Free Essay

7 Quality Control Tools

In: Business and Management

Submitted By vigneshwarant
Words 1812
Pages 8
Seven Quality Control Tools

1

      

1. 2. 3. 4. 5. 6. 7.

Pareto analysis Flowcharts Check sheets Histograms Scatter diagrams Control charts Fishbone diagram

2



Vilfredo Pareto was an Italian economist who noted that approximately 80% of wealth was owned by only 20% of the population. This was true in almost all the societies he studied.

3

1. Pareto analysis
 







Choosing the Most Important Changes to Make Pareto analysis is a very simple technique that helps you to choose the most effective changes to make. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job. Pareto analysis is a formal technique for finding the changes that will give the biggest benefits. It is useful where many possible courses of action are competing for your attention.

4





It is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job.
Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%).
5







Pareto analysis is a formal technique useful where many possible courses of action are competing for your attention. Basically, it consists of estimating the benefit delivered by each action with subsequent selection of a number of the most effective actions that deliver the total benefit reasonably close to the maximum possible one.

6





Write out a list of the changes you could make. If you have a long list, group it into related changes. Then score the items or groups. The scoring method you use depends on the sort of problem you are trying to solve.

7





For example, if you are trying to improve profitability, you would score options on the basis of the profit each group might generate. If you are trying to improve customer satisfaction, you might score on the basis of the number of complaints eliminated by each change.
8





The first change to tackle is the one that has the highest score. This one will give you the biggest benefit if you solve it. The options with the lowest scores will probably not even be worth bothering with solving these problems may cost you more than the solutions are worth.

9

Case Study
Implementation of Pareto analysis.

10

A failing service center






Phones are only answered after many rings. Staff seem distracted and under pressure. Engineers do not appear to be well organized. They need second visits to bring extra parts. This means that customers have to take more holiday to be there a second time.
11







They do not know what time they will arrive. This means that customers may have to be in all day for an engineer to visit. Staff members do not always seem to know what they are doing. Sometimes when staff members arrive, the customer finds that the problem could have been solved over the phone
12

Grouping & Scoring the problems.
   

Lack of staff training: items 5 and 6: 51 complaints Too few staff: items 1, 2 and 4: 21 complaints Poor organization and preparation: item 3: 2 complaints By doing the Pareto analysis above, the manager can better see that the vast majority of problems (69%) can be solved by improving staff skills.

13







Once this is done, it may be worth looking at increasing the number of staff members. Alternatively, as staff members become more able to solve problems over the phone, maybe the need for new staff members may decline. It looks as if comments on poor organization and preparation may be rare, and could be caused by problems beyond the manager's control.
14



By carrying out a Pareto Analysis, the manager is able to focus on training as an issue, rather than spreading effort over training, taking on new staff members, and possibly installing a new computer system.

15

2. Flowcharts






Flow charts are easy-to-understand diagrams showing how steps in a process fit together. This makes them useful tools for communicating how processes work, and for clearly documenting how a particular job is done. Furthermore, the act of mapping a process out in flow chart format helps you clarify your understanding of the process, and helps you think about where the process can be improved.
16

A flow chart is used to
 



Define and analyze processes; Build a step-by-step picture of the process for analysis, discussion, or communication; and Define, standardize or find areas for improvement in a process

17

How to make a flow chart




Most flow charts are made up of three main types of symbol: Elongated circles, which signify the start or end of a process;

18



Rectangles, which show instructions or actions; and



Diamonds, which show decisions that must be made

19







Within each symbol, write down what the symbol represents. This could be the start or finish of the process, the action to be taken, or the decision to be made. Symbols are connected one to the other by arrows, showing the flow of the process.
20

Points to note






Flow charts are simple diagrams that map out a process so that it can easily be communicated to other people. To draw a flowchart, brainstorm the tasks and decisions made during a process, and write them down in order. Then map these out in flow chart format using appropriate symbols for the start and end of a process, for actions to be taken and for decisions to be made.
21



Finally, challenge your flow chart to make sure that it’s an accurate representation of the process, and that that it represents the most efficient way of doing the job

22

3. Check sheets




The intent and purpose of collecting data is to either control the production process, to see the relationship between cause-andeffect, or for the continuous improvement of those processes that produce any type of defect or nonconforming product. A Check Sheet is used for the purpose of collecting data to compile in such a way as to be easily used, understood and analyzed automatically.
23





The Check Sheet, as it is being completed, actually becomes a graphical representation of the data you are collecting, thus you do NOT need any computer software, or spreadsheet to record the data. It can be simply done with pencil and paper
24

The main functions - Checks






Production process distribution checks - where the distribution lies. Defective item checks - to determine what kind of defects exist in the process. Defect location checks - to determine where the common defects on a part are located.
25





Defective cause checks - type of defect and thus validate the cause thereof. Check-up confirmation checks - final phase of assembly to check the finished product or work.

26

4. Histograms


The common person believes that if a part is made in mass production from a machine, all of the parts will be exactly alike.
The truth is that even with the best of machines and processes, no two parts are exactly the same. The product will have a main or "mean" specification limit, with plus/minus tolerance that states that as long as the part is produced within this range, to that range, it is an acceptable part.





27





The object is to hit the target specification, however, that is not always totally possible. The purpose of a Histogram is to take the data that is collected from a process and then display it graphically to view how the distribution of the data, centers itself around the mean, or main specification.

28

The histogram will graphically show
  





The center of the data. The spread of the data. Any data skewness (slant, bias or run at an angle). The presence of outliers (product outside the specification range). The presence of multiple modes (or peaks) within the data.
29

5. Scatter diagrams


 

The Scatter Diagram is another Quality Tool that can be used to show the relationship between "paired data", and can provide more useful information about a production process. What is meant by "paired data"? The term "cause-and-effect" relationship between two kinds of data may also refer to a relationship between one cause and another, or between one cause and several others.
30



For example, you could consider the relationship between an ingredient and the product hardness; between the cutting speed of a blade and the variations observed in length of parts; or the relationship between the illumination levels on the production floor and the mistakes made in quality inspection of product produced.

31

6. Control charts




Control charts are generally used in a production or manufacturing environment and are used to control, monitor and IMPROVE a process. Common causes are always present and generally attributed to machines, material and time vs. temperature.

32



This normally takes a minor adjustment to the process to make the correction and return the process to a normal output.
However, when making a change to the process, it should always be a MINOR change.





If a plot is observed that shows a slight deviation trend upward or downward, the "tweaking" adjustment should be a slight change, and then another observation should be made.
33





Too often people will over-correct by making too big of an adjustment which then causes the process to dramatically shift in the other direction. For that reason, all changes to the process should be SLIGHT and GRADUAL!
34

Control Lines




 



A control chart is a graph or chart with limit lines, called control lines. There are basically three kinds of control lines: the upper control limit (UCL), the central line (actual nominal size of product), the lower control limit (LCL).
35

The Xbar & R Control Chart




An Xbar & R Control Chart is one that shows both the mean value ( X ), and the range ( R ). The Xbar portion of the chart mainly shows any changes in the mean value of the process, while the R portion shows any changes in the dispersion of the process.
36



This chart is particularly useful in that it shows changes in mean value and dispersion of the process at the same time, making it a very effective method for checking abnormalities within the process; and if charted while in progress, also points out a problem in the production flow in real time mode.
37

7. Fishbone diagram
 



Cause & Effect Diagrams Identifying the Likely Causes of Problems Also called Fish or Fishbone Diagram and Ishikawa Diagrams

38





Cause and Effect analysis helps you to think through causes of a problem thoroughly. Their major benefit is that they push you to consider all possible causes of the problem, rather than just the ones that are most obvious

39

Conclusion.

40…...

Similar Documents

Premium Essay

Quality Management Tools for Organizational Excellence

...Quality Management Tools for organizational Excellence MGT/449 July 14, 2012 Steven Kohorst Quality Management Tools for organizational Excellence It is important for business management to adopt the concept of total quality management. Total quality management is a business practice for companies to ensure quality in products and services. Companies can make business more effective and customer oriented using total quality management tools. This paper will discuss a case provided in chapter 15 of the book reading (Goetsch & Davis, 2010). Cignet Plastics for years has been featured and known as a favored supplier for major producers of model airplane kits. The company is a contract plastics die- casting house with a large amount of clients. Through audit findings there has not been any changes to the company process and defect rates have increased on the parts the company produces. Quality Assurance informs the president that the defects are some variation related to an assignable cause. The president to explain the situation has called me; he believes that the company process needs to be changed to eliminate the number of defects. In business today it is important for managers to employ process thinking for company success. Managers are constantly called for decisions and problems solving. Employees do not always analyze the situation or processes carried out and believe processes cannot be improved. Quality tools...

Words: 918 - Pages: 4

Premium Essay

Quality Assurance and Control

...MANAGEMENT ENGINEERING PROGRAM QUALITY ASSURANCE AND CONTROL 2012-2013 SPRING SEMESTER GUIDELINES FOR THE TERM PROJECT PURPOSE: is to study, analyze, and propose solutions for the quality issues and problems of two selected manufacturing or service companies in a particular sector and also to analyze the economical and technological structure of the sector. TASK: Two manufacturing or service companies in a particular sector will be selected. The economical and technological structure of the sector will be analyzed and the quality issues and problems about the selected companies will be studied. In order to accomplish the term project, you are asked to form a group of 3 or 4 students and visit the companies in the selected sector to conduct in-depth interviews. Finally, you are asked to write a report about the sector analysis and the study about the selected companies. SCOPE: The report should be approximately 3000 words. The sector study may be between 1000 and 1500 words and the company study between 1500 and 2000 words. Electronic and/or hard copies of all references must be annexed. GUIDELINES: A. Analysis of the sector 1. The contribution of the sector to GNP 2. Exportations 3. Capital accumulation 4. Labor structure and employment 5. Level of technological development 6. Research and development potential 7. Expectations for future developments B. Study of the selected companies 1. Quality strategies and......

Words: 367 - Pages: 2

Free Essay

Quality Control

...steps of quality control Providing premium online methodology 10 steps of quality control Premium online methodology KNOTs Research has been working since 1996 to develop and manage active access to households worldwide. Building on our technical knowledge pioneered in the Japanese market, we have been active in Europe since 2001. All our work is carried out in accordance with the strictest market research professional standards codes and guidelines and we only conduct surveys for the purpose of marketing research and intelligence. We maintain and update full profile information for all our members on a regular basis and also actively recruit new members to join. Keeping the membership database fresh and engaged has resulted in high response rates for every survey – typically, depending on the complexity or scarcity of the sample, or the sensitivity of the subject, this will be between 12% and 35%. We have defined and implemented a clear set of rules to ensure that quality is our highest priority and support this through regular contact with our members. Currently, we have access to more than 40 million households in over 70 countries – and manage the relationship with global consumers on a daily basis. 10 steps of quality control 1. Maintain database – reliable and up to date 2. Confirm respondent’s identity 3. Screen with strict procedure 4. Select accurately the right sample 5. Inspect and test questionnaire thoroughly 6. Use self-completion method 7. Create......

Words: 1632 - Pages: 7

Premium Essay

Quality Control

...verbal confirmation that the employee understands what is expected of him or her. Hold multiple training sessions for the custodial staff before they begin work at the facility. Discuss chemical and electrical hazards, ways to prevent injuries from equipment or due to falling, and what to do in case of an emergency at the facility. Occasionally bring in outside cleaning professionals that is certified in custodial safety to give talks to the staff about safe custodial services to go in-depth about specific chemical safety measures. Show the custodians where to find all necessary equipment for the job. Tour the storage facilities with the custodian, and ask them if they have any questions about where the tools are. Provide the custodian with keys to access necessary storage closets. Stress the importance of keeping all cleaning supplies neat and organized in their proper place. Tell Train custodians to wash hands frequently and to protect their hands with gloves when working with chemicals that could irritate the skin. Put upPlace signs that remind the custodians about proper hand-care safety. Talk to the custodians to ensure that all custodians know how to wash hands effectively, and where hand protection is available. As well, discuss the importance of eye protection and where eye protection can be found. Inspect the work of the custodians on a regular basis. Ask the custodians if they have any questions about how......

Words: 1816 - Pages: 8

Free Essay

Quality Control

...perusahaan berada dibawah budget, tetapi Russ memperhitungkan bahwa varians bukan merupakan permasalahan yang sebenarnya. Efisiensi produksi di bulan Juni diperbaiki dan akirnya perusahaan dapat mengirim produknya untuk pemesanan bulan July di bulan Juni sehingga perusahaan dapat lebih awal mengetahui pendapatan dan laba. Annual budget tidak direvisi kecuali jika terjadi kejadian yang signifikan dan tidak dapat dihindarkan karena Russ pada akhir tahun ingin melihat berdasarkan how we did vs what we thought we’d do. B Hubungan antara budget dan performance sangat terkait dengan insentif berdasarkan performance. Body Glove merencanakan pembagian keuntungan kepada karyawan yang telah bekerja pada perusahaan lebih dari 2 tahun, sebesar 6-7 % dari gaji. Di periode normal dimana perusahaan mendapatkan keuntungan, manager mendapatkan bonus sekitar 10-12 % dari gajinya, walaupun pada tahun 1991 relatif buruk bagi perusahaan sehingga tidak ada bonus yang dibagikan. Indikator yang digunakan sebagai dasar bonus bagi para manager adalah hasil pekerjaannya termasuk pelayanan dan kepuasan konsumen, level penjuualan, produktivitas pabrik, dan pengendalian pengeliaran. CONCERN FOR THE FUTURE Untuk masa depan Body Glove, Russ berpikir apakah perushaan seharusnya melakukan sesuatu yang berbeda. Apakah dia seharusnya menerapkan rencana yang lebih formal dan proses evaluasi performance? Banyak orang berpikir bahwa budaya informal perusahaan menjadi kunci atas kesuksesannya selama......

Words: 3259 - Pages: 14

Premium Essay

Quality Control

...Quality Control Quality Control Quality Training Manual Kajohn Hillman 6/23/2014 Table of Contents I. Introduction i. History of quality Management ii. The need for Quality Management II. The Role of Leadership i. Role they play in the success ii. Firms adoption of roles and effects of nonexistent role modeling iii. Monitoring and Metrics within the quality management improvements III. General Quality Strategies and Tools i. Establishing customer expectations ii. Designing quality in iii. Defining metrics iv. Mistake-proofing v. Kaizen vi. Six Sigma IV. Quality Tactics and the Logistics and Supply Chain Functions i. What tools are applicable internally ii. What tools are applicable externally with vendors V. Week 5: Roll-Out i. A communication plan ii. Sequence of steps to get personnel trained iii. Stakeholders on board I. History Of Quality Management The history of quality management and the movement can be traced as far back as medieval times in Europe when craftsmen and tradesmen organized themselves in unions called guilds which predate the 13th century. It wasn’t until the 19th Century when the industrial manufacturers of the world adopted this model of craftsmanship. The system had its emphasis on the inspection process which started in Great Britain during the 1700’s and grew immensely during the Industrial Revolution of the 1800’s. In the 20th century these......

Words: 3307 - Pages: 14

Free Essay

7 Basic Tools in Quality

...Introduction ………………………………………….………………………… 2 2.0 The Development of 7 Basic Tools…………………………………………….. 3 3.0 Data Figures ………………………………………..…………………… 3 4.0 Histogram ..………………...…………………………………………………… 5 5.0 Process Control Chart ..………………………….…………………………… 5 6.0 Patero Analysis …………………………………………………………….. 8 7.0 Cause and Effect Diagram ……..………………..……………….……….……. 9 8.0 Trend Analysis ……………………………………………………………………11 9.0 Scatter Diagram…...……………………………………………..………………. 13 10.0 Conclusion…….…………………………………………………………..……... 15 THE SEVEN BASIC QUALITY TOOLS Project Risk, Procurement and Integration Management 1. INTRODUCTION The last two decades have been a period of tremendous turmoil and change in the business environment. Competition in many industries has become worldwide in scope, and the pace of innovation in products and services has accelerated. These changes in business environment have resulted in organisations attempting to transform themselves to become more competitive. Since the early 1980s, many companies have gone through several waves of improvement programs, starting with Just-In-Time (JIT), then moving on to Total Quality Management (TQM), Lean Production, Six Sigma and many other various management programs. Implementing these programmes would require tools for data collection, measure and monitor. There are seven quality control tools which are: * Data figures * Pareto analysis ......

Words: 3093 - Pages: 13

Premium Essay

Quality Control

...GE on Quality Control University of Texas at Brownsville October 25, 2012 Abstract Quality Control plays a major role in the success of a Company. GE is a prime example of a company implementing procedure and maintaining high quality to provide consumers what they are looking for and making every dollar count. Six Sigma and its key concepts contribute to the success of any company. Control Charts provide dominance in measuring variances and help prevent problems. Employee empowerment is another tool extremely vital to the success of a company. GE on Quality Control It is most important to assure consumers that the process for developing a product is followed accurately. The way to do this is to have quality control in a company. This is the most important aspect of the production process. The consumers should be able to visualize how the products work and that the products functions the way they are suppose too. Can a company guarantee the products meet the critical demands? By implementing quality assurance with all aspect of the production process will guarantee the products functionality and production. The company with the top of the line products in the market which all consumers know, is GE. They hold the prestige certification: ISO 1901:2008 which means that the company must preserve a well-designed quality management system in order for them to comply with acceptable business practices.1 These practices is what keeps GE above all others. . ......

Words: 1275 - Pages: 6

Premium Essay

Shop Tool Control

...Tool control in the shop It’s a matter of fact – tool control affects safety. Leaving a tool in an aircraft or engine is not just an inconvenience, it is a safety risk. Realizing this, most aircraft maintenance businesses enforce some sort of tool control procedures. They realize that establishing and enforcing a tool control program can provide numerous benefits, the foremost of which is safety. In this article we will take a look at some ideas inherent to an effective tool control policy. What’s involved? At a minimum, tool control is a method to quickly determine that all tools are accounted for at the end of a maintenance task. This can only be done if each tool has a specific place where it is stored that allows for quick identification if the tool is missing. There are several ways to do this. Tool shadowing This involves specifying a specific space for each tool. It should be designed in such a way as to quickly determine if a tool is missing. A popular method is to use some type of foam product and cut out spots for each tool. In a toolroom environment, walls can be used with pegboard and hooks. The item is then outlined and shadowed. Tool identification Some companies require employees permanently mark their tools for tool identification purposes. This provides a way to quickly identify who a tool belongs to when it is found. Tools can be marked using a vibra-peen tool. Some other marking methods such as permanent marker may not be very effective in a hangar...

Words: 963 - Pages: 4

Premium Essay

Quality Control

...general and application controls in a computerized information system. | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 | 52, 53, 54, 55, 57, 58, 59, 60, 61, 62, 66 | 2. Explain the difference between auditing around the computer and auditing through the computer. | 14, 15, 16 | 51, 65 | 3. List several techniques auditors can use to perform tests of controls in a computerized information system. | 17, 18, 19, 20, 21 | 64 | 4. Describe the characteristics and control issues associated with end-user and other computing environments. | 22, 23, 24, 25 | 63 | 5. Define and describe computer fraud and the controls that an entity can use to prevent it. | 26, 27, 28, 29, 30 | 56 | SOLUTIONS FOR REVIEW CHECKPOINTS H.1 Given its extensive use, auditors must consider clients’ computerized information systems technology. All auditors should have sufficient familiarity with computers, computerized information systems, and computer controls to be able to complete the audit of simple systems and to work with information system auditors. More importantly, auditors must assess the control risk (and the risk of material misstatement) regardless of the technology used for preparing the financial statements. In a computerized processing environment, auditors must study and test information technology general and application controls. H.2 COBIT (which stands for Control Objectives......

Words: 10310 - Pages: 42

Premium Essay

Quality Control

...scheduled date. This project was called PC SWAP. The quality issue that the Program Manager had was there was not a budget itemized. For example, each office was allocated a certain amount of funds for their budget. The itemized budget should have consisted of the IT travel such as air, food, and transportation. There was not enough communication between each office. Although the offices were out of state there could have een some teleconference meeting to go over the process. There should have been discussions on what time the PC Swap starts and what type of training will take place once the new software and programs have been installed. On Monday, all staff returned to the office and did not know how to use their new equipment. The administrative employees were assisting with training. The management team received new printers in their office. Unfortunately, the printers were not setup, and it took some employees about a week to get their printer compatible with their computers. This causes a lot of problems because the management team sometimes has to print confidential documents. Also, another issue was that the IT did not meet with the management team to discuss what drives the employees should have access to. All employees should not have access to the finance drive and payroll. “Quality control focuses on monitoring the activities and results of the project to ensure that the project complies with the quality standards. Once the project’s......

Words: 558 - Pages: 3

Free Essay

Seven Tools of Quality

...One of the seven tools of quality, it shows the relationship of all factors (causes) that lead to the given situation (effect). It identifies major causes and breaks them down into sub-causes and further sub-divisions (if any). It is usually preceded by cause-and-effect analysis. Also called fishbone diagram (because of its resemblance to a fish skeleton) or Ishikawa diagram, after its inventor Dr. Kaoru Ishikawa (1915-89) of Tokyo's Mushasi Institute. flow chart a diagram of the sequence of movements or actions of people or things involved in a complex system or activity. Check sheets The check sheet is a form (document) used to collect data in real time at the location where the data is generated. The data it captures can be quantitative or qualitative. When the information is quantitative, thecheck sheet is sometimes called a tally sheet. Histogram a diagram consisting of rectangles whose area is proportional to the frequency of a variable and whose width is equal to the class interval. Pareto charts A Pareto chart, named after Vilfredo Pareto, is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line. Control charts The control chart is a graph used to study how a process changes over time. Data are plotted in time order. A control chart always has a central line for the average, an upper line for the upper control limit and a......

Words: 296 - Pages: 2

Premium Essay

Quality Control and Tqm

... Back to "Search By Author" COMPARISON OF TQM AND ISO 9000 EFFECTS IN COMPANY PERFORMANCE: AN EMPIRICAL STUDY IN SPANISH COMPANIES ABSTRACT The effect of Total Quality Management (TQM) and ISO 9000 on performance has been extensively analysed by researchers, but this sort of research has usually been developed in separated cells. However, there are few articles analysing the effect of both systems within the same sample of companies. Our paper analyses both the effect of a TQM system and the ISO 9000 implementation in company performance. A structured questionnaire using the Flynn et al. (1994) scale for measuring TQM has been used to get the data. A postal survey to nearly 3000 industrial Spanish companies with more than 100 employees was sent. This questionnaire was answered by 713 quality managers. The results show a positive relationship between TQM application and hard and soft results while only an improvement in hard results after the ISO 9000 implementation has been found. 1. INTRODUCTION Over the last two decades quality management has been an important research topic as it can be seen by the important number of publications in scientific journals (Martínez et al., 1998). This interest has mainly been motivated by the success’ stories of companies that, after applying some sort of quality management, have increased their productivity and results. In this way, many researchers have analysed the impact of TQM implementation on business performance......

Words: 4504 - Pages: 19

Free Essay

Quality Control Tests on Soaps

...“IMPROVING THE QUALITY OF SHEANUT PRODUCTS FOR GLOBAL COMPETITIVENESS” PRESENTATION BY PAUL B. ORHII, JD, MD, Ph. D, DIRECTORGENERAL (NAFDAC), AT THE SEMINAR ON SHEANUT AT HYDROHOTELS, MINNA, ON 4TH AUGUST, 2010. Protocol: I feel highly honored to be invited to present a paper with the theme: “Shea nut industry in Nigeria: exploiting its potentials for economic growth and development “. I commend the management of Central Bank of Nigeria (CBN) for organizing this seminar which provides a forum for the various stakeholders to engage in discussions towards exploiting the potentials of Shea nut industry for economic growth. The theme of the conference is also timely considering the efforts being made by various sectors in order to rescue Nigeria from the impact of the global financial crisis. Your choice of topic: “Improving the quality of Shea nut products for global competitiveness” is also commendable. This forum will not only expose the hidden potentials of Shea nut crop and its produce but also addresses the operational challenges of policy implementation, compliance to regulatory requirements and promotion of exchange of ideas to mitigate such challenges, but will also foster collaborations among the different stakeholders towards improving our economy. This address will highlight all the efforts of NAFDAC to effectively regulate the food , cosmetics and pharmaceutical industry as a means of improving the quality of Shea nut products for global 1 competitiveness. We......

Words: 4296 - Pages: 18

Premium Essay

Quality Tools

...Know the Laws. Use the Tools. Profit. Factory Physics® Principles for Managers—Fourth in a Series A series of articles designed to help managers and executives better control and optimize their operations through a solid understanding of the practical science that governs their environments. Managing Variability Variability is an unavoidable fact of life that is best managed through understanding the tradeoffs it presents. Variability is a double-edged sword—it can be good, e.g. having more than one product to offer to your customers, or variability can be bad, e.g. machine breakdowns or order cancellations. As an executive, your strategic solutions for managing variability in your environment are two fold: First, determine the amount of “good” variability that you require to be successful in your market and Second, determine the lowest cost combination of buffers (inventory, capacity and time) and efforts at reduction of “bad” variability to ensure you succeed in your market. For most manufacturing and supply chain managers, the luxury of setting demand levels and product offerings is not one of your options. However, Factory Physics principles provide practical scientific relationships such as the VUT equation and practical buffer management strategies for getting the best possible performance out of the operations in your span of control. In any case, the key to success is in understanding the effects of variability on value stream behavior and then managing the......

Words: 2693 - Pages: 11