Process Quality

Group 3:Hitesh Gupta Kunal Kataria Neha Thakur Nishtha Vohra Nitu Bijarnia

Introduction
A set of methods for aligning all the components of a business to the quality requirements of the client or customer, in order to maximize quality and reduce waste. Process improvement methodologies such as six sigma are used to re-engineer business processes and business communication

Measurements
Talk to customers: Conduct formal or informal surveys of your customers to find out their key complaints.

Understand internal barriers: Some companies are culturally resistant to change and resistant to measurement.It is necessary to dig into the cause of any resistance before you get too far down the road.

Use standard tools: Activity based costing, total quality management, six sigma and ITIL (information technology infrastructure library) are few established methods that large companies used to tack and improve processes. Hire a consultant with specific expertise : It is recommended to start with a consultant or an analytics expert.

SIX SIGMA TECHNOLIGY

.Definition
. DPMO . DMAIC . Variations in processes

DEFINITION
Six sigma is a new approach to process control based on a set of principles that enables organizations to improve their quality to zero defect levels. Multinational firms such as Motorola and GE pioneered the use of the six sigma approach to quality. Six sigma is applicable to both manufacturing and service organizations.

DEFECTS PER MILLION OPPORTUNITIES (DPMO)

A defect is an unacceptable state of product and services for a consumer, arising out of a business process that produced it. The basic metric of interest in six sigma quality control is the DPMO. This measure indicates how many defects a process generates in a million opportunities.

While service industries find it convenient to use DPMO, manufacturing organizations use the term parts per million (PPM).

If in a process, k= number of opportunities for making a defect per unit of execution of that process n= number of units of observation of the process d = number of defects that occurred in that process during the observation The defects per opportunity=d /(k * n )

Defects per million opportunities ( DPMO) = d/ (k * n) * 1000000

DMAIC

DMAIC (define- measureanalyse- improve-control)

DEFINE- In this the problem and the context for improvement is defined. MEASURE- In this step the data is obtained. ANALYSE- In this the data collected is analysed to find possible causes for bad quality and identify areas that need improvement in order to reduce defects. IMPROVE Here the improvement phase ideas for eliminating the root causes is developed. CONTROL Steps are taken that process does not drift away from new improved standards.

VARIATIONS IN PROCESSES
The collective set of tools and techniques used to develop a quality assurance system when business processes exhibit variations is known as statistical process control (SPC). There are basically two causes for variations: 1. Common causes 2. Assignable causes

COMMON CAUSES
Chance variations arise on account of purely random events that are not in the control of the system designer or the operating personnel. The causes of these variations are known as common causes of variations. ASSIGNABLE CAUSES When the observed variations are not statistically found to be due to random effects, it clearly points to the existence of some assignable causes.

INDIAN Example for Six Sigma Mumbais Dabbawalas & Wipro

Introduction

A dabbawala is the one who carries the box in the Indian city of Mumbai whose job is to carry and deliver freshly made food from home in lunch boxes to office workers
Tiffin is box in which lunch is carried. For the efficiency of their supply chain it has been claimed that this virtually achieves a Six Sigma performance rating, (i.e. 99.9999% of deliveries are made without error, he is at CMMI level 6)

What is NMTBSA
(Nutan Mumbai Tiffin Box Suppliers Association) History : Started in 1880 Charitable trust : Registered in 1956 Avg. Literacy Rate : 8 th Grade Schooling Total area coverage : 60 Kms Employee Strength : 5000 Number of Tiffin's : 2,00,000 Tiffin Boxes i.e 4,00,000 transactions every day Time taken : 3 hrs

Beyond six sigma

Error Rate: 1 in 16 million transactions Six Sigma performance (99.999999) Technological Backup: Nil. Cost of service Approx. Rs. 300 to 500 /month About $6 - $7 / month only Standard price for all (Weight, Distance, Space) Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.] Earnings -5000 to 6000 p.m. Zero % fuel Zero % investment Zero % modern technology Zero % Disputes 100 % Customer Satisfaction

Awards and Felicitation

Shri.Varkari Prabhodhan Mahasmati Dindi (palkhi) sohala 4 th march 2001. Invitation from CII for conference held in Bangalore. Documentaries made by BBC ,UTV, MTV, and ZEE TV Dabbawalla services are popular with the Indian IT developer community in Silicon Valley , California , USA

HISTORY OF WIPRO

Wipro started as a vegetable oil company in 1947 from an old mill founded by Azim Premji's father. At that time, it was valued at $2 million.

In 1977, when IBM was asked to leave India, Wipro entered the information technology sector. In 1979, Wipro began developing its own computers and in 1981, started selling the finished product.

Awards
Wipro become the first Indian it service provider to be awarded gold level status in Microsofts windows embedded partner program Worlds first IT service company to use six sigma. Wipro technologies winner of Indian MAKE (Most Admired Knowledge Enterprise)Awards 2008 Wipro wins international institute for software testings software testing best practice award. 06/08/09 WIPRO

Six Sigma
It is the first company in India to adopt the Six Sigma TQM methodology for continuous improvement and eliminate defect and cycle time reduction. Six Sigma program spreads right across verticals and impacts multiple areas such as project management, market development and resource utilization. Its has over 3350 employees trained in Six Sigma with 120 certified black belts . It has 500 ongoing Six Sigma projects and the expected financial return is 10% of PBT 06/08/09 WIPRO.

Process Control

PROCESS CONTROL FUNDAMENTALS

NOMINAL VALUE : Desired average SECIFICATION LIMITS :Tolerances allowed ULS and LSL PROCESS AVERAGE :Central line CONTROL LIMITS : ULC and LCL UCL= Process Average + 3 LCL = Process Average - 3

CHOOSE THE CHARACTERISTIC FOR PROCESS CONTROL

CHOOSE THE MEAUREMENT METHOD

CHOOSE AN APPROPRIATE SAMPLING PROCEDURE

CHOOSE THE TYPE OF CONTROL CHART

CALCULATE THE CONTROL LIMITS

PLOT THE DATA AND ANALYSIS

SETTING UP A PROCESS CONTROL SYSTEM

Choose the characteristic for Process Control Know the aspect of the process that needs to be monitored and controlled. Ease of measurement and measurement characteristics need to be considered.

Choose the Measurement Method Attribute based measurement Variable based mesurement

Choose an Appropriate Sampling Procedure It involves deciding on Size of each sample or sub group (n) The number of such samples to be taken (m)

Choose the Type of Control Chart It is available for both attributes measures and variable measures.

Compute the Controls Limit Compute relevant parameters for the control charts.

chart R chart C chart

X chart
Process average or central line,

C Chart
Process average or central line ,c =c
m

Plot the data and analyse it

Process Improvements in Long Run

Process Capability Potential Capability Actual Capability