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1. Identify the ways each 7 quality tools can be utilized.

2. Develop a lean opportunity assessment tool with given excel sheets.

1. Read the materials about the seven new quality tools and briefly identify the ways in which you feel each tool can be utilized to better the condition of a product or company. Support your answer with an example for each tool. (7 New Quality Tools attached)

2. Professor Myerson developed a Lean Opportunity Assessment tool to discover lean opportunity in supply chains, but it can be applied on any system. The tool covers various system areas including leadership, communication, engineering, and design. The tool includes two Excel Sheets (attached, both sheets in one file). In the first sheet there are 6-7 questions for each area. By answering all questions, each area will have an average score as a percentage, which will be summarized in the second sheet. Please go through the tool very carefully and make sure you understand it. Then, apply it in your company as follows: 

· Explain the company where you will apply the tool in detail including company profile, products or services provided by the company, etc. Note that the company does not have to be a manufacturing company. It could be a service company as well.

· Answer all questions for all the areas included in the tool. If there is an area that is not applicable to your working company, ignore that area and state the REASON(S) why that area is not applicable. 

· You are required to provide the reason of every single score you provide. For example, in the tool there is an area called performance measure and  it has a question about employees which is “
Employees understand how their individual efforts contribute to the overall results of the enterprise
“. If you set a score of 4 out of 5 for this question, you have to explain the reason(s). What the company does to meet the question. 

· After answering all question, each area will have a score as a percentage, which represent the quality of your company as a lean system. If the score of an area is less than 20%, provide your suggestions on how to improve that area to become a lean area.  

1. Affinity Diagram Example: 15 http://asq.org/learn – about – quality/idea – creation – tools/overview/affinity.html

1. Affinity Diagram 16 Resources to read: 1. http://www.syque.com/quality_tools/toolbook/Affinity/affinity.htm 2. http://asq.org/learn – about – quality/idea – creation – tools/overview/affinity.html

2. Relations Diagram • Relation diagram shows relationships between items or it can show cause and effect relationships. • It helps analyze the natural links between different aspects of a complex situation. • Use it when trying to understand links between ideas or cause – and – effect relationships 17 http://www.syque.com/quality_tools/toolbook/Relation/example.htm

2. Relations Diagram Items and Relations 18 http://www.syque.com/quality_tools/toolbook/Relation/example.htm

2. Relations Diagram Complex Causal Relationships 19 http://www.syque.com/quality_tools/toolbook/Relation/example.htm

2. Relations Diagram Example: 20 http://www.syque.com/quality_tools/toolbook/Relation/example.htm

2. Relations Diagram 21 Resources to read: 1. http://www.syque.com/quality_tools/toolbook/Relation/relation.htm 2. http://asq.org/learn – about – quality/new – management – planning – tools/overview/relations- diagram.html

3. Tree Diagram To show the possible outcomes of an event (it can be good or bad) 22 http://www.syque.com/quality_tools/toolbook/Tree/how.htm

3. Tree Diagram Example: 23 http://www.syque.com/quality_tools/toolbook/Tree/example.htm Resources to read: 1. http://www.syque.com/quality_tools/toolbook/Tree/tree.htm 2. http://asq.org/learn – about – quality/new – management – planning – tools/overview/tree – diagram.html

4. Matrix Diagram • To show relationships between items. It allows you the think in multi – dimensions to solve a problem • Good Example: QFD 24 http://www.syque.com/quality_tools/toolbook/Matrix/vary.htm

4. Matrix Diagram 25 Resources to read: 1. http://www.syque.com/quality_tools/toolbook/Matrix/matrix.htm 2. http://asq.org/learn – about – quality/new – management – planning – tools/overview/matrix – diagram.html

5. Arrow Diagram • It is also called Activity Network Diagram • It allows for developing optimal schedule and control it • Example: Critical Path Method (in project management) Simple Example: 26 http://www.syque.com/quality_tools/toolbook/Activity/example.htm

5. Arrow Diagram 27 Resources to read: 1. http://www.syque.com/quality_tools/toolbook/Activity/activity.htm 2. http://asq.org/learn – about – quality/new – management – planning – tools/overview/arrow – diagram.html

6. Matrix Data Analysis • It is also called Prioritization Matrix • It is used to prioritize items (from Matrix Diagram) based on weight criteria • It is solely based on numerical data Example: Project Selection Matrix 28

29 Example Modified QFD

7. Process Decision Program Chart (PDPC) • It is used to identify potential problems and countermeasures in a plan 30 http://www.syque.com/quality_tools/toolbook/PDPC/how.htm

7. Process Decision Program Chart Example: 31 http://www.syque.com/quality_tools/toolbook/PDPC/example.htm

7. Process Decision Program Chart 32 Resources to read: 1. http://www.syque.com/quality_tools/toolbook/PDPC/pdpc.htm 2. http://asq.org/learn – about – quality/new – management – planning – tools/overview/process- decision – program- chart.html

7 New Tools of Quality 1. Affinity Diagram 2. Relations Diagram 3. Tree Diagram 4. Matrix Diagram 5. Arrow Diagram 6. Matrix Data Analysis 7. Process Decision program Chart 13 Read ASQ Resources: http://asq.org/learn – about – quality/new – management – planning – tools/overview/overview.html And Quality Tools Resources: http://www.syque.com/quality_tools/toolbook/toolbook.htm

1. Affinity Diagram To organize facts, opinions and issues into natural groups to help diagnose a complex situation or find themes. Example: 14 http://asq.org/learn -about -quality/idea – creation-tools/overview/affinity.html

Evaluation

Lean Assessment Scorecard
Internal Communication Score Visual Systems and Workplace Organization Score Operator Flexibility Score
(1 -5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT
1 Management communicates with all levels of the organization on topics regarding organization goals and objectives at least twice per year. 1 The Distribution Center and Office areas are generally clear of unnecessary materials, items or scrap. Isles are clear of obstructions. 1 Operators are given formal training before doing a job on their own. Few defects or productivity related slowdowns are attributable to new or inexperienced operators.
2 Employees are able to accurately describe the organization’s goals and how their job contributes to the achievement of those goals. 2 The Distribution Center floor has lines that distinguish work areas, paths and material handling isles. 2 Product/Component travel distances have been measured, analyzed and reduced by moving equipment and work stations closed together.
3 Employees receive feedback through a formal process concerning problems found in downstream processes or from the customer. 3 All employees are aware of good housekeeping practices and operators consider daily clean up and put away activities as part of their job. 3 Equipment is “right sized” for the operation/process. They have the ability to change speed to match the TAKT time. No “monuments” are present in the process.
4 Management encourages Supply Chain & Logistics employees to work in groups to address performance, quality or safety issues. 4 There is a place for everything and is everything in its place. Every needed item, tool, material container or part rack is labeled and easy to find. 4 Operators are cross trained to perform other job functions and operators work in at least 2 different jobs each day.
5 Employees at the operations level understand and use common performance metrics to monitor and improve the production processes. 5 Display boards containing job training, safety, operation measurables, production data, quality problems and countermeasure information are readily visible at each production line or process and are updated continuously. 5 Processes and equipment are arranged to facilitate continuous flow of work through the Distribution Center.
6 Problems in the Supply Chain & Logistics process are detected and investigated within ten (10) minutes of the first occurrence. 6 Check sheets describing and tracking the top quality defects are posted and are up to date at each work station. 6 U-shaped cells have been designed and implemented to promote one piece flow where appropriate (ex: light assembly area).
7 The concept of Value Stream Mapping is understood and all product famalies have been mapped and are physically segregated into the like process streams.
Internal Communication Category Score = 0% Visual Systems Category Score = 0% Operator Flexibility Category Score = 0%
Continuous Improvement Score Mistake Proofing Score Quick Changeover/Setup Reduction Score
(1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT
1 There is a designated champion and a clearly communicated strategy for continuous improvement in the facility with the necessary resources, organization and infrastructure in place to support the process. 1 Employees have been trained in the basis of mistake proofing and there is a team responsible for analyzing production defects and identifying mistake proofing opportunities. 1 Shift (Receiving, Shipping, etc) and Wave startups are scheduled in advance and communicated to inform all workers that these events are on that day’s schedule.
2 There is a formal suggestion process in place to solicit ideas for improvements from all employees and to recognize their participation. 2 Mistake proofing devices and methods have been implemented or are being developed to eliminate the top production defects for each work area in the plant. 2 Shift and Wave teams are in place and have received training on setup time reduction procedures and are actively improving change over methods.
3 Employees have been trained in continuous improvement methods and have been affected by or participated in continuous improvement events. 3 Parts, products and components have been analysed to identify design opportunities to eliminate waste and improve productivity. 3 Shift and Wave startups are done frequently (Wave only) and typically take less than 10 minutes.
4 Employees know the eight wastes, are actively involved in identifying wastes in their processes/areas and are empowered to work to reduce and eliminate the waste. 4 Operators are empowered to stop an activity when an error or defect is found or when they cannot complete their process according to the SOP. 4 Startup/Wave time is visibly tracked and posted at each work station where work is performed.
5 Continuous improvement, Kaizen projects/events are structured, planned and implemented. Successes are recognized and expanded throughout the facility. 5 Manual processes or tasks have been equipped with mechanical checks to aid human judgement whenever possible. 5 Shift and Wave startup procedures are standardized and repeated in other areas of the plant. Standard procedures and checklists are visible and followed
6 Most improvements made throughout the Distribution Center and Offices are made daily and involve little or no expense to implement. 6 Equipment and processes are equipped with call(andon) lights or signals that bring attention to situations requiring assistance with a problem or the replenishment of supplies. 6 Special tools and equipment have been developed and implemented to reduce the time and labor involved in the startup process.
7 Product/Process Value streams undergo examination for continuous improvement on a regularly scheduled basis.
Continuous Improvement Category Score = 0% Mistake Proofing Category Score = 0% Quick Changeover Category Score = 0%
Quality – Inbound, Outbound and Administrative Score Supply Chain Score Balanced Flow Score
(1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT
1 Zero defects from suppliers is a policy 1 Suppliers are involved in continuous improvement efforts with the company 1 There is an effort to level assembly, packaging and administrative schedules by requiring suppliers to schedule frequent, smaller deliveries, over the period.
2 The company quality system is effectively implemented and compliant with a national standard such as ISO-9000 2 Performance to delivery policy (on-time) is better than 98% 2 Changeovers in assembly, packaging and the office are made to support the concept of running to demand for all products, and not to support long production runs, WIP inventory buffers, or daily short ship emergencies, etc.
3 FMEA (Failure Modes and Effects Analysis) is in place(Feedback, rootcause, etc.) 3 Quality performance of the suppliers exceeds 98% 3 Takt time is known by all associates and determines the pace of assembly and packaging in the facility
4 Material Review Board/Discrepant material disposition is in place 4 Electronic communications with suppliers is used to trigger release of supplies under a kanban system 4 Assembly and packaging is facilitated through Value Stream Managers
5 Supplier quality systems are in place 5 The company has regular input to the suppliers to improve design and performance characteristics of the supplied parts 5 Processes on assembly and packaging lines or in cells (including the office) are balanced or leveled so the difference between cycle times of linked processes is negligible.
6 Internal scrap loss is less than 1% of cost of goods sold 6 Cost reduction goals with suppliers are documented and tracked 6 When demand volume changes, assembly, packaging and administrative processes are re-balanced or redesigned to flex up or down the process cycle times to correspond to the new Takt time.
7 Returned material to vendors is less than .1% of sales 7 Sevice complaints with suppliers are resolved within 24 hours 7 When demand volume changes long term, supermarket and POUS levels are adjusted to meet the new Takt time.
Quality I/B, O/B and Administrative Category Score = 0% Supply Chain Category Score = 0% Balanced Flow Category Score = 0%
Total Productive Maintenance Score Pull System (Assembly, Packaging and Office) Score Standardized Work Score
(1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT
1 Maintenance team managers and workers have been trained in the basics of TPM 1 Each assembly and packaging cell, line or process has displayed, visually, the target and actual hourly output as well as the shifts production requirements and timing. 1 Standard operating procedures have been developed for each process or cell and are used to train operators.
2 Machines and equipment have all necessary safety guards in place. Safety devices are in working order and equipment is locked out immediately when broken down or when otherwise appropriate. 2 All assembly and packaging managers and supervisors have been trained in the principles and implementation of shop floor material pull systems. 2 Every Distribution Center and Office process has its SOP posted within view of the worker performing the process.
3 Preventive maintenance activity lists are posted in work areas and item completions are tracked over time. 3 Material flow or movement in the assembly and packaging area are based on the make one move one concept, or is dependent on individual pull signals, via Kanban, etc. from downstream work stations as parts or materials are consumed. 3 The TAKT time (i.e. Demand Rate) for each product and/or service was used as the basis for the processing time for each operation and the process manning requirements.
4 Accurate and visible maintenance records are kept up to date and posted nearby for all production and support equipment. 4 Downstream processes are pulling material from upstream processes. Upstream production schedules are dependent on downstream use. 4 The process of job design and standardization involves operators as well as support personnel.
5 Preventive maintenance activities are focused on increasing process utilization and minimizing cycle time variation. 5 Packaging and assembly lines/cells are capable of adapting to changes in customer demand by changing only one production schedule at the pacemaker process. 5 Frequently repeated, non-value adding operations in the facility such as setups, startups, quality checks, preventative maintenance, clean up, etc. are visually standardized and updated.
6 Preventive maintenance responsibilities are defined for both maintenance and production workers. 6 Packaging and assembly supervisors are not motivated to produce more parts than the subsequent process require. 6 Operators individually perform their processes according to the process sheets or SOP’S and make few method or technique errors. Any errors are recorded and tracked.
7 Time is allowed in the daily production schedule for workers to perform their preventive maintenance and cleaning duties.
Total Productive Maintenance Category Score = 0% Pull System Category Score = 0% Standardized Work Category Score = 0%
Engineering Score Performance Measurement Score Customer Communication Score
(1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT (1-5) Reason for provided score VERY IMPORTANT
1 Engineering personnel are aware, involved and trained in lean principles 1 Numerous and detailed financial reports have been replaced by a few key measures of enterprise performance There is a standard system in place for collecting customer satisfaction information and data
2 Systematic efforts are in place to reduce product variation and the number of items (part numbers) in the system 2 Traditional cost accounting measures and individual/department efficiency measures have been replaced by value stream performance measures Customer requirements are identified and communicated throughout the supply chain
3 Engineering has organized its activities along value streams 3 Performance results are communicated openly to all employees and are visually posted to show status and progress Customer complaints are handled the same day they are received in under 2 hours
4 Engineering processes are organized visually and the workplace shows evidence of visual indicators to show status of work 4 Employees understand how their individual efforts contribute to the overall results of the enterprise Customers have regular and systematic input into the design and functionality of the products they buy.
5 Engineering processes have been balanced to create flow and reduce lead time within the Engineering department 5 Individuals are rewarded for team-based performance rather than individual performance
6 Engineers routinely go to the location of a problem in production to assess the actual situation and communicate with the production operators to obtain their input.
7 Performance measures such as lead time and velocity are used to measure the department and establish goals for continuous improvement
Engineering Category Score = 0% Performance Measurement Category Score = 0% Customer Communication Category Score = 0%

Results

Lean Assessment Summary and Graph
Category Score
Internal Communication 0%
Visual Systems and Workplace Organization 0%
Operator Flexibility 0%
Continuous Improvement 0%
Mistake Proofing (Poka Yoke) 0%
SMED/Quick Changeover 0%
Quality 0%
Supply Chain 0%
Balanced Production (Assembly, Packaging & Office) 0%
Total Productive Maintenance 0%
Pull Systems (Assembly, Packaging & Office) 0%
Standard Work 0%
Engineering 0%
Performance Measurement 0%
Customer Communication 0%
&C&”Arial,Bold Italic”&26INDUSTRIAL SOLUTIONS, INC

Results

&C&”Arial,Bold Italic”&14INDUSTRIAL SOLUTIONS, INC
&L&”Arial,Bold Italic”Industrial Solutions, Inc., 2003
Score
Rating
Category Ratings
Enterprise Characteristic
Consider the overall average of all categories

0%-20% Traditional Supply Chain & Logistics

20%-40% Getting started with Lean

40%-60%Lean Progress

60%- 80% Value Stream/ Lean focus/ integrated Supply Chain

80% – 90% Lean Continuous Improvement Culture

> 90% World Class Lean Supply Chain & Logistics Management

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