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ESSENTIALS OF
QUALITY MANAGEMENT
PN. NORKISME ZAINAL
ABIDIN
019 620 8585
norkisme@ukm.edu.my

WHAT IS WASTE?

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Anything that does not add value to a

process and that a customer would not
want to pay for; if given a choice

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8 WASTES THAT HIDDEN IN

PRODUCT/PROCESS/PEOPLE
1. Transportation Excess

8. Unused Employee Creativity & Skills

7. Defects- Rejects, Rework

2. Inventory Excess

6. Over-processing
3. Motion Excess
4. Waiting

5. Over-production

TRANSPORTATION WASTE.
Definition
Any information, or material
movement that does not directly
add value to a product or
service

Characteristics
Complex computer tracking
system
Critical process steps not
documented
Extra floor space

-4-

Causes
Lack of communication
Lack of procedure documentation
Inconsistent schedule

Examples
Transporting material between sites
Movement of paper between people
or department
Sending samples for measurement
or approval.
Handling material more than once,
unnecessary moving or handling of
material

INVENTORY WASTE
Definition
Any supply in excess of customer
requirements necessary for
product or services

Characteristics
Too many forms or paper
Too many copies
Extra space for storage

-5Causes
Management decision
Incapable processes
Inaccurate information flow

Examples
Unnecessary raw materials, work in
process (WIP), finished stocks, &
equipment parts
Electronics, paper archives/reports
Multiple receipt of same email
Two forms used with same
information
Excess WIP or office supplies
Physical or email inbox and outbox.

MOTION WASTE ( People or Tools)

Definition
Any movement of people or tools
that do not add value to the
product or services

Characteristics
Looking to find information,
supplies or equipment
Too much search or walk time
Multiple trips to filing rooms or
copy center.

-6-

Causes
Layout not planned but evolves
Lack of adequate information or
service equipment
Lack of workplace organization

Examples
Excessive walking due to
inappropriate work place lay out
Bending, stretching, reaching
Too many mouse clicks: multiple
screens to update info etc.

WAITING
Definition
Idle time that is produced when two
processes are not synchronized

Characteristics
Unbalance workload
Process flow stops due to
unplanned interruptions
Queues or idle time

-7Causes
Inconsistent work method
Lack of proper information
availability of flow
Lack of process standardization
Capacity doesnt match volume.

Examples
Idle time created when material,
information, people, or equipment is
not ready
Waiting for work to arrive
Waiting for your computer
Waiting for approvals, signatures,
the copier, late start of meeting.

OVER-PRODUCTION
Definition
Producing more than needed or
producing faster than needed

Characteristics
Extra information, supplies or
equipment.
Unbalanced workflow
Large batch sizes

-8Causes
Automation in wrong places.
Just in case reward.

Examples
Early production, producing over
customer orders, producing
unordered materials / goods
Processing work or supplies before
the next person or task is ready for
it.
Printing more copies than needed
Ordering thousands of brochure
because they are cheaper that way
Daily reporting even if nobody reads
them
Copying more people than needed
using reply to all on email

OVER-PROCESSING
Definition
Effort which adds no value to a
product or services

Characteristics
Bottlenecks
Lack of understanding customer
needs.
Endless refinement
Redundant approvals or checks

-9Causes
New technology used inappropriately
Decision making at inappropriate
level.
Ineffective policies and procedures.
Examples
Design and building to tighter specs.
Adding more features than required.
Reports have too much in detail that
is not used.
Recording same info multiple times,
places
Too many required signatures or at
too high level authorization.

DEFECTS
Definition
Rework/redo a product or service
to meet customers
requirements

Characteristics
Extra manpower required to
rework, revalidate, re-do
Missed datelines/ due dates
Poor customer relations

- 10 Causes
Incapable process
Excess variation in processing
Insufficient training
Management Decisions.
Examples
Customer returns
Scrap or yield loss
Conflicting or inconsistent data
Software bugs
Coding errors on forms
Misapplied payment

UNUSED EMPLOYEE CREATIVITY &

SKILLS
Definition
Not plugging into and leveraging
knowledge and ideas of your
employees.

Characteristics
Employees feel powerless
Only do what they are told
Losing times, ideas, skills,
improvement oppurtunities

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Causes
Not engaging or empowering
employees
Top down directives
No process to tap into employees
ideas.
Examples
Employees know how to fix issues
but not asked for inputs or given time
to fix.
People front line, most familiar with
the process not involved in the
decision making
Tasks done by overqualified people.
Lack of direction

EXAMPLE OF WASTE

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- 13 8 WASTES THAT HIDDEN IN

PRODUCT/PROCESS/PEOPLE
1. Transportation Excess
8. Unused Employee Creativity & Skills
7. Defects- Rejects, Rework
2. Inventory Excess

6. Over-processing
3. Motion Excess
4. Waiting

5. Over-production

13

EXERCISE 2 : Identifying waste Meeting

Type of Waste

Activity

Transportation

Wandering from one topic to another

Inventory
Motion
Waiting
Overproduction
Overprocessing
Defects
Unused skills

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Definition of Six Sigma

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What is Six Sigma?

Goal: 3.4 defects per million opportunities
Commitment to Improvement: Proactive instead of reactive
Methodology: Structured problem-solving approach
Philosophy: Customer focused culture

Key Concepts of Six Sigma

Critical to Quality
Stable Operations
Process Capability
Cycle Time Reduction

Zero Defects
Customer Focused
Variation Reduction
Design for Six Sigma

Benefit
A Six Sigma program provides:

Rapid, breakthrough performance

Continuous improvement program

Effective goals and metrics
Ownership of issues at contributor level
Standard problem solving methodology

- 16 THIS ONE ???

OR

THIS ONE ???

- 17 Six Sigma Methodology Is . . .

An overall methodology that drives business
improvements
A proven tool set for driving and achieving
transformational change
A Continuous Improvement Process, focusing on
Customer requirements
Process alignment
Analytical rigor
Speedy execution
Timely & data driven decisions
A way to eradicate targeted sources of variation (e.g.,
permanently reduce variation)

- 18 -

DMAIC Overview

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What is DMAIC?
Data-driven, incremental business process improvement model
Roadmap for problem solving and product/process improvement
DMAIC is an acronym for five interconnected phases: Define,
Measure, Analyze, Improve, and Control

Background
MAIC developed at Motorolas Six Sigma
Research Institute in early 90s
D added by General Electric

- 20 DMAIC and the Process Improvement

Roadmap

1.0

Define
Opportunities

Problem
Definition

2.0

Measure
Performance

external).

Analyze
Opportunity

4.0

Improve
Performance

Search for
Search/
Root
Current
Implement
Performance Cause
Solution

Define the
project
Measure the
goals
process to
and customer
determine current
performance.
deliverables
(internal and

3.0

Analyze and

determine the
root
cause(s)
of the
defects.

5.0

Control
Performance

Guarantee
performance
Control the
improved
processs

Improve the
process performance to
by
ensure
permanently sustainable
results.
eliminating the
defects.

- 21 Define Opportunities What is

important?
1.0
1.0

Define
Define
Opportunitie
Opportuniti
s
es
Objective

Identify And/or
Validate the
Business
Improvement
Opportunity
Define Critical
Customer
Requirements
Document (Map)
Processes
Build Effective
Teams

2.0
Measure
Performance

Main Activities
Validate/Identify
Business
Opportunity
Validate/Develop
Team Charter
Identify and Map
Processes
Identify Quick Win
and Refine Process
Translate VOC into
CCRs
Develop Team
Guidelines & Ground
Rules

3.0
Analyze
Opportunity

5.0
Control
Performance

4.0
Improve
Performance

Potential Tools and Techniques

Key Deliverables

Gap
Project Focus
$$

Sigma Goal (CCR)

CCRs

Team Charter
Business Case

Project Plan

Action Plan

Opportunity Statement

Goal Statement Project Scope

Team Selection

TASKS
TASKS

ACTIVITIES
ACTIVITIES

RESP.
RESP.

START
START

DUE STATUS &ACTIONS

DUE STATUS &ACTIONS

Team Charter
Action Plan
Process Maps
Quick Win
Opportunities
Critical Customer
Requirements
Prepared Team

- 22 Measure Performance How are we

doing?
1.0
Define
Opportunities

Objective
Determine What
to Measure
Manage
Measurement
Data Collection
Develop and
Validate
Measurement
Systems
Determine
Process
Performance

2.0

3.0
Analyze
Opportunity

Measure
Performan
ce
Main Activities
Identify Input,
Process, and Output
Indicators
Develop Operational
Definition &
Measurement Plan
Plot and Analyze
Data
Determine if Special
Cause Exists
Determine Sigma
Performance
Collect Other
Baseline
Performance Data

5.0
Control
Performance

4.0
Improve
Performance

Potential Tools and Techniques

Key Deliverables

Checksheets
Input

Process

Output CCR

A1
A1
A1
D1
D1
D1
D2
D2
D2
A2
A2
A2

Input
Indicator

A
A

Process Indicator
Process Indicator
UCL
Sigma=

Output Indicator

Sigma=
CCR

LCL
X

Gap

Input, Process,
and Output
Indicators
Operational
Definitions
Data Collection
Formats and
Plans
Baseline
Performance
Productive Team
Atmosphere

- 23 Analyze Opportunity What is wrong?

50%

Problem
Statement
25%

C ycle T im e

30

20

10

0
0

10

Approval Time

Process/Product:

FMEA Date: (original)

FMEA Team:

(Revised)

Black Belt:

Page:

Process
Item
Process
Steps

Potential
Failure
Mode

Potential
Effects of
Failure

of

Actions

Potential
Cause(s)
of Fai lure

Current
Controls

Total Risk Priority

Recommended
Action

Results

Responsibility Action
and Target
Taken
Completion
Date

Occurrence

Identify a Specific
Problem and Define
an Easily
Understood Problem
Statement

Indicators &
Problem
Statement
(effect)

Detection

Determine Sources
of Variation

Key Deliverables
Quantified Root Causes

Severity

Stratify and Analyze

the Opportunities for
Improvement

Stratify Process
Stratify Data &
Identify Specific
Problem
Develop Problem
Statement
Identify Root Causes
Design Root Cause
Verification Analysis
Validate Root Causes
Comparative Analysis
Sources of Variation
Studies
Failure Modes &
Effects Analysis
Regression Analysis
Process Control
Process Capability
Design of
Experiments

Resulting Risk Priority

Risk Priority

Understand
Reasons for
Variation and
Identify Potential
Root Causes

Potential Tools and Techniques

Risk Priority

Main Activities

5.0
Control
Performance

4.0
Improve
Performance

Analyze
Opportunit
y

Detection

Objective

3.0

Occurrence

2.0
Measure
Performance

Severity

1.0
Define
Opportunities

15

Data Analysis
Validated Root Causes
Sources of Variation
FMEA
Problem Statement
Potential Solutions

- 24 Improve Performance: What needs to

be done?
1.0
Define
Opportunities

Objective
Develop and
Quantify Potential
Solutions
Improve/optimize
the Process
Evaluate and
Select Final
Solution
Verify, and Gain
Approval for Final
Solution
Implement the
Pilot

2.0
Measure
Performance

Main Activities
Response Surface
Methods
Generate Solution
Ideas
Determine Solution
Impacts: Benefits
Evaluate and Select
Solutions
Develop Pilot Plan
Develop Process
Maps & High Level
Plan
Develop and Present
Storyboard
Communicate
Solutions to all
Stakeholders

3.0
Analyze
Opportunity

4.0

Improve
Performance

Potential Tools and Techniques

5.0
Control
Performance

Key Deliverables

Solutions
Process Maps
and
Documentation
Pilot Results
Implementation
Milestones
Improvement
Impacts and
Benefits
Storyboard
Change Plan

- 25 Control Performance How do we

guarantee
performance?

Key Deliverables

Error Modes and Effects Analysis

Error Modes and Effects Analysis
Error Mode Effect Analysis
(EMEA)

Process
Step

Assemble all
outbound
4.2.1 containers in
staging area

4.2.2

Determine
correct
pallet size

Process Control
System

Description:

Degree of Effect
Error

Back injury
during lift
Foot and toe
injury from
dropped
cont.

Cause

Carry-all
Back
not available injuries,
Lifting
lost time,
guidelines
insurance
not followed expense

Non-standard Vendor
pallets kept
pallet used

P osition
empty pallet
4.2.3 in marked
area of
loading dock

Full pallets
are rotated
90 by hand

S tack
outbound
containers on
4.2.4
pallet not to
exceed two
high

First layer
not
completed
before
starting
second layer

Effect

Container
stack over
end of
pallet and
fall when
being lifted

Pallet set 90 Back and

off when
hand injuries,
positioned lost time,
lift truck
insurance
cant access
expense and
rework
Stack
Containers
guidelines
fall while
not used
being lifted

Tie down
Load pallets in Tie down
guidelines
vehicle with
lines
not clear
lift truck and
damage bulk
4.2.5 secure
mail when
tightened

Injured
fingers,
damaged
outbound
mail

Total

Implement the
Final Solution
Guarantee
Process
Improvements Are
Maintained
Ensure that New
Process Problems
Are Identified and
Quickly Corrected
Disseminate
Lessons Learned,
and Identify
Replication and
Standardization
Opportunities

Verify Reduction in Root

Cause and Sigma
Improvement Resulted
from Solution
Identify if Additional
Solutions are
Necessary to Achieve
Goal
Identify and Develop
Replication &
Standardization
Opportunities
Integrate and Manage
Solutions in Daily Work
Processes
Integrate Lessons
Learned
Identify Teams Next
Steps & Plans for
Remaining
Opportunities

Control
Performanc
e

Potential Tools and Techniques

Severity

Main Activities

5.0

4.0
Improve
Performance

Detection

Objective

3.0
Analyze
Opportunity

Frequency

2.0
Measure
Performance

Step#

1.0
Define
Opportunities

0
+
2
2

2
+
2
4

2
+
3
5

10

0
+
1
1

0
+
1
1

Occurrence Prevention
(Countermeasure)

Purchase two new carry-alls for

mailroom
Include topic in new safety film

Inspect for non-standard pallets and

return to vendors

Update and clarify pallet placement

procedures
Include topic in new safety film

Update and clarify loading guidelines

Update and clarify loading guidelines

Implemented Solution

Project Workplan

CCR

Gap

CCR

Sigma Goal (CCR)

Gap

Process Control
Systems
Standards and
Procedures
Training
Team Evaluation
Change
Implementation
Plans
Potential Problem
Analysis
Solution Results
Success Stories
Trained Associates
Replication
Opportunities
Standardization
Opportunities

- 26 DEFINE

Typical Six Sigma Projects

Reduce variability
Reduce defects
Improve customer satisfaction
Reduce costs
Reduce cycle time
Shorten lead time
Optimize process performance
Optimize the supply chain

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ASSIGNMENT

- 28 -

1. Literature Review of Six Sigma in banking sectors.

2. Steps in implementing Six Sigma
DEFINE
Define Problem Statement; Set Objectives ( Baseline
Future)
MEASURE
Knowing current status
Cause and Effect Analysis/ Fishbone
Choose 3 most causes

ASSIGNMENT

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ANALYZE
Frequency , Mean, Median ,Mode , Pareto chart,
Histogram, Cause-effect diagram, Scatter Diagram
IMPROVE
Cause Suggestion for improvement Action
CONTROL
Flowchart/ Process Control/ Guidelines after
improvement
3. Conclusion
4. Reference APA format

7 QC TOOLS

THE BASIC SEVEN

THE OLD SEVEN
THE FIRST SEVEN

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- 31 -

7 QUALITY CONTROL TOOLS

Cause-and-effect diagram (also called Ishikawa or fishbone
chart): Identifies many possible causes for an effect or problem
and sorts ideas into useful categories.
Check sheet: A structured, prepared form for collecting and
analyzing data; a generic tool that can be adapted for a wide
variety of purposes.
Control charts: Graphs used to study how a process changes
over time.
Histogram: The most commonly used graph for showing
frequency distributions, or how often each different value in a
set of data occurs.

- 32 -

7 QUALITY CONTROL TOOLS

Pareto chart: Shows on a bar graph which factors
are more significant.
Scatter diagram: Graphs pairs of numerical data,
one variable on each axis, to look for a
relationship.
Stratification: A technique that separates data
gathered from a variety of sources so that patterns
can be seen (some lists replace "stratification" with
"flowchart" or "run chart").