Basics of Quality

Basics of Quality
Confidential [24]7 Customer Inc. 2016
Please put your cell phones

on silent Mode.
No phone calls and/or

texting during training.
We will take breaks

TOGETHER.
We will park certain topics.
Certain topics brought up in the discussions may be beyond the scope of the workshop, not of
the general interest
or too detailed to be handled in the time allotted.
These items will be `Parked` and resolved at break, at the end of the day or perhaps in a next level
session.
Confidential 24/7, 2016
WIIIFY ??
What is in it for you ??
Understanding term Quality

Basic Stats & 7 QC tools
Customer Understanding (KANO)
What is expected from you?
Customer Focus
Out of the Box Thinking
Basics of Quality
Sources:
Amason, A.C., Thompson, K.R., Hochwarter, W.A., & Harrison, A.W. (1995, Autumn). Conflict: An Important Dimension in Successful Management Teams.
Organizational Dynamics, 24(2), 20-35.
Clark, W. (October 17, 2005). People Whose Ideas Influence Organisational Work - Chris Argyris. In Organisations@Onepine. Retrieved March 8, 2009, from
http://www.onepine.info/pargy.htm
Garmston, R.J. (Summer 2005). Group Wise: How to turn conflict into an effective learning process. Journal of Staff Development, 26(3), 65-66.
Mediation Services. (2003). Foundational concepts for understanding conflict. Winnipeg, MB, Canada.
Quality is
Conformance to
specifications
Fitness for use
Totality of characteristics
that bears its ability to
satisfy needs
Todays Quality Definition is:
Understanding &
Delivering Customers
Needs
Product, Process or
Service Uniformity
around a Target Value
Competitive Quality
Driving Continuous
Improvement
Company XYZs Quality Guiding Principles
Client and customer come first

- The client and the customer have all the votes on quality
Build partnerships
- Focus on long term partnering
- Share data and best practices
- Make clients successful
- Value-add through improvements and problem-solving
Ensure data integrity

- Use statistical principles for data management
Basics of Quality
Basic Statistics
Basic Stats & 7 QC Tools
Basic Statistics
7 QC Tools
10
Agenda
Customer Requirements
CTQs
11
Are these parallel lines?
12
Are these parallel lines?
13
Our understanding of problems is largely determined by our perceptions

We rarely use data to understand problems
One of the best ways to identify problems is to understand the requirements of
our customers.
It is observed that some of the customer

requirements tend to change the satisfaction
level more than the others.
These are called Critical to Quality Requirements
or CTQs.
14
The Better Bread Company
The BETTER BREAD Company
FLOUR
YEAST
15
What is a CTQ?
What is Important to the Customer?

Rise
Texture
A CTQ is a customer performance

requirement of a product or a service
Smell
Some more examples of CTQs are:
Freshness
On-time delivery of courier packages
Taste
Accurate data entry of claims

Responsiveness of call agents
Each of these requirements is a CTQ
16
What is a Unit?
What is a Unit in the Better Bread Company?
Slice of Bread
A UNIT is a measurement of quantum of
output of the product / service
Some more examples of Units are:
Loaf of Bread
A courier package
An insurance claim
A call
Batch of Bread
17
What is an Opportunity For Error (OFE)?
In a single Unit of Bread the

following characteristics are
important to the customer
1.
2.
3.
4.
5.
Rise
Texture
Smell
Freshness
Taste
An Opportunity for Error is a product /

service characteristic where one can fail to
satisfy one or more of the specifications of
that unit. Each unit can have multiple
characteristics as specified by the
customer
Some more examples of OFE are:
Arrival time of a courier package OFE is 1

20 data fields entered on an insurance claim
- OFE is 20
Agent responsiveness score on a call OFE
is 1
18
What is a Defect?
What does a Defect mean??

Not light and fluffy (Rise)
Bad texture (Texture)
Bad smell (Smell)
Stale (Freshness)
A DEFECT is a point of non-conformity in a

unit of product / service that does not
satisfy one or more of the specifications of
that unit
Some more examples of Defects are:
Delayed delivery of courier package
A wrong amount paid on an insurance claim

Low responsiveness on a call
Bad taste (Taste)
19
Types of Data
Types of Data
Attribute / Discrete data
Binary
Pass /
Fail
True /
False
Nominal
Count of Defects
Favorite restaurants
Blood Group (O, A,
B)
Continuous Data
Ordinal
Responses in the form of
rating to a Survey Question
on a scale of (1-5)
20
Delivery Time
Effort Expended
Memory Utilization
Cost of Rework
Cycle time in Hours,
Minutes / Seconds,
days, weeks etc
Discrete / Attribute Data Analysis
It is the lowest level of data which cannot be further classified

It provides the least amount of information
Large Sample Size is required to perform any analysis
Variable / Continuous Data Analysis

It can be further classified / divided into lowest values possible
It provides more information when compared to the Discrete / Attribute data
Less Sample Size is required to perform any analysis
21
Continous Data Analysis

Types of Measures
Measures of Spread/
Dispersion (Variation)
Measures of
Central Tendency (Location)
1. Mean
2. Median
3. Mode
1. Range
2. Standard Deviation
Data Analysis
1.
Study Stability Run Charts
2.
Study Shape Normality Plots
3.
Study Central Tendency Mean, Median, Mode
4.
Study Spread Range, Standard Deviation, Variance
22
Measures of Central Tendency

Mean = Xbar
It is simply the sum of all observations divided by the number of observations
(2 + 3 + 10 + 5 + 4 + 4 + 3 + 3 + 1 + 2 + 3) / 11 = 3.636
Median
The median (also called the 2nd quartile or 50th percentile) is the middle observation in the
data set. It is determined by ranking the data and finding observation number [N + 1] /
2.
1 2 2 3 3 3 3 4 4 5 10
Mode
of a set of data is the value in the set that occurs most often. A set of data can be bimodal.
It is also possible to have a set of data with no mode.
In the above data set 3 is the mode
23
Measures of Spread / Dispersion
Range = (Max Min)

of a set of data is the difference between the highest and lowest values in the set.
1 2 2 3 3 3 3 4 4 5 10
In this data set Range = (10-1) = 9
Variance
The sum of the squared deviations of n measurements from their mean divided by
(n-1).
The deviation from what was expected.
Deviation from process mean i.e.., away from the target which often results in
extra cost to revert back on target/mean.
For the numbers 1, 2, and 3, the mean is 2 and the variance is:
24
Exercises
Find the mean driving speed for 6 different drivers on the same highway:
66 mph, 57 mph, 71 mph, 54 mph, 69 mph, 58 mph
Jameson family drove through 7 states on their summer vacation. The price per
gallon of gasoline varied from state to state. What was the median gasoline price
paid?
$1.79, $1.61, $1.96, $2.09, $1.84, $1,75, $2.11
The following is the number of problems that Ms. Mattie assigned for homework on
10 different days. What is the mode?
8, 11, 9, 14, 9, 15, 18, 6, 9, 10
Jaeger family drove through 6 Midwestern states on their summer vacation. The
price per gallon of gasoline varied from state to state. What is the range of gasoline
prices paid?
$1.79, $1.61, $1.96, $2.09, $1.84, $1.75
25
Basics of Quality
7 QC Tools
Methodologies of General Problem Solving

Flow Chart
Pareto Diagram
Check Sheet
Cause & Effect Diagram
Control Chart
27
Histogram
Scatter Plot
Flow Chart
Way of representing a Procedure or process using simple symbols and arrows

A Flowchart shows the activities in a process and the relationships between them
Operations and Decisions can be represented
Process
Start
Predefined
Process
Decision
Box
Connector
The Process flow

End
28
Check Sheet
Purpose: To collect data when the number of times a defect or value occurs is
important.
Note: Check sheet and tally chart are the same for our purpose.
When to use: During problem definition / monitoring results of a new situation
How to use:
Agree the data to be collected
Design the check sheet
Ask third person to use the check sheet modify if necessary
Design a master check sheet if more than one person is involved in data
collection
Collect the data
Benefits:
Establishing the facts

Simple
way to involve people in quality improvement
29
Histogram
Purpose
To display continuous data collected by check sheets so that any patterns can be
discovered.
When to use
In the early stage of problem solving when a team is trying to find out what is
happening.
How to use
Collect data using a check sheet or similar mechanism.
The number of times a value occurs is shown on the vertical axis.
The value at which it occurs is shown on the horizontal axis.
Benefits
Simple pictorial representation of data.
30
Pareto Diagram
Purpose
To identify the most important problems for a team to work on.
When to use
When a team is analyzing data and is wanting to decide on which effect to be
tackled first so as to have the most impact on the problem.
How to use
List the effects in a table and count the number of times each occurs.
Place these in descending order of magnitude in the table.
Calculate the total for the whole list.
Calculate the % of the total that each effect represents.
31
Purpose
To find out possible causes for an effect.
When to use
When a team is trying to find potential solutions to a problem and is looking for the
root cause.
How to use
Brainstorm all possible causes of the problem or effect selected for analysis.
Classify
the major causes under the suggested headings:
People, Methods, Materials, Machine, Measurement, Environment for a

product related effect
People, Policies / Procedures, Location, System, Measurement,

Environment
for a service related effect
32

How to use (contd.)
Draw a Cause and Effect Diagram.
Write the causes on the diagram under the chosen classifications.
Benefits
Helps in getting to the Root Causes
Helps in considering all possible causes
Materials
People
Training
Skill
Type of solder paste
Operator
Size
Knowledge
Shape
Operator
Self-sufficiency
Thickness
Shifts
Component
packaging
Schedule
Weekend
REFLOW
DEFECT
Full reflow
Type of
screen
Batch size
Tools
Feeder
Tools
Component
density
Fine pitch
Speed
Oven
Preventive
maintenance
Methods
33
Temperature
Machine
Scatter Plot
Purpose
To estimate the relationship between cause and effect.
When to use
When a team is trying to test whether a relationship exists between two
items
often a cause and an effect
How to use
Collect data about the causes and effects.
Draw the cause on the horizontal axis.
Draw the effect on the vertical axis.
Draw the scatter diagram.
Benefits
Reduce the amount of gut feel.
No
Relationship
Positive
Relationship
Negative
Relationship
34
Control Charts
Purpose
To monitor performance over time.
When to use
When we know the factors that affect performance, and want to control these
factors.
How to use
Estimate factors that affect output performance.
Calculate Control Limits for each of the factors.
Collect data on performance and the factors.
Plot the data on the control limits over time.
Benefits
Detects trends and out-of-control conditions immediately.
Allows process corrections to prevent rejections.
Helps reduce variability.
35
Basics of Quality
KANO Model
KANO Model
Is Customer the most important word

used in your business vocabulary ???
Are you consistently

differentiating your Product or
Service from the competition ??
How important is Innovation to the

long term success of your
company? (And what are you doing about it?)
37
KANO Model
Discovering.
The
Kano
Model
A critical first step to understanding

your Customer Needs better than
they understand their own needs !!
38
KANO Model
Are
Value
Quality and
Innovation three mutually exclusive goals?
Truly Successful Products and Services

will deliver on all three!
The key to success is

unlocking the Customer Code
Customer decisions are made at the conscious

and subconscious level
39
KANO Model
The Kano
Model
3 distinct types of Needs
that occur at a Conscious and
Subconscious level
40
KANO Model
Customer Satisfaction
One stop shop for resolution

Follow-up calls
New service packages
Operational Hours of Helpdesk / Billing Depts.
Innovative pricing plans
Customer profiling / segmentation
Proactive individualized solutions to these
profiles / segments
Delighters
Value added services
Policy changes
Pricing
Billing / Credit issues
Performance
Customer Service Attitude
Service Levels
Average Speed to Answer
Ability to Handle Request
Clarity of speech
Soft skills (Professionalism, Empathy, Accent)
Consistency
Keeping the promises (Truck Roll, Call Back)
No Force Sell
Quality of Phone Line
Satisfiers
FCR
Speed of resolution
Agent Knowledge
Taking Ownership
Ease in IVR Navigation
Must Bes
Call Hold Time
41
KANO Model
The KANO Model shows us WHAT 3 types of

Customer Needs exist.
Now we need to know HOW to identify a list of
our Customer Needs for each of the 3 KANO
categories!
Must Bes Attributes / Needs that are Expected, Assumed and

Given
Satisfiers Attributes / Qualities that are consciously evaluated

by the Customer and at the top of their minds when purchasing.
Delighters Attributes / Qualities that deliver buzz. The Wows,
Differentiators, Innovations, Unique Selling / Value Propositions
42
KANO Model
A Typical VOC Research should be enhanced

to capture conscious and subconscious needs
(VOC)
Voice of Customer
(MOC)
Mind of Customer
43
KANO Model
Understand the different types of Customer Needs

you are looking for. (KANO Model)
Steps
that follow
the
KANO Model
Use classic and modern research tools (VOC & MOC) to

discover, document and prioritize the 3 KANO categories of
needs
To do
Translate the Highest Priority Needs

into Concepts
To do
Evaluate and Select the best Concept

to move forward with.
To do
Perform detailed Product and / or Service Design,

Process Design and Validation
To do
Communicate Value to your Customers
44
KANO Model
http://www.youtube.com/watch?v=WNr_TL20G5Y
45
Questions
46
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Confidential [24]7 Customer Inc. 2016

Please put your cell phones

No phone calls and/or

We will take breaks

We will park certain topics.

or too detailed to be handled in the time allotted.

What is in it for you ??

Understanding term Quality

Customer Understanding (KANO)

Confidential 24/7, 2016

What is expected from you?

Out of the Box Thinking

Confidential 24/7, 2016

Confidential [24]7 Customer Inc. 2016

Fitness for use

Confidential 24/7, 2016

Todays Quality Definition is:

Confidential 24/7, 2016

Company XYZs Quality Guiding Principles

Client and customer come first

Ensure data integrity

Confidential 24/7, 2016

Confidential [24]7 Customer Inc. 2016

Basic Stats & 7 QC Tools

Confidential 24/7, 2016

Confidential 24/7, 2016

Are these parallel lines?

Confidential 24/7, 2016

Confidential 24/7, 2016

Our understanding of problems is largely determined by our perceptions

It is observed that some of the customer

Confidential 24/7, 2016

The Better Bread Company

The BETTER BREAD Company

Confidential 24/7, 2016

What is Important to the Customer?

A CTQ is a customer performance

Some more examples of CTQs are:

On-time delivery of courier packages

Accurate data entry of claims

Each of these requirements is a CTQ

Confidential 24/7, 2016

Confidential 24/7, 2016

What is an Opportunity For Error (OFE)?

In a single Unit of Bread the

An Opportunity for Error is a product /

Arrival time of a courier package OFE is 1

Confidential 24/7, 2016

What does a Defect mean??

A DEFECT is a point of non-conformity in a

A wrong amount paid on an insurance claim

Bad taste (Taste)

Confidential 24/7, 2016

Attribute / Discrete data

Confidential 24/7, 2016

Discrete / Attribute Data Analysis

It is the lowest level of data which cannot be further classified

Variable / Continuous Data Analysis

Less Sample Size is required to perform any analysis

Confidential 24/7, 2016

Continous Data Analysis

Study Stability Run Charts

Study Shape Normality Plots