Chapter 4 _for slideshare.ppt
- 1. CHAPTER 4 TOOLS IN QUALITY MANAGEMENT TECHNIQUES
- 2. Tools In Quality Management Techniques • As in any home toolbox, you can have dozens, if not hundreds, of different tools used for different tasks. • Such is the case with quality improvement. There are many tools available for your use depending on what task you want to accomplish. • However, like your home toolbox, there are a small set of basic tools that are your go-to tools you will use most often and on most projects.
- 3. Problem Solving through 7 QC Tools Check Sheet Histogram Pareto diagram Cause and Effect diagram Flow chart/Process maps Scatter diagram Control Chart 1 2 3 4 5 6 7
- 4. Step in Problem Solving i. Defining the problem ii. Identifying the root cause iii. Generating possible Solutions iv. Choosing the best Solutions v. Implementing the solution vi. Verifying the solution effectiveness
- 6. Our problem at hand • An online retail company’s revenues has dipped down by 20% (USD 100 million in 2018 TO USD 80 million in 2019). • Its net promoter score has come down by 30%. – (customer loyalty and satisfaction measurement) • It sets up a target to achieve revenue target of USD 120 Million by 2023 (30%).
- 7. ii-Identify the root cause
- 8. Steps taken • A sample of 1000 customers are chosen using statistical sampling method. • Survey is being conducted where the company wanted to learn customer pulse. QUESTIONNAIRE
- 9. Customer Satisfaction Rating (CSR) Name Rating Contact Name 1 Dissatisfied .. Name 2 Extremely Dissatisfied … … Cannot say … Name 800 Extremely Dissatisfied … Name 900 Satisfied … Name 1000 Extremely Dissatisfied …
- 10. 1. Check sheet/Tally sheet CSR Rating Total count Extremely Dissatisfied 1111 1111 1111 1111 …. 400 Dissatisfied 1111 1111 1111 1111 …. 300 Cannot say 1111 1111 1111 1111 …. 100 Satisfied 1111 1111 1111 1111 …. 150 Extremely Satisfied 1111 1111 1111 1111 …. 50 Useful for gathering attribute data while performing inspections
- 11. 2. Histogram “70% of customers are unhappy. It is disappointing.” -Management
- 12. Reason why customers are unhappy 1. Product on time delivery 2. Bad user experience 3. Insufficient product range 4. Higher pricing 5. Bad quality products 6. Issue with payments 7. Product manual “It takes long time to solve all these problems. Meanwhile, we will end up losing our customer base. Is there a way out?” - Management Which are the top reason we can addressed ?
- 13. 3. Pareto Analysis • 80% of the problem are caused by 20% of the factors or causes. • By focusing on 20% of the factors, managers can attack 80% of the problems • Use of 80:20 rule.
- 14. 3. Pareto Chart Complaint type Count Frequency/ Quantity Cumulative % Product on time delivery 480 480 48 Bad user experience 320 800 80 Insufficient product range 100 900 90 Higher pricing 40 940 94 Bad quality products 30 970 97 Issue with payments 20 990 99 Product manual 10 1000 100 48=480/1000x100 80=800/1000x100 Descending order Cumulative frequency Frequency Cumulative percentage(%)
- 16. Frequency Cumulative % Problem area to focus Complaint type Count Frequency/ Quantity Cumulative % Product on time delivery 480 480 48 Bad user experience 320 800 80 Insufficient product range 100 900 90 Higher pricing 40 940 94 Bad quality products 30 970 97 Issue with payments 20 990 99 Product manual 10 1000 100 Problem area to focus
- 17. How can we arrest these problems? -Brain Storming 1. Product on time delivery 2. Bad user experience Gaps in order fulfillment process Lack of quality processes Tools unavailability
- 18. Product on time delivery: Root causes 1. Gaps in order fulfillment process 2. Lack of quality processes 3. Tools unavailability 4. Poor Training 5. Lack of motivation 6. Frequent power outages 7. Late delivery from vendors
- 19. 4. Cause and Effect Diagram
- 20. 4. Cause and Effect Diagram X1 X2 X3 X4 X5 X6 X7 X8 Y = f (x)
- 22. • Climbing up the hill-positive relationship • Climbing down the hill-negative relationship (*even not prefect line) Interpret the scatter plot
- 23. Scatter plot and correlation
- 24. 6. Flow Chart:Oder fullfillment process Receive order •Confirm order •Collect payment •Post-process order Prepare Package •Items in stock •Collect items from suppliers •Packaging Delivery •Delivery Team •3rd party logistics supplier •Cash on delivery After sales support •Refund order •Return item •Warranty
- 25. 7. Control Chart *Average we should be able to ship within 48 hr, process capability says at max, may take 72 hours, at min will take 24 hours. UCL/LCL-upper/lower control limit (derived from process capability) USL/LSL-upper/lower specification limit (customer expectation) **USL/LSL should always within the UCL&LCL, then only customers will be happy.
- 28. iv-Choosing the best solution
- 29. Control Impact Matrix Come up with Action items for each of HIGH/IN CONTROL and cost-effective solutions
- 33. Vl-Verifying the solution effectiveness Compare with result achieved Recollect surveys to gauge customer pulse
- 34. Step to draw pareto chart (Data based on Table 2) 1. Arrange data in descending order 2. Calculate cumulative value. 3. Calculate the percentage cumulative (%). 4. Draw pareto chart (Horizontal Axis-Players, Vertical Axis-Run score) 5. Run score shown by bar chart (descending order) 6. Cumulative percentage shown by line graph (ascending order) **Step to create pareto chat using excel- https://www.excel- easy.com/examples/pareto-chart.html
- 35. Example how to draw Pareto chart Table 2 Player Run score Cumulative score % cumulative score Rajan 111 111 29.60 Karan 85 196 52.27 Mukul 65 261 69.60 Wasim 45 306 81.60 Ravi 20 326 86.93 Sachin 15 341 90.93 Gautam 12 353 94.13 Bhuvan 10 363 96.80 Krishan 5 368 98.13 Sunil 4 372 99.20 Nasim 3 375 100.00 Table 1 Player Sachin Rajan Mukul Gautan Karan Bhuvan Ravi Wasim Krishan Nasi m Sunial Total Runs Scored 15 111 65 12 85 10 20 45 5 3 4 375 1 2 Descending order 3 Sketch from left to right
- 36. Step to draw scatter plot 1. Identify independent variable, put on X-Axis is (Cause/factor). 2. Identify dependent variable, put on Y-Axis (effect/outcome). 3. Put a scale on X-axis and Y-axis (based on smallest value and largest value). 4. Plot a point that represent a pair of data. 5. Interpret the relationship between two variable.
- 37. Example how to draw Scatter plot Name Height (cm) Weight (kg) Fred 190 82 Lucy 168 61 Jill 175 68 Li 188 91 Harry 175 85 Gertrude 151 59 Peggy 160 65
- 38. Tutorial 1- Draw a Pareto chart Defect Type Total defects Material defect 9 Collar defect 28 Cuff defect 13 Button defect 51 Zipper defect 1 Sleeve defect 11 Pocket defect 45 Colour defect 5 Pattern defect 2 Stitch defect 5
- 39. Hours Studying Exam Score 2 53 4.5 35 5 91 5 72 6 60 3 62 10 85 9.5 78 8 99 Tutorial 2- Draw scatter plot X-Axis Y-Axis
- 40. Thank you!