Continuous

Improvement Overview

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 Definition:
Total Quality Management
 Total Quality Management (TQ, QM or TQM)
and Six Sigma (6) are sweeping “culture
change” efforts to position a company for
greater customer satisfaction, profitability and
competitiveness.
 TQ may be defined as managing the entire
organization so that it excels on all
dimensions of products and services that are
important to the customer.
 We often think of features when we think of
the quality of a product or service; TQ is
about conformance quality, not features.
Total Quality Is…
 Meeting Our Customer’s Requirements

 Doing Things Right the First Time;

Freedom from Failure (Defects)

 Consistency (Reduction in Variation)

 Continuous Improvement

 Quality in Everything We Do
A Quality Management System Is…

 A belief in the employee’s ability to solve

problems

 A belief that people doing the work are best

able to improve it

 A belief that everyone is responsible for

quality
Elements for Success

 Management Support
 Mission Statement
 Proper Planning
 Customer and Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources
The Continuous Improvement Process
Measurement

Empowerment/
Shared Leadership
Measurement

Measurement
Customer
Satisfaction

Business
Results Process
Team Improvement/
Management
Problem
Solving

...
Measurement
Modern History of Quality Management
 Frederick W. Taylor wrote Principles of Scientific Management in 1911.

 Walter A. Shewhart used statistics in quality control and inspection, and

showed that productivity improves when variation is reduced (1924);
wrote Economic Control of Manufactured Product in 1931.

 W. Edwards Deming and Joseph M. Juran, students of Shewhart, went

to Japan in 1950; began transformation from “shoddy” to “world class”
goods.

 In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small

groups to eliminate variation and improve processes.

 In the late ‘70’s and early ‘80’s:

 Deming returned from Japan to write Out of the Crisis,

and began his famous 4-day seminars in the United States

 Phil Crosby wrote Quality is Free

 NBC ran “If Japan can do it, why can’t we?”

 Motorola began 6 Sigma

History of Quality Management
Deming’s 14 Points
1. Create constancy of purpose for improvement
2. Adopt a new philosophy
3. Cease dependence on mass inspection
4. Do not award business on price alone
5. Work continually on the system of production and service
6. Institute modern methods of training
7. Institute modern methods of supervision of workers
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations, and targets for the work force
11. Eliminate numerical quotas
12. Remove barriers preventing pride of workmanship
13. Institute a vigorous program of education and retraining
14. Take action to accomplish the transformation
History of Quality Management
Deming’s Concept of “Profound Knowledge”

 Understanding (and appreciation) of Systems

- optimizing sub-systems sub-optimizes the total system
- the majority of defects come from systems, the responsibility of
management (e.g., machines not in good order, defective material, etc.
 Knowledge of Statistics (variation, capability, uncertainty in data, etc.)
- to identify where problems are, and point managers and workers
toward solutions
 Knowledge of Psychology (Motivation)
- people are afraid of failing and not being recognized,
so they fear how data will be used against them
 Theory of Knowledge
- understanding that management in any form is a prediction, and is
based on assumptions
History of Total Quality
According to Dr. Joseph M. Juran (1991):

“On the assembly line at the Ford Motor Company in 1923, most of
the workers producing Model T’s were immigrants and could not
speak English. Many were also illiterate. Workers learned their
trade by modeling the actions of other workers. They were unable
to plan, problem-solve, and make decisions. As a result, the Taylor
scientific school of management flourished, and MBAs and industrial
engineers were invented to do this work. Today, however, the
workforce is educated. Workers know what is needed to improve
their jobs, and companies that do not tap into this significant source
of knowledge will truly be at a competitive disadvantage.”
History of Total Quality

According to Phil Crosby, Quality is . . .

An attitude:
- Zero Defects
- Continuous Improvement

A measurement:
- Price of Conformance, plus
- Price of Nonconformance (defects)
TQ: Transforming an Organization
From To

Motivation through fear and loyalty Motivation through shared vision

Attitude: “It’s their problem” Ownership of every problem

affecting the customer

Attitude: “the way we’ve always done Continuous improvement

it”

Decisions based on assumptions/ Decisions based on data and facts

judgment calls

Everything begins and ends with Everything begins and ends with
management customers

Crisis management and recovery Doing it right the first time

Choosing participative OR scientific Choosing scientific AND

management participative management
What is Six Sigma?

• A goal of near perfection in meeting customer requirements

• A sweeping culture change effort to position a company for
greater customer satisfaction, profitability and competitiveness
• A comprehensive and flexible system for achieving, sustaining
and maximizing business success; uniquely driven by close
understanding of customer needs, disciplined use of facts, data, and
statistical analysis, and diligent attention to managing, improving
and reinventing business processes

(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)

The C.I. Focus
Cycle of Continuous Improvement

Standardize

Implement New
Expose Methods
Problems
CI

Solve Problems

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Continuous Improvement
Continuous Improvement is an integral
part of successful manufacturing in
today’s competitive environment. It can
help your company

 Reduce waste
 Increase efficiency
 Improve quality
 Reduce cost

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Continuous Improvement simple definition:

Continuous Improvement is
systematically
identifying and eliminating waste,
as quickly as possible, and at the
lowest possible cost.

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Part 1: The Outcome of
Continuous Improvement
 Improved Quality at the Process
 Eliminated Bottlenecks
 Increased Visual Management
 Reduced Fluctuation
 Increased Knowledge
 Reduced Costs
 Increased Efficiency
(Doing more with the same
or
Doing the same with less)

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Improved Quality at the Process
Continuous Improvement enforces working in-
station, to standard operating procedures, as a key
factor in achieving quality at the process.

During workshops, opportunities for simple quality

confirmations are identified.

Participants learn to always consider the

impact to quality when making changes
to the process.

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 Eliminate Bottlenecks
Bottleneck processes are individual processes or
tasks that take more time than other processes and
slow production. Continuous Improvement workshops
60 focus on waste
50 Takt Time
48 reduction and
work rebalancing
Cycle Time (sec)

40 35
33 to eliminate
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bottlenecks.
20

10

0
1 2 3

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Visual Management

Being able to quickly identify and respond to

abnormal conditions is critical to managing a
manufacturing environment. Visual
Management tools are improved to

 Increase awareness and response

 Allow for quick return to stable
conditions

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Reduce Fluctuation

Unstable processes are difficult to staff and

manage and inherently create waste in the
production environment. Identifying and
reducing process fluctuation

 Reduces overall production time

 Increases visual management
 Allows for better allocation of
resources

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Increased Knowledge
Tools learned during Continuous
Improvements:

1. Practical Problem Solving

2. Time Measurement
3. Elemental Wall
4. Ergonomic Checklist
5. Standardized Work
6. Process Stability Checklist
7. 5S

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Reduced Costs
Traditional cost - plus approach

PROFIT • Add desired profit to costing in order to determine

selling price

MARKET
PRICE COST

PROFIT
Cost reduction approach
• Market establishes selling price
MARKET
• Desired profit is achieved through COST
PRICE
reduction of cost.

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Increased Efficiency

We Gain Efficiency Through:

• Process vs. Results

• Time Measurement
• Speaking with Data

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Increased Efficiency is achieved
through:
Process vs Results
• Results are always historical.
– Yesterday
– Last week
– Last month

• Improved RESULTS can only be obtained by improving

the PROCESS.

• Process is NOW.

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Increased Efficiency is achieved
through:
Time Measurement

• Production processes are completely focused on TIME

• Takt Time
• Cycle Time
• Hours per Vehicle
• Units per hour

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Increased Efficiency is achieved
through:
Speaking with Data
• Don’t assume - Go and see - Observe and measure

• Analyze Data

• Make decisions with data

• Take action based on data

• Check results with data

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Part 2: Focus on Stability

 Standardization
 Safety
 Quality
 Ergonomics
 Lean
 5S

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Standardization

• Best, easiest, safest way known today

• Basis for training
• Basis for relentless root cause analysis
• By standardizing processes, consistent results are produced in
Safety, Quality and Efficiency
• Documentation of know-how

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Safety

A safe work environment is one of the

cornerstones of a successful business.

Continuous Improvement
supports the idea that no
change should ever be
made to a process that
has a negative impact on
safety!
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Quality

There are quality standards and expectations

demanded of any manufacturing product.

Changes to the process should never

decrease the quality of the product provided
to the customer!

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Ergonomics
The ergonomic impact of work should always be
examined to see if improvements can be made.
Part presentation that places heavy or awkward
parts within proper ergonomic levels
can decrease waste of motion and
fatigue.
Any changes to tools or processes
should be analyzed with a critical eye
towards any impact on ergonomics.

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Lean
Lean Manufacturing focuses on the
identification and elimination of the 7 forms of
waste:
 Overproduction
 Inventory
 Unnecessary Motion
 Transportation
 Waiting
 Overprocessing
 Defects/Repair/Rework
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5S
5S improves organization, visual management,
and standardization. The 5S status of an area
is assessed in the first CI Workshop to help
identify potential problems and 5S should be
maintained as improvements are made.

 SIFT  SANITIZE
 SWEEP  SUSTAIN
 SORT

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Moving Forward
 Train more employees in Continuous
Improvement.
 Build a Continuous Improvement Team.
 Spread Continuous Improvement to
other production lines or other
areas of the plant.
 Build a culture of Continuous
Improvement within your
organization.
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Keys to success

• Create a sense of urgency

• Have a vision, communicate it continuously

• Focus on key process drivers

• Remove all obstacles to achieve the vision

• Create short-term victories

• Don’t declare victory too soon

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Keys to success

Problems are Opportunities

• Problems are a mountain of opportunities.

• If no problem is perceived - there can be no improvement.

• People are rarely the problem - they are the problem-solvers.

• Processes and systems can only be improved by people

recognizing and eliminating problems.

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Keys to success

Non-Judgmental / Non-Blaming
• Eliminates the search for who to blame
• Provides system improvement opportunities
• Allows relentless root cause analysis
• Increases trust
• Improves quality of communication
• Avoids “shoot the messenger” mentality
• Avoids crisis orientation

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