Quality Management
for Organizational
Excellence
Lecture/Presentation Notes
By:
Dr. David L. Goetsch and Stanley
Davis
Based on the book
Quality Management for Organizational
Excellence (Sixth Edition)
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
1
Fifteen:
Overview of Total Quality Tools
MAJOR TOPICS
Total Quality Tools Defined
The Pareto Chart
Cause-and-Effect Diagrams
Check Sheets
Histograms
Scatter Diagrams
Run Charts and Control Charts
Stratification
Some Other Tools Introduced
Management’s Role in Tool Deployment
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
2
Quality tools
• Mechanics and builders use physical tools
• Total quality employees, engineers, technologists,
production workers, managers, or office staff use
quality tools to do their jobs.
• Virtually no one can function in an organization
without some or all of these tools.
• These are intellectual tools.
• These are applied for problem solving, decision
making, and better solutions.
• The seven tools discussed in the following seven
sections of this chapter represent those generally
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
3
Tool 1: Pareto charts
Pareto charts are useful for separating the important
from the trivial.
They are named after Italian economist and
sociologist Vilfredo Pareto.
Pareto charts are important because they can help
an organization decide where to focus limited
resources.
On a Pareto chart, data are arrayed along an X-axis
and a Y-axis.
The cause-and-effect diagram was developed by the
late Dr. Kaoru Ishikawa, a noted Japanese quality
expert; others have thus called it the Ishikawa
diagram.
Its purpose is to help identify and isolate the causes
of problems.
It is the only one of the seven basic quality tools that
is not based on statistics.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
4
Tool 2: Cause-and-effect
diagrams
• Cause-and-effect diagram (see Figure 15.8) is to identify
and isolate causes of a problem.
• The technique was developed by the late Dr. Ishikawa, a
noted Japanese quality expert, so sometimes the diagram
is called an Ishikawa diagram. It is also often called a
fishbone diagram because that is what it looks like.
• Benefits of using cause-and-effect diagrams as follows:
• Creating the diagram itself is an enlightening, instructive
process.
• Diagrams focus a group, thereby reducing irrelevant
discussion.
• Diagrams separate causes from symptoms and force the issue
of data collection.
• Such diagrams can be used with any problem.
• The cause-and-effect diagram is the only tool of the seven
tools that is not based on statistics.
• This chart is simply a means of visualizing how the various
Quality
factors associated with a process affect the ©process’s
Management, 6 ed.
th
output.
2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
5
TOOL 3: CHECK SHEET
• The purpose of the check sheet is to make it easy to
collect data for specific purposes and to present it in a
way that facilitates conversion from data to useful
information.
• The fuel that powers the total quality tools is data. In
many companies, elaborate systems of people,
machines, and procedures exist for the sole purpose of
collecting data.
• Many time not knowing what is actually going on; they
are “data rich and information poor.” With the advent
of powerful desktop computers, information col- lection
has become an end unto itself in many instances.
• For example Fig 15.11, we are manufacturing parts
that have a specified dimensional tolerance of 1.120 to
1.130 inches (in.). During the week, each part is
measured and the data are recorded.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
6
Fifteen:
Overview of Total Quality Tools
(Continued)
The check sheet is a tool that facilitates collection of
relevant data, displaying it in a visual form easily
understood by the brain.
Check sheets make it easy to collect data for specific
purposes and to present it in a way that automatically
converts it into useful information.
Histograms have to do with variability. Two kinds of
data are commonly associated with processes:
attributes data and variables data.
An attribute is something that the output product of
the process either has or does not have.
Variables data are data that result when something is
measured. A histogram is a measurement scale
across one axis and a frequency of like measurements
on the other.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
7
Check sheet – example
• To set up a check sheet, you must think about your
objective.
• In this example, we were making shafts to a specification.
• We collect data indicating how well the machine was
performing, a graphic warning whenever the machine
started to deviate, and information about defects.
• Process Distribution Check sheet: It is concerned
with the variability of a process. Setting up the check
sheet as a histogram provided all the information needed.
• Defective Item Check Sheets: detailing the variety of
defects, Defect Location Check Sheets: showing where on
the subject product defects occur, and
• Defect Factor Check Sheets: illustrating the factors—
time, temperature, machine, operator, possibly
influencing defect generation.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
8
Tool 4. Histograms
Histograms are used to chart frequency of
occurrence.
How often does something happen?
Histograms must begin with an understanding of
the two kinds of data commonly associated with
processes:
attributes and variables data.
- An attribute is something that the output
product of the process either has or does not
have.
- Variables data are something that results
from measurement.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
9
Tool 5. Scatter diagram
The fifth of the seven tools is the scatter diagram.
It is the simplest of the seven and one of the most useful.
The scatter diagram is used to determine the correlation
(relationship) between two characteristics (variables).
Suppose you have an idea that there is a relationship
between automobile fuel consumption and the rate of
speed at which people drive.
To prove, or disprove, such an assumption, you could
record data on a scatter diagram that has miles per gallon
(mpg) on the y-axis and miles per hour (mph) on the x-
axis; mpg and mph are the two characteristics.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
10
Fifteen:
Overview of Total Quality Tools
(Continued)
The scatter diagram is arguably the simplest of
the seven basic quality tools. It is used to
determine the correlation between two
variables. It can show a positive correlation, a
negative correlation, or no correlation.
Stratification is a tool used to investigate the
cause of a problem by grouping data into
categories. Grouping of data by common
elements or characteristics makes it easier to
understand the data and to draw insights from
it.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
11
Fifteen:
Overview of Total Quality Tools – Charts
In the context of the seven total quality tools,
run charts and control charts are typically
thought of as being one tool together.
The control chart is a more sophisticated
version of the run chart.
The run chart records the output results of a
process over time. For this reason, the run
chart is sometimes called a trend chart.
The weakness of the run chart is that it does
not tell whether the variation is the result of
special causes or common causes. This
weakness gave rise to the control chart.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
12
Fifteen:
Overview of Total Quality Tools
(Continued)
On such a chart, data are plotted just as they
are on a run chart, but a lower control limit,
an upper control limit, and a process average
are added. The plotted data stays between
the upper control limit and lower control limit
while varying about the center line or average
only so long as the variation is the result of
common causes such as statistical variation.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
13
Fifteen:
Overview of Total Quality Tools
Other useful quality tools are five-S, flowcharts, surveys, failure
mode and effects analysis (FMEA), and design of experiments
(DOE).
Five-S is used to eliminate waste and reduce errors, defects, and
injuries.
Flowcharts are used in a total quality setting for charting the
inputs, steps, functions, and outflows of a process to understand
more fully how the function works and who or what has input into
and influence on the process, its inputs and outputs, and even its
timing.
The survey is used to obtain relevant information from sources
that otherwise would not be heard from in the context of
providing helpful data.
Failure mode and effects analysis (FMEA) tries to identify all
possible product or process failures and prioritize them for
elimination according to their risk.
Design of experiments (DOE) is a sophisticated method for
experimenting with complex processes for the purpose of
optimizing them.
Quality Management, 6th ed. © 2010 Pearson Higher Education,
Goetsch and Davis Upper Saddle River, NJ 07458. • All Rights
14