> Information Technology Introduction Information Technology (IT) isa tool like the other tools presented inthis textbook. And like the other tools it helps the TQM organization achieve its goals. Over the past few decades, computers and quality management practices have evolved together and have supported each other. Tis interdependence will continue in the near future. Information Technology is defined as computer technology (either hardware or soft- ware) for processing and storing information, as well as communications technology for transmitting information." There are three levels of information technology:? ‘Data are alphanumeric and can be moved about without regard to meaning. Information isthe meaningful arrangement of data that creates patterns and activates ‘meanings ina person’s mind. It exists atthe point of human perception. ‘Knowledge is the value-added content of human thought, derived from perception and intelligent manipulation of information. Therefore, itis the basis fo inelli- gent action, Organizations need to become proficient in converting information to knowledge. The first computer was the ENIAC (Electronic Numerical Integrator and Computer), which was completed in 1946. The first use was by the government to manage the na- tional census and for research on nuclear weapons. Table 9-1 shows the history of in- formation technology. These dates are guides, since hardware and sofiware developed over several yeas, "Fash Mari, a, Managing lnomaton Teco th (Upper Sale River NK Pete all, , 2 Kurt Albrecht, “Information: The Nex! Quality Revolution,” Quality Digest June 1999): 30-32,CHAPTER 9 ‘SCRAP AND REWORK COST REPORT FOR PART# CODE TICKET QTY MATERIA tis = 2387 40000 800.00 760 1880 260 OD ma 7 E 30.79 90D Ee a 48.03 19.00 492 9600 mi 9862 uM TOTAL BB (a) Scrap and Rework Report $13,627.35 2,103.65 ‘THE WEEK ENDING 11/26 L LABOR OVERHEAD TOTAL 2480 8: rey 230 3.28 14.72 4655 1205 5,153.98 21,307.41 5 MH 51.52 113.38 40.70 324,80 3937 15.00 21.42 RECAP OF FAILURE CODES SHOWING AMOUNT AND PERCENT OF TOTAL CODE EXPLANATION AMOUNT ‘A #OPERATION MISSED B #BROKEN PARTS C #MISSING PARTS 5.36 0 00 D.HIMPROPER MACHINING! 1,882.72 SFOUNDRY OR PURCHASING 8841.79 00 % F #MECHANICAL FAILURE G #IMPROPER HANDLING 533.10 +H OTHER 4444 2130741 100 (b) Summary by Failure Code DEPARTMENT 4 MONTH OF OCTOBER TOTAL % 11,605 28.5 RANK CODE CODEDESCR.- $SCRAP_—-$RWK ol D-T2 TURN 7,500 4,105 02 D-HI ‘HOB 5.810 681 6,491 16.0 03, D-G6 GRIND 4152 1,363 ‘SSIS 13.8 4 D-D4 DRILL 793 3178 3971 98 05 DLI LAP a4 2,831 3,145, 78 (c) Pareto Analysis Figure 9-1 Typical scrap and rework reports: weekly cost report, weekly summary by fallure code, and Pareto analysis by nonconformity code and department ‘Typical reports for scrap and rework as produced by a computer are shown in Figure 9-1. The weekly scrap and rework cost report of Figure 9-1(a) is a listing by part number of the information transmitted to the computer from the internal failure deficiency report. Identifiers reported for each transaction are a function of the report and the space available. For this report the identifiers are part number, operation code, and deficiency ticket number. ‘The basic data can be summarized in a number of different ways. Figure 9-1(b) shows ‘a summary by failure code, Summaries are also compiled by operator, department, center, defect, product line, part number, subassembl,ssted a service representa- mail to a supervisor who examined it for fraud and then eas ‘eam changed i PO- tive to take action, Rather than wait forthe monthly printout, © whenever 2 telephone gram so the computer alerted the service represenlai™ for Ree : oS number accumulated $200 in international cals in ny three-day per Statistical Analysis areal rastesal t n for ‘The first and still an important use of the computer ae ere easily pro- analysis. Most of the statistical techniques discussed in this ed, and te calcul grammed. Once programmed, considerable calculation time is sa¥2% tions are error-free. it . an al Many statistical computer programs have been published in the Journal Be a Hf Technology andcan easily be adapted to any computer or programming ANBWAE)» 1 dition, information on statistical analysis techniques has been published in APPI@« tistics. Most of these programs have been incorporated into software packages. major software programs such as EXCEL have very sophisticated analysis techmiques, ‘such as ANOVA. ‘The advantages of programmed statistical software packages are 1. Time-consuming manual calculations eliminated. 2, Timely and accurate analyses may be performed to diagnose one-time problems or to maintain process control. 3. Many practitioners with limited knowledge in advanced statistics can perform their own statistical analyses. Once a statistical package of computer programs is developed or purchased, the qual- ity engineer can specify a particular sequence of statistical calculations to use for a given set of conditions. The results of these calculations can provide conclusive evidence or suggest additional statistical calculations for the computer to perform. Many of these tests are too tedious to perform without the use of a computer. Using statistical process control, the U.S. Postal. Service, in Royal Oak, MI found ways to reroute more mail to the automatic sorting machine. This improvement resulted in an annual savings of $700,000 for the facility.® Process Control ‘The first application of computers in process control was i (NIC) machines. Numerically controlled machines structions to the computer, which then controlled tINFORMATION TECHNOLOGY + 229 pee aed eae ee Voltage, Actuator 7 Pressure, Flow se igo tira Enon tiie inca es : Contact input [Contact Oupat OH Inierface Interface OWOf Switch Figure 9-3 Automated process control system Actuator trolled (CNC) machines, robots, and Automatic Storage and Retrieval Systems (ASRS) Provide the basic equipment for an automated factory. The measurement and control of Critical variables to keep them on target with minimum variation and within acceptable Control limits requires sophisticated equipment. An automated process control system is illustrated by the flow diagram of Figure 9-3. While the computer is a key part of automated process control, it is not the only part. There are two major interfacing subsystems between the computer and the process, One subsystem has a sensor that measures a Process variable such as temperature, Pressure, voltage, length, weight, moisture content, and so on, and sends an analog sig- nal to the digital computer. However, the digital computer can receive information only in digital form, so the signal is converted by an analog-to-digital interface. The variable value in digital form is evaluated by the computer to determine if the value is within the prescribed limits. If such is the case, no further action is necessary; however, if the dig- ital value is outside the limits, corrective action is Tequired. A corrected digital value is sent to the digital-to-analog interface, which Converts it to an analog signal that is ac- ceptable to an actuator mechanism, such as a valve. Then the actuator mechanism in- creases or decreases the variable. The other subsystem is essentially an attribute type, which either determines if a ‘con- tact is on/off or controls an on/off function. Through the contact input interface, the com- puter continuously scans the actual on/off status of. ‘Switches, motors, pumps, and so on, and compares these to the desired contact status. The computer program controls the se- quence of events performed during the process cycle. Operating instructions are initi- ated by specific process conditions or as a function of time and are sent to the contact output interface. This interface activates solenoid, sounds an alarm, starts a pump,nn i f signals at the “The four interfaces in Figure 9-3 are capable of handling a cate eis ‘same time, Also, the two subsystems can operate in ere yes aia : i s each other. Since the computer operates in — ie oops are tg 3 PS milliseconds, a timing problem can occur Un tained from auto- sible so that corrective action is immediate.” The benefits that are ol matic process control are: | Constant product quality, due to a reduction in process variation. met, More uniform startup and shutdown, since the process can be monit controlled during these critical periods. ; Increased productivity, because fewer people are needed to monitor the controls. . Safer operation for personnel and equipment, by either stopping the process or failing to start the process when an unsafe condition occurs. y fae One of the first automated process-controlled installations occurred at Western Elec- tric’s North Carolina plant in 1960. The product variables were controlled by the com- puter using X and R control chart techniques. For example, the resistance value of deposited carbon resistors coming out of the furnace was controlled by the amount of methane in the furnace and by the speed through the furnace. Since the inspection and packaging operations were also under computer control, the entire production facility was completely automated.® A nuclear generating station is another example of a fully-automated system where the only human interaction occurs at the computer console. An example of an automated process control for a business operation is given by the Naval Aviation Depot Operations Center at Patuxent River, MD. A multifunctional team. ‘automated the travel process of request, reservations, and reimbursement, The computer program holds profiles on individual travelers so that two-thirds of the information on. the travel form is in the computer and the traveler only needs to input the itinerary. The com- puter makes all of the calculations for the cash advance and the reimbursement. Each week the commanding officer receives for his review and signature a one-page summary of all planned trips. The travel department can determine the year-to-date history of any traveler and whether there are any outstanding transactions. Results of the automated sys- tem are: (1) travel changes have dropped from 100 to five per month, (2) virtually 1 of travel plans are for real trips that are taken rather than 56% in the past, (3) 9: imbursement claims are error-free rather than 67% in the past, (4) The saved $42,000 in typist salarie ive staff has fallenINFORMATION TECHNOLOGY + 231 Automated Test and Inspection sateen ms If test and inspection are considered a process in itself or part of a production process, then automated test and inspection is similar to the previous section on automated process control. Computer-controlled test and inspection systems offer the following advantages: improved test quality, lower operating cost, better report preparation, im- proved accuracy, automated calibration, and malfunction diagnostics. Their primary dis- advantage is the high cost of the equipment. Computer-controlled, automated inspection can be used for go/no-go inspection de- cisions or for sorting and classifying parts in selective assembly. Artificial vision is sometimes used in these processes. Automated inspection systems have the capacity and, speed to be used on high-volume production lines. Automated test systems can be programmed to perform a complete quality audit of a product. Testing can be sequenced through the various product components and sub- assemblies. Parameters such as temperature, voltage, and force can be varied to simu- late environmental and wear conditions. Reports are automatically prepared to reflect. the performance of the product. ‘When automated test and inspection is applied to automated or semiautomated pro- duction, the computer can generate the inspection instructions at the same time the prod- uct is designed. : ‘System Design {Meee St 5 compat ai. Software applications adapted to the quality function are becoming more sophisticated and comprehensive. There are numerous packages that combine many of the quality functions. Figure 9-4 illustrates atypical quality software package menu. Execution of MAIN 1. Pareto 2. Histogranvstat/Cp 3. Variable Control Charts 4. Attribute Control Charts+ CHAPTER 9 ——_— eS ge from another or tink — 4 analyzes voice, the menu iby function key, cursor and ey Key, vole collects da 8 program. For example, one ‘sequence of events creates a file, it, These activities involve File creation Data collection Analysis All these activities involve submenus. Thus, for the attribute control chart menvs there is a submenu for the types of attribute charts i 2 These software ae are user friendly with ap provision and mle Ges aged software is much cheaper than custom software. I ‘sully has the benefit of Pr usage and technical support. Annually, Quality Progress publishes an updated curecior of applications software particular tothe quality function. . ‘The integration ofthe various quality functions with other activities requires an eX tremely sophisticated system design. Components ofa total system are available in: CADD: Computer-Aided Drafting and Design CAM: Computer-Aided Manufacturing CAE: Computer-Aided Engineering MRP: Materials Requirements Planning MRP II: Manufacturing Resource Planning CAPP: Computer-Aided Process Planning CIM: Computer-Integrated Manufacturing MIS: Management Information System MES: Manufacturing Execution Systems ERP: Enterprise Resource Planning HRIS: Human Resource Information Systems TOM: Total Quality Management Integration of these components into a total system will become commonplace in the near future. It will require the use of expert systems, relational databases, and adaptive systems. Expert systems are computer programs that capture the knowledge of experts as a set of rules and relationships used for such applications as problem, diagnosis or system per formance assessment. This technology permits the thought patterns and lessons learned by experts to be consolidated and used, It provides the foundation for many of the smart systems for learning that are part of the crystal-ball system. Relational databases are logical pointers that create linkages among different data el- ‘ements to describe the relationships between them. These relationships preserve infor- mation within the system for consistent application across the entire organization.lems oF repetitive situations, events that describe the ac Magnify the efficiency, The sec ‘ion applied to an ineffi "Sent operation will magnify the inefficiency."1! The Internet and Other Electronic Communication The Internet is a Worldwide network of computer networks. It began in 1969 as.a ‘TMeans of exchanging data between universities and the U. S. military. In 1991, the National Sci- ence Foundation, which was responsible for the Internet, released the ban on commer- cial use of it. In 1994, the first commercial web browser, Netscape Navigator, was released, Since that tim, the numberof computers connected to the Internet has grown oup is in charge ofthe Internet. Anyone with a computer con- to give other users access to the data stored on that Computer, ifthe owner so chooses, 12 The Internet contains Within organizations, local-area net Keeping large amounts of works (LANS) efficiently share data among users by computers, while connecting sharing such as e-mail mes. les, calendars, scheduling, teamwork and au- Sages, transactions, decisions and search. thorship, and access to the Internet. computer, and authorized individuals Sey "" Gregory Wason, “Bringing Quality to the Masses: The Miracle of Loaves and Fishes.” Quality Progress (June 1998): 29-32, "' Bill Gates, The Road Ahead, (New York, NY: Viking Penguin Books, 1995), rl '? David Anderson, Managing Information ‘Shstems, (Upper Saddle River, NJ: Prentice Hall 2000).(ee ee _ Bill Gates recently sent an provide efficient organizational infomation 0-80 ‘poutd have the highest " email to all Microsoft employees informing them ees can use chat rooms for sug- priority in the development of new programs. pa Fa festions, questions, and comments. To improve scheduling ployee calendars to make sure everyone is available for a meeting time. Groupware, a software program, uses the network (0 Bune) ateigned using shared authorship. !® The Boeing 777 was the first “paperless airplane ae data and a sophisticated CADD program. : Instant Messaging a Organizations are finding that e-mail clogs computer networks and increasingly takesup employees’ time, IBM is using instant messaging rather than e-mail because it 1s faster. Italso dodges the frustration of phone tag because users who put colleagues on a “buddy list” know when they are accessible online. Unlike e-mail that can languish unnoticed for hours, instant messages pop up on the recipient’s screen. Most organization instant- messaging services encrypt messages for security.!4 Video Conferencing’s z ; Video conferencing is a technique where people at remote locations participate in a con- ference whereby they not only hear but see each other. Kinko’s has 19 locations through out the country offering video conferencing. Video conferencing allows more employees to participate in a meeting that otherwise would have been limited to a few people. Doc- i uments, photos, and graphics can be used to convey a difficult concept. The standard video conferencing setting consists of a dedicated room equipped with desks, chairs, two large screen monitors, camera, and network connection. The vast ma- jority of customers use a dedicated digital circuit such as DSL. Equipment and digital service costs have declined considerably in recent years. Organizations that use video conferencing save participant time and travel cost. People often fail to recognize that it takes longer to communicate in a video confer- ence than face-to-face. It slows down the kind of spontaneity that you might experien in a setting where everyone is together. Participants need to work harder to the conference is successful. Many organizations such as Cisco are using the te broadcasts for internal communication with its emyINFORMATION TECHNOLOGY * 235 Virtual Teaming'® A virtual team can be defined as a group of individuals largely dependent on electronic techniques to jointly complete a project, regardless of differences in members’ geo- graphic location, time zone, or organizational border, Software, known as groupware, is used to help teams communicate in cyberspace. Virtual teams use a combination of Internet, e-mail, instant messaging, PC-to-PC connections, shared computer sereens, and linked databases. Members are usually given a distinct website for posting progress, charts, meeting minutes, statistics, meeting agenda, and other shared docu- ‘ments. Team members also rely on telephone, facsimile, and teleconferencing includ- ing one-on-one. Virtual teams reduce costs by hiring members without paying relocation costs. New members, specialists, and consultants can be quickly and inexpensively added to the team on an as-needed basis. Large organizations can put their best people on a particu- lar project regardless of their location. Members can be located in countries where the organization wishes to do business. Individuals who are not effective with face-to-face teams may thrive in virtual teams as would foreign members who have oral (but not writ- ten) language difficulties. Handicapped people, retired individuals, and those with elder- or child-care responsibilities are excellent sources for members. Start-up with a virtual team is similar to a traditional team. One important difference is that the members do not meet face to face. This situation can be rectified by a video conference at start-up and as needed during the team’s duration. Additionally, one-on- cone video conferences will provide the vehicle for the team members to become better acquainted. Globally integrated, paperless documentation is being used by forward-thinking orga- nizations. Applicable groupware software such as QSET makes remote and paperless as- sessments possible. The software must be capable of: + Ensuring that audit trails track the history of all documents and actions and enable remote auditing. + Supporting multiple organization, customer and supplier sites and mobile users in multiple countries. + Reliably managing organizational knowledge by means of workflow between in- dividuals and groups or teams. * Providing powerful security and access control features. " Mark R. Hagen, “Teams "7 Adapted from Stanley H. gest (February 2001):CHAPTER 9 ed media such as text documents, information in mix‘ ‘drawings, embedded objects, and + Integrating many kinds of aa spreadsheets, flow charts, photographs, attachments. : oe ch + Offering schedule management, with alarms setto ee et approact it pack be + Linking to other software, such as gauge management P . ide evidence of com- ‘These characteristics address all of the elements required rape ; pliance to internal organization as well as international stant re individual can interpret Remote auditing is paniculrlyatractive because a single inde Ch Ne standards and guidelines in a uniform way fo al of an organist Ny ay, ample, Sydney Network Operations used QSET groupware a0 Me a dit performed at its Sidney, Australia site fom its London office, WAR TT tt link its paperless documentation for ISO 9000 and 1SO 14000 withih RN tranet sites and among international Internet sites in the U.S., Ireland, Europe, Australia, Exearming 0! yy sy ee nes E-learning is offered in a variety of formats such as CD-ROM-based, LAN-based and web-based, It has a number of advantages over the traditional classroom. '® * Individuals or groups can access the instruction when it’s needed at a convenient time and location such as home, work, or road. * Only a computer is necessary and it is most likely already on hand. Classroom Jearning requires an instructor, room, equipment, and enough participz it economical. * Learners can immediately apply what they learn, because th they are needed rather than when it’s convenient for the o * It takes less time. Some studies have shown that it learn a particular topic. * Itcan be customized to meet the ir while others take a longer ti* Supplier selection should be based on criter i i aa ed on criteria given in Chapter 6 (Supplier Part- * Licensing and ‘computer requirements should be clearly stated. S Instructional Content must be accurate, effectively sequenced, and motivating to ‘maintain student interest and enhance bottom-line performance, * Graphics, audio, interactivity, links, and browsing must reinforce the leaming ex- perience rather than serve as a distraction. * Prior knowledge must be assessed to ensure efficient learning. * Web-based programs must have provision for e-mail or instant Messaging with a mentor or instructor and a chat room for people taking the same course. * Students must be able to revisit the program to review the material. * Tracking tools should be used to measure a student's progress and performance. E-learning will only be successful if its planning and implementation is well-thought out to ensure it meets the needs of the organization. E-Govemnimenttse Wear te vtdel we il reenter mae. Government is increasing its use of the Internet to simplify processing of information. Examples are as follows: The U.S. Patent and Trademark Office developed an interactive Web-based system that anyone can use to file a trademark application. The system has improved the quality of ini- tial applications and helps maintain the quality of application processing. 1 Teresa Sininger Cochran, “Electronic Education,” Quality Digest (October 2000): 41-44. 2° Cochran.ically and made re- returns electronil acd a the IRS has devel- 238 + CHAPTERS 1. More recently, the IRS has processed i joie _ scheduled payments via bank bn si a which includes oped a secure system for oe jew of tax payment history. transfer, ed pa applications for ‘unemployment ee on This meen ‘counselors using computers inthe ae, offi. I plaice is transferred toa central computer, which evaluates the appre the check. E-Commerce a yputer with telecommunications has The linking of every kind of machine and com 4 i changed ct tasks id done by whom and where. Processes can reside sae a organizations—from suppliers to customers—and still be effectively iets ay chains have been reengineered; employees are free of geographical ea ane products are manufactured around the globe. Processes do not begin or en wil facility, team, or organization. ‘ For example, using the Internet, you can order a lapel pin from a contact in the U.S., who will design it on his personal computer, obtain your approval for the design, search for competitive bids, and send the design to, say, Hong Kong for manufacturing. The de- sign will be downloaded to a machine that will automatically produce the lapel pin, in- spect for quality, and package and label the contents. It will be shipped by next day air with the entire process, excluding air travel time, taking less than a few hours.2" Business-to-Business?2 E-commerce applications between businesses have existed since the early 1980's, These early business-to-business (B2B) applications were proprietary systems using private networks, but they were not economically feasible for small businesses. ‘Wal-Mart and Kmart are excellent examples of B2B using the electronic d change (EDI) standard. When a customer purchases a product at the checko the computer stores this information for later transmission to the supplier. would continue until a particular inventory level was reached. At this would manufacture and ship sufficient it is no shuffling of paperwork—all trans supplier's computers. One of the best-known B2B SABRE system. In the late 19 cess its order-entry and trINFORMATION TECHNOLOGY + 239 Business-to-business commerce via the Internet is expected to grow rapidly be- sause OF (1) low-cost cPerational costs, (2) global reach with te large number x of Bet category description, location, quantity, price, Payment terms, and delivery date: reg- it bids; ind the low bidder is sent an e-mail giving the seller's contact There are industry-specific intermediaries such as e-stee].com, which facilitates for Steel suppliers the entire Procurement process: soliciting, accepting, evaluating re- Sponse, and Negotiating price. Major industries such aS auto and aerospace have estab- lished industry consortia to magnify their buying power. Business-to-Customer23 Broadly defined businss-1o-customer (B2C) is the electronic transmission of buyer. seller transactions and related information between individual end customers and one or nel for a digitized product or service. Business-to-customer systems enable firms to compete on : and delivery iment with different configurations to obtain the design wre anytime ofthe day or week, without wat is self-service website, Dell has improved its abili240 + CHAPTER 9 mae uermedi revenue by Changin iar Jine.com and eBay obtain ae Bee of ened Me provided by agent wataclog ie rie a ino Al Online (AOL), ‘and Microsoft Netwou (MS bedded in portals such as Yahoo, Americ Website Design” 1 ood product oF service the i signing 4 Designing a good website is no ii nae pining re customers PO or reducing cost gins with stating the objectives suc! he viding information to stakeholders, selling products: direct! y Next, define the customer segments that will use the websi : most likely have widely varying needs. Most important is (0 discover t ace potential customers will come to the site. Also helpful is knowing the potential ¢ tomers’ equipment, computer literacy, and demographics. The third step is the heer a Priority should be given (0 addressing the rea» sons people come to the site. Content should be written according (© the requirements of online readers; very short and with liberal use of bulleted lists and keywords. The local navigation system to move the users around the site should be very simple with few global navigation features. Users should be able to obtain the desired information with a few clicks of a mouse. If pages are to be accessed or downloaded, access and downy loads should occur quickly. The fourth step is the selection of the software and hardware. A critical issue is main tainability. It should be easy to manage the site; update it; and respond to questions, or ders, complaints, and other inquires. ‘The next step is to test the website as though it were a product. Intensive interactions with focus groups of intended customers ar¢ used to ensure that the website is meeting their needs. The last step is implementation and quality control. Performance measures will be needed to determine the effectiveness of the site and if any changes are necessary, ical measures are: number of hits, transactions, length of stay, navi dead ends, and failed links. In addition, a third party organization, such as could evaluate the website and determine that there are quality programs in. curity, order filling, customer complaint management, and more,?® For example, the multifunctional Web Innovati traditional quality tools to make an existing web, faster; e-mail response time improved 72' Improvements made by the team were: (1 ginning, so denied clients could exit to help buttons, so potential clients te, Different segments will he main FeEAKOns