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31 Cards in this Set

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The sixth and final concept of Total Quality Management

Performance Measures

Plays an important part in the overall success or failure of a business organization

Performance Measures

Tool that helps easier understanding, managing and improving organizational activities

Performance Measures

-is not just a process concerning data collection with predetermined goal or standard but an overall management system involving prevention and detection aimed at achieving conformance of product or service to customer’s requirements.

Performance Measurement

PLAN PHASE

1. Identify possible measures2. Select right measure – considering cost and importance3. Senior management approval for planned measure

- Collection of data as per approved procedures on a pilot basis

DO PHASE

CHECK PHASE

1. Counter checking results through other means


2. Comparing feedbacks


3. Making analysis to validate methodology adopted

ACT PHASE

Confirming the measures


Adopting or rejecting measures

is one of the effective approaches in planning and improving performance measurement in the organization

PDCA

Example Measures

CSI


Cost of scrap/rework


No. of design changes


ESI


Cost of incoming inspection


No. of invoices with errors

responsible for formulating strategy for measuring

Quality council

Measures which address multiple issues and multiple questions

Product quality


Process cycle time


Product delivery quality


Process cost


Customer satisfaction


Employee satisfaction

PPPPCE

a very detailed activity to which each measure should be clearly

Define measure

the measure should become internal part of the process

Integrating with Process

7 QC Tools for Performance Measurement and Analysis

Process Flow Chart


Cause and Effect Diagram


Pareto Diagram


Control charts


Check sheet


Scatter Diagram


Histogram

PCPCCSH

used for selecting and defining measures

Process flow chart

used for carrying out brainstorming to select measures and discuss poor performance as revealed by the measures

Cause and effect diagram

identify a few vital causes which contribute either to success or failure

Pareto Diagram

used in capability studies in critical processes

Control charts

used for data collection

Check sheets and checklist

deciding if there is correlation between two values of two variables

Scatter Diagram

used to determine whether the output of the measure is distributed approximately normally

Histogram

Objectives of Performance Measurements

Assess performance against goals


Achieving the goals


Communicate goals


Improve process by stimulating improvements and innovation


Feedback

AACIF

is very much in the ongoing tradition of quality control.

Six sigma

Goal of six sigma

Dramatic process improvement

is an innovative approach to continuous process improvement and a TQM methodology.

Six sigma

refers to a measure of process consistency and aims at achieving the same.

Six sigma

is a methodology for improving process.

Six sigma

Two process performance limits

Statistical Control limits


Specification limits

is a data-driven method used to systematically improve the process

DMAIC

refers to the product or service characteristics, which are defined by the customer. They are the key measurable characteristics whose performance standards should be met.

CTQ (critical to quality)