Module 2

Front 1

Process Flowcharting

Back 1

Creation of a visual diagram to describe a transformation process.

Purpose is to describe a process visually to find ways of improving the current process.

Front 2

Steps in Process Flowchart Analysis

Back 2

1. Select a process to study

2. Form a team to analyze & improve the system

3. Specify the boundaries of the transformation process.

4. Identify and sequence the operational steps

5. Identify the performance metrics

6. Draw the flowchart

Front 3

Business Process Reengineering (BPR)

Back 3

The radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

"If I were recreating this process today, given what I know and given current technology, what would it look like?"

Front 4

Quality of Design

Back 4

Determined before the product is produced (during the design phase), often through market research.

Refers to the product and product features; quality of the product assuming no defects.

Front 5

Quality of Conformance

Back 5

Producing a product that meets the specifications.

Front 6

PDCA Cycle

Back 6

1. Plan a change aimed at improvement

2. Do/execute the change

3. Check/study the results; did it work?

4. Act- Do it again or abandon that particular plan

Front 7

Quality Costing Systems

Back 7

Used to link quality to the bottom line.

Function is to identify "opportunities for improvement" and to evaluate performance from year to year.

Front 8

Prevention Costs

Back 8

Expense incurred to avoid having defective products in the first place.

Front 9

Appraisal Costs

Back 9

Expense incurred to maintain high customer satisfaction.

i.e. expenses include inspectors and other screening equipment

Front 10

Traditional Quality Cost Theory

Back 10

Company is reactive/appraisal oriented.

Inconsistent with the goal of zero defects.

Front 11

Modern Quality Cost Theory

Back 11

Company is proactive/prevention oriented.

Consistent with the goal of zero defects.

Front 12

Specification Limits

Back 12

Used to objectively determine if a good or service is produced per its design.

Critical quality characteristics are measured and compared to standards.

Compared with individual product characteristics.

Front 13

Taguchi Loss Function

Back 13

Loss in value progressively increases from the intended condition; quality simply doesn't just plummet.

Provides motivation to continuously reduce variation.

Provides motivation to continuously keep process mean centered and to, in turn, continuously improve quality.

Front 14

Traditional Cost Function

Back 14

"Goal Posts"

As long as all measures are within specs, no motivation to improve.

As long as all measures are within specs, no motivation to adjust the mean of the process.

Front 15

Six-Sigma Quality

Back 15

Specifies that for each process, each specification limit should be at least 6 standard deviations away from the target value.

This goal is achieved through aggressive variance reduction (improvement).

Front 16

Pareto Analysis

Back 16

Formal technique useful where many possible courses of action are competing for attention.

"20% of causes determine 80% of the problems"

Front 17

Ishikawa Diagram

Back 17

Show the possible causes that lead to a particular result or event.

Causes may include machine, man, environment, method, or material.

Front 18

Control Limits

Back 18

Compared with sample process characteristics (i.e. means and ranges)

Front 19

Assignable Causes

Back 19

Problems that can be identified and corrected

Front 20

Common (Random) Causes

Back 20

Problems which occur randomly and cannot be changed unless a process is redesigned.

Front 21

Steps in Designing a Statistical Process Control System

Back 21

1. Identify critical points to apply control (where data should be collected)

2. Identify the critical quality characteristics of that aspect of the process and decide on the type of measurement (what)

3. Decide on the amount of data to be collected (how much)

4. Decide who should collect the data, construct the charts, and apply the charts (who)

Front 22

Variable Data

Back 22

A process (ideally) characteristic that can be measured on a continuous scale

(i.e. length, size, weight, height, time, speed, temperature, etc.)

Front 23

Attribute Data

Back 23

Usually a product characteristic evaluated with a discrete choice

(i.e. good/bad, yes/no, 0/1, ratings, counts, proportions, etc.)

Front 24

Type I Error

Back 24

AKA: producer's risk and alpha error

The control chart for a process indicates the process is "out-of-control" when the process is acutally "in-control" and, thus, the process is stopped unnecessarily.

Front 25

Type II Error

Back 25

AKA: consumer's risk and beta error

The control chart for a process indicates the process is "in-control" when the process is actually "out-of-control" and, thus, the process is allowed to continue when it should have been stopped.

Greater likeliness for defective products.

Front 26

Acceptance Sampling

Back 26

The sample is inspected to determine the number of defective items in it then the number of defective items found is compared to a cut-off value.

(i.e.) N=1000 (population)

n=100 (sample)

ac=4 4 > X items defective, accept.

de=5 5 < X items defective, reject.

Front 27

Action Required for Out-of-Control Indicators (Steps)

Back 27

1. Stop the process

2. Conduct an investigation to determine the assignable cause. (If no assignable cause, assume Type I error & skip to 4)

3. Take corrective action to remove the assignable cause.

4. Resume the process.