Quality and Excellence Management

You have to choose a problem in your work or life and illustrate how quality
would be applied to solve this problem and what is the benefit from applying
;Quality through answering of the following questions

Problem; (What is the deficiency in an output that needs to be improved?) -1

Application of Quality on problem; (How Quality would be applied to the -2

problem?)

Potential Advantages to Company or User; (What is the Benefits from -3

applying Quality?)

"..… List Two to Four Obstacles "It cannot be done because -4

"…… List means of overcoming obstacles "But maybe we could try -5

Answer
***Problem in my work, How Increase production capacity (Capacity is the
maximum amount your manufacturing operation can produce. Capacity is
increased either to meet an actual (immediate) increase in customer demand or
an anticipated (future) increase in customer demand.

Immediate capacity increases are usually achieved by:

 Using Existing Equipment For More Time (Adding Shifts or Overtime)

 Using Someone Else's Equipment (Outsourcing)

Future capacity increases are usually achieved by:

 Using Existing Equipment More Effectively (Improving)

 Purchasing New Equipment (Spending)

Problem; (What is the deficiency in an output that needs to be improved -1

? production capacity

Production efficiency is not easy; the real overall equipment effectiveness

(OEE) is approximately 60%.   This performance level has an immediate impact
on labor, which typically runs at 50-55% productive.  It’s not that people aren’t
working. The problem is that they’re toiling away on non-value-added tasks—
looking for information, fixing errors and fighting fires. While it’s not
reasonable to expect 100% production efficiency, the best performing
.companies achieve around an 85% OEE

Five ways to get started on the road to efficiency. Use them to gain a
measurable advantage, become more competitive

1. Build the Foundation:

foundation for production efficiency needs to address processes,

planning and management behaviors & need Sales and Operations
Planning (S&OP) that aligns finance and operations, tying revenue and
cost targets of the financial world to the activity-based measures of
operations , this so important Because it’s translate sales forecasts into
resource requirements.  It also sets the stage for effective production
scheduling. To ensure smooth running processes & need to take the time
to understand and observe the downtime that occurs at the constraints &
see where the bottlenecks occur, when machines jam and workers stray
from the line, seeking information or parts. Production, of course, does
not work in a vacuum.   Support functions will have similar process
issues that tend to slow or degrade information that keeps OEE front and
center.  So focusing on process and removing operating problems at the
constraints enables them all to work together with reduced incidents of
downtime. Lastly, and we managers actively manage. After all, they
control most of the resources that your company consumes, and the
decisions they make are critical. Active management includes developing
a superior plan, setting clear expectations and direction, and following up
to ascertain variances and performance issues. In thousands of studies,
we have observed that managers spend less than 2% of their time actively
managing their process. Instead, they spend most of their time reacting to
unplanned events (fighting fires), performing administrative tasks or
plowing through work they should be delegating.

2. Match the Schedule to the business plan:

We have a schedule. The problem is they often don’t work and fail to
match the revenue or cost needs of the business. Businesses’ MRP and ERP
systems, for example, will be handicapped by inaccurate data, whether that
is poor inventory accuracy, inaccurate lead times, and bills of material, yield
or order quantities.  These challenges can and will lead to over production
or under production which will quickly lead to excessive schedule changes,
which is a major cause for downtime. If the parameters are right, the next
 task is to ensure that the schedule expectation (typically in units) matches
the revenue expectations of the business in dollars.  In turn the schedule
must also match the costs that the business has committed to consume in the
form of material, labor or equipment.

3. Make the important measures visible:

The downside is that it is often difficult to see which data point is the one
that is most important.  To address this we need to get clarity on the key
drivers of profit, things like downtime at the constraint, yields and
schedule attainment.  Once we sure that we have the right measures, make
them visible.  At the point of execution, visibility will be in the form of
operating values.  At the leadership level, visibility may be in the form of
dollars but they need to be a translation of what is seen at the point of
execution.  When you make the important things visible it is understood to
be important.  When make everything visible the important measures
disappear.

4. Manage Downtime with better Management Behaviors:

Once we have systematized schedule and made it visible, we will find that
there’s downtime to tackle.  A manager that actively manages the schedule
will find positive and negative variances to scheduled output.  Positive
variances need to be understood so that they can be duplicated and built
into the planning process.  Negative variances need to be analyzed and
problem solved.  Problems may be related to skills deficiencies, which
trigger training events.  Problems may be related to faulty or cumbersome
methods that will trigger observations or a sigma or lean event.  Problems
may be related to employee behavior, which will trigger a communication
event between manager and staff.  Lastly the problem may relate to
planning or upstream or downstream processes that will trigger an
escalation to a more senior level.

5. Get an Objective Viewpoint:

I know that we have operational problems. When we work in an
environment daily and are eyeball deep in the pressures of meeting
production requirements, however, it may be hard to determine the root
causes. That’s why it’s good to bring in a third party who can take a fresh
look at the situation. Not only do they view things from a new
perspective, but they also have experience with other organizations that
help them to identify problems and solutions more rapidly.
2- Application of Quality on problem; (How Quality would be applied to the
problem?)

Steps to quality management system implementation

Creating a quality management system requires input from employees at all

levels of an organization, starting with top management. Their firm commitment
to change and improvement is vital to the success of system implementation.

we should follow these key steps to implement a quality management system

1. Analyze your business by breaking it down into key areas. These will often be
areas that are crucial to your customers' satisfaction. Senior staff should
determine the needs of the business and design the system around these.

2. Plan your approach by deciding which resources you need and discuss the
effectiveness of existing processes with staff. Conduct a gap analysis to
determine what the current processes are and how they need to change.
Assemble your team and develop an implementation plan.

3. Inform and train employees. Decide if new processes are necessary and tell
staff about them. Provide training and explain how the new system will benefit
both staff and customers.

4. Consider supporting documentation, such as quality policies, procedures,

training materials, work instructions, etc. Use version control documents to keep
your documentation in order

5. Deploy the system and check that the processes are working. Give someone
the responsibility for the system and ensure that proper procedures are followed.
Set targets for how each process contributes to the success of business goals.
Control, measure and monitor your outputs to ensure that they meet the
expected quality levels.

6. Review and revise processes where necessary. Schedule routine product or

process audits to monitor compliance with policies and procedures, and any
certification requirements. Continue to audit and review regularly to ensure
continuous improvement.
Here is a fascinating and extremely important fact. Most equipment is not used
anywhere near its true capacity. In fact, the difference between typical
manufacturing (an OEE score of 60%) and best-in-class manufacturing (an OEE
score of 85%) represents an astounding 41.6% increase in capacity. So before
thinking about adding shifts or overtime, outsourcing, or purchasing new
equipment, make sure you truly understand and consider the untapped potential
that exists in your current factory.

Untapped potential in your current factory can be broken into two categories,
each of which represents a constraint on capacity:

 Equipment Losses (capacity lost due to equipment running at less than its
full potential)
 Schedule Losses (capacity lost due to time that equipment is not schedule
to run at all)

OEE is a well-established performance metric that takes into account Equipment

Losses (usually broken into the categories of Availability Loss, Performance
Loss, and Quality Loss; and further broken into the Six Big Losses as shown in
the diagram below). OEE measures performance with respect to Planned
Production Time (the percentage of Planned Production Time that is fully
productive).
TEEP is a well-established performance metric that takes into account
Equipment Losses and Schedule Losses. It measures performance with respect
to All Time (the percentage of All Time that is fully productive; All Time is
sometimes referred to as Calendar Time or 24/7 Time).

Measuring OEE (with Equipment Losses broken into the Six Big Losses) and
TEEP (with Schedule Losses) gives you a very complete picture of how much
capacity is waiting to be unlocked in your “hidden factory”.

There are some useful ways to think about unused capacity:

 Equipment Losses represent the first part of your hidden factory –

additional capacity that can be unlocked by successfully applying best
practice improvement tools to reach best-in-class OEE.
 Schedule Losses represent the second part of your hidden factory –
additional capacity that can be unlocked by scheduling more production
time.

And there are some useful ways to quantify capacity:

 Current Capacity is the amount you can produce using your equipment as
is (at its current effectiveness) and within your current production
schedule.
 Target Capacity is the amount you will produce when you reach your
OEE target (reducing Equipment Losses) and schedule more production
time (reducing Schedule Losses). Remember though – many
manufacturers can improve capacity by as much as 40% simply through
reducing Equipment Losses – so start there!
 Theoretical Capacity is the amount you would produce if there were no
Equipment Losses and no Schedule Losses. It represents manufacturing
only good parts, as fast as possible, with no down time, around the clock
(24/7). It results in a TEEP score of 100%.

Leveraging Six Big Losses

A comprehensive and very practical way to address Equipment Losses is

through the underlying Six Big Losses. The Six Big Losses are very well-
aligned to discrete manufacturing and map to specific improvement tools and
countermeasures. The Six Big Losses are:

 Setups and Adjustments (Planned Stops)

 Breakdowns (Unplanned Stops)
 Reduced Speed (Slow Cycles)
 Small Stops
 Production Rejects
 Startup Rejects
Improving manufacturing productivity leads to a “virtuous cycle” of increased
capacity. More efficient equipment can be scheduled more accurately and for
smaller lot sizes. This lowers cost and reduces lead times, which leads to more
customer orders – which utilize the increased capacity.

Manufacturing Best Practices

There are two aspects of best practices to consider when increasing capacity:

 Information (measuring OEE and TEEP)

 Action (applying Theory of Constraints and Lean Manufacturing)

OEE is ideally suited for supervisors that want to benchmark and measure
progress in reducing Equipment Losses. It provides one simple metric, the OEE
score, with which to gauge progress. Even better, it aligns perfectly with the Six
Big Losses to provide valuable insights on where to focus improvement efforts
and what type of improvement actions will be most effective. We don't
recommend OEE as the primary metric for operators – it is a bit too abstract.
Instead, for the plant floor we recommend using real-time TAED (Target,
Actual, Efficiency, and Down Time), which is driven by Takt Time.

TEEP is ideally suited for managers who have influence over when production
equipment is run (e.g., production schedulers and senior factory management).
TEEP works well as a proactive planning metric:

 If the factory is running at 14% TEEP (one shift running five days a week
with an average OEE score of 60%) there is a lot of room for alternatives
to purchasing new equipment
 If the factory is running at 85% TEEP (three shifts running seven days a
week with an average OEE score of 85%) new equipment may be a
necessity

Theory of Constraints

is a collection of improvement techniques based on the idea that every

manufacturing process has a constraint that acts as a fulcrum (point of leverage)
for the entire process. Focusing improvement efforts on the constraint helps
ensure that resources are optimized and is often one of the fastest routes to
increased capacity. Emphasizing the constraint focuses teams and can quickly
unlock additional capacity at the manufacturing process bottleneck. Theory of
Constraints is tightly aligned to increasing capacity as its primary emphasis is on
increasing throughput.
Lean Manufacturing

is a collection of improvement techniques based on the idea that waste in all

forms should be eliminated from the manufacturing process. There is a veritable
laundry list of effective tools and techniques associated with Lean
Manufacturing. Some of the most important are 5S, Andon, Autonomation,
Continuous Flow, Error Proofing, Gemba, Just-In-Time, Kaizen, Kanban, Level
Scheduling, Overall Equipment Effectiveness, Policy Deployment, Root Cause
Analysis, Single-Minute Exchange of Die, Six Big Losses, Standardized Work,
Takt Time, Total Productive Maintenance, Value Stream Mapping, and Visual
Factory.

Two Great Strategies

Two highly effective strategies for uncovering and accessing the untapped
potential that exists in your current factory are:

 Measure Overall Equipment Effectiveness (OEE)

 Measure Total Effective Equipment Performance (TEEP)

Measure Overall Equipment Effectiveness (OEE)

Problem: We need a consistent way of identifying Equipment Losses so we can

reduce losses and increase capacity.

Strategy: Measure OEE (along with Availability, Performance, and Quality)

and the Six Big Losses on your constraint equipment. Also capture reasons for
down time.

Solution: XL automatically calculates a complete set of performance metrics

both in real-time and historically:

 OEE (including Availability, Performance, and Quality) for supervisors

 TAED (Target, Actual, Efficiency, Down Time) for plant floor operators
 Six Big Losses for characterizing Equipment Losses

XL also makes it easy to capture reasons for every down time event, which
helps you prioritize your actions. Simply configure your down time reasons and
XL automatically generates a barcode sheet for operators. Your operators scan
barcodes to indicate reasons for each down time event and XL automatically
“snaps” reasons to the most recent down time event. We recommend starting
simple – no more than 25 reasons, one of which should be ‘All Other Losses’
Measure Total Effective Equipment Performance (TEEP)

Problem: We need a consistent way of identifying how much room there is to

increase capacity so we can decide whether to focus on getting more from our
current equipment or if we need to consider other options (outsourcing
production or purchasing new equipment).

Strategy: Measure TEEP and related metrics.

Solution: XL automatically calculates a complete set of TEEP-related metrics

both in real-time and historically:

 TEEP
 Utilization
 Capacity Loss
 Capacity Lost Time

Use the built-in TEEP reports to identify how much additional production
capacity is available.
Potential Advantages to Company or User; (What is the Benefits from -3
applying Quality?)

Implementing a quality management system, such as the ISO 9001, offers

numerous benefits to business owners. It typically increases efficiency and
,productivity

Using ISO 9001 can help ensure that your customers get consistent, good
quality products and services. This can, in turn, lead to new business, as well as:

 greater efficiency and less waste

 better and consistent control of major business processes
 a better understanding of customer needs
 regulation of successful working practices
 improved risk management
 increased customer satisfaction
 improved participation of employees
 better internal communication
 greater consistency in the quality of products and services
 differentiation of your business from its competitors
 increased profits
 reduction of costly errors
 exploitation of new markets, both in the UK and overseas
 managing growth more effectively
 an embedded culture of quality

The ISO certification is a globally recognised achievement and, as such, may

help you raise your international profile and increase business overseas.
"..… List Two to Four Obstacles "It cannot be done because -4

Accumulation

 When input comes in faster than the speed of the process, accumulation
starts to occur. This means that the machine either does not have enough
capacity, is not being fully utilized (inefficient in use) or has an under-
qualified operator. This method is not effective at identifying bottlenecks
where the queues are at several process steps, as there are multiple
processes with accumulation

Full capacity

 By using the utilization percentage of each production unit, it is possible

to determine the machine which uses the highest percentage of its
capacity. This machine is bottlenecking the other machines by 'forcing'
them to operate at a lower capacity. However, if all machines in the chain
of processes are running at a similar capacity level, increasing the
capacity of the lowest machine will not create a significant improvement
to the total output

Wait times

 In the case where several production units are already running at full
capacity, tracking the down time of machines will allow you to identify
which machine is being bottlenecked. Usually the machine prior the
machine with the highest wait or down time in the chain of processes is a
bottleneck. The result of this is a machine being under utilized
"…… List means of overcoming obstacles "But maybe we could try -5

Fishbone diagram

 A fishbone diagram is a graphical means for finding possible problems in

a chain of processes. By collecting the different data related to the
problem, and inputting them into the diagram, it becomes easier to
analyze the data in the order it used and hence determine the root of the
problem. This is commonly used to find the bottleneck in a chain of
processes due to being able to pinpoint the machine precisely responsible
for the delay in production

Supply overstock

 In the event of accumulation in the long-term, the capacity at which the

bottlenecked machine is running could be so slow that the accumulated
resources that are in the queue need to be stored. The cost of storing
resources is significant as it takes resources to transport the materials back
and forth as well as requiring space, another potential cost

Increasing number of operators or employees

Increasing the number of operators or increasing the number of staff can be

beneficial for multiple reasons. Increasing the number of operators can increase
efficiency as they can all work different timed shifts and hence the bottlenecked
machine can run for longer hours. In addition, if one worker is sick, unable to
work or quits, there will always be someone available to replace him. Increasing
the number of employees can be beneficial to increasing efficiency. This is
because they can be reassigned to work on parts of the bottlenecked machines
operations which can be broken down into smaller activities and reassigned to
reduce the work load of the machine hence reducing the accumulation. By
reassigning other work to different machines, the less accumulation or delay the
bottlenecked machine has and hence significantly speeds up production as it
also reduces the wait time of the machines farther along the chain of processes
.to increase productivity

Minimizing downtime, setup and changeover time

To compensate for being the weakest link in the chain of processes, the
bottleneck machine will have to run for longer periods of time. Changeover and
setup time should be minimized to allow the machines to run for slightly longer,
reducing the impact of the bottleneck. Minimizing downtime by having the
bottlenecked machines run from earlier until later is a common strategy for
working around the problem, however this does increase the likelihood for the
machine to be overloaded and need regular maintenance

Eliminating non-value activities

In removing all non-value activities, you reduce the amount of redundant tasks
performed by the bottlenecked machine and hence maximize efficiency.
Removing the waste operations results in a shorter cycle time hence allowing
the machine to complete each process in less time

The steps suggested to avoid or prevent shifting bottlenecks are:

Step 1) Re-evaluate the maximum load of every machine, process or work

.center when accepting a new order

.Step 2) Find the bottleneck in the system and identify its surplus capacity

.Step 3) Fill the bottlenecks surplus capacity

Step 4) Find out the release time of the material as a result of the new
.bottlenecks scheduling

Through following these steps, the order production will be completed in the
shortest possible time frame

Thank You