9th International DAAAM Baltic Conference “INDUSTRIAL ENGINEERING” 24-26 April 2014, Tallinn, Estonia

QUALITY IMPROVEMENT METHODOLOGIES FOR CONTINUOUS IMPROVEMENT OF PRODUCTION PROCESSES AND PRODUCT QUALITY AND THEIR EVOLUTION

Sahno, J. & Shevtshenko, E.

Abstract: In order to be competitive time [5]. For instance the more reliable and companies try continuously improve their stable production processes is the less production processes, product quality and scrap occurs, and less rework is needed, increase the level of customer satisfaction which consumes additional recourses, time by implementing different quality and money [6]. Therefore, in order to be improvement programs, methodologies and competitive and successful on the market approaches. Nowadays there are different place and satisfy customer, companies worldwide used methodologies like PDAC, should continuously improve their 8D, DMAIC, 4Q which enables production processes and product quality the companies to select and combine them by implementing different quality for continuous improvement. In this paper improvement programs and methodologies will be introduced the general idea of using [7]. A quality improvement effort will lead these methodologies, it will be followed by to a higher product and service quality that discussion where will be made the will lead to improved customer satisfaction comparative analysis that will clarify their [8]. In this paper will be reviewed and advantages and disadvantages and shows discussed four different quality and process in what case the appropriate methodology improvement methodologies which are could be selected. intended to solve customer complaints and problems in virtual organisation network [9, Key words: PDCA, 8D, DMAIC, 4Q 10]. Presented findings are intended to be used as information for 1. INTRODUCTION decisions about what quality improvement methodology should be selected for Today customer satisfaction is the feeling continuous improvement in Partner of pleasure that occurs when a company Network enterprises. Figure 1 shows meets a customer’s expectations. Gaining related research papers but in this paper high levels of customer satisfaction is very will be presented the third part. important to a business because satisfied customers are most likely to be loyal and to make repeat orders and to use a wide range of services [1, 2]. A company that succeeds on meeting and exceeding customers’ expectations is guaranteed to have great Return On Investment (ROI) [3, 4]. Today the reliable and stable production processes influence on a lot of KPI that are very important for business success. In addition, Fig. 1. Related research papers metrics can provide managers with information about problematic points and 2. LITERATURE REVIEW show the real status of enterprise at certain 181

2.1. Plan Do Check Act (PDCA) to involve a mini-PDCA cycle until the In 1939 Walter Shewhart displayed the issues of implementation are resolved [16]. first version of the scientific method with his cycle “Shewhart Cycle”: Specification, Production, Inspection [11]. In 1950, Deming modified the Shewhart cycle at a Japanese Union of Scientists and Engineers (JUSE). His straight line: Design, Produce, Sell was converted to a circle with a forth added step - Redesign through marketing research [12]. In 1950 at JUSE seminar Imai recast the Deming wheel into the 15 Plan, Do, Check, Act (PDCA) cycle and Fig. 2. Deming's PDCA cycle [ ] presented the correlation between the Deming wheel and the PDCA cycle shown 2.2. 8Disciplines (8D) in Table 1 [13]. The 8D process was standardized during the Second World War by U.S.

Product design corresponds to the planning government, referring to it as Military - phase (definition of a problem and a Standard 1520: “Corrective action and

hypothesis about possible causes and disposition system for nonconforming Design Plan solutions) material”. It was later applied by the Ford Production corresponds to doing-making, or working on the product that was Motor Company in the 1960's and 1970's.

designed (implementing) 8D has become a standard in the auto and Do

other industries that require a structured Production -

problem solving process, which is used to - Sales figures confirm whether the customer is satisfied (evaluating the results) identify, correct and eliminate problems.

Sales Check The methodology is useful in product and In case of a complaint being filed, it has to process improvement. It focuses on the - be incorporated into the planning phase and origin of the problem by determining root

action taken for the next round of efforts 17

arch (back to plan if the results are cause. [ ]. Further presented the detail unsatisfactory) description of every step of 8D process. Rese Action . Table 1. Correlation between the Deming D0: Planning phase: Plan for solving the wheel and the Japanese PDCA cycle [13] problem and determine the prerequisites. . D1: Use a team: Establish a team of PDCA cycle is targeted on the prevention people with product/process knowledge. . of error repetition by creation standards D2: Define and describe the problem: and the ongoing modification of current Specify the problem by identifying in standards. Using of the PDCA cycle means terms who, what, where, when, why, how continuously improving process/product. It and how many (5W2H). . is effective in both doing a job and D3: Developing interim containment managing a programme. The PDCA cycle plan: Define and implement containment enables two types of corrective action – actions to catch and isolate the problem temporary and permanent. The temporary from any customer. . is aimed at results by practically tackling D4: Determine, identify and verify root and fixing the problem. The permanent causes and escape points: Identify all consists of investigation and eliminating potential causes that could explain why the root causes and thus targets the the problem occurred and why the sustainability of the improved process [14]. problem has not been noticed at the time. . In Figure 2 shown the PDCA cycle in D5: Choose and verify Permanent detail [15]. In the “Do” stage it is possible Corrective Actions (PCAs) for root cause:

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Confirm that the selected corrective put in place and expectations for the actions will resolve the problem for the improvement project are set. customer. . Measure step enables to understand the . D6: Implement and validate PCAs: present condition of its work process Define and implement the best corrective before it attempts to identify where they actions. Permanent corrective action. can be improved. The critical to-quality . D7: Prevent recurrence: Modify the characteristics are defined and the defects management and operation systems, in the process/product developed through practices and procedures to prevent graphical analysis. All potential effects on recurrence of this and similar problems. failure modes are identified. . D8: Congratulate your team: Recognize . Analyse step adds statistical strength to the collective efforts of the team and problem analysis, identifies a problem´s thank them formally. root cause and determines how much of One of the problems in the implementation the total variation is. of the 8D methodology is using it as a one- . Improve step aims to develop, select and page problem-reporting effort. It requires implement the best solutions with the report to be written within 24 hours, but controlled risks. The effect of the some steps can take a few hours, while solutions that are then measured with the others can take weeks [18]. KPI developed during the Measure step. . Control step is intended to design and 2.3. Six Sigma DMAIC implement a change based on the results Dating back to the mid of 1980s, made the Improve step. This step involves applications of the Six Sigma methods monitoring the process to ensure it works enabled many organizations to sustain their according to the implemented changes, competitiveness by integrating their capture the estimated improvements and knowledge of the process with statistics, sustain performance [26]. engineering and project management [19]. Motorola was the first company who 2.4. 4 Quadrants (4Q) launched a Six Sigma project in the mid- 1980s [20]. Initially Six Sigma was applied in manufacturing [21] but today it is accepted in healthcare [22], finance [23] and service [24]. Six Sigma is a project-driven management approach intended to improve products, services and processes by reducing defects [25]. It is a business strategy that focuses on improving customer requirements, business systems, productivity and financial performance. 27 Utilizing analytical tools to measure Fig. 3. 4Q process [ ] quality and eliminate variances in processes allows to producing near perfect 4Q is data driven problem solving process products and services that will satisfy for continuous improvement also called 4Q customers [26]. Below is present Six improvement methodology that was Sigma’s DMAIC description. developed and applied in ABB company in . Define step is where a problem is 2009 to stop "religious" fights between identified and quantified in terms of the Lean, Six Sigma DMAIC, PDCA, 8D and perceived result. The product and/or other promoters arguing superiority of one process to be improved are identified, approach against the other. 4Q stands for resources for the improvement project are the 4 quadrants: Measure, Analyse,

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Improve and Sustain. The 4Q process is a trigger that starts a 4Q project [27]. Figure 3 problem solving method similar to Six shows 4Q process and Table 2 presents the Sigma DMAIC. In 4Q the Define step is a basic description of 4Q steps. part of Q1 Measure and also part of the

Pre 4Q Q1 Measure Q2 Analyse Q3 Improve Q4 Sustain • Develop draft • Form the project • Analyse • Team creative • Select control problem team variation brainstorm solutions techniques (SPC) statement • SIPOC process • Analyse • Select optimum • Standardize via • Take immediate map waste solutions documentation action • Capture VOC & • Team • Conduct pilot study • Develop control • Identify initial translate to CTQ brainstorm to (or Risk Analysis) metrics (KPI’s) project scope • Stakeholder map identify root • Verify & validate • Disengage old • Create business • Communication & causes improvements process case project plan • Document • Develop ‘To-Be’ • Monitor • Determine • Develop ‘As-Is’ root causes process map progress objectives process map on Cause & • Review stakeholder • Validate • Create project • Validate Effect map & common plan improvements in charter measurement system diagram • Implementation process • Create and enter • Develop data • Select top 3- business case (cost performance project white collection plan 5 root causes & benefits) & • Share lessons sheet into SMT • Collect data • Validate solution plan learnt • Project sponsor • Calculate baseline selected root • Project sponsor, (organization approval to process performance causes as process owner and memory, proceed • Revisit problem actual root budget holder newsletters etc) statement causes approval to proceed • Thank the team • Project sponsor • Project • Implement actions • Celebrate approval to proceed sponsor on solution plan success approval to • Plan future proceed activities • Close project Table 2. 4Q process basic description [28, 29]

3. DISCUSSION eliminate root causes and implement the corrective actions. The goal of 8D There are not so many differences between focused on fast reaction to customer above observed methodologies as they complaints. Typically the first three steps follow a scientific and methodical way to should be accomplished and reported to solve the problems. Table 3 shows the customer in three days. methodologies evolution (from left to . Six Sigma DMAIC is systematic and fact right), correlation and summary. based approach that provides a rigorous . PDCA cycle is the classic problem framework for project management, also solving approach used in a Lean used to create a “gated process” for environment and mostly in automobile project control. Six Sigma DMAIC is industry. It is a fundamental concept of mostly applied to solve big problems continuous improvement processes where a lot of data available and where embedded in the organization’s culture. statistical tools should be applied. The The most important aspect of PDCA lies DMAIC project may last more than three in the “act” stage after the completion of month, it depends on how complex the a project when the cycle starts again for problem and process to be improved. the further improvement. PDCA is used . 4Q process is a problem solving method for medium sized problems [14]. that is similar to the above mentioned . 8D is an effective approach at finding a methodologies that is intended for root cause, developing proper actions to continuous improvement of processes. It

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was developed by ABB company to help to solve 90% of all issues [30].

Steps PDCA 8D Six Sigma DMAIC 4Q Plan D0: Plan Define Pre 4Q D1: Identify team D2: Define problem D3: Contain symptom Measure Measure D4: Identify root causes Analyse Analyse Do D5: Choose corrective action Improve Improve D6: Implement corrective action Check D7: Make change permanent Control Sustain Act D8: Recognise the team Comparison of methodologies for continues improvement application Year 1939 1940´s 1980 2009 Industry Automobile Automotive Manufacturing of all Automotive, type, healthcare, electrical, finance, service Project / Medium sized, Small, some weeks Big, till 12 months Small and medium, problem till 3 months and even more 1 week till 2 months size Used / For continuous For automotive industry and For large problems For continuous Applied improvement focused on fast reaction to where huge amount improvement of of small customer complaints of data and statistics various problem problems used (allowed to solve 90% of all issues in ABB company) Table 3. The evolution, correlation and summary of presented methodologies

4. CONSCLUSION satisfaction for firms. Marketing science, 1993, 125-143. In this paper were observed different 2. Karaulova, T., Kramarenko, S. and continuous improvement methodologies, Shevtshenko, E. Risk Factors in Project their capabilities, similarity and application Management Life Cycle. 6th International to different situations. Every company can Conference of DAAAM Baltic Industrial select and use a proper methodology and Engineering, Tallinn, Estonia, 24-26, 2008. even combine some of them in continuous 3. Jones, T. O. and Sasser, W. E. Why improvement of their processes. It is very satisfied customers defect. Harvard important that the right methodology is business review, 1995, 88. correctly selected according to the needs 4. Karaulova, T. and Shevtshenko, E. and demands of the company and further Reorganisation of Production System on applied to the appropriate process. SME Enterprises. Annals of DAAAM & Proceedings, 2009. 5. ACKNOWLEDGEMENTS 5. Kaganski, T., Snatkin, A., Paavel, M. and Karjust, K. Selecting the right KPIs for Hereby we would like to thank the SMEs production with the support of PMS Estonian Ministry of Education and and PLM. International Journal of Research for Grant ETF9460 which Research in Social Sciences, 2013, 69 - 76. supports the research. 6. Karaulova, T., Kostina, M. and Sahno, J. Framework of reliability estimation for 6. REFERENCES manufacturing processes. Mechanika 2012, 18.6. 1. Anderson, E. W. and Mary W. S. The 7. Kangilaski, T. Challenges for SMEs antecedents and consequences of customer entering into the virtual organization

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