FTQ

SAP Course #: 62006505

First Time Quality

PPM

TIME

Revised September 11, 2006

FTQ
First Time Quality
 What First Time Quality Is
 Why It Is Important
 Why We Need to Measure It
 How to Calculate It
 FTQ Deployment, Evaluation and Improvement
Process
 Responsibilities
The Structured Approach Steps
The Basic Quality Tools
 How to Apply the Quality Tools
 Monitoring and Reporting
 Class Exercise
Revised September 11, 2006 2
FTQ
First Time Quality
 What is First Time Quality?

 First Time Quality is a measure of the number of

pieces rejected in a manufacturing process versus
the total number of pieces attempted.

REJEC
TS

Revised September 11, 2006 3

FTQ
First Time Quality
Define ALARM LIMITS A structured approach

Catch and Count Defects 1

2

React to ALARM LIMITS

Reaction Plan

Follow Reaction Plan

ZERO Defects Forward

Initiate Structured Problem Solving

Voice of the Customer

Revised September 11, 2006 4

FTQ
First Time Quality
 FTQ can be viewed as a two phase approach:

 Immediate action and containment

 Whenever alarm limits are exceeded
 Helps ensure customer protection

 Continual Improvement
 Management objective to reduce quantity of rejects and
operational cost
 Leadership MUST ensure, support and follow-up with
implementation of FTQ in their facility to be successful

Revised September 11, 2006 5

FTQ
First Time Quality
 Why is FTQ important?

Because if we don’t make good parts the first time,

we have to “inspect in” quality
 We know inspection is at best 85% effective
 Therefore, anytime FTQ is greater than 0, we are
dependent on inspection to protect the customer

To reduce manufacturing costs and defects through

continual improvement (FTQ Tracker or Step Down Chart
are tools to utilize)
To monitor process stability and react quickly to
potential issues (Alarm limits and process
monitoring sheets)
Revised September 11, 2006 6
FTQ
First Time Quality
 FTQ should be viewed as a tool to facilitate
operational improvement in:

 Quality PPM

TIME

 Cost

Revised September 11, 2006 7

FTQ
First Time Quality

FTQ is Key to our Success to turn this

into this!

PPM

TIME

Revised September 11, 2006 8

 FTQ
First Time Quality
 Why does FTQ need to be measured?

 Main Reasons:
 It is the early signal that a process is out of control
 It allows us to respond to problems internally before they
reach our customers
 It measures improvement from corrective actions
implemented
 If we don’t fix our quality problems internally,
we will never be able to fix our external
customer issues
Revised September 11, 2006 9
 FTQ
First Time Quality
The fatal flaw of inspection
D
Catch Defects D

Inspection is like a filter. Filter

Inspection misses some defects

Defects not caught D

Problem
Voice of the Customer

Revised September 11, 2006 10

 FTQ
Inspection Exercise
Count the Number of ‘F’s contained in the paragraph below (60sec)

THE NECESSITY OF TRAINING FARMHANDS FOR FIRST

CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRST-
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.

Revised September 11, 2006 11

 FTQ
Inspection Exercise
Total of 36 F’s

THE NECESSITY OF TRAINING FARMHANDS FOR FIRST

CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRST-
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.

Revised September 11, 2006 12

 FTQ
First Time Quality
 How is First Time Quality calculated?

 FTQ is reported in parts per million (PPM) defective

 It can be measured at any step in the manufacturing process where

parts are rejected especially where the defect is originated.

 It is calculated by counting the number of pieces rejected versus

the total number of pieces attempted

 The total number of pieces attempted includes all good pieces

produced plus all pieces rejected

 Pieces rejected are all parts scrapped or reworked prior to usage by

subsequent processes. The actual calculation looks like this:

 Number of Pcs. Rejected X 1,000,000 = FTQ PPM

Total Number of Pcs. Attempted
Revised September 11, 2006 13
 FTQ
First Time Quality
 How is First Time Quality calculated? Tally Sheet

 An example at the cell level:

 Cell “A” has six operations

1 2 3 4 5 6

28 16
 Reject data is collected at operations 3
and 6.
 Cell “A” produced 1040 good pieces during the first hour.
 At OP.3, 28 pcs. were rejected.
 At OP.6, 16 pcs. were rejected.

 What is the FTQ in PPM for Cell A?

 28 + 16 44
 1040 + 28 + 16 = 1084 X 1,000,000 = 40,590 PPM FTQ

Revised September 11, 2006 14

FTQ
First Time Quality
 What First Time Quality Is
 Why It Is Important
 Why We Need to Measure It
 How to Calculate It

 FTQ Deployment, Evaluation and Improvement Process

 Responsibilities
 The Structured Approach
 The Basic Quality Tools
 How to Apply the Quality Tools
 Monitoring and Reporting
 Class Exercise

Revised September 11, 2006 15

 FTQ
FTQ Improvement Process
Stakeholder involvement

CELL
Plant A
CELL
2 3 Plt B OPERATOR OPERATOR OPERATOR OPERATOR OPERATOR
1
Plt C
4 5 6
TEAM
LEADER
7 8 N

Potential Members:
- TEAM LEADER
- OPERATIONS/MANUFACTURING
- QUALITY ENGINEER
- PROCESS ENGINEER
- INDUSTRIAL ENGINEER
CROSS- - MAINTENANCE
FUNCTIONAL
TEAM - PRODUCT ENGINEER
- SUPPLIER QUALITY

PROCESS PRODUCT
OPERATIONS QUALITY MAINTENANCE PC&L
ENGINEERING ENGINEERING

PLANT MANAGER

Revised September 11, 2006 16

FTQ
FTQ Improvement Process
Typical Responsibilities Flowchart
CFT QUALITY PROCESS PRODUCT INDUSTRIAL
ENGINEER OPERATIONS ENGINEER ENGINEER MAINTENANCE ENGINEER
PROCESS
DEFINE REACTION
PLAN & ALARM LIMITS

IDENTIFY & COUNT

DISCREPANT PARTS

IMPLEMENT ALARM
REACTION PLAN (IF
EXCEEDED)

RECORD DATA

ANALYZE DATA

SELECT & PLAN

IMPROVEMENT

IMPLEMENT
IMPROVEMENT

EVALUATE

INSTITUTIONALIZE
LESSONS LEARNED

LEAD SUPPORT
Revised September 11, 2006 17
 FTQ
FTQ Implementation
 Delphi SQ or SDE Responsibilities

 Ensure supplier understands, and if necessary,

obtains appropriate training on the FTQ
Improvement process
 Monitor implementation progress during FTQ
activities
 Conduct 5 step site evaluation for FTQ
implementation
 Set stage for improvement activities
 Outline plan of attack
 Document improvement plan ( i.e. through an A3)

Revised September 11, 2006 18

 FTQ
FTQ Improvement Process Overall

IMPLEMENT
ALARM
REACTION
PLAN
YES NO

DEFINE NO INSTITUTION-
REACTION
IDENTIFY & SELECT & NEW LEVEL YES
COUNT ALARM RECORD ANALYZE IMPLEMENT EVALUATE ALIZE
PLAN & DATA PLAN IMPROVEMENT OF LESSONS
DISCREPANT EXCEEDED DATA
ALARM IMPROVEMENT QUALITY? LEARNED
PARTS ?
LIMITS

TOOLS FOR TOOLS: TOOLS: EXAMPLES: TOOL: TOOL: TOOLS:

IDENTIFICATION: - CONTROL - PARETO - CROSS-FUNCTIONAL - ACTION PLAN - RUN CHART - PFMEA
- PROCESS CONTROL CHART - CAUSE & EFFECT TEAMS - PROCESS CONTROL PLAN
PLAN (FISHBONE) - CHANGE BOARDS - LOOK-ACROSS-CHART
- BOUNDARY SAMPLES - CONCENTRATION - RPN REDUCTION - 5 WHY'S
DIAGRAM - STATISTICAL ENGINEERING
TOOLS FOR COUNTING: - FLOW CHART PROJECTS
- PARTS COUNTERS - HISTOGRAM - GATE CHART
- TALLY SHEETS - SCATTER ACTION PLAN:
- SIZED CONTAINERS DIAGRAM - WHAT, WHEN, WHO
- CHECK SHEET
- 5 WHY'S

IDENTIFY ANALYZE PLAN IMPLEMENT EVALUATE

SELECT CONTAIN CORRECT PREVENT

Delphi Problem
Solving Process
Revised September 11, 2006 19
FTQ
First Time Quality
Define ALARM LIMITS A structured approach

Catch and Count Defects 1

2

React to ALARM LIMITS

Reaction Plan

Follow Reaction Plan

ZERO Defects Forward

Initiate Structured Problem Solving

Voice of the Customer

Revised September 11, 2006 20

 FTQ
FTQ Improvement Process
 Define alarm limits and reaction plan
 Alarm limits must be based on current process reject
data or available data from Machine qualification runs,
Run at Rate, historical data, etc.
 Need to collect data long enough to ensure you
understand the types and quantities of defects that fall
out from your current process. Limits for common cause
(chronic) rejects may be statistically calculated
 Understand process and expected defects (what
types and quantities of defects)
 Determine the process normal range of variation by
charting the reject data over time

Revised September 11, 2006 21

 FTQ
FTQ Improvement Process
 Define alarm limits and reaction plan
 Limits for special cause (non chronic) rejects must be set
at one piece
 Limits must be communicated to operators so they can
react
 If alarm limits are exceeded, there must be a
documented reaction plan which includes containment of
product and process corrections.
 Employees may find clever ways to identify abnormal
process state as the process matures
 The immediate action taken is the most important step in
containing the problem until it has been eliminated and
verified

Revised September 11, 2006 22

 FTQ Alarm Limit Calculation using
np Chart
20 NP Charting for FTQ
25 Defects Pareto
18
100
16 90
UCL=16.1
20
14 UCL= 80
Nonconforming

12
15 70
10 60
avg= 9.8
avg= 50
108
40
6
30
54 LCL= LCL=3.4
20
2
10
00 0
11 2 32 4 35 64 7 5
8 9 6
10 11712 13
8 14 9 1017 11
15 16 18 1912 1322 14
20 21 23 2415
25 16 17 18 19 20 21 22 23 24 25
Subgroups ( Days)

Hours or Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Non-conforming 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Sample Size (Avg) 18
Defects
wing mark 2 1 5 4 2 1 3 4 2 2 1 3 1 2 1 1 2 1 1 1
wing / body fold 3 2 1 2 5 1 2 2 2 5 2 3 4 5 1 2 4 5 6 7 1 1 2 2 3
wrong paint dot 2 2 1 5 1 2 3 5 4 3 3 6 8 1 1 3 1 4 3 3
paint location 3 4 2 1 2 3 7 2 2 2 2 4
wrong or no clip 1 2 2 1 1 1 3 1 1 3 2 6 1 2 1 1 4 3
Total nonconforming: 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Production 18 18 19 18 20 18 17 18 18 19 18 19 19 18 17 18 18 19 18 20 18 18 20 18 19
PPM Defective

np np1+np2+…..npk where np= number nonconformin, k= subgroups

n = avg sample size
k (18)
np "=SUM(C3:AA3)/25"
np = number nonconforming
k = subgroups (25)
UCLnp
__
U
=C
L
=
0n
p
+3
*(
n
p(
1
-n
p
/n
)
)
UCLnp = 0
np = np1+np2+…..npk
LCLnp k = 0
LCLnp = 0 L
C
L
=n
p-
3*(
np
(
1-
n
p/
n)
)
Revised September 11, 2006 23
 FTQ Alarm Limit Calculation using
np calculation and Stop Light control method
AREA: HVAC DEPT: Quality CELL: 259W WEEK: Jan 30 to Feb 5

In d ic a d o r
(U C L )
T u rn o s
DEFECTS Monday Tuesday Wednesday Thursday

A 8
1.- Broken case B 8
C
A 5
2.- Wrong assembled case B 5
C 5
A 4
3.- Damaged cases B 4
C 4
A 4
4.- Missing screws B 4
C 4
A 4
5.- Warped cases B 4
C 4
A 3
6.- Vibration B 3
C 3
A 3
7.- Wrong assembled thermistor B 3
C 3
A 3
8.- Damaged evaporator pipes B 3
C 3
A 2
9.- Damaged mounting plate B 2
C 2
A 2
10.- Air leak B 2
C 2
11.- A
11.- B NC
11.- C
12.- A
12.- B NC
12.- C

Instructions
1.- Mark to be used by each shift: GP-12 X (Red X) Final insp./Rework/Process/Scrap X (Black X)

2.- Team: a) Shift leader will give follow up to each defect recorded. b) When a defect reaches the yellow color limits, apply supervisor's reaction protocol; if the red co
reaction protocol. c) The Quality auditor is responsible for checking the squares with the appropriate color in case that a defect is detected. d) This format is for one we
responsible for archiving this format on a weekly basis. f) The Quality engineer is responsible for monthly updating the reaction and control limits.

3.- Control limits calculation for non chronic defects (np):

a) Calcular avarage del numero por defecto
np = np 1 + np2 + np3 + ….. + npk np = Son los numeros de defectos de cada subgrupo de k
k
b) Calcular limites de control superior e inferior (UCL, LCL)

UCL = np + 3 np ( 1 - np / n ) = np + 3 np ( 1 - p )

Revised September 11, 2006 24

 FTQ
Example: Rejected Parts Counter
Quality Alarm
Limit:
The counter is flipped
for each defect. The
color will change from
green to yellow to
red.
Yellow indicates
action required and
red will stop the
process.
Small white tags are
placed with each
defective part to
identify the specific
defect.

Revised September 11, 2006 25

 FTQ
FTQ Improvement Process
 Identify and count rejected parts
 Operators must have sufficient tools and skills in order to identify
product discrepancies

 It is recommended that rejected parts be removed from the cell

station at a defined frequency so they may be counted and categorized
by defect or rework code

 Tools to enhance the operator’s ability to identify product

discrepancies include:
 Boundary Samples
 Illustrations
 Photographs
 Gages

 Tools for counting rejected parts include:

 Parts Counters
 Tally Sheets
 Sized Containers
Revised September 11, 2006 26
 FTQ
FTQ Improvement Process
Special Cause (Non-chronic) Rejects
FAILURE MODE HAS A KNOWN ASSIGNABLE CAUSE.
REACT AT FIRST OCCURRENCE
IMMEDIATE FIX / CORRECTION.
BASED ON OPERATOR CERTIFICATION PROGRAM.

STOP & Contain SF S

FIX
START

Revised September 11, 2006 27

 FTQ
FTQ Improvement Process
Common Cause (Chronic) Rejects
FAILURE MODE ROOT CAUSE NOT IDENTIFIED.*
NO IMMEDIATE FIX / CORRECTION.
USE PROBLEM SOLVING METHODOLOGIES (RED X / 6 SIGMA)
REACTION BASED ON CONTROL LIMITS (STATISTICALLY CALCULATED)
np chart

15
LCLnp
10
np

np-bar

S
5
UCLnp

F
0

S
0 10 20 30 40
Lot number

DEFECTS
SEGREGATION PROCESS VERIFICATION
• Or many sources or causes ( i.e. technology STOP and Contain
inherent defects or defects caused by many
sources of a root cause such as contamination/foreign material.) FIX
No known immediate fix is available to eliminate root cause of defect.
START
Revised September 11, 2006 28
 FTQ
FTQ Improvement Process
 Implement Alarm Reaction Plan if Limit Exceeded

 Reaction Plan:

Yes
Alarm Limit Exceeded?

Contain

Investigate

Containment Plan

Implement Containment Plan

Until Problem Fixed

Revised September 11, 2006 29

 FTQ
FTQ Improvement Process

 Record Data

 Data must be recorded and plotted over time:

 At the cell level, the number of pieces rejected shall be
recorded by defect category at a defined frequency. This data
must be used to react to abnormal process conditions (process
monitoring)

 Since the area of opportunity varies from sample to sample, the

reject count must be converted into a rate (FTQ PPM) prior to
charting

 Each area should have a performance tracking board that would

reflect the manufacturing FTQ information by shift

Revised September 11, 2006 30

 FTQ
FTQ Improvement Process
 Analyze Data

The basic quality tools are:

 Flow Charting
 Check Sheets
 Pareto
 Cause and Effect
 Run Chart
 Histogram
 Scatter Diagram
 Control Chart

Revised September 11, 2006 31

 FTQ
First Time Quality Process
Initiate Structured Problem Solving Problems

Understand Defects and

4

3 3
Decide the Order of Priority: 2 2 2
2
1 1 1 1 1

A B C D

Assign problems to Responsible

Cross-Functional Group: 2 Team Works
2 1 Problems
1

Select and
Plan the Improvement: 1 Right Information 2 Right Cause 3 Right Timing
DEFECT
1. ----------------------
2. ----------------------
3. ----------------------

Fix the Biggest Problems First:

Revised September 11, 2006 32

 FTQ
 FTQ Improvement Process

 Analyze Data
Problem Identification Problem Analysis

Pareto Chart Histogram

Cause & Effect
Flowchart
Control Chart Scatter Diagram
Check Sheet
Brainstorming
Run Chart Process Capability
Stratification

 Charts can be used for different purposes in various stages of the problem-solving process
 The tools included in the intersecting portion of this diagram can be used in both the
problem identification and problem analysis phase of problem solving

Revised September 11, 2006 33

 FTQ
FTQ Tools
Histogram

A histogram is a
specialized type of
bar chart. Individual
data points are
grouped together in
classes, so that you
can get an idea of how
frequently data in
each class occur in the
data set. High bars
indicate more points in
a class, and low bars
indicate fewer points

Revised September 11, 2006 34

 FTQ
FTQChart
Pareto Tools
Pareto charts are used to display the Pareto principle in
action, arranging data so that the few vital factors that
are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will
have a greater impact and be more cost-effective than
undirected efforts.

Revised September 11, 2006 35

FTQ
FTQ
Scatter Tools
Diagram
Scatter Plots (also called scatter diagrams) are
used to investigate the possible relationship
between two variables that both relate to the
same "event." A straight line of best fit (using
the least squares method) is often included.

Revised September 11, 2006 36

FTQ
FTQ Charts
Control Tools
The point of making control charts is to look at
variation, seeking special causes and tracking
common causes.

Revised September 11, 2006 37

 FTQ
FTQ
Flow Tools
Charting
Flowcharts are maps or graphical representations of a process.
They are particularly useful for displaying how a process currently
functions or could ideally function. Flowcharts can help you see
whether the steps of a process are logical, uncover problems or
miscommunications, define the boundaries of a process, and develop
a common base of knowledge about a process. Flowcharting a
process often brings to light redundancies, delays, dead ends, and
indirect paths that would otherwise remain unnoticed or ignored.

Revised September 11, 2006 38

 FTQ
FTQSheets
Check Tools
Check sheets are employed to verify compliance and ensure specific
events are completed in the timing and sequence required.

Revised September 11, 2006 39

 FTQ
FTQ&Tools
Cause Effect
The cause and effect diagram is used to explore all the
potential or real causes (or inputs) that result in a single
effect (or output). Causes are arranged according to
their level of importance or detail, resulting in a
depiction of relationships and hierarchy of events. This
can help you search for root causes, identify areas where
there may be problems, and compare the relative
importance of different causes.

Example Cause & Effect Diagram (Fishbone)

Revised September 11, 2006 40

 FTQ
FTQ
Run Tools
Charts

Run charts (often known as line graphs outside the

quality management field) display process performance
over time. Upward and downward trends, cycles, and
large aberrations may be spotted and investigated
further. In a run chart, events, shown on the y axis, are
graphed against a time period on the x axis.

Revised September 11, 2006 41

FTQ First Time Quality
Manager Audit Checklist Example
F IR S T T IM E Q U A L IT Y
A U D IT C H E C K L IS T

S u p p lie r : D a te :

L o c a t io n : D u n s :

P a r t N o ./ D e s c r ip tio n : A u d it o r / T it le :

A .) D e fin e R e a c tio n P la n & A la r m L im its . Y e s N o C o m m e n ts :

1 . A r e th e a la r m lim its e s t a b lis h e d b a s e d o n c u r r e n t p r o c e s s
r e je c ts d a ta ?
2 . A r e th e a la r m lim its c o m m u n ic a t e d to o p e r a to r s ?
3 . I s t h e r e a c t io n p la n e s t a b lis h e d b y d e f e c t ?

4 . H a s th e P C P th e F T Q in f o r m a tio n f o r C h r o n ic R e je c ts , K P C s

e
a n d Q C Is ?

l
B .) Id e n tify a n d C o u n t R e je c te d P a r ts . Y e s N o C o m m e n ts :
.1 . D o e s t h e o p e r a t o r h a v e s u f f ic ie n t t o o ls a n d s k ills in o r d e r t o

p
id e n tif y p r o d u c t d is c r p a n c y s ?
2 . A re r e je c t e d p a r ts r e m o v e d f r o m c e ll s t a t io n o n t h e e s ta b lis h e d
fre q u e n c y b a s is ?

m
C .) R e c o r d D a ta Y e s N o C o m m e n ts :

a
1 . Is th e F T Q tr e n d c h a r t in P P M ‘s b y c e ll a n d s h if t ?

x
2 . Is th e F T Q “T ri C h a rt” o r “G a te C h a rt” u s e d a s s ta n d a rd s to
re c o rd th e d a ta ?

E
D .) Im p le m e n t A la r m R e a c t io n P la n if L im it E x c e e d e d . (M a x - M in ) Y e s N o C o m m e n ts :

1 . I s t h e r e a n e v id e n c e o f r e a c t io n p la n im p le m e n t a t io n ?

E .) S e le c t P la n Im p r o v e m e n t a n d Im p le m e n ta tio n ? Y e s N o C o m m e n ts :

1 . I s t h e r e a n e v id e n c e o f a n im p r o v e m e n t p la n d e v e lo p e d ?

2 . A r e c o r r e c tiv e a c tio n s b e e n im p le m e n t e d ?

F .) E v a lu a te Y e s N o C o m m e n ts :

1 . W a s t h e r e c o r d d a t a u p - d a t e d t o r e f le c t t h e c o r r e c t iv e a c t io n s
e ffe c t?
2 . I f c o r r e c t iv e a c t io n s w e r e e f f e c t iv e n e w a la r m lim it s w e r e
e s t a b lis h e d ?

Revised September 11, 2006 42

FTQ Additional tools to Facilitate FTQ
Improvement

 Quality Tools
 Statistical Engineering to develop solutions
 6 Sigma
 Shainin

 Lean Tools
 Value Stream Mapping
 Workplace Organization
 Error Proofing

Revised September 11, 2006 43

 FTQ
FTQ Improvement Process
 Select and Plan Improvement

 After FTQ problems have been identified through

data analysis, improvement plans must be developed

 A recommended template has been provided to track

implementation status of corrective actions (FTQ
Tracker or Step Down Chart)

 To be make problem solving truly effective, standard

work must be utilized. Standard work is like a recipe:
varying method and content will not yield same results!

Revised September 11, 2006 44

 FTQ
FTQ Improvement Process
 Implement and Evaluate

 Once the Corrective Action has been implemented, the data must be
evaluated for trends or shifts

 Did the problem stay “killed?” Can you turn the problem on and off?
If so, change alarm limits and update the documentation

 This is one of the reasons it is so important to collect data over time

 Without data there is no way to evaluate the impact of the corrective

action on the process

 If no significant reduction in FTQ PPM is observed, then it is possible

the cause was misidentified

Revised September 11, 2006 45

 FTQ
5 Step Site Evaluation Plan
1

Understand 2
the
Value Stream Pareto 3
Customer
Issues Review 4
1. Walk the Internal
Value Stream Issues Review Other 5
and OBSERVE 1. Pareto Improvement
(5S, customer issues
Activities FTQ
standardization, by systemic
root causes from Process
training, metrics, 1. Review pareto
etc.) past (6-12 mo) of of internal issues
Problem Cases from past 6-12 1. What other
2. Does - Input for mo (FTQ, scrap, continual 1. Implement
standardization improvement rejects, audits) Improvement FTQ
exist in facility? priorities
Activities are Improvement
2. What systems in progress? Process
3. Review using 2. What systems are in place to
PFD or Current are in place to identify and 2. How were the 2. Prioritize,
State Value identify and improve the top activities assign resp., and
Stream Maps as improve the top issues daily, selected? set target dates
needed. Identify issues daily, weekly, and/or for action items
Kaizen weekly, and/or monthly? 3. How is the
opportunities. monthly?
effectiveness of 3. Use A3 format
the activities to document the
measured? plan

Revised September 11, 2006 46

 FTQ
5 Step Site Evaluation Plan
Example: Customer Issues
Problem Case Problem Descriptions
(Jan03 - Mar03)

B a rc o d e n o t

W ro n g c o p y
0
C o v is in t la te
W ro n g in fo

C o re w id th
S h ip m e n t

d is p e n s in g
S m e a re d

b a rc o d e
g ra p h ic s
W ound
o n c a rto n

O th e rs
in c o rre c t

P a rts n o t
p rin te d
w ro n g

(1 ) 1 0
W ro n g
re s p o n s e

re a d in g
L a te

la b e l

Proble m Case Root Cause s - Syste mic Issue s

(Jan03-Mar03)

16

12

0
Lack of No formal system Lack of standard Inadequate fin Poor Mtrl ID No PPAP Lack of Transmission APQP failure; No system to ctrl
standardized to manage process f or goods inv levels; submittal tracking understanding system f ailure; Print revisions
instructions customer issues containment No re-order system customer ship No system to requirements not
(press setup; points requirements assure f ully review ed
f inishing) (Overship) functionality

Revised September 11, 2006 47

 FTQ
5 Step Site Evaluation Plan
Example: First Time Quality (internal)
First Time Quality - July 2003
62, 849 PPM

25000

20000

15000 Next steps:

PPM

10000 1. Determine root cause /

5000 systemic issue
0 2. Pareto

Hous ek eeping
Regis tration
Ink / P rint

P roc es s /

Die Cut
W rink les
3. Attack top 70~80%
S tic k y
Q uallity

S etup

/ 5S

FTQ Per Press #

(July 2003)

20000
18000
16000
14000
12000
PPM

10000
8000
6000
4000
2000
0
6 1 8 3 NR 7 2 4 5

Press #

Revised September 11, 2006 48

FTQ
FTQ Improvement Process
 Institutionalize Lessons Learned and Look Across

 Lessons Learned must be incorporated into all existing documentation.

Then Look Across to ensure implementation in all applicable processes,
products.

 DFMEA’s
 Process Flow Diagram
 PFMEA’s
 Process Control Plans
 Process Routings
 Operating Instructions
 Employee Instructions
 Product Drawings
 Tool Drawings
 Total Productive Maintenance (T.P.M.)
 Boundary Samples

Revised September 11, 2006 49

FTQ Alarm Limit Calculation using np Chart-
Class Exercise

Class Exercise (notes contain details)

Revised September 11, 2006 50

 FTQ
First Time Quality
 How is First Time Quality calculated? Tally Sheet

 An example at the cell level:

 Cell “A” has six operations

1 2 3 4 5 6

28 16
 Reject data is collected at operations 3 and 6.

 Cell “A” produced 1040 good pieces during the first hour.
 At OP.3, 28 pcs. were rejected.
 At OP.6, 16 pcs. were rejected.

 What is the FTQ in PPM for Cell A?

 28 + 16 44
 1040 + 28 + 16 = 1084 X 1,000,000 = 40,590 PPM FTQ

Revised September 11, 2006 51

 FTQ Alarm Limit Calculation using np Chart- Class
Exercise
NP Charting for FTQ
25 Defects Pareto
100
20 90
UCL= 80
Nonconforming

15 70
60
avg= 50
10
40
30
5 LCL=
20
10
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Subgroups ( Days)

Hours or Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Non-conforming 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Sample Size (Avg) 18
Defects
wing mark 2 1 5 4 2 1 3 4 2 2 1 3 1 2 1 1 2 1 1 1
wing / body fold 3 2 1 2 5 1 2 2 2 5 2 3 4 5 1 2 4 5 6 7 1 1 2 2 3
wrong paint dot 2 2 1 5 1 2 3 5 4 3 3 6 8 1 1 3 1 4 3 3
paint location 3 4 2 1 2 3 7 2 2 2 2 4
wrong or no clip 1 2 2 1 1 1 3 1 1 3 2 6 1 2 1 1 4 3
Total nonconforming: 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Production 18 18 19 18 20 18 17 18 18 19 18 19 19 18 17 18 18 19 18 20 18 18 20 18 19
PPM Defective

np np1+np2+…..npk where np= number nonconformin, k= subgroups

n = avg sampleksize (18) Reference Attribute Data, AIAG SPC Manual, page 111
np "=SUM(C3:AA3)/25"
np = number nonconforming
k = subgroups (25)
UCLnp
__
U
=C
L
=
0n
p
+3
*(
n
p(
1
-n
p
/n
)
)
UCLnp = 0
np = np1+np2+…..npk
LCLnp k = 0
LCLnp = 0 L
C
L
=n
p-
3*(
np
(
1-
n
p/
n)
)
Revised September 11, 2006 52
FTQ Tools
 FTQ
FTQ - Performance Tracking
2004 CY FTQ Performance FTQ
Goal
10000 Projection
9000
FTQ Value (PPM)

8000
7000
6000
5000
4000
3000
2000
1000
0
2003 Dec Final

Nov
Jan

Jun
Mar
Feb

Apr

Aug
Sep

10
11
12
13
14
15
16
17
18
19
20
1
2
3
4
5
6
7
8
9
Oct
May

Dec
Jul

Monthly Values Daily Values

2004 CY FTQ Performance Data

2003 Dec Final

Jan Feb Mar Apr May Jun Jul Aug
FTQ 9000 8000 7000 6000 5000 4000 3000 3000 3000
Projection 8000 6500 6000 5500 5000 4500 4500 4000
Goal 4500 4500 4500 4500 4500 4500 4500 4500

Revised September 11, 2006 54

 FTQ
FTQ - Performance Tracking

FTQ
In this row put in actual monthly values for FTQ PPM.
Chart below will automatically generate and will
automatically show up in FTQ display format tab. Year-End Final %:
You can print out the FTQ Display tab to post on you
cell " Glass Wall" Put in 2003 month of December FTQ
value in PPM here

2003 Dec Final Jan Feb Mar Apr May Jun Jul Aug
FTQ 9000 8000 7000 6000 5000 4000 3000 3000 3000
Projection 8000 6500 6000 5500 5000 4500 4500 4000
Goal 4500 4500 4500 4500 4500 4500 4500 4500

Goal:
Forecast Put in your year end goal. Corporate goal is a
Put in your Forecast by month here. Forecast minimum of 50% from December month actual
line will automatically be plotted above. in previous year

Revised September 11, 2006 55

FTQ
FTQ - Top 5 Issues
FTQ Top 5 Pareto

1000 800
800 575
PPM

600 400 325

400 120
200
0

Components
Terminals

Ternimals

of tolerance
Damaged

Unseated
Crossed

Branch out
Wires

Missing
Cell/Process

Top 5 Quality Defects

Revised September 11, 2006 56

FTQ
FTQ Tools – Step Down Chart

FTQIMPROVEMENT PROCESS - STEP DOWNCHART

Supplier DUNs # Supplier Name Supplier Kickoff Date

Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05

Metric Start Past 6 Month
Actual Target Actual Target Actual Target Actual Target Actual Target Actual
Ave.

PPM 5.80 4.7 5.0

(per month) (monthly average)
4.86 4.5
3 4.0
Number of Defects 17 10 15.0 3.5
(per month) (monthly average)
10 13.0 3.0
7 10.0
FTQ- Process 1 10300 9500 10000 8.0
9500 9300 7.0
(per month) (monthly average)
9200 8300
FTQ- Process 4 9700 11400 9500 7300
7300 8500 6300
(per month) (monthly average)
6600 7500
FTQ- Process 5 1400 2000 1300 6500
1200 1200 5500
(per month) (monthly average)
1100 1100
FTQ- Process 6 14400 9600 12000 1000
8500 11000 900
(per month) (monthly average)

FTQof FTQ- Process 9 400 900 400

7900 10000
9000
Relevant (per month) (monthly average)
600 360
700 320
8000

Processes 280
240
contributing (per month)
FTQ- 5 Processes
(monthly average)

36200 33400 33200

to Delphi Total
(per month) (monthly average)
27100 30360
25500 27220
APR/WAR/ 24080
Current Month 20940
LP/ FTQ Metric Start Month Status
Status
PPM
6.0 Action Item List Color Code:
Red /
CYTD
CS Level 1 Level 2 Level 1 Level 2 Action item target dates met Green
(number newinitiated) Action item target dates not met will
(number of open) No actions items assigned for this month
indicate
Delphi Single Point SQE Delphi Purchasing Contact whether
Name Name
Phone Number Phone Number
targets are
met
Delphi SQChampion Supplier Contact
Name Name
Phone Number Phone Number

Revised September 11, 2006 57

FTQ
FTQ Tools

F T Q IM P R O V E M E N T P R O C E S S - A C T IO N P L A N I ssu e I d e n ti fi e d A c ti o n P l a n I m p l e m e n te d

A c ti o n P l a n P r o p o se d I ssu e R e so l v e d

A c tio n Ite m s L is t T a r g e t D a te s A c tu a l C o m p l e ti o n D a te s

I te m R e sp P la n Im p l. V e r i fy P la n Im p l. V e r i fy C o m m e n ts

P r o c e ss 1
To p D e fe c t A c t io n It e m s

P r o c e ss 4
To p D e fe c t A c t io n it e m s

P r o c e ss 6
To p D e fe c t A c t io n it e m s

P r o c e ss 9
To p D e fe c t A c t io n it e m s

Revised September 11, 2006 58

 FTQ Action Plans to Address
Top 5 Issues
FTQ PPM
by Issue Pending Actions to address Top 5 Issues
Issue Problem Discription Corrective Action Planned Start Date Target Date Status FTQ Impact Owner(s)
Crossed
Wires
800
Damaged
Terminals
575
Unseated
Ternimals
400
Missing
Components
325
Branch out
of Tolerance
120
99 Issue 6
80 Issue 7
70 Issue 8

mments on each column noted above in red. Mouse over to see. = On track to meet target date

= Off track to meet target date by < 1 month

= No Plan or off track to meet target date >1 month

These have to pasted into the cells in column H above manually.

Revised September 11, 2006 59

FTQ Wrap Up Quiz

 Class participants complete FTQ Quiz(10 minutes)

 Review Responses

Revised September 11, 2006 60

 FTQ
FTQ Quiz Responses
 First Time Quality (FTQ) is an improvement measurement of PPM
reduction over time .

 We measure FTQ by counting the number of pieces rejected versus

the total number of pieces attempted.

 If we don’t make good parts the first time, we have to inspect in

quality. Inspection is only 85% effective at best.

 FTQ is a tool to facilitate our operational improvement in quality and

cost.

  Inspection is like a filter, and will miss some defects. 

 If we don’t fix our quality problems internally, we will never be able

to fix our external customer issues.

 Number of pieces rejected /Total number of pieces attempted

X 1,000,000 = FTQ PPM

Revised September 11, 2006 61

 FTQ
FTQ Quiz Responses
 The most important step in containing the problem is the immediate
action taken, which leads to the elimination of the problem.
Non-chronic rejects require immediate reaction at the first
occurrence. 
 Chronic rejects are those whose failure mode root cause has not been
identified or fixed. 
 When alarm limit is exceeded, the reaction plan must be implemented,
and we implement a containment plan until the problem is fixed. 
 One example of a basic quality tool used to analyze data is a Pareto
chart. 
 The tool used to track implementation status of corrective action and
improvement is the FTQ Tracker (or Step Down Chart). 
 All existing documentation must be updated in order to institutionalize
lessons learned.

Revised September 11, 2006 62

FTQ
Closing Comments - FTQ Improvement Process

 Implement Improvement

 Work the Action Plan

 Update plan as required

 Document improvements

Revised September 11, 2006 63

FTQ
Closing Comments - FTQ Improvement Process

 Remember Delphi’s Suppliers are responsible for their

sub-tier suppliers:

Roll the FTQ process out to sub-tier suppliers to

help them gain the improvement benefits and to
lower the probability of your company receiving non-
conforming parts

Revised September 11, 2006 64

FTQ
FTQ Expectations & Key Points
 FTQ is a Requirement:

A FTQ Process, that Monitors & Controls at the point of build.

Set FTQ Alarm Limits to “1” reject for all safety critical features.

Set FTQ Alarm Limits to “1” reject for all non-chronic(special cause) failures

Reaction Plans include extra containment to Protect the Customer.

Customer notification evaluated by engineering on special cause events.

FTQ Reduction through a Rolling Top 5 or equivalent process.

Delphi Tier 1 suppliers ensure FTQ is correctly implemented

Delphi Customer Specific Requirement 7.3.6.3: Product Approval Process,

“The supplier is expected to develop and implement a FTQ process with
appropriate alarms and reaction plans defined.”

Goal is Zero Incidents, Zero Spills, Zero Defects to our Plants.

Revised September 11, 2006 65