate the control limits:
8. Plot the data and interpret the chart for special or
assignable causes.
n A
2
D
3
D
4
d
2
2 1.88 0 3.27 1.13
3 1.02 0 2.57 1.69
4 0.73 0 2.28 2.06
5 0.58 0 2.11 2.33
6 0.48 0 2.00 2.53
Factor Table
*Note: A
2
R can be shown to be identical in value to 3S
X
CQIA 2006
VII-29 (317)
- R Control Chart Data
Closure Removal Torques (In Lbs)
Sample Measurements
1 2 3 4 5
Sample
Avg. X
Sample
Range
R
1 12 12 13 15 12 12.8 3
2 15 17 16 17 18 16.6 3
3 13 18 14 14 15 14.8 5
4 10 12 11 10 11 10.8 2
5 13 16 14 15 14 14.4 3
6 15 12 13 15 11 13.2 4
7 15 16 15 16 15 15.4 1
8 15 17 16 14 12 14.8 5
9 22 17 15 17 14 17.0 8
10 16 15 17 15 18 16.2 3
11 16 18 16 16 16 16.4 2
12 15 16 17 17 14 15.8 3
13 17 15 16 15 16 15.8 2
14 16 15 18 18 16 16.6 3
15 17 19 17 15 17 17.0 4
16 19 17 15 15 17 16.6 4
17 16 19 16 15 14 16.0 5
18 16 15 17 16 18 16.4 3
19 17 13 17 15 14 15.2 4
20 19 18 17 15 16 17.0 4
21 14 17 16 14 13 14.8 4
Totals
323.6 75
15.4
3.6
CQIA 2006
VII-30 (318)
- R Control Chart
X - R Chart for Closure Removal Torques
CQIA 2006
VII-31 (319)
3 3
X X
S 4 S 3
UCL = X + A S LCL = X - A S
UCL = B S LCL = B S
X-Bar and Sigma Charts
X-bar (X) and sigma (S) charts are often used for
increased sensitivity to variation (especially when larger
sample sizes are used).
The control limit formulas are:
CQIA 2006
VII-32 (320)
Median Control Charts
There are several varieties of median control charts.
One type plots only the individual measured data on a
single chart. The middle value is circled. Median charts
may use an odd number of readings to make the median
value more obvious.
The specific advantages of a median chart are:
C It is easy to use and requires fewer calculations
C It shows the process variation
C It shows both the median and the spread
CQIA 2006
VII-33 (321)
X 2 X 2
UCL = X + E MR LCL = X - E MR
X-MR Charts
Control charts plotting individual readings and a moving
range may be used for short runs and in the case of
destructive testing. X-MR charts are also known as
I - MR, individual moving range charts. The control
limits for individual charts are calculated using the
formulas and factors below:
n 2 3 4 5
D
4
3.27 2.57 2.28 2.11
D
3
0 0 0 0
E
2
2.66 1.77 1.46 1.29
The X-MR chart (for individuals and moving ranges) is
the only control chart which may have specification
limits shown.
CQIA 2006
VII-33 (322)
X-MR Charts (Continued)
There are drawbacks in the interpretation and use of X-
MR charts:
C All interpretation is faulty if the data distribution is
not normal.
C Individual charts do not separate piece-to-piece
repeatability of the process.
C Variability patterns cannot be assured until 80-100
readings are taken.
C Individual charts are not as sensitive to changes in
the process as the chart (or , when n = 3). X-R MX-MR
CQIA 2006
CONTROL CHARTS / ATTRIBUTES
VII-35 (323)
Attribute Charts
An attribute chart plots characteristics such as short or
tall, fat or thin, blue or brown, pass or fail, okay or not
okay, good or bad, etc.
Attributes are discrete, counted data. Unlike variables
charts, only one chart is plotted for attributes.
There are four types of attribute charts, as summarized
below:
Chart Records Subgroup size
p Fraction Defective Varies
np Number of Defectives Constant
c Number of Defects Constant
u Number of Defects per Unit Varies
100p* Percent Defectives Varies
* The p chart reflected in %
CQIA 2006
VII-35 (324)
Attribute Charts (Continued)
The best use of an attribute chart is to:
C Follow trends and cycles
C Evaluate any change in the process
Key points to consider when using attribute charts:
C Normally the subgroup size is greater than 50 (for p
charts).
C The average number of defects/defectives is equal
to or greater than 4 or 5.
C If the actual p chart subgroup size varies by more
than 20% from the average subgroup size, the
data point must either be discarded or the control
limits calculated for the individual point.
C The most sensitive attribute chart is the p chart.
The most sensitive and expensive chart is the - R. X
C The defects and defectives plotted in attribute
charts are often categorized in Pareto fashion to
determine the vital few.
CQIA 2006
VII-36 (325)
( )
( )
p
p
np
p = for fraction
n
np
p = x 100 for %
n
p 1 - p
UCL = p + 3
n
p 1 - p
LCL = p - 3
n
n np
n = p =
k n

Attribute Chart Formulas

Defectives (Binomial Distribution)
p Chart % Defectives
Sample Size Varies
CQIA 2006
VII-36 (326)
( )
( )
np
np
np
np =
k
UCL = np + 3 np 1 - p
LCL = np - 3 np 1 - p

Defectives (Binomial Distribution)
np Chart Defectives
k = number of samples
Sample Size Fixed
CQIA 2006
VII-36 (327)
u
u
c
u =
n
u
UCL = u + 3
n
u
LCL = u - 3
n
n c
n = u =
k n


Defects (Poisson Distribution)
u Chart Average Number of Defects
Sample Size Varies
CQIA 2006
VII-36 (328)
c
c
c
c =
k
UCL = c + 3 c
LCL = c - 3 c

Defects (Poisson Distribution)
c Chart Number of Defects
k = number of samples
Sample Size Fixed
CQIA 2006
VII-37 (329)
p Chart Example Data
LOT
IDENTIFICATION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
k = 20
no. of lots
SAMPLE SIZE
(VARIES)
1250
1250
1350
1200
1150
1100
1100
1350
1250
600
1150
1100
1050
1050
1100
1000
1200
1050
1150
1050
n = 22,500
NUMBER
DEFECTIVE IN
SAMPLE (np)
8
0
12
3
5
0
2
2
1
3
0
5
10
0
0
0
0
0
1
0
np = 52
PERCENTAGE
BAD IN
EACH SAMPLE
0.64%
0.00%
0.89%
0.25%
0.43%
0.00%
0.18%
0.15%
0.08%
0.50%
0.00%
0.45%
0.95%
0.00%
0.00%
0.00%
0.00%
0.00%
0.09%
0.00%
CQIA 2006
VII-37 (330)
22,500
n = = 1,125
20
total defective 52
p = = = 0.23 %
total inspected 22,500
( )
( )
( ) ( )
p p
p p
p p
p p
p 1 - p
UCL , LCL = p 3
n
0.23% 100% - 0.23%
UCL , LCL = 0.23% 3
1125
UCL , LCL = 0.23% 3 0.143%
UCL = 0.66% LCL = -0.20% = 0%
p Chart Example
From the Example:
The control limits are determined by the formulas:
CQIA 2006
VII-38 (331)
p Chart Example
Note that a system change of major consequence
occurred at plot point 15.
CQIA 2006
CONTROL CHART INTERPRETATION
VII-43 (332)
Out-of-control
If a process is out-of-control, then special causes of
variation are present in either the average chart or range
chart, or both. These special causes must be found and
eliminated in order to achieve an in-control process. A
process out-of-control is detected on a control chart
either by having any points outside the control limits or
by unnatural patterns of variability.
1S = 68.26 %
2S = 95.46 %
3S = 99.73 %
Upper Control Limit
Grand Average
Lower Control Limit
CQIA 2006
VII-43 (333)
Out-of-control (Continued)
Because there are two components to every control
chart -- the average chart and the range chart -- four
possible conditions could occur in the process.
1. Average Out-of-Control
Range In-Control
2. Average In-Control Process
Range Out-of-Control Out-of-Control
3. Average Out-of Control
Range Out-of-Control
4. Average In-Control Process
Range In-Control In-Control
CQIA 2006
VII-44 (334)
1. Average Out-of-control
Average Shifting
Variation Stable
2. Variation Out-of-control
Average Stable
Variation Changing
CQIA 2006
VII-45 (335)
3. Average & Variation Out-of-control
Average Shifting
Variation Changing
4. Process In-control
Average Stable
Variation Stable
CQIA 2006
VII-46 (336)
Control Chart Interpretation
Five Common Rules
Other Unusual Patterns
CQIA 2006
VII-47 (337)
Process In-control with Chance Variation
This is an example of a process which is in-control.
Notice that it looks good, but not too good.
CQIA 2006
VII-47 (338)
Trends
CHART CAUSES X
R CHART CAUSES
C Deterioration of machine
C Tired operator
C Tool wear
C Change in operator skill
C Tired operator
C Change in incoming material quality
CORRECTIVE ACTION
C Repair or use alternate machine if available
C Discuss operation with operator to find cause
C Rotate operator
C Change, repair, or sharpen tool
C Investigate material
CQIA 2006
VII-48 (339)
Jumps in Process Level
CHART CAUSES X
R CHART CAUSES
C Changes in proportions of materials
coming from different sources
C New operator or machine
C Modification of production method or
process
C Change in inspection device or
method
C Change in material
C Change in method
C Change in operator
C Change in inspection
CORRECTIVE ACTION
C Keep material supply consistent
C Investigate source of material
C Check out machine capability
C Examine operator methods and instruction
C Check calibration of measurement device
CQIA 2006
VII-48 (340)
Recurring Cycles
CHART CAUSES X
R CHART CAUSES
C Physical environment
C Temperature
C Humidity
C Tired operator
C Regular rotation of machine or operator
C Scheduled maintenance
C Tired operator
C Tool wear
CORRECTIVE ACTION
C If environment is controllable, adjust it
C Service equipment
C Rotate operators
C Evaluate machine maintenance
C Replace, sharpen, or repair tool
CQIA 2006
VII-49 (341)
Points Near or Outside Limits
CHART CAUSES X
R CHART CAUSES
C Over control
C Large systematic differences in
material quality
C Large systematic differences in
test methods or equipment
C Mixture of material of
distinctly different quality
CORRECTIVE ACTION
C Check control limits
C Investigate material variation
C Evaluate test procedures
C Evaluate inspection frequency or methods
C Eliminate operator over adjustment of the process
CQIA 2006
VII-49 (342)
Lack of Variability
CHART CAUSES X
R CHART CAUSES
C Incorrect calculation of control
limits
C Improvement in process since
limits were calculated
C Employee may not be making
checks
C Collecting in each
sample a number of
measurements from
widely differing lots
C Improvement in
process since limits
were calculated
CORRECTIVE ACTION
C Check control limits
C Validate rational sample subgroupings
C Verify checking procedure, gages, etc.
C Verify proper employee measurement
C Congratulate someone for improvement
CQIA 2006
QUESTIONS
VII-51 (343)
7.2. If 87 data observations from a process were to be plotted on a
histogram, the rule of thumb would suggest using which number of
intervals across the range of the data?
a. 19
b. 4
c. 12
d. 9
7.7. A scatter diagram in which the plotted points appear to form a
straight band that flows from the upper left to the lower right would
be said to display:
a. A positive correlation
b. No correlation
c. A higher order relationship
d. A negative correlation
7.9. The most powerful statistical tool to analyze variation in most
processes is a:
a. Flow chart
b. Pareto chart
c. Control chart
d. Fishbone diagram
Answers: 7.2. d, 7.7. d, 7.9. c
CQIA 2006
QUESTIONS
VII-52 (344)
7.13. Which of the following would NOT be expected to result in a trend on
an X-bar and R chart?
a. Friction increasing due to buildup of debris on a machine
b. A new operator taking over a production machine
c. An operator getting tired on a machine
d. A machine operator's safety glasses gradually fogging due to high
humidity
7.14. Average (X-bar) and range (R) control charts show a process to be in
control if:
a. The X-bar chart is in control but the R chart is out of control
b. Both the X-bar chart and the R chart are in control
c. Both the X-bar chart and the R chart are out of control
d. The R chart is in control but the X-bar chart is out of control
7.19. A scatter diagram in which most of the points fell on a horizontal line
across the range of the diagram would be expected to have a
correlation coefficient indicating:
a. No correlation
b. A strongly positive correlation
c. A strongly negative correlation
d. A slightly negative correlation
Answers: 7.13. b, 7.14. b, 7.19. a
CQIA 2006
QUESTIONS
VII-53 (345)
7.20. When drawing a 5 M and E diagram, which of the following is
included?
a. Energy
b. Money
c. Measurement
d. Entitlement
7.24. A team has been tasked to improve the small purchase process in
your company. They decide to create a flow chart of the existing
process because it will:
a. Visualize the process
b. Identify delays
c. Prioritize delays
d. Rank costs
7.27. If the number of deaths from cholera in a city is plotted on a map, one
is creating a:
a. Recording check sheet
b. Cause-and-effect diagram
c. Measles chart
d. Scatter diagram
Answers: 7.20. c, 7.24. a, 7.27. c
CQIA 2006
QUESTIONS
VII-54 (346)
7.30. A team decides that it will need a histogram of process XYZ's output
performance. To create the histogram, the team would use
information from a:
a. Scatter diagram
b. Pareto chart
c. Affinity diagram
d. Tally sheet
7.33. A process improvement team is assigned the project of improving the
quality of plastic shelf holders. The team has identified variation in
the holder length as a significant factor. Which tool should the team
use first to study the variation?
a. A scatter diagram
b. A control chart
c. A Pareto chart
d. A cause-and-effect diagram
7.36. A control chart for the weight of 16 pound bowling balls has shown
random variation for three months. The machine operator has
noticed that for the last 10 plotted averages charted, all of the values
are below the chart centerline. What conclusion can be made?
a. The recent data continues to show normal variation
b. The low average readings are due to a reduction in average range
values
c. This is indicative that the process has shifted
d. The operator should note this as a "recurring cycle" on the chart
Answers: 7.30. d, 7.33. b, 7.36. c
CQIA 2006
QUESTIONS
VII-55 (347)
7.39. Long-term users of X-bar and R charts recommend attacking rule
violations in the range chart first. Why would they make this
suggestion?
a. If variability is predictable, the process can usually be controlled
b. Its generally easier to accomplish
c. It dramatically affects the average chart
d. It may require outside engineering help
7.42. The tabulation of the number of times a given quality characteristic
measurement occurs, within a product sample, is called a:
a. Histogram
b. Normal distribution
c. Control chart
d. Random function
7.45. Pareto diagrams are used to:
a. Determine a cause-effect relationship between one or more variables
b. Focus attention on problems in priority order
c. Generate a large number of ideas
d. Display causes in a nongraphical manner
Answers: 7.39. a, 7.42. a, 7.45. b
CQIA 2006
QUESTIONS
VII-56 (348)
7.48. A problem exists with the labels in the print shop and there is a need
for each shift to keep track of the number of defective units. The
production rate varies from shift-to-shift and the customer is
demanding that a control chart be implemented. What would be the
best tool to keep track of the number of defective units?
a. Histogram
b. p chart
c. c chart
d. X-bar and R chart
7.50. Which of the following statements can be safely made about Pareto
diagrams?
a. They have little application outside of the quality area
b. They reflect an observation of fact
c. They are bound by a universal set of laws
d. They have no validity for discrete data
7.52. It has been determined that a control chart must be kept on the total
number of defects found in each sample of plastic film. The sample
size is fixed at 1,000 units. Which control chart would be the
appropriate choice?
a. p chart
b. np chart
c. c chart
d. u chart
Answers: 7.48. b, 7.50. b, 7.52. c
CQIA 2006
VIII. QUALITY MANAGEMENT TOOLS
VIII-1 (349)
QUALITY IS NEVER AN
ACCIDENT, IT IS ALWAYS THE
RESULT OF INTELLIGENT
EFFORT.
JOHN RUSKIN
CQIA 2006
BRAINSTORMING
VIII-2 (350)
Quality Management Tools
Quality Management Tools covered in this Section
include:
C Brainstorming C Quality costs
C Affinity diagrams C Quality audits
C Benchmarking
CQIA 2006
BRAINSTORMING
VIII-2 (351)
Guidelines for Brainstorming
Brainstorming is an intentionally uninhibited technique
for generating creative ideas when the best solution is
not obvious.
Some of the generally accepted rules:
C Generate a large number of ideas
C Free-wheeling is encouraged
C Don't criticize
C Encourage everyone to participate
C Record all the ideas
C Let ideas incubate
C Select an appropriate meeting place
C Group size, the ideal is 4 to 10 people
Brainstorming is widely used to compliment other
improvement tools like cause and effect diagrams
(fishbone diagrams) and affinity diagrams.
CQIA 2006
AFFINITY DIAGRAMS
VIII-3 (352)
Affinity Diagrams
The affinity diagram method is a technique that the
individual or team can use for problem solving.
For unfamiliar, new, or complex problems, this
technique is beneficial.
The affinity diagram uses a more organized technique to
gather facts and ideas to form developed patterns of
thought.
It can be widely used in the planning stages of a
problem to organize the ideas and information.
CQIA 2006
AFFINITY DIAGRAMS
VIII-3 (353)
Affinity Diagrams (Continued)
The steps can be organized as follows:
C Define the problem under consideration
C Enter ideas, data, facts, opinions, etc. on the cards
or notes
C Place the cards or notes on a conference table or
wall
C Arrange the groups into similar thought patterns or
categories
C Develop a main category or idea for each main
group.
C Borders can be drawn around the affinity groups for
better clarity.
CQIA 2006
AFFINITY DIAGRAMS
VIII-4 (354)
GET OTHER PRIMERS
GET CQIA PRIMER
CALL ASQ TO OBTAIN
BODY OF KNOWLEDGE
HAVE A Q & A SOURCE
TAKE COLLEGE OR JR. COLLEGE
LEVEL COURSES IN QUALITY
HAVE A TUTOR
STUDY IN GROUPS
ATTEND CQIA REFRESHER
TAKE QUALITY IMPROVEMENT
SEMINARS
WATCH VIDEO PRESENTATION
HAVE PRACTICAL
EXPERIENCE
MAKE YOUR OWN
CQIA EXAMS
STUDY CQIA QUESTIONS
STUDY 1 SUBJECT
AT A TIME FOR
3 - 4 WEEKS
START EARLY 1-2 YEARS
STUDY INTENSIVELY
PUMP YOURSELF UP
BE AROUND OTHERS
WHO ARE POSITIVE
PRIDE
MOTIVATE SELF GET BONUS
LISTEN TO SUCCESSFUL PASSED
CQIAS
TEACH CQIA SUBJECTS
GET OTHER QUALITY
TEXTBOOKS
Example Affinity Diagram
CQIA 2006
BENCHMARKING
VIII-5 (355)
Benchmarking Sequences
The sequence of activities for benchmarking follows a
pattern such as the following:
C Determine Current Practices
C Select the problem area
C Identify key performance factors
C Understand your own processes and the
processes of others
C Select performance criteria based on needs and
priorities
C Identify Best Practices
C Measure the performance in the criteria areas
C Determine the leader(s) in the criteria areas
C Find an internal or external organization to
benchmark with
CQIA 2006
BENCHMARKING
VIII-5 (356)
Benchmarking Sequences (Continued)
C Analyze Best Practices
C Visit the benchmark partner
C Collect information and data
C Evaluate current practices with the benchmark
C Note potential improvement areas
C Model Best Practices
C Drive significant improvement changes
C Extend performance within the organization
C Incorporate the new information in decision
making
C Share results with the benchmark partner
C Seek other benchmark leaders for further
improvement
C Repeat the cycle
CQIA 2006
BENCHMARKING
VIII-6 (357)
TIME
TIME
TYPICAL BENCHMARK
BREAKTHROUGH BENCHMARK
Benchmarking Comparison
Shown below is a comparison between a typical and a
breakthrough benchmark approach.
CQIA 2006
BENCHMARKING
VIII-7 (358)
Organizational Benchmarking
Benchmarking is the process of comparing the current
project, methods, or processes with the best practices
and using this information to drive improvement of
overall company performance.
Dr. Deming was not very enthused about benchmarking
efforts, because if a company only copies processes
without knowledge, they will err.
CQIA 2006
BENCHMARKING
VIII-7 (359)
Process Benchmarking
Process benchmarking focuses on discrete work
processes and operating systems.
This form of benchmarking seeks to identify the most
effective operating practices from many companies that
perform similar work functions.
Performance Benchmarking
Performance benchmarking enables managers to
assess their competitive positions through product and
service comparisons.
This form of benchmarking usually focuses on elements
of price, technical quality, ancillary product or service
features, speed, reliability, and other performance
characteristics.
CQIA 2006
BENCHMARKING
VIII-7 (360)
Project Benchmarking
Benchmarking of project management is easier than
many business processes, because of the opportunities
for selection outside of the group of direct competitors.
Areas such as new product introduction, construction,
or new services are activities common to many types of
organizations.
CQIA 2006
BENCHMARKING
VIII-7 (361)
Strategic Benchmarking
In general terms, strategic benchmarking examines how
companies compete.
Strategic benchmarking is seldom industry-focused. It
moves across industries seeking to identify the winning
strategies that have enabled high-performing companies
to be successful in their marketplaces.
CQIA 2006
COST OF QUALITY
VIII-8 (362)
Traditional Cost Concept
Most companies utilize financial reports which compare
actual with budgeted costs. The difference is called a
variance and, if significant, may prompt management
action.
The responsibility for financial control usually rests at
the departmental or plant level. Until the 1950s few, if
any, companies focused any attention on the costs of
quality. These results were hidden among various labor,
material, and miscellaneous expense categories.
CQIA 2006
COST OF QUALITY
VIII-8 (363)
Selling Costs
General and
Administrative Costs
Profit
Fixed and
Miscellaneous Expenses
Indirect Labor
Indirect Materials
Direct Labor
Direct Materials
Area of
Concentration
of a Quality
Cost Program
Revenues
Overhead Cost
Prime Cost
Cost of
Goods
Produced
Cost of
Goods
Sold
Traditional Cost Breakdown
CQIA 2006
COST OF QUALITY
VIII-9 (364)
Origin of Quality Cost Measurements
In the 1950s and 1960s, some enlightened companies
began to evaluate and report quality costs for the
following reasons:
C Products became increasingly more complex
C The customers expectations of products was
becoming more sophisticated
C Both supplier and customer costs expanded
C Technical specialists were added to make
improvements
C The alternatives needed to be presented to
management in monetary terms
CQIA 2006
COST OF QUALITY
VIII-9 (365)
Origin of Quality Cost (Continued)
The quality cost reports became a vehicle to:
C Determine the status of cost control efforts, and
C Identify additional opportunities for reducing the
cost of quality by systematic improvements
Since the costs of quality are high (some authorities say
15% to 25% of total costs), the opportunity for
improvement should easily capture the attention of
management.
Juran (1993) states that the annual costs of poor quality
are about 15% for manufacturing firms, varying from 5%
to 35%, depending upon product complexity. For
service organizations the average is about 30% of
operating expenses.
CQIA 2006
COST OF QUALITY
VIII-10 (366)
Quality Cost Categories
The following quality cost definitions are widely used:
Prevention costs: The costs of activities specifically
designed to prevent poor quality in products or
services.
Appraisal costs: The costs associated with measuring,
evaluating, or auditing products or services to assure
conformance to quality standards and performance
requirements.
Failure costs: The costs resulting from products or
services not conforming to requirements. Failure costs
are divided into internal and external failure cost
categories:
C Internal failure costs: Failure costs which occur
prior to delivery or shipment of the product.
C External failure costs: Failure costs which occur
after deliver or shipment of the product.
CQIA 2006
COST OF QUALITY
VIII-10 (367)
PREVENTION
APPRAISAL
FAILURE
Three Levels of Product Costs
CQIA 2006
COST OF QUALITY
VIII-11 (368)
Prevention Costs
C Applicant screening
C Capability studies
C Controlled storage
C Design reviews
C Education
C Equipment maintenance
C Field testing
C Fixture design
C Forecasting
C Housekeeping
C Job descriptions
C Market analysis
C Safety reviews
C Planning
C Procedure reviews
C Procedure writing
C Prototype testing
C Quality design
C Quality incentives
C Surveys
C Time and motion studies
C Training
C Vendor evaluation
C Vendor surveys
CQIA 2006
COST OF QUALITY
VIII-11 (369)
Appraisal Costs
C Audits
C Document checking
C Drawing checking
C Equipment calibration
C Final inspection
C In-process inspection
C Inspection and testing
C Laboratory testing
C Expense reviews
C Personnel testing
C Procedure checking
C Receiving inspection
C Shipping inspection
C Test equipment
maintenance
CQIA 2006
COST OF QUALITY
VIII-12 (370)
Internal Failure Costs
C Accidents*
C Accounting errors
C Design changes
C Employee turnover
C Engineering changes
C Equipment downtime*
C Excess inventory
C Excess handling*
C Failure reviews
C Obsolescence*
C Overpayments*
C Premium freight
C Redesign
C Reinspection
C Repair costs
C Retesting
C Rework
C Scrap and sorting
* usually considered indirect costs
CQIA 2006
COST OF QUALITY
VIII-12 (371)
External Failure Costs
Note that many of the costs related to internal failure
also appear on this list, other items are in Primer VIII-12.
C Bad debts*
C Complaint visits
C Unhappy customers
C Equipment downtime*
C Failure reviews
C Field service costs
C Liability suits*
C Loss of market share*
C Overpayments*
C Penalties*
C Premium freight
C Price concessions*
C Pricing errors*
C Recalls*
C Reinspection
C Repair and rework
C Returns and scrap
C Warranty expenses
* usually considered indirect costs
CQIA 2006
COST OF QUALITY
VIII-13 (372)
0%
Quality of Conformance %
100%
Cost of Appraisal
Plus Prevention
Failure
Costs
Total
Quality
Costs
Optimum Quality Costs
The total quality curve is depicted in the theoretical
model below. The minimum level of total quality costs
often occurs when the quality of conformance is 100%.
The model illustrates that as prevention and appraisal
costs increase, the failure costs will decrease until an
optimum point is reached.
(Juran, 1999)
CQIA 2006
COST OF QUALITY
VIII-14 (373)
Optimum Quality Costs (Continued)
Some authorities contend that every dollar spent on
prevention will save approximately seven dollars in
failure costs.
The interrelationship of quality cost categories varies
widely based upon the nature of product lines and
processes utilized by a company. Listed below are
some typical ratios for American companies.
Cost Category Percent of Total
Prevention
Appraisal
Internal Failure
External Failure
0 - 5
10 - 50
20 - 40
20 - 40
CQIA 2006
COST OF QUALITY
VIII-14 (374)
Total Cost of Quality
Total Failure
Appraisal
Prevention
Program Start
Sales
Time
1 2 3 4 5 6 7 8 9 10
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
Internal
Failure
Quality Costs Trends Over Time
(Campanella, 1999)
The implementation of preventative measures to control
quality often take time. Appraisal measures are initially
undertaken which cause internal failures to increase but
external failures (and total failures) to decrease.
However, a small increase in prevention methods will
normally create a large decrease in total quality costs.
CQIA 2006
COST OF QUALITY
VIII-15 (375)
Quality Cost Improvement
C Define the company quality goals and objectives
C Translate the quality goals into quality requirements
C Estimate capabilities of current processes
C Develop realistic programs and projects
C Determine the resource requirements
C Set up quality cost categories
C Arrange for accounting to collect and present
quality costs
C Insure accurate figures or reasonable estimates
C Analyze the quality cost data for major improvement
candidates
C Utilize the Pareto principle to isolate specific vital
areas for investigation
CQIA 2006
COST OF QUALITY
VIII-16 (376)
Quality Cost Comparison Bases
Quality costs should be related to as many different
volume bases as practical. Two or three comparisons
are normal. The bases selected vary depending upon
product, company, etc. Some examples are:
C Labor bases
C Manufacturing cost bases
C Sales bases
C Unit bases
CQIA 2006
COST OF QUALITY
VIII-17 (377)
Typical Quality Cost Report
Quality Cost Report for June, 2006
Dollars ($) Percent of Total
Prevention Costs
Quality Control Administration 5250 2.1
Quality Control Engineering 14600 5.9
Other Quality Planning 1250 0.5
Training 2875 1.2
Total Prevention 23975 9.7
Appraisal Costs
Inspection 55300 22.3
Test 23800 9.6
Vendor Control 1700 0.7
Measurement Control 1950 0.8
Materials Consumed 375 0.2
Product Quality Audits 800 0.3
Total Appraisal 83925 33.8
Internal Failure Costs
Scrap 66500 26.8
Repair, Rework 1900 0.8
Vendor Losses 2500 1.0
Failure Analysis 4000 1.6
Total Internal 74900 30.1
External Failure Costs
Failures - Manufacturing 14500 5.8
Failures - Engineering 7350 3.0
Failures - Sales 4430 1.8
Warranty Charges 31750 12.8
Failure Analysis 7600 3.1
Total External 65630 26.4
Total Quality Costs 248430 100.0
Bases
Direct Labor 94900 8.1
Conversion Cost 476700 40.8
Sales 1169082 100.0
Ratios
Internal Failure Costs to Direct Labor 78.9
Internal Failure Costs to Conversion 15.7
CQIA 2006
COST OF QUALITY
VIII-18 (378)
Advantages of a Quality Cost System
C Provides a a single overview of quality
C Aligns quality and company goals
C Provides a problem prioritization system
C Provides a way to maximum profit
C Improves the effective use of resources
C Emphasizes doing the job right every time
C Helps to establish new product processes
CQIA 2006
COST OF QUALITY
VIII-19 (379)
Limitations of a Quality Cost System
C Quality cost measurement does not solve quality
problems
C Quality cost reports do not suggest specific actions
C Quality costs are susceptible to short-term
mismanagement
C It is often difficult to match effort and
accomplishments
C Important costs may be omitted
C Inappropriate costs may be included in
C Many quality costs are susceptible to measurement
errors
CQIA 2006
COST OF QUALITY
VIII-19 (380)
Other Quality Cost Pitfalls
C Perfectionism in the numbers
C Other data pitfalls
C Inclusion of non-quality costs
C Implications of reducing quality costs to zero
C Reducing quality costs but increasing total
company costs
C Understatement of quality cost
C Inconsistency of measurement
CQIA 2006
COST OF QUALITY
VIII-20 (381)
Pareto Analysis of Quality Costs
Pareto analysis is widely used to analyze quality costs;
particularly failure costs. Corrective action, in the form
of problem solving techniques and prevention methods,
is undertaken on the major defect categories first.
CQIA 2006
QUALITY AUDITS
VIII-21 (382)
Audit Purpose and Benefits
The purpose of quality auditing is to examine the
effectiveness of management directed control programs.
The philosophy of quality assurance programs is based
on prevention rather than detection of problems.
Where problems do occur, emphasis is on:
C Early detection of the problem
C The depth of the problem
C Discovery of the root cause of the problem
CQIA 2006
QUALITY AUDITS
VIII-21 (383)
Audit Purpose and Benefits (Continued)
Quality auditing provides management with objective
feedback based on facts, enabling management to make
informed decisions.
Examples of specific auditing purposes are to determine
that:
C Products are fit for use
C Adequate written procedures exist and are utilized
C There is adherence to regulatory requirements
C Management system deficiencies are identified
C There is conformance to specification
C Remedial action is taken and the result is effective
C Information is obtained to identify and reduce risks
C There is effective use of company resources
C Standardized practices and improvements exist
CQIA 2006
QUALITY AUDITS
VIII-22 (384)
Audit Philosophy
Quality audits are formal, systematic, and independent.
The results of the audit are based on facts.
The new audit philosophy is centered around two main
themes:
C Auditors must be fact-finders, not fault-finders
C Audits should not be conducted in a covert manner
A comparison of old versus new audit techniques:
Old Methods New Methods
Personal bias / interest
Secretive conduct
Laying blame / criticizing
Informal audits
Surprise audits
Objective evidence / facts
Keep auditee informed
Impersonal audit report
Formal audits
Pre-audit notification
CQIA 2006
QUALITY AUDITS
VIII-22 (385)
Schematic Relationship of Audit Types
SYSTEM AUDIT
PROCESS AUDIT
PRODUCT
AUDIT
CQIA 2006
QUALITY AUDITS
VIII-23 (386)
System Audits
A system audit is the largest and most extensive of
audits.
A typical systems audit ranges from two to five days in
duration. System audits are conducted to verify,
through objective evidence, whether or not the quality
management systems and organizational plans are
indeed carried out to the requirements set forth.
System audits may be external (supplier) or internal (in-
house). A system audit may be conducted as a
condition of accepting a new supplier prior to contract
award. This is called a pre-award survey.
Process Audits
A large and significant portion of the system audit is
devoted to the process audit. One or more processes
may be audited during the systems audit.
CQIA 2006
QUALITY AUDITS
VIII-23 (387)
Product Audits
The product audit is an assessment of the final product
or service and its fitness for use evaluated against the
intent of the purpose of the product or service.
Internal Audits
An internal audit is performed within an organization to
measure its own performance, strengths, and
weaknesses against its own established procedures and
systems.
CQIA 2006
QUALITY AUDITS
VIII-24 (388)
External Audits
An external audit is an audit by company directive and
performed on an outside source, such as a supplier.
An external audit is considered to be a second-party
audit; an audit conducted on behalf of the client
company on the supplier.
Third-Party Audits
A third-party audit is when an outside source, or a third-
party, is used to conduct the audit.
Third-party audits are conducted by an independent
source not associated or affiliated with the auditees
company business.
CQIA 2006
QUALITY AUDITS
VIII-25 (389)
General Audit Matrix
Audit Name
Audit Type
Process Product System
Compliance Audit C NA C
Corporate Audit C C X
External Audit C C X
Extrinsic Audit C C X
Full Scope Audit C C X
Informal Audit C C C
Internal Audit C C C
Management Audit C C X
Pre-award Survey C C X
Procedure Audit C NA X
Process Audit X NA NA
Product Audit NA X NA
Quality Audit C C X
Quality Program Evaluation C C X
Self Audit C C C
Supplier Audit C C C
Surveillance Audit C X X
Systems Audit NA NA X
Third-Party Audit C C C
Unannounced Audit NA NA NA
X = Normal Audit Type C = Audit Possibility NA = Not Applicable
CQIA 2006
QUALITY AUDITS
VIII-26 (390)
System Audit Matrix
TYPE SUBJECT APPLICATION
Extrinsic Your company is the subject
of a customer audit
External
Vendor Survey Supplier is subject External
Pre-award
Survey
Potential supplier External
Systems Audit In depth quality
management systems and
compliance
Internal or
External
Assessment
Audit
More limited in depth than
the system audit
Internal or External
Appraisal Total quality program
effectiveness. Often
performed by a third party
organization.
Compliance
Review
Verification of effectiveness
of the quality management
system
Full Audit Entire company or product
from design development to
end of product life (very
extensive)
CQIA 2006
QUALITY AUDITS
VIII-27 (391)
Auditor Responsibilities
Auditors are responsible for:
C Complying with the applicable audit requirements
C Communicating and clarifying audit requirements
C Carrying out assigned responsibilities effectively
C Documenting the observations
C Reporting the audit results
C Verifying the effectiveness of corrective actions
C Retaining and safeguarding documents
C Maintaining confidentiality of the audit
C Cooperating with the lead auditor
CQIA 2006
QUALITY AUDITS
VIII-27 (392)
Lead Auditor's Responsibilities:
The lead auditor is ultimately responsible for all phases
of the audit, including:
C Assisting in the selection of team members
C The preparation of the audit plan
C Representing the audit team
C Submitting the audit report
C Maintaining the ethics of the audit team
CQIA 2006
QUALITY AUDITS
VIII-27 (393)
The Lead Auditor Should:
C Define the requirements of each audit assignment
C Comply with applicable auditing requirements
C Prepare working documents
C Brief the auditors
C Review documentation
C Report critical nonconformities
C Report obstacles in performing the audit
C Report on the audit results
CQIA 2006
QUALITY AUDITS
VIII-28 (394)
Auditors Should:
C Remain within the audit scope
C Exercise objectivity
C Collect and analyze evidence
C Note areas that require additional auditing
C Answer relevant questions
C Act in an ethical manner
CQIA 2006
QUALITY AUDITS
VIII-28 (395)
Client Responsibilities:
C Determines the need, the scope, the purpose
C Initiates the audit
C Determines the auditing organization
C Receives the audit report
C Determines follow-up action
CQIA 2006
QUALITY AUDITS
VIII-28 (396)
Auditee's Responsibilities:
C Informing employees about the audit
C Appointing staff to accompany the audit team
C Providing resources needed by the audit team
C Cooperating with the auditors
C Providing access to the facilities and material
C Determining and initiating corrective actions
CQIA 2006
QUALITY AUDITS
VIII-28 (397)
Audit Scope
The client makes the final decisions on the scope and
depth of the audit, which quality system elements,
physical locations, and organizational activities are to
be audited within a specified time frame.
The resources committed to the audit should be
sufficient to meet its intended scope and depth.
CQIA 2006
QUALITY AUDITS
VIII-28 (398)
Audit Frequency
The need to perform an audit is determined by the client
taking into consideration, changes in management,
organization, policy, techniques, technologies, changes
to the system itself and the results of recent previous
audits.
Within an organization, internal audits may be organized
on a regular basis for management or business
purposes.
CQIA 2006
QUALITY AUDITS
VIII-29 (399)
Preparing the Audit
The audit plan should:
C Be approved by the client
C Be communicated to the auditors and auditee
C Be designed to be flexible
C Define the place and date of the audit
C Include the audit objectives and scope
C Identify individuals having responsibilities
C Stipulate reference documents
C Identify audit team members
C Define the language of the audit
C Identify the group to be audited
C Define the duration of the audit
C Provide a schedule of auditee meetings
C Identify confidentiality requirements
C Stipulate audit report distribution and date
CQIA 2006
QUALITY AUDITS
VIII-29 (400)
Working Documents
The working documents, facilitating the audit, may
include:
C Checklists
C Reporting forms
CQIA 2006
QUALITY AUDITS
VIII-29 (401)
Opening Meeting
The opening meeting:
C Introduces the audit team to the auditee
C Reviews the scope and the objectives of the audit
C Summarizes the methods and procedures of the
audit
C Establishes communication
C Discusses the resources and facilities needed
C Sets the time and date for the closing meeting
C Clarifies any unclear details of the audit plan
CQIA 2006
QUALITY AUDITS
VIII-29 (402)
Evidence
Evidence should be collected through:
C Interviews
C Examination of documents
C Observation of activities and conditions
C Records
CQIA 2006
QUALITY AUDITS
VIII-30 (403)
Audit Observations
All audit observations should be:
C Documented
C Reviewed
C Reported as nonconformities
C Clear
C Concise
C Supported by evidence
C Identified in terms of the specific requirements
C Reviewed by the lead auditor with the auditee
C Acknowledged by the auditee management
CQIA 2006
QUALITY AUDITS
VIII-30 (404)
Closing Meeting with Auditee
At the end of the audit, prior to preparing the audit
report, a meeting with the auditee's senior management
should be held, to present audit observations to the
senior management in such a manner that they clearly
understand.
CQIA 2006
QUALITY AUDITS
VIII-30 (405)
Audit Report
The lead auditor is responsible for the accuracy and
completeness of the audit report. The audit report
should:
C Reflect both the tone and content of the audit
C Be dated and signed by the lead auditor
C Contain the scope and objectives of the audit
C Contain details of the audit plan
C Identify the audit team
C Identify the auditee's representative
C List audit dates
C Identify the specific organization audited
C Identify the reference documents
C Describe observations of nonconformities
C Express a judgment on the auditee's compliance
CQIA 2006
QUALITY AUDITS
VIII-30 (406)
Report Distribution
The audit report should be sent to the client by the lead
auditor.
It is the client's responsibility to provide the auditee's
senior management with a copy of the audit report.
CQIA 2006
QUALITY AUDITS
VIII-31 (407)
Audit Completion
The audit is completed upon submission of the audit
report to the client.
Corrective Action Follow-up
The auditee is responsible for determining and initiating
corrective action needed to correct a nonconformity or
to correct the cause of a nonconformity.
Corrective action and subsequent follow-up audits
should be completed within a time period agreed to by
the client and the auditee in consultation with the
auditing organization.
CQIA 2006
QUALITY AUDITS
VIII-31 (408)
Record Retention
Audit documents should be retained according to
agreement between the client, the auditing organization
and the auditee, and in accordance with any regulatory
requirements.
CQIA 2006
QUALITY AUDITS
VIII-31 (409)
Glossary of Audit Terms
A number of audit terms are provided on Primer pages
VIII-31 to VIII-33. The student should be familiar with
these terms.
CQIA 2006
QUESTIONS
VIII-35 (410)
8.3. Affinity diagrams are best classified as:
a. A conflict resolution technique
b. A problem tracking technique
c. A cost reduction technique
d. A grouping technique
8.4. The practice of comparing current projects, methods, or processes
with the best practices and using this information to drive
improvement is called:
a. Flow charting
b. Benchmarking
c. Auditing
d. Control charting
8.8. Design review costs, training costs, safety reviews, and
housekeeping costs are all considered what type of cost category?
a. External failure
b. Internal failure
c. Appraisal
d. Prevention
Answers: 8.3. d, 8.4. b, 8.8. d
CQIA 2006
QUESTIONS
VIII-36 (411)
8.13. Which of the following statements about a quality cost reporting
system is accurate?
a. It does not suggest specific actions
b. It prevents short-term mismanagement
c. It does not provide emphasis on doing each job right the first time
d. It ensures that all important costs are included
8.14. An audit conclusion that identifies a condition having a significant
adverse effect on the quality of goods or services produced is called:
a. An examination
b. A finding
c. An observation
d. A verification
8.17. When a benchmarking cycle is complete, expected performance
would be:
a. At least as good as the benchmarked process
b. 50% improved
c. 90% improved
d. No worse than before the cycle
Answers: 8.13. a, 8.14. b, 8.17. a
CQIA 2006
QUESTIONS
VIII-37 (412)
8.22. When first starting a quality cost program, it is not unusual to see:
a. Appraisal costs decrease
b. External failures increase
c. Internal failures increase
d. Total failures decrease
8.26. The preparation of the audit plan is the responsibility of:
a. The lead auditor
b. The client
c. The auditee
d. The plant manager being audited
8.30. One means of creating consistency and uniformity in audits is by:
a. Using an audit checklist
b. Using the same person as lead auditor
c. Using the services of an external auditor
d. Holding management responsible for selecting the audit team
Answers: 8.22. c, 8.26. a, 8.30. a
CQIA 2006
QUESTIONS
VIII-38 (413)
8.33. A company wishing to focus on product price and technical features
would most likely undertake what type of benchmarking activity?
a. Process
b. Strategic
c. Project
d. Performance
8.36. In order to lower overall quality costs, a company would be best
served to invest money in:
a. Redesign activities
b. Appraisal activities
c. Preventive activities
d. Customer complaint activities
8.38. Assume that the cost data available for a certain period is limited to
the following:
$ 20,000 - final test
350,000 - field warranty costs
170,000 - reinspection and retest
45,000 - inventory reduction
4,000 - vendor quality surveys
30,000 - rework
The total of the quality cost is:
a. $619,000 c. $574,000
b. $621,000 d. $576,000
Answers: 8.33. d, 8.36. c, 8.38. c
CQIA 2006
QUESTIONS
VIII-39 (414)
8.40. Prevention costs are increased to pay for engineering work in quality
control, which causes a reduction in the number of product defects.
This action produces a reduction in:
a. Appraisal costs
b. Operating costs
c. Quality costs
d. Failure costs
8.41. What is the purpose of a quality audit program?
a. Catch defects missed by inspection
b. Ensure that people follow procedures
c. Provide a super continuous improvement system
d. Measure and report the effectiveness of the control functions
8.47. A pre-award survey of a potential supplier is best described as which
of the following audits?
a. Compliance
b. Assessment
c. Quantitative
d. Product
Answers: 8.40. d, 8.41. d, 8.47. b
CQIA 2006
QUESTIONS
VIII-40 (415)
8.48. Analysis of quality costs consists of:
a. Reviewing manpower utilization against standard costs
b. Establishing management tools to determine net worth
c. Examining each cost element in relation to other elements and the
total
d. Providing an accounting mechanism to spread costs over serviced
areas
8.49. What other problem solving tool is customarily used to compliment
the fishbone diagram?
a. Scatter diagrams
b. Pareto diagrams
c. Brainstorming
d. Force field analysis
8.50. The basic objective of a quality cost program is to:
a. Identify the source of quality failures
b. Interface with the accounting department
c. Improve the profit of a company
d. Identify quality control department costs
Answers: 8.48. c, 8.49. c, 8.50. c
CQIA 2006
IX. CUSTOMER - SUPPLIER RELATIONSHIPS
IX-1 (416)
ANYONE WHO THI NKS
C U S T OME R S A R E N T
IMPORTANT SHOULD TRY
DOING WITHOUT THEM FOR A
WEEK.
SOURCE UNKNOWN
CQIA 2006
INTERNAL CUSTOMERS
IX-2 (417)
Customer - Supplier Relationships
The Customer - Supplier Relationships topic is
divided into the following areas:
C Internal customers
C Internal customer feedback
C External customers
C External customer feedback
C Internal suppliers
C Internal supplier feedback
C External suppliers
C External supplier feedback
CQIA 2006
INTERNAL CUSTOMERS
IX-2 (418)
Customers
Customers are the most important people in any
business. The customer's perception of quality is the
single most important factor for market share and
profitability. Companies must combine product quality
with service quality to provide the highest customer
satisfaction.
CQIA 2006
INTERNAL CUSTOMERS
IX-2 (419)
Types of Customers
There are two main types of customers: external and
internal. External customers can be further subdivided
into intermediate and end user categories and other
impacted parties. The relationship that management
can develop with either basic type of customer will
affect the company's ability to be effective in delivering
customer satisfaction.
CQIA 2006
INTERNAL CUSTOMERS
IX-3 (420)
Internal Customers
An internal customer can be defined as anyone in the
company who is affected by the product or service as it
is being generated. The internal customer is sometimes
forgotten in the effort to produce an item or service for
the external customer.
Internal Customers: Employees
Internal customers are often employees of the company.
Kaoru Ishikawa (1985) coined the phrase, The next
operation as customer in order to remove the
sectionalism that departments have toward each other.
The essential idea is to enable employees of all
departments to unite to solve problems.
CQIA 2006
INTERNAL CUSTOMERS
IX-4 (421)
Internal Customers: Employees (Contd)
Management commitment to improve customer
relationships can be further developed through
employee empowerment. Empowerment delegates
decision making capabilities to the front line employees.
Research has shown that management practices relate
to employee satisfaction, which also impacts customer
satisfaction. When employees are satisfied with their
treatment, given the right tools to do the job, and
supported by management; customers are more likely
to have higher perceptions of quality and will continue
to do business with the company. (Schaaf, 1989)
CQIA 2006
INTERNAL CUSTOMERS
IX-5 (422)
Employee Training
To stay competitive in todays business environment, a
constant schedule of workforce training is required.
Typically training should focus on helping employees do
their job better. This means that training should
include:
C A shared vision
C Obsession with the customer
C Daily customer reminders
C Be selective of contact employees
C Provide goals
C Train constantly
CQIA 2006
INTERNAL CUSTOMERS
IX-5 (423)
Employee Training (Continued)
Elements of a good training program include:
C Train distinctive company skills
C Treat all employees as career employees
C Time and money are allocated for training
C Teach new skills
C Use training for strategic changes company
C On the job training such as:
C Knowledge of products and services
C Listening skills
C Fixing customers problems ( recovery )
C Team skills
C Problem solving
C Decision making
C Not eliminating training when times are tough
C Involving floor level people in the training effort
C Training is used to teach vision and values
C Regular retraining of employees is required
CQIA 2006
INTERNAL CUSTOMER FEEDBACK
IX-6 (424)
Employee Feedback
Since employees are internal customers, they should be
surveyed on a regular basis. Surveys can establish a
communication process serving as a tool for overall
improvement. Information should be gathered on
improvement efforts as well as the following factors:
C State of the company
C State of quality efforts
C Rating of company satisfaction
C State of the processes
C Reaction to policies
C Rating of job satisfaction (Snee, 1995)
CQIA 2006
INTERNAL CUSTOMER FEEDBACK
IX-6 (425)
Internal Employee Communications
Internal employee communications for customer
satisfaction can be improved by using the following:
C Company newsletters
C Wall board displays
C Team meetings
C Posting customer letters
C Staff meetings to share information
C Display of goals and progress charts
C Quality awards from suppliers (Lowenstein, 1995)
CQIA 2006
EXTERNAL CUSTOMERS
IX-7 (426)
External Customers
An external customer is not a member of an
organization but is affected by its presence. The
identification of the external customer can do much
toward understanding the needs of the customer.
External customers include three types of customers:
C End users
C Intermediate customers
C Those affected but are not a purchaser or user
CQIA 2006
EXTERNAL CUSTOMERS
IX-8 (427)
End Users
The category of external customer includes those that
purchase a product or service for their own use. In this
case, they would be the end user.
Intermediate Customers
Intermediate customers are defined as customers who
purchase the product or service and then repackage or
modify the product prior to resell to the final user of the
product.
Impacted Parties
The third external category are those who did not
purchase or use the product, but are affected by it.
CQIA 2006
EXTERNAL CUSTOMERS
IX-9 (428)
External Customer Identification
External customers can be further sorted into consumer
and business customers.
The business customers can include for-profit and not-
for profit enterprises.
CQIA 2006
EXTERNAL CUSTOMERS
IX-9 (429)
Consumer Customers
The consumer customer market differs from the
business market as follows:
C The consumer market has a large number of
customers
C The majority of consumer purchases are small
C The transaction is usually a simple purchase
C Most consumers are not very knowledgeable about
the product
C The supplier does not share proprietary information
CQIA 2006
EXTERNAL CUSTOMERS
IX-9 (430)
Business Customers
In contrast, the business customer acts in the following
manner:
C There are a very small number of business
customers
C The amount purchased per transaction is quite large
C The purchase is handled through specialized
personnel
C The customer may know more about the
requirements than the producer
C The supplier may allow the customer access to all
sorts of information
CQIA 2006
EXTERNAL CUSTOMERS
IX-10 (431)
External Customer Market Segmentation
Market segmentation divides the market into subsets of
customers.
Some typical segmentation examples include:
C Geography
C Demographic
C Psychographic
C Buyer behavior
C Volume
C Marketing-factor
C Product space
The benefits of market segmentation are such that:
C The company can be in a better position to spot
marketing changes.
C Specialized knowledge can be developed.
C Separate marketing programs can be developed.
CQIA 2006
EXTERNAL CUSTOMERS
IX-11 (432)
Customer Expectations
The customer's expectations of the product can be
described through an analogy similar to Maslow's
hierarchy of human needs.
C Basic: The bare essential attributes of the product
or service should be present.
C Expected: Some attributes will be provided as a
part of the product.
C Desired: These are attributes that are worthwhile to
have, but not necessarily provided as part of the
package.
C Unanticipated: These are surprise attributes that go
beyond what the customer expects from a
purchase.
CQIA 2006
EXTERNAL CUSTOMERS
IX-11 (433)
Customer Needs
Customer needs are not stable, but continuing to
change.
Juran (1999) lists customer needs as follows:
C Stated needs: What the customers say they want (a
car)
C Real needs: What the customer really wants
(transportation)
C Perceived needs: What the customer thinks is
desired (a new car)
C Cultural needs: Status of the product (a BMW)
C Unintended needs: The customer uses the product
in an unintended manner. (a BMW used to haul
concrete blocks)
CQIA 2006
EXTERNAL CUSTOMERS
IX-12 (434)
Customer Needs (Continued)
There are customer needs related to the use of a
product:
C Convenience
C Safety needs
C Product simplification features
C Communications
C Service for product failures
C Customer service
Customers' needs are changing at a more rapid rate
than before.
CQIA 2006
EXTERNAL CUSTOMERS
IX-13 (435)
Customer Priorities
The customer will have priorities as to which of their
many expectations and needs will be met. Thus, a
supplier has a problem in determining how to know what
their customers want and what the company's priorities
should become.
Companies can make use of customer interviews,
surveys, focus groups, phone surveys, mail surveys,
audits, sales reports, or other data gathering tools to
identify customer needs and expectations.
CQIA 2006
EXTERNAL CUSTOMERS
IX-14 (436)
Customer Satisfaction
Total customer satisfaction requires the entire
organization to be coordinated in their efforts toward
customer dedication. What often passes for
commitment is compliance. There are several
definitions to consider:
C Compliance: follows the letter of the law, the vision,
mission, etc.
C Enrolled: a free choice to follow the company
vision, the mission, etc.
C Commitment: definitely wants to achieve the vision
Committed chief executives will spend one day every
month on the work floor, or working the customer
counter. This activity provides them with a view of the
things that customers and employees go through.
CQIA 2006
EXTERNAL CUSTOMERS
IX-15 (437)
Customer Service Principles
One sample customer service program format follows:
C Listen to the customer
C Define a service strategy
C Set standards of performance
C Select and train employees
C Recognize and reward accomplishments
(Schaaf, 1989)
Another customer service format should:
C Create a customer serving vision
C Know your customer
C Study other good companies
C Help employees do their jobs to help customers
C Improve services and processes
C Measure performance
C Have top management commitment
(Whiteley, 1991)
CQIA 2006
EXTERNAL CUSTOMERS
IX-15 (438)
Customer Service Principles (Continued)
Answering the telephone is a key indicator of a
companys attitude toward customer service. Examples
include:
C Answer the phone within 3 rings
C Have a polite opening and finish
C Ask the customer before putting them on hold
C Ask the customer if they mind being transferred
C Ending the call: Repeat what will be done
Leland (1999)
CQIA 2006
EXTERNAL CUSTOMERS
IX-16 (439)
Customer Service Principles (Continued)
The service customer initially notices facial expressions,
hand movements, voice inflections, and words. Leland
(1999) reports that people gain 55% of their knowledge
in a face-to-face encounter via body language, 38%
through tone of voice, and 7% from the actual words. A
customer service communication course would include
the following key elements:
C Maintain eye contact
C Maintain a relaxed and pleasant facial expression
C Have an attentive body posture
C Make modest hand gestures
C If appropriate, touch the customer, near the elbow
C Maintain a customary physical distance
C Present neatness in work space and grooming
C Control voice tones, inflection and volume
CQIA 2006
EXTERNAL CUSTOMERS
IX-16 (440)
Outstanding Service Principles (Contd)
1. Select the best service people
2. Give employees the right training
3. Provide service leadership
4. Create a spirit of service
5. Weed out the bad apples
6. Empower employees at all levels
7. Align employees toward the service strategy
8. Ask for continuous improvement
9. Get constant feedback from customers
10. Be ready to make changes and improvements
CQIA 2006
EXTERNAL CUSTOMERS
IX-16 (441)
Outstanding Service Principles (Contd)
Good customer service principles can be learned.
Leland (1999) cites some statistics about the value of
good customer service:
C People will spend 10% more on the same product
for good service
C People will tell 9 to 12 others about receiving good
service
C People will tell up to 20 people about receiving bad
service
CQIA 2006
EXTERNAL CUSTOMERS
IX-17 (442)
Partnership with the
Consumer Customer
Servicing the consumer customer is a major part of the
job for many companies. Customer satisfaction and
retention is a key to the development of long lasting
relationships.
Some additional thoughts on customer partnerships:
C Generosity: Things will even out in the end. We do
not keep score.
C Trust: We must believe in each other's word.
C Joint purpose: We share a similar vision, purpose,
or mission.
C Candid & honest: We are truthful and authentic with
each other.
C Fairness: We want to have a state of fairness and
equality in the relationship.
C Comfortable: The partnership provides a sense of
familiarity and ease to it.
CQIA 2006
EXTERNAL CUSTOMERS
IX-17 (443)
Multiple Customer Management
A major customer would prefer taking only a maximum
of 60-70% of a suppliers capacity because of the
following factors:
C The supplier will have some additional capability to
do future emergency work.
C The supplier will be too dependent on the customer.
As a company grows and expands they will discover
that not all customers will be of equal value.
The top 20%, the vital few. these critical customers, may
require some customized services and special needs.
However the customer must feel needed and valued.
CQIA 2006
EXTERNAL CUSTOMERS
IX-18 (444)
Conflict Resolution
In most dealings with people, conflict will occur.
There are 6 basic ways to resolve conflict:
C Changing perceptions
C Avoiding conflict
C Smoothing
C Forcing
C Compromise
C Confrontation and problem solving
Mistakes happen and it is best to have a service
recovery system in place in order to win back the
customer.
CQIA 2006
EXTERNAL CUSTOMERS
IX-19 (445)
Customer Retention
Once a customer purchases a service or a product from
the company, the work should start to retain them for
further purchases.
The life cycle of a customer is defined by 5 stages:
C Acquisition: Converting a prospect to a customer,
high costs
C Retention: Keeping the customer, 1/4 of the cost to
acquire them
C Attrition: Customer enthusiasm fades, as
dissatisfaction creeps in
C Defection: Losing the customer
C Reacquisition: Regaining the customer, but at a
high cost
(Lowenstein, 1995)
An unhappy customer has recently been termed a
terrorist. The happy customer is known as an
apostle.
CQIA 2006
EXTERNAL CUSTOMERS
IX-19 (446)
Customer Loyalty
The value of a loyal customer is not measured on the
basis of one gigantic purchase, but rather on his/her
lifetime worth.
Loyal customers account for a high proportion of sales
and profit growth.
Customer retention generates repeat sales. It is cheaper
to retain customers.
CQIA 2006
EXTERNAL CUSTOMERS
IX-20 (447)
Quality Function Deployment
Quality function deployment (QFD) is a tool that is
sometimes referred to as the voice of the customer, or
as the house of quality. Quality function deployment
has been described as a process to ensure that the
customers' wants and needs are heard and translated
into technical characteristics.
QFD provides a graphical method of expressing
relationships between customer wants and design
features. It is a matrix that lists the attributes a
customer wants and compares it to the design features
(services that satisfy customer wants).
(Hunter, 1994)
CQIA 2006
EXTERNAL CUSTOMERS
IX-21 (448)
QFD (Continued)
The construction of the QFD house follows:
C The left side of the house has the customer needs.
C The ceiling has the design features and technical
requirements.
C The right side contains the customer priorities
(comparisons).
C The foundation contains the benchmarking, target
values.
C The roof of the house contains a matrix describing
the relationship between design features.
CQIA 2006
EXTERNAL CUSTOMERS
IX-21 (449)
Basic House of Quality
CQIA 2006
EXTERNAL CUSTOMERS
IX-21 (450)
QFD Benefits
The possible benefits of using the QFD process are:
C It creates a customer driven environment
C It reduces the cycle time for new products
C It uses concurrent engineering methods
C It reduces design to manufacture costs
C It increases communications channels
C It creates data for engineering documentation
C It establishes priority requirements
C It improves quality
CQIA 2006
EXTERNAL CUSTOMERS
IX-22 (451)
Quality Function Deployment Example
CQIA 2006
EXTERNAL CUSTOMERS
IX-23 (452)
Corrective and Preventive Actions
Upper management is responsible for developing and
implementing corrective and preventive action
programs. Most chronic problems cannot be solved by
simple troubleshooting. The corrective action
procedure typically follows the following sequence:
C Assignment of responsibility
C Evaluation of potential importance
C Investigation of possible causes
C Analysis of the problem
C Corrective (or preventive) action
C Follow-up to ensure that the action is effective
CQIA 2006
EXTERNAL CUSTOMERS
IX-23 (453)
Corrective Actions
The principal corrective action sources include the
following:
C Internal inspection and audit results
C Customer returns
C Customer complaints
C Employee interviews and comments
C System and management audits
CQIA 2006
EXTERNAL CUSTOMERS
IX-23 (454)
Preventive Actions
ISO 9001:2000 requires organizations to eliminate the
cause of nonconformities in order to prevent their
recurrence. Documented procedures should be
established to define requirements for:
C Reviewing nonconformities
C Determining the causes of nonconformities
C Evaluating the need for action
C Determining and implementing the necessary action
C Maintaining records of the results of actions taken
C Reviewing the results of corrective actions taken
Many companies and organizations now require at least
two improvement activity responses for each corrective
action request; temporary (short term), and permanent
(long term).
CQIA 2006
EXTERNAL CUSTOMERS
IX-24 (455)
Corrective Action Request Form
CORRECTIVE ACTION REQUEST
CAR#_________
TO:________________________________________________________ DATE_________
FROM:_____________________________________________________
THE FOLLOWING CONDITION IS BROUGHT TO YOUR ATTENTION FOR CORRECTIVE
ACTION. PLEASE INDICATE THE CAUSE AND CORRECTIVE ACTION IN THE SPACES
BELOW INCLUDING SCHEDULED COMPLETION DATES. PLEASE SIGN AND DATE YOUR
RESPONSE AND RETURN THIS FORM TO THE SENDER WITHIN ______ WORKING DAYS.
DISCREPANT CONDITION AND APPARENT CAUSE
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
INVESTIGATIVE PORTION
ROOT CAUSE
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
ACTION TO CORRECT OBSERVED DISCREPANCY (AND SIMILAR DISCREPANCIES)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
ACTION TO PREVENT RECURRENCE
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
SCHEDULED COMPLETION DATE _____________________________________________
SIGNATURE______________________________DATE____________________________
REVIEW SIGNATURE_________________________
APPROVED DISAPPROVED DATE________________
PROJECT NAME PART NAME PART NO. MRR NO.
CQIA 2006
EXTERNAL CUSTOMER FEEDBACK
IX-25 (456)
Customer Feedback
Information about the customer must be gathered on a
regular basis. Executive customer intuition often
operates on rumor and hunches. Furlong (1993) lists
some techniques for getting to know the customer
better:
C Don't use your own instincts as research data
C See the world from the customer's side
C High organizational personnel are out of touch
C Get customers to talk
C Do research to retain customers
C Conduct research on customer expectations
C Develop a customer profile
C Share the results of customer research studies
C Don't go overboard on the details and measurement
C Coordinate and use research efforts
C Sometimes research does not help the situation
CQIA 2006
IX-26 (457)
Customer Feedback (Continued)
There are a large number of ways that any company can
listen to the voice of the customer, including:
C Customer surveys
C Customer follow-up surveys
C Community surveys
C Personal customer contact
C Customer contact reports shared with employees
C Customer councils
C Focus groups: small and large groups
C Customer interviews
C Electronic mail
C Test marketing
C Quality guarantees
C Inspectors: use of mystery shoppers
C Ombudsmen: advocates for the customer
C Use of 800 phone numbers
C Suggestion boxes (Osborne, 1992)
CQIA 2006
IX-26 (458)
The reasons for not complaining are:
C Customers don't know how to register a complaint
C They don't think it will do any good
C People feel awkward or pushy if they complain
C The service provider might fight back (Bell, 1994)
Complaints are viewed as a second chance to keep the
customers business.
CQIA 2006
IX-27 (459)
Customer complaints are one way to discover customer
satisfaction. No complaints may be something to worry
about, also. It could indicate a lack of customer candor
and willingness to share information. There are several
steps to the feedback process:
C Feedback to the customer should be immediate
C Specify problem details as needed
C Focus on both system and local problems
C Develop action steps to correct problems
(Lowenstein, 1995)
Customer returns are the ultimate complaint. Each
return should be carefully categorized, with the root
cause established. The root cause of customer returns
should lead to some feature of the quality system.
CQIA 2006
IX-28 (460)
Customer Satisfaction Surveys
Research on customer satisfaction can be worthwhile in
helping the company efforts. The objectives of
customer research vary, but a few major themes are
noted below:
C To determine what quality is
C Find out what competitors are doing
C Define quality performance measures for use
C Identify factors to give a competitive edge
C Identify urgent problems
In the evaluation of customer information, not all
attributes and transactions should be treated equally.
Some are much more important than others.
CQIA 2006
IX-29 (461)
Customer Satisfaction Surveys (Contd)
Surveys can be developed in questionnaire form. An
adequate number would range from 25 to 30 questions.
For a L-Type matrix survey, the use of a numerical scale
from 1 (very dissatisfied) to 10 (very satisfied) can make
it easier to quantify the results, as shown below.
Customer Satisfaction
Very Dissatisfied Very Satisfied
Task 1 2 3 4 5 6 7 8 9 10
On Schedule
Good Product
Friendly
Prompt
CQIA 2006
IX-29 (462)
Survey Pitfalls
Surveys are a method to gather data, but care should be
taken with that data. There can be problems with the
use of surveys:
C Improper survey form design
C Poorly defined survey issues
C Sampling errors or poor sampling techniques
C Ignoring nonresponses
C Treating perceptions as objective measures
C Treating surveys as an event, not a process
C Asking nonspecific questions
C Failing to ask the right questions
C Using incorrect analysis methods
C Ignoring the results or using them incorrectly
C Failing to provide feedback when necessary
C Using too many questions
C Using a temporary employee to conduct interviews
CQIA 2006
INTERNAL SUPPLIERS
IX-31 (463)
Internal Suppliers
An internal supplier is a person or group within an
organization that provides resources such as material,
service, or information to another person or group
within an organization. Using this definition, most
people and groups within an organization are both an
internal supplier and an internal customer.
Within a business unit, division, or organization, the
transfer of material, service or information often takes
place using methods developed over time. Even though
the groups should be working closely as supplier and
customer, communication is often less informative than
between an organization and their external suppliers or
customers.
CQIA 2006
INTERNAL SUPPLIERS
IX-31 (464)
Internal Suppliers (Continued)
When the internal supplier is a separate business unit,
within the corporation, there are additional
considerations in the internal supplier and internal
customer relationship.
The relationship is often defined with purchase orders
and delivery schedules. Communication is more formal
than relationships within informal business units, but
less formal than with external suppliers or customers.
Problems may be more difficult to resolve because
neither party wishes to change. They might only be
resolved by upper management decree.
CQIA 2006
INTERNAL SUPPLIER FEEDBACK
IX-32 (465)
Internal Supplier Feedback
There are many methods of providing internal supplier
feedback. Examples include:
C Service ratings
C Internal audits
C Talking to each other
C Product defect reports
C On-time delivery results
C Complaint reports
C Production and inventory reports
C Cost reports
CQIA 2006
INTERNAL SUPPLIER FEEDBACK
IX-32 (466)
Internal Supplier Feedback (Continued)
Management often resolves departmental supplier
issues using one or more of the following methods:
C Making activities support critical processes
C Aligning departmental and organizational goals
C Having related activities report to one person
C Using cross-functional teams
C Promoting organizational networking
C Encouraging voluntary cooperation
C Creating group performance incentive measures
C Insisting on teamwork and cooperation
(Gee, 2005)
The key to improving internal supplier relationships is
communication.
Most of the internal supplier feedback concepts are the
same as those for external suppliers, which are
described later in this Section.
CQIA 2006
EXTERNAL SUPPLIERS
IX-33 (467)
External Supplier Selection
The quality of materials and supplies determines the
quality of the end product in many instances.
Companies are intensifying pressure to reduce idle
inventory and maintain product quality.
Increased cooperation between supplier and the end
user is required. To make this feasible, the customer
must rely on fewer suppliers, and demand that quality
standards be met with minimal or no incoming
inspection.
Juran (1999) describes the process of supplier
evaluation as:
C The evaluation of product samples
C The evaluation of the suppliers manufacturing
processes
CQIA 2006
EXTERNAL SUPPLIERS
IX-33 (468)
Evaluation of the Supplier
Through Samples
The customer requests product samples from the
supplier. Customer approval stages arise at each phase
of the production process.
A typical sequence would be as follows:
1. Supplier creates a prototype that meets
requirements
2. If prototype is accepted, additional production
samples are produced
3. Customer tests samples
4. If acceptable, production is started
(Juran, 1999)
CQIA 2006
EXTERNAL SUPPLIERS
IX-34 (469)
Evaluation of the Suppliers
Manufacturing Processes
There are three possible manufacturing process
evaluation vehicles:
C Prior product performance
C Process capability analysis
C Quality system review
(Juran, 1999)
CQIA 2006
EXTERNAL SUPPLIERS
IX-35 (470)
Supplier Ratings
Bhote (1989) lists 5 generic types of supplier rating
systems:
1. No rating
2. Quality rating only
3. Quality and delivery rating
4. Quality and delivery rating
5. Comprehensive method
CQIA 2006
EXTERNAL SUPPLIERS
IX-36 (471)
Supplier Communications
Planning meetings, contract meetings and
communications reviewing both requirements and
performance are steps that can be taken to prevent
supplier disappointment.
Juran (1999) states that joint quality planning requires
detailed discussion between customer and supplier
covering three major areas:
C Economic
C Technological
C Managerial
CQIA 2006
EXTERNAL SUPPLIERS
IX-39 (472)
Supplier Communications (Continued)
Obviously there is a need for continuing buyer and
supplier cooperation and communication during the
execution phase of a contract. The nature and
complexity of this communication will vary
tremendously depending upon the complexity and
criticality of the product.
For standard commodities, most communications are
channeled through the buyer purchasing agents.
For complex engineered products, there may be multiple
communication channels.
Common buyer/supplier communication concentrate on
the following:
C Deviations
C Product unfit for use
C Design and change information
C A need for corrective action
CQIA 2006
EXTERNAL SUPPLIERS
IX-40 (473)
Other Communication Channels
There can be other communication channels:
C Emergency Communications:
C These can involve the highest levels of
management.
C Routine Communications:
C A quarterly status review
C A periodic product or process audit
C An annual systems audit
C A monthly (or quarterly) supplier rating report
CQIA 2006
EXTERNAL SUPPLIERS
IX-41 (474)
Partnerships and Alliances
with Suppliers
The following definitions are important:
C Strategic alliances: The development of an
association (partnership) with one or more
companies. Alliances allow partners to be bigger
than their parts and benefit both parties.
C Partners: These are joint parties in a common
business or purpose. The parties are on the same
team, with equal rights.
C Business partnering: This is the creation of
alliances or partners. There is a pooling of
resources in a trusting environment focused on
continuous, mutual improvement.
CQIA 2006
EXTERNAL SUPPLIERS
IX-42 (475)
Supplier Certification Programs
The certification process has been described by the
Customer/Supplier Technical Committee of ASQ, in the
following criteria:
1. The customer and supplier shall have agreed
upon specifications.
2. The supplier shall have no product-related lot
rejection for a significant period of time.
3. The supplier shall have no nonproduct-related
rejections for a stated period of time.
4. The supplier shall have no negative nonproduct-
related incidents for a stated period.
5. The supplier shall have a fully documented
quality system.
6. The supplier shall have successfully passed an
on-site system evaluation.
7. The supplier must conduct inspections and tests.
8. The suppliers shall have the ability to provide
timely inspection and test data.
CQIA 2006
EXTERNAL SUPPLIERS
IX-43 (476)
Supply Chain Management
Traditional customer supplier relationships have
involved some assessment of incoming quality via
source or incoming inspection.
The results of this traditional approach were inefficient
use of human resources, the late discovery of problems,
inflated inventories, lengthy cycle times, etc.
CQIA 2006
EXTERNAL SUPPLIERS
IX-43 (477)
Ship-To-Stock
The disadvantage of traditional procurement methods
have provided strong logic for ship-to-stock (STS)
activities. A typical STS program can be divided into
three phases (Bossert, 1988):
1. Candidacy
2. Qualification
3. Maintenance
STS offers many of the following advantages:
C Mutual purchaser/supplier trust
C Reduced inventory levels
C Reduced purchaser time, equipment and expense
C Reduced incoming rejects
C A replacement of inspection activities with audits
C Enhanced supplier quality responsibility
C A broad ended supplier quality reputation
CQIA 2006
EXTERNAL SUPPLIERS
IX-43 (478)
Just-In-Time
STS is often a forerunner to just-in-time (JIT)
procurement. If all of the controls are in place for
successful STS then a transition to JIT is possible.
JIT consists of two principle elements: procurement and
inventory. Procurement involves scheduling and
receiving purchased product in a fashion that the
purchased product is maintained at a near zero level.
JIT procurement would focus on the same elements as
STS but with the addition of rigid:
C Forecasting
C Scheduling
C Inventory cost control
C Freight expense controls
CQIA 2006
EXTERNAL SUPPLIER FEEDBACK
IX-44 (479)
Supplier Performance
Assessment and Feedback
Supplier assessment and feedback is an essential
element to both supplier and customer alike. Both
objective and subjective data must be collected and
analyzed to determine if corrective action is necessary.
Measures of Supplier Performance
Common supplier evaluated elements include:
C Quality
C Delivery
C Cost
C Service
C Compliance
(Bossert, 1988)
CQIA 2006
IX-44 (480)
Customer Ratings
Customer ratings encourage a supplier to solve quality
problems because they can:
C Demonstrate the effects of poor quality on costs
C Move the supplier to probationary status
C Disqualify the supplier from further business
Supplier rating systems cover the spectrum from simple
to complex.
CQIA 2006
IX-45 (481)
Supplier Assessment Metrics
A wide assortment of measurements are used to provide
supplier feedback:
C Quality metrics
C Timeliness metrics
C Delivery metrics
C Cost metrics
C Compliance metrics
C Subjective rating metrics
CQIA 2006
IX-47 (482)
Supplier Feedback Reports
Most of the objective and subjective supplier feedback
information can be provided in a variety of formats.
The following items are representative:
C Total dollar value purchased
C Percent defect dollar to dollar value purchased
C Percent defect dollar recovered for each supplier
C Percent of lots or product rejected
C Corrective action activity (highlights or results)
C Composite supplier rating score (when applicable)
The above items as well as those previously reported
are more easily digested in trend chart format.
CQIA 2006
IX-47 (483)
Supplier Improvement Strategies
In the past, companies bought from the lowest cost
supplier, period. Financial concern is still important but
is mainly directed at the total cost not just the price tag.
Companies have found that it is mutually beneficial to
develop supportive long-term relationships with their
suppliers.
There are numerous advantages offered by single
suppliers (less over-all product variation, fewer
communications links, and potential volume price
discounts).
The formation and completion of timely corrective and
preventive action plans are crucial for supplier
management.
CQIA 2006
QUESTIONS
IX-51 (484)
9.2. On average, what percentage of dissatisfied customers will actually
let the organization know their feelings?
a. 4% - 10%
b. 25%
c. 1%
d. 45%
9.9. The term indicating that joint parties in a common business have an
equal standing with each other is which of the following?
a. A venture c. A partnership
b. An alliance d. A team
9.11. The roof of the house of quality represents what?
a. Benchmarked target values for design features
b. Ranking of customer's needs
c. Relationship between competitors' performances against customer
needs
d. Interrelationships between design features
Answers: 9.2. a, 9.9. c, 9.11. d
CQIA 2006
QUESTIONS
IX-52 (485)
9.19. The majority of customers, who leave a company, do so because of:
a. Service quality
b. Product quality
c. Lack of product availability
d. Cost considerations
9.22. What type of expectation is met when a product has attributes that
are worthwhile, but not necessarily expected?
a. Desired
b. Expected
c. Basic
d. Unanticipated
9.26. Commonly used metrics used to assess supplier performance,
relative to products or services, are:
a. Quality and delivery
b. Engineering and support
c. Cost and availability
d. Design and reliability
Answers: 9.19. a, 9.22. a, 9.26. a
CQIA 2006
QUESTIONS
IX-53 (486)
9.28. Just-in-time (JIT) procurement is a good option when:
a. No lots have been found containing defects in six months
b. The quality level is either very good or quite poor
c. A single defective component causes critical defects in the product
d. Receiving inspection is accepting about 90% of the lots as good
9.31. The outstanding service company performs which activity first:
a. Treats employees as external customers
b. Trains employees extensively in customer service skills
c. Gives communication skills training
d. Provides good recovery skills training
9.37. A key characteristic of a business partnership is:
a. Sharing of critical business information
b. Limited access to human resources
c. Special company audits are performed
d. Only plant managers agree on agendas
Answers: 9.28. a, 9.31. a, 9.37. a
CQIA 2006
QUESTIONS
IX-54 (487)
9.41. Communication with vendors on quality problems:
a. Should be initiated by the vendor's quality control department
b. Should be initiated by the vendee's purchasing department
c. Should be initiated by the vendee's engineering department
d. Can be resolved only through personal visits between vendor and
vendee
9.44. On surveys from customers, what do high customer satisfaction
numbers NOT indicate?
a. Customer satisfaction
b. Customer service
c. Customer loyalty
d. Product quality satisfaction
9.47. Your company has recently started using the house of quality
approach to customer satisfaction. When using this technique, what
is normally shown in the roof area?
a. Customer needs
b. Interrelationships of design features
c. The design features to meet customer needs
d. Comparison of customer priorities
Answers: 9.41. b, 9.44. c, 9.47. b
CQIA 2006
X. APPENDIX
X-1 (488)
INDEX LEARNING TURNS
NO STUDENT PALE, YET
HOLDS THE EEL OF
SCIENCE BY THE TAIL.
ALEXANDER POPE
CQIA 2006
X. APPENDIX
X-2 (489)
Variable Control Chart Factors
CHART FOR
AVERAGES
CHART FOR STANDARD
DEVIATIONS
CHART FOR RANGES
Sample
Observations
Control limit
Factors
Center
Line
Factors
Control Limit
Factors
Center
Line
Factors
Control Limit
Factors
n A
2
A
3
C
4
B
3
B
4
d
2
D
3
D
4
2 1.880 2.659 0.7979 0 3.267 1.128 0 3.267
3 1.023 1.954 0.8862 0 2.568 1.693 0 2.574
4 0.729 1.628 0.9213 0 2.266 2.059 0 2.282
5 0.577 1.427 0.9400 0 2.089 2.326 0 2.114
6 0.483 1.287 0.9515 0.030 1.970 2.534 0 2.004
7 0.419 1.182 0.9594 0.118 1.882 2.704 0.076 1.924
8 0.373 1.099 0.9650 0.185 1.815 2.847 0.136 1.864
9 0.337 1.032 0.9693 0.239 1.761 2.970 0.184 1.816
10 0.308 0.975 0.9727 0.284 1.716 3.078 0.223 1.777
15 0.223 0.789 0.9823 0.428 1.572 3.472 0.347 1.653
20 0.180 0.680 0.9869 0.510 1.490 3.735 0.415 1.585
25 0.153 0.606 0.9896 0.565 1.435 3.931 0.459 1.541
Approximate capability Approximate capability
CQIA 2006
X. APPENDIX
INDEX
X-3 (490)
Index
The CQIA Primer contains the following:
C Author/Name Index
C Subject Index
C Letter answers for questions given in the Primer

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