CPIM Basics of Supply Chain Management Session 9

4 Objectives of Productivity and Quality Systems

Ensure Quality of Product Definition
Ensure product quality in the design process
Ensure product quality during the manufacturing and packaging processes
Ensure product quality from the perspective of the customer

Quality from the Perspective of the Customer

Performance
Features
Conformance
Warranty

Productivity and Quality Systems and Methodologies

Lean
TQM

Lean Methodology

Emphasizes the minimization of activities that do not add value to the customer

TQM

Total Quality Management
Management approaches to quality improvement and customer satisfaction
Based on the participation of all members of an organization in improving process, goods, services and the culture in which they work.

QFD - Quality Function Deployment

Quality Function Deployment
A methodology designed to ensure that all the major requirements of the customer are identified and met or exceeded
Uses a structured process called the House of Quality

House of Quality

A structured process that relates customer-defined attributes to the product's technical features needed to support and generate these attributes

Six Steps of the House of Quality

Identify customer requirements
Identify supporting technical design requirements
Compare the customer requirements to the technical design requirements and assign relationship ratings
Assign importance to the customer requirements
Evaluate competitors
Ide

House of Toyota

A lean process
Comprised of Five Parts:
The Roof - Eliminating waste
The Pillars - JIT or rate of customer demand and Jidoka - stopping the production line if a defect occurs
The Base - operational stability; standardization of work and reduction of varia

Continuous Flow Production

Production matches customer demand
Items are processed directly from one step to the next
Optimal is one piece at a time flow
Little inventory is held
Demand pulls product through the system
Easiest to implement when there is a narrow product line with de

Push System

Items are produced or materials are released at a time determined by a schedule planned in advance

Pull System

Items are produced or materials are released as they are needed

Takt Time

the rate of customer demand
The rate of flow between work centers in a fixed routing is controlled by a Kanban system.

Process (functional) Layout

Used by discrete manufacturers
The plant is laid out by departments using similar equipment
A silo-type layout
individual processes are separated physically
batches move through creating WIP inventory

Cellular Layout

Used in a flow production line
Products move through one at a time from station to station with limited WIP inventory. Reduces waste

Process Flexibility

Enables companies to swiftly change the volume and mix of their products
Required for Process Flexibility:
Flexible Machinery
Cross-Trained employees
Quick Changeovers

Total Productive Maintenance (TPM)

Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows.
Schedule preventive maintenance
Train/Empower operators to perform maintenance
Operators

Process Improvement

The activities designed to identify and eliminate causes of poor quality, process variation and non-value-added activities

Continuous Improvement

A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement
Improves productivity
Eliminates waste
Involves Teams

Employee Involvement

Using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes

Employee Empowerment

The practice of giving non-managerial employees the responsibility and power to make decisions regarding their jobs or tasks

Jidoka

Workers are allowed to stop the production line if defects occur

Lean Tools and Techniques

Value Stream Mapping
Heijunka
Five Ss
Hoshin Planning

Value Stream Mapping

process mapping that is a graphical representation plotting the path from raw material to finished good

Heijunka

a form of production leveling to match the rate of end-product sales. The production volume and mix are distributed evenly over time.

Five Ss

Five terms that enable the creation of a clean, well-ordered workplace:
Sort
Simplify
Scrub
Standardize
Sustain

Hoshin Planning

A lean manufacturing version of strategic planning

Supplier partnership

The establishment of a working relationship with a supplier organization whereby two organizations act as one
Benefits
-Greater share of business
-Long term contracts

Total Quality Management

Product Quality - at a minimum all products must be within specification

Quality related costs

Costs related to making defect-free products:
External - Costs of Failure. Cost of correcting problems after goods have been delivered to customer
Internal - Costs of Controlling Quality. Cost of correcting problems while goods are still in production fac

Costs of Failure

Internal Failure costs - the cost of correcting problems while goods are still in the production facility
External Failure - the cost of correcting problems after the goods or services have been delivered to the customer

Costs of Controlling Quality

Prevention Costs - The cost of preventing problems from occurring
Appraisal Costs - The cost of checking and auditing quality.

Flowchart

represents the tasks or elements associated with a process and a visualization of the steps and sequences in the process.

Cause-and-Effect Diagram

Fishbone Diagram
Illustrates the main causes and subcauses leading to an effect
Six main "causes"
Materials
Machine
People
Method
Environment
Measurement

Control Charts

A tool used to track process variation

SPC

Statistical Process Control
Applies statistical techniques to monitor and adjust an operation

Process Capability

A measure of process spread in relation to the upper and lower specification limits
The ability of the process to produce parts that conform to upper and lower engineering specification limits for the product

Check Sheet

Used to summarize a tally count of event occurrences

Histogram

a graph of contiguous vertical bars representing a frequency distribution

Pareto

a graphical tool for ranking causes from most significant to least significant.
A bar chart
Used to determine the largest frequency of items in a data set.
80% of the defects come from 20% of the causes

Scatter Diagram

used to analyze the relationship between two variabilities
The more scatter, the lower the relationship of the variables to each other

Six Sigma

A set of concepts and practices that focus on reducing variation in processes, and therefore reduces defect and improves quality.
Sigma is used to designate the standard deviation
the Higher the sigma value, the less likely the process will result in prod

Causes of Variation

Special Causes
Common Causes

Special Causes of Variation

can be isolated and are assignable to a particular source
variations outside of the natural, historical variations

Common Causes of Variation

Inherent in a process
Occur naturally in processes
correcting common causes involve more long-term process improvement activities

Six Sigma DMAIC

The phases of a Six Sigma project
Define
Measure
Analyze
Improve
Control

Benchmarking

A systematic method by which organizations compare their performance to a best-in-class organization
Select the process to benchmark
Identify an organization that is best-in-class
Study the benchmarked organization
Analyze the data

6 Requirements of Customer

Quality
Flexibility
Service
Short Lead Time
Consistency
Cost Savings

8 Types of Waste

Process
Movement
Methods
Product Defects
Waiting Time
Overproduction
Excess Inventory
Unused people skills

Kanban in Pull System

Kanban (signal) used to trigger replenishment of parts and sub-assemblies needed by workstations.

7 Quality Control Tools

Flowchart
Cause and effect
Control charts
Check sheet
Histogram
Pareto
Scatter Diagram