Chapter 2

Deming: 14 Points
1. Create constancy of purpose
14. Put everybody to work

Ishikawa: Basic 7 tools of quality: 11 Points

1. Quality begins with education and ends with education
11. Data without dispersion information are false data

Armand Feigenbaum: Total quality control: 19 Points

1. Total quality control is defined as a system of improvement
19. Control quality at the source

Philip Crosby: 14 Points

1. Make it clear that management is committed to quality
14. Do it all over again
Book-Quality is free

Genichi Taguchi: Taguchi method: Quality loss function, Robust design

Robert C. Camp: Benchmarking

Book-Benchmarking: The search for industry best practices that lead to superior
performance

Steven R. Convey:
Book-7 habits of highly effective people
1. Be proactive
7. Sharpen the saw

Tom Peters:
Book-In search of excellence

Michael Hammer and James Champy: Reengineering

Book-Reengineering the corporation
-----------------------------------------------------------------------------------------------------------------------

Chapter 8:
Intangibles: Those that cannot be inventoried or carried over long periods of time.
Heterogeneous: No two services for companies can be the same.
  1  
Customer coproduction: Customers filling their own drinks.
External services: Whose customers pay the bills.
Internal services: In-house services such as data processing, printing and mail.
Voluntary services: Services that we actively seek out and employ of our own accord. Eg:
Gas station, restaurant, hotel.
Involuntary services: Services that we do no choose. Eg: Prison, hospitals, police and fire
department.
Attributes of service leader:
Leaders -> Service vision
Service leaders -> High standards
Outstanding service leaders -> In-the-field style of leadership
SERVQUAL: Tool by Parasuraman, Zeithamel, and Berry to assess service quality.
SERVQUAL has two parts namely customer expectations and customer perceptions.
Gap 1: Management perceptions of customer expectations -> Expected service(Customer
expectations)
Gap 2: Service quality specifications -> Management perceptions of customer
expectations
Gap 3: Service delivery -> Service quality specifications
Gap 4: Service delivery -> External communications to customers
Gap 5: Expected service -> Perceived service
Services blueprinting: By Lynn Shostack:
A flowchart that isolates potential fail points in a process. 4 Steps.
1. Identify process, 4. Analyze profits.
Moments of truth: The fail points n the service blueprints.
Poka-yoke: Fail-safes in services. Defined using 3 T's
Task to be performed, Treatment provided to the customer, and Tangibles provided to the
customer.
Customer benefit packages: Consist of tangibles that define the service and intangibles
that make up the service.
Tangibles are known as good content, Intangibles are known as service content.
Service transaction analysis: It is a process improvement technique that allows managers
to analyse their service processes at a very detailed level.
Crosby views service encounters as a series of transactions or moments of truth.
-----------------------------------------------------------------------------------------------------------------------  

Chapter 9:
Hidden factory: Non-value chain activities those have costs but no effect on customer.
Supplier partnering: Improving suppliers
Single sourcing: Narrowing down the list of approved suppliers for a single component to
just one supplier.
  2  
Dual sourcing: Approved suppliers are reduced to just a few.
Supplier evaluation: Tool to differentiate and discriminate suppliers. It is recorded on
report cards.
Sole-source filters: Rely on external validation of quality programs.
Supplier audit: Team of auditors visit the supplier and then provide results of the audit to
the customer.
Electronic data interchange: System that aides customer and supplier communication
through their information system.
JIT II is now called Vendor managed inventory (VMI)
SRMS-Supplier relationship management systems: Include spend analytics, sourcing and
procurement execution, payment, performance monitoring.
QS 9000: Chrysler, Ford and GM. Update beng TS 16949. Used for automotive industry.
GM program called Target for excellence. Ford program called Q1.
Acceptance sampling: Technique to verify that incoming goods from suppliers adhere to
quality standards. Can range from few items to 100%.
Producers risk: Risk associated with rejecting a shipment of materials that has good
quality. Denoted by alpha and is called Type I error.
Consumers risk: Risk associated with rejecting a shipment of materials that has poor
quality, believing that it has good quality. Denoted by beta and is called Type II error.
Acceptable quality level (AQL): It is the maximum percentage of proportion of non
confirming teems or number of non conformities in a lot or attach that can be considered
satisfactory as a process average.
Lot tolerance percent defective (LTPD): It is the level of poor quality that is included in a
to of goods.
Operating characteristic curves (OC): IT provides an assessment of the probabilities of
acceptance for a shipment, given the existing quality of the shipment.
-----------------------------------------------------------------------------------------------------------------------

Chapter 10:
Quality system model: Customer, Procedures, Plant and equipment, People, Technology,
R&D, Legal requirements, Renewal, Planning, Change, Continual improvement

Ishikawa's basic 7 tools of quality:

1. Process maps: It is a picture of a process. Can be decision, processing, input/outut,
start/stop, flowline, page connector.
1. Settle on a standard set of process mapping symbols to be used.
5. Review the process with the emloyees to make needed changes….
2. Check sheets: They are data gathering tools that can be used in forming histograms.
Can be tabular, computer based or schematic.
1. Identify common defects occurring in the process.
  3  
 3. The user of the check sheet places checkmarks..….
3. Histograms: They are graphical representations of data in a bar format.
4. Scatter plots: It is used to examine the relationship between variables.
1. Determine your x (independent) and y (dependent) variables.
4. Observe the plotted data...
5. Control charts: It is used to determine whether a process will produce a product or
service with consistent measurable properties.
6. Cause and effect diagrams: It is a tool to help move to lower levels of abstraction in
solving problems.
1. State the problem clearly in the head of the fish.
5. Set goals to address the core issues.
7. Pareto analysis: It is used to identify and prioritise problems to be solved.
1. Gathering categorical data….
3. Focussing on the tallest bars in the frequency chart….

The 7 new tools for improvement:

1. Affinity diagram: It is useful to surface all the issues associated with the problem.
1. Identify the problem to be stated.
9. Draw a finished affinity diagram…...
2. Interrelationship diagram: It shows the relationships between different issues.
1. Construct an affinity diagram....
5. Draw a double box around the key factors...
3. Tree diagram/system flow: To identify steps needed to address given problem.
1. Assemble the header cards from the affinity diagram…..
4. Continue doing this for successive levels until..….
4. Prioritization matrices or grid: To make decisions based on multiple criteria.
1. Determine your goal, your alternatives..….
8. Rank the alternative according to the importance.
5. Matrix diagram: Similar to concept to QFD in its use of symbols, layout & application.
1. Determine the number of issues...
3. Place the appropriate symbol in the matrix.
6. Process decision program chart: To help brainstorm possible contingencies or
problems associated with the implementation of some program or improvement.
1. In developing the tree diagram, place the first level boxes….
5. Evaluate the countermeasures for feasibility….
7. Activity network diagram: known as PERT and used for controlling projects.

Others:
Spider charts: Graphs that present multiple metrics simultaneously in a two dimensional
plane.
  4  
Balanced scorecards: They are spreadsheets used to communicate to management for
measuring performance.
Dashboards: Looks like electric meters or car dashboards.
-----------------------------------------------------------------------------------------------------------------------  

Chapter 11:
Situational leadership model: By Hersy and Blanchard: Clarifies the interrelationship
between employee preparedness and effectiveness of leadership.
Readiness: Extent to which a follower has the ability and willingness to accomplish a
specific task.
Team formation and evolution:
Forming: Team is composed and objective of the team is set.
Storming: Team members get to know each other.
Norming: Team becomes a cohesive unit.
Performing: Mutually supportive steady state state is achieved.
Mourning: Team members regret the ending of the project and breaking up of the team.
Process improvement teams: Teams that work to improve process and customer service.
Cross functional teams: Teams enlist people from a variety of functional groups within the
firm.
Tiger teams: High powered teams assigned to work on a specific problem for a limited
amount of time.
Natural work group: Teams organised around a common product, customer, or service.
Self-directed teams: Teams chartered to work on projects identified by team members
themselves.
Virtual teams: Teamware
Parking lot: It is a flipchart or whiteboard where topics that are off the subject are parked
with the agreement that these topics will be on the agendas for the next meeting's
agenda.
Project charters: Simple tools to help teams identify objectives, participants, and expected
benefits from projects.
Force-field analysis: Tool designed to identify and quantify all of the forces for or against
organisational change. 1=Weak, 5-Very strong.
Work breakdown structure: Tool for determining the tasks to complete a project.
-----------------------------------------------------------------------------------------------------------------------

Chapter 12:
Statistical thinking: It is a decision-making skill demonstrated by the ability to draw
conclusions based on data.
Random variation: It is centred around a mean and occurs with a consistent amount of
dispersion.
  5  
Process stability: It means that the variation we observe in the process is random
variation and not nonrandom variation.
Process charts: Graphs designed to signal process workers when nonrandom variation is
occurring in a process.
Rational subgroup: It is a group of data that is logically homogeneous.
Charts:
x chart: It is a process chart used to monitor the average of the characteristic being
measured.
R chart: It is used to monitor the dispersion of the process.
Process run: Five points in succession.
Process drift: Seven points that are increasing or decreasing result.
Erratic behaviour: Large jumps of more than 3 or 4 standard deviations.
X chart: It reflects a population distribution. 3 standard deviations limits in an X chart is
the natural variation in a process.
g chart: It is used when data are geomentrically distributed.
h chart: It is used when data are hyper-geomentrically distributed.
s chart: Standard deviation chart: It is used where variation in a process is small.
Moving average chart: It is used to monitor variables and measurement on a continuous
scale.
Cusum chart: It is used to identify slight but sustained shifts in a universe where there is
no independence between observations.
Corrective action: When a process is out of control, corrective action is needed.
Process capability: It refers to the ability of a process to produce a product that meets
specification.
-----------------------------------------------------------------------------------------------------------------------

Chapter 13:
Structural attributes: Physical characteristics of a particular product or service.
Sensory attributes: Relates to senses of touch, smell, taste, and sound.
Performance attributes: Relate to whether or not a particular product or service performs
as it is supposed to.
Temporal attributes: Relates to time.
Ethical attributes: Do they report properly.
Customer based attributes: Associated with customer satisfaction.
Production related attributes: More internal and engineering oriented.
Defect: Irregularity or problem with a large unit.
p chart: It is a process chart that is used to graph the proportion of items in a sample that
are defective. They are used to determine when there has been a shift in the proportion
defective for a particular product or service.
np chart: It is a graph of the number of defectives in a subgroup.
  6  
c chart: It is a graph of the number of defects(nonconformities) per unit.
u chart: It is a graph of the average number of defects per unit.
Bathtub-shaped hazard: This model shows us that the products are more likely to fail
either vary early in their life or late in their useful life.
-----------------------------------------------------------------------------------------------------------------------

Chapter 14:
Six sigma: Well throughout packaging, more cost reduction, well organised.
Sigma refers to Greek symbol, means standard deviation in statistics. Began in Motorola.
Champion: Job of champion is to work with black belts and potential belts to identify
possible projects.
Master black belts: Experienced black belts are designated master black belts.
Green belts: They are trained in basic quality tools and work in team to improve quality.
Yellow belts: They are employees who are familiar with improvement processes.
Design phase: Projects are identified and selected. 4 steps.
RUMBA: It is used to check the efficacy of a business case.
Measure phase: 2 steps
Measurement system analysis: Used to determine if measurements are consistent.
Gauge R&R: Used to determine the accuracy and precision of your measurements.
ANOVA: Used to determine whether variation comes from the part being measured.
Analyze phase: Involves gathering and analysing data relative to a particular black belt
project. 3 steps.
Improve phase: Involves off-line experimentation.
Control phase: Involves managing the improved processes using process charts.
Taguchi method: Used to determine the best combination of inputs to produce a product
or service. Accomplished though DOE.
Robust design: States that products and services should be designed so that they are
inherently defect free and insensitive to random variation.
Concept design: Process of examining competing technologies to produce a product.
Parameter design: Refers to selection of control factors and the determination of optimal
levels for each of the factors.
Tolerance design: Deals with developing specification limits.
Taguchi ideal qualityL Refers to a reference point or target value for determining the
quality level of a product or service.
Orthogonal arrays: Tools to maintain independence between the successive trials of a
Taguchi experiment.
Design for six sigma: Used in designing new products and services with high
performance as measured by customer based critical-to-quality metrics. DFSS requires
DMADV and IDOV process.
-----------------------------------------------------------------------------------------------------------------------
  7  
Chapter 16:
Culture: Refers to the norms and beliefs that lead to decision making patterns and actions
in an organisation.
Closeness to customers: Describes the firm's understanding of the customers their needs
and their wants.
Information systems: Provides the core of the support system for satisfying the customer.
Integrative approach: Provides glue binding together with systems that result in high
quality products and services.
Stage1: Surveying: Generate list of strengths and weaknesses….
Stage 2: Categorizing: Categorizing the strengths and weaknesses….
Stage 3: Investigation: Investigating the sources of competitive advantage.
Stage 4: Evaluating: Evaluating the competitive advantage.
Generic auditing steps: Familiarization->Verification->Evaluation->Recommendation
Quality audit process: 10 Steps: 1. Preparation, 10. Closure.
Operational audits: Includes a specific objective of improving the operations that are
being audited.
Performance audits:
Suppliers audits: Conducted by purchasers of their suppliers.
Certification audits: To maintain certifications.
Award audits: Awards such as Baldrige, state etc.
Consultant audits: Performed by consultants to determine the maturity of a company.
Presidential audits: Led by president of the company.
Qualitative audits: Compare current practice against structural measures.
-----------------------------------------------------------------------------------------------------------------------
 

  8