Module No. 8 - Project Management and Quality Improvement Tools (1)-merged

Introduction

• Module 8 focuses on Project Management and Quality Improvement Tools.

• Presenters: Nicole, Angelica, Kristine

• Content:

  • Introduction to Project and Quality Management

  • Project Management Overview and Tools

  • Quality Improvement Overview and Tools

  • Integration of PM and QI Tools with Case Studies

Project Management

• Definition: Project management is the structured process of planning, organizing, and managing resources to achieve specific project goals within a defined timeframe and budget.

• Effective project management improves efficiency, minimizes risks, and ensures that deliverables meet stakeholder expectations.

Key Components of Project Management

1. Initiation: Defining the project and obtaining authorization to start.

2. Planning: Developing a roadmap for the project, including scope, schedule, and resources.

3. Execution: Carrying out the project plan.

4. Monitoring and Controlling: Tracking progress and making adjustments as needed.

5. Closing: Finalizing all activities and formally closing the project.

Quality Management

• Definition: Quality management focuses on ensuring that products, services, and processes consistently meet or exceed established standards. It involves setting quality policies, monitoring performance, and making continuous improvements.

• Quality management is divided into Quality Assurance (QA), which focuses on preventing defects through process improvement, and Quality Control (QC), which involves detecting and correcting defects in final outputs.

Importance of Quality Management

1. Customer Satisfaction: Ensures products and services meet or exceed expectations, fostering customer loyalty.

2. Operational Efficiency: Reduces errors, waste, and inefficiencies, leading to cost savings.

3. Compliance & Risk Management: Helps organizations adhere to industry standards and regulations, reducing legal and financial risks.

4. Competitive Advantage: Enhances brand reputation and market share by consistently delivering high-quality outputs.

5. Employee Engagement: Encourages teamwork, motivation, and continuous learning, leading to improved productivity.

Project Management Tools

• Project management tools are essential for organizing, tracking, and managing projects efficiently. They provide a structured approach to planning, executing, and monitoring tasks, ensuring that project goals are met within the set timeline and budget.

• These tools help teams allocate resources effectively, track progress, and identify potential challenges before they escalate. By improving collaboration, enhancing communication, and minimizing risks, project management tools contribute to smoother workflows and higher overall productivity, making them indispensable in various industries.

Gantt Chart

• Definition: A Gantt Chart is a widely used project management tool that visually represents the project schedule through horizontal bars. Each bar corresponds to a specific task, displaying its start and end dates along a timeline. This tool provides a clear overview of task progress, dependencies, and project milestones, making it an essential resource for project planning and execution.

Key Components

1. Task List: A structured breakdown of all project tasks, ensuring every aspect of the project is accounted for.

2. Timeline: A visual representation of the project’s duration, allowing managers to set realistic deadlines.

3. Bars & Milestones: Horizontal bars display task durations, while milestones highlight key achievements in the project.

Best Uses

• Gantt charts are best used when managing projects with clear deadlines, well-defined tasks, and multiple dependencies. They are particularly useful for tracking task sequences, resource allocation, and progress updates.

• This tool is highly beneficial in structured projects such as civil engineering, software development, and business operations where teams need to follow strict schedules.

Limitations

• While Gantt charts are useful for planning, they can become overly complex for large-scale projects involving numerous interdependent tasks. Managing changes and updates manually can be time-consuming, and they may not effectively capture task dependencies unless integrated with other scheduling tools.

Critical Path Method (CPM)

• Definition: The Critical Path Method (CPM) is a scheduling technique used to determine the longest sequence of dependent tasks in a project, which directly affects the total project duration. By identifying the "critical path," project managers can allocate resources effectively and ensure that delays in key tasks do not extend the overall timeline.

• If any task on the critical path is delayed, the entire project timeline will be affected. Regular monitoring is essential to keep projects on track.

Key Components

1. Task & Durations: The breakdown of all activities required to complete the project, along with estimated durations.

2. Dependencies: The logical sequence and relationships between different tasks.

3. Critical Path: The longest sequence of dependent tasks that determines the minimum time required to complete the project.

Best Uses

• CPM is best applied in large-scale projects with complex task dependencies, such as construction, manufacturing, and research projects. It is ideal for projects with strict deadlines, where even minor delays in critical activities can significantly impact completion time.

Limitations

• CPM requires highly accurate task duration estimates, which can be difficult to determine. Additionally, when unexpected delays occur, recalculating the critical path can be complex, making it challenging to adjust schedules efficiently.

Work Breakdown Structure (WBS)

• Definition: A Work Breakdown Structure (WBS) is a hierarchical decomposition of a project into smaller, more manageable components. It helps project managers and teams organize work by breaking it down into phases, deliverables, and tasks. WBS ensures that all project elements are accounted for, making it easier to assign responsibilities and track progress effectively.

• A well-structured WBS prevents scope creep by clearly defining project elements from the beginning.

Key Components

1. Project Phases: Major sections of the project that divide work into logical segments.

2. Deliverables: Key outcomes required for project completion.

3. Work Packages: The smallest units of work that can be assigned to individuals or teams.

Best Uses

• WBS is ideal for large projects that need a structured approach to organization and execution. It is commonly used in construction, software development, and product manufacturing to simplify complex projects into manageable tasks.

Limitations

• If a WBS is too detailed, it can become overly complex and difficult to update. Conversely, if it is too general, important tasks may be overlooked.

Program Evaluation and Review Technique (PERT)

• Definition: PERT is a statistical project management tool that helps in estimating task durations when there is uncertainty. It uses three time estimates optimistic, pessimistic, and most likely to calculate a weighted average duration for each task.

• PERT is best suited for uncertain projects but requires expertise in estimating task durations accurately.

Key Components

1. Nodes & Arrows: Used to visually represent tasks and their dependencies in a network diagram.

2. Three-Time Estimates: Optimistic, pessimistic, and most likely durations are used to calculate task completion times.

3. Critical Path Calculation: Identifies the sequence of tasks that must be completed on time to prevent project delays.

Best Uses

• PERT is particularly useful for projects with high uncertainty, where exact task durations cannot be determined in advance. It is widely used in scientific research, software development, and military operations, where flexibility in scheduling is required.

Limitations

• Since PERT relies on estimated durations, inaccuracies in predictions can affect the reliability of the overall project schedule. Additionally, it requires constant updates as project conditions change.

Kanban Board

• Definition: A Kanban Board is a visual tool used in project management to track workflow and task progress. It organizes tasks into different stages, typically represented as columns such as "To Do," "In Progress," and "Completed." Kanban is based on a pull system, meaning tasks are only moved forward when capacity allows, preventing overloading and improving efficiency.

• Kanban encourages continuous improvement and efficiency but requires teams to be disciplined In updating and managing the board regularly.

Key Components

1. Columns: Represent different phases of the workflow, such as "To Do," "In Progress," and "Done."

2. Cards: Individual tasks or work units displayed on the board, moving through various stages.

3. Work in Progress Limits: Restrictions on the number of tasks in each stage to prevent bottlenecks and improve flow.

Best Uses

• Kanban boards are ideal for managing projects that require flexibility and continuous updates, such as software development, marketing campaigns, and service management. They help teams visualize their workflow, identify bottlenecks, and ensure smooth task progression.

Limitations

• While Kanban is excellent for improving workflow efficiency, it lacks strict deadlines and structured planning, making it less suitable for projects with fixed schedules or rigid dependencies. Teams must also consistently update the board to maintain accuracy.

Quality Improvement Tools

• Quality Assurance (QA) is a broader concept that ensures quality is built into every stage of the production or service process.

• Quality Control (QC) is a systematic operational process that maintains product and service quality through continuous inspection, data-driven monitoring, and corrective actions.

• Quality Improvement is a broader concept that ensures quality is built into every stage of the production or service process.

• Quality management tools are structured techniques used to analyze, improve, and maintain quality standards in organizations. These tools help identify defects, enhance efficiency, and ensure customer satisfaction. Businesses use them to drive continuous improvement through methodologies like Six Sigma, Total Quality Management (TQM), and Lean Manufacturing. By minimizing errors and optimizing processes, these tools play a crucial role in achieving high-quality standards and overall productivity.

• Quality control is an operational process focused on maintaining product and service quality through monitoring and corrective actions. Quality assurance ensures quality is built into every stage of production or service.

Importance of Quality Control and Quality Assurance

• Quality Control (QC)

  • Inspection and Testing – Ensuring raw materials, production, and final products meet standards.

  • Statistical Process Control (SPC) – Using data tools like control charts to detect and eliminate variations.

  • Defect Prevention – Identifying root causes of quality issues and reducing rework and waste.

• Quality Assurance (QA)

  • Standardization of Processes – Implementing frameworks like ISO 9001 for quality management.

  • Process Audits and Documentation – Conducting audits to maintain compliance with industry standards.

  • Employee Training and Development – Educating workers on quality principles and best practices.

Enhancing Process Efficiency

• Efficiency is key to reducing costs and improving service delivery. Organizations use:

  • Lean Manufacturing: Eliminating unnecessary steps to optimize resources and reduce waste.

  • Six Sigma (DMAIC): Data-driven approach to minimize variations and improve consistency.

  • Kaizen (Continuous Improvement): Encouraging small, ongoing improvements in workflows.

Customer Satisfaction as a Quality Metric

• Customer satisfaction reflects overall quality. Businesses should focus on:

  • Gathering Customer Feedback: Using surveys, reviews, and complaints for improvement.

  • Service Quality Monitoring: Applying SERVQUAL model to measure service reliability and responsiveness.

  • Kano Model Application: Understanding customer expectations through product attribute classification.

Seven Quality Control (QC) Tools

Pareto Chart

• Definition & Purpose: A specialized bar graph used to prioritize issues by frequency or cost (time/money). Arranges bars in descending order, highlighting the most significant problems first. Based on the Pareto Principle (80-20 Rule) – 80% of problems come from 20% of causes.

Key Applications

• Identifying the most frequent defects or errors.

• Determining the top contributors to quality issues.

• Analyzing cost distribution among problem areas.

• Prioritizing areas for process improvement using data-driven insights.

Steps in Constructing a Pareto Chart

1. List causes/issues and their frequency in a table.

2. Sort them in descending order of occurrence.

3. Calculate total occurrences and determine the percentage share of each cause.

4. Add a cumulative percentage column for better visualization.

5. Draw the Pareto Chart:

   • X-axis → Causes/issues

   • Y-axis → Percentage frequency

   • Cumulative curve shows the breakpoint (significant vs. trivial).

6. Analyze the chart to focus on the critical few issues.

Cause-and-Effect (Ishikawa) Diagram

• Definition & Purpose: Also known as the Fishbone Diagram, developed by Kaoru Ishikawa. Helps identify multiple potential causes of a problem and organizes them into categories. Categorizes causes into Manpower, Materials, Methods, Machinery, providing a structured approach to analysis. Used in brainstorming sessions to explore root causes and visualize relationships between causes and effects.

Key Applications

• Identifies potential causes in a structured way.

• Encourages team brainstorming to avoid biased thinking.

• Supports root cause analysis by evaluating multiple factors.

• Useful for process improvement and troubleshooting in various industries.

Steps in Constructing

1. Write the problem statement on the right side of the diagram.

2. Identify major cause categories (e.g., Methods, Machinery, Materials, Manpower) and create branches.

3. Brainstorm potential causes and place them under relevant categories.

4. Circle the most likely causes and review them.

5. Use the "5 Whys" technique to investigate deeper and find the root cause(s).

6. Reach an agreement on the most probable cause(s).

Check Sheets

• Definition & Purpose: Also known as Defect Concentration Diagrams. Structured forms used to collect and analyze data in a simple, graphical format. Helps in recording information systematically to identify patterns and trends. Commonly used in production processes to track defect frequency, monitor process variations, and assess quality improvement efforts.

Key Applications

• Differentiates facts from opinions

• Tracks frequency of problems

• Identifies types of errors

• Records patterns of defects in production & service operations

• Monitors recurring issues for continuous improvement

Steps in Constructing

1. Define measurement objectives – Clarify what data needs to be collected, why, and who will collect it.

2. Design the form – List the categories being measured on the left and define time periods/locations across the top.

3. Collect data in real-time – Record occurrences directly on the check sheet

4. Summarize results – Tally the total occurrences for each category and analyze trends

Histograms

• Definition & Purpose: A bar graph that provides a visual representation of data distribution. Helps analyze dispersion (spread of values) and central tendency (most common values). Unlike simple bar graphs, histograms group data into intervals to identify trends, peaks, and deviations.

Key Applications

• Analyzing process output to check for normal distribution.

• Detecting process changes over time by comparing past and present data.

• Comparing multiple processes to identify performance differences.

• Communicating data distribution effectively for decision-making.

Types of Histogram Distribution

• Bell-Shaped Distribution: Indicates normal distribution where most values are centered.

• Double-Peaked Distribution: Shows two dominant groups in the data set.

• Plateau Distribution: Data is evenly spread across multiple values.

• Comb Distribution: Alternating high and low frequencies, often due to sampling issues.

• Skewed Distribution: Data is concentrated on one side, indicating an imbalance or trend shift.

Scatter Diagrams

• Definition & Purpose: A scatter diagram (scatter plot or X-Y graph) is used to analyze relationships between two variables. If a correlation exists, points align along a trend (line or curve). The closer the points cluster around the line, the stronger the relationship.

Key Applications

• Identifies potential root causes of problems.

• Validates cause-and-effect relationships after using a Fishbone Diagram.

• Determines if one variable impacts another.

• Measures the strength and direction of relationships.

Steps in Constructing

1. Collect Data: Gather data on two related variables.

2. Assign Axes: Place the independent variable (cause) on the X-axis and the dependent variable (effect) on the Y-axis.

3. Plot Data Points: Record each data pair by marking the intersection of X and Y values.

4. Analyze the Pattern: Examine the plotted points to determine the type and strength of the correlation.

5. Draw Conclusions: Identify the relationship pattern and assess any potential cause-and-effect linkage.

Interpreting Scatter Diagrams

1. Strong Positive Correlation: Data points form a tight upward trend.

2. Weak Positive Correlation: Points trend upward but are loosely scattered.

3. Strong Negative Correlation: Data points form a tight downward trend.

4. Weak Negative Correlation: Points trend downward with a loose distribution.

5. No Correlation: Data points are randomly distributed with no discernible pattern.

Control Charts

• Definition & Purpose: Control charts are essential tools in Statistical Process Control (SPC) for monitoring process variability. They help assess whether a process is operating within control limits or if corrective actions are needed.

Types of Variation

1. Natural (Common Cause) Variations – Inherent, random fluctuations in the process.

2. Assignable (Special Cause) Variations – Occur due to identifiable factors, such as machine malfunction or human error.

Types of Control Charts

• For Variables (Used for numerical measurements like weight, temperature, or pressure)

  • $X̄$ (Mean) Chart – Monitors process averages.

  • R (Range) Chart – Tracks the variability within subgroups.

  • S (Standard Deviation) Chart – Measures process variability, ideal for large samples.

• For Attributes (Used when quality is based on classifications like defective vs. non-defective)

  • p Chart – Monitors the proportion of defective items in varying sample sizes.

  • np Chart – Tracks the number of defective items in equal-sized samples.

  • c Chart – Measures the total number of defects per unit.

  • u Chart – Tracks the average number of defects per unit for variable sample sizes.

Steps in Constructing a Control Chart

1. Draw the X-axis to represent time or sample order.

2. Draw the Y-axis to indicate the measured variable.

3. Plot the Central Line (CL) to represent the process average.

4. Draw Upper & Lower Control Limits (UCL & LCL), usually set at $±3$ standard deviations (3-Sigma) from the CL.

5. Plot data points over time and analyze patterns to detect if the process is within control.

Advanced Quality Management Tools

• Six Sigma (DMAIC & DMADV): Data-driven approach for reducing defects and improving processes.

• Total Quality Management (TQM): Company-wide focus on continuous improvement, customer satisfaction, and employee involvement.

• Quality Function Deployment (QFD): Aligns product features with customer needs, improving design efficiency and satisfaction.

• Benchmarking: Comparing performance with industry leaders to identify gaps and enhance best practices.

Integration of Project & Quality Management Tools

• Aligns project goals with quality standards, ensuring quality is embedded throughout the project lifecycle.

• Utilizes common tools such as: Histograms, Fishbone Diagrams, Pareto Charts and Flowcharts

• Encourages constant monitoring, refinement, and the use of Lean and Six Sigma to enhance efficiency and reduce waste.

• Unified Framework: Shared Tools & Techniques, Continuous Improvement

Case Studies of Successful Implementation

Coffee Sachets Production Defect Analysis

• A Malaysian food company faced high defect rates in coffee sachets, leading to increased waste and costs.

• Using Ishikawa Diagrams, Pareto Analysis, and P-Control Charts, they identified key issues like machine malfunctions and unskilled labor.

• Implementing training and maintenance reduced defects, improving efficiency.

Cause-and-Effect Diagram in Logistics Services

• A logistics firm used the Ishikawa Diagram to analyze inefficiencies in transportation, inventory, and supplier reliability.

• By prioritizing key issues, they improved service quality, reduced delays, and enhanced overall operational performance.

Challenges in Using These Tools

1. Complexity in Integration: Different systems and data formats create inefficiencies.

2. Resistance to Change: Employees may fear new tools and processes.

3. Maintaining Data Consistency: Inconsistent data leads to errors and poor decisions.

Kaizen Philosophy - Continuous Improvement

• Kaizen, which means "continuous improvement," is derived from the Japanese terms kai (change or to correct) and zen (good), and was first introduced in Japan after World War II.

• Its primary goal is to promote progressive improvements within an organization, recognizing that small improvements may have a major influence over time. It's based on the recognition that each employee, regardless of job or level, can contribute to improvement.

• In the Toyota Production System, Kaizen plays a crucial role in humanizing the workplace by empowering individual members to identify improvement areas and propose practical solutions.

Benefits of Kaizen

• Workplace: Boosts morale, job satisfaction, and retention.

• Efficiency: Reduces waste (inventory, waiting, transport, overproduction).

• Operations: Optimizes resources, communication, and production.

• Customer Impact: Faster delivery, lower costs, higher satisfaction.

• Overall Impact: Continuous small improvements lead to major long-term gains.

Lean

• Lean is a renowned methodology that eliminates all categories of waste to help maximize efficiencies.

• Taiichi Ohno developed this business philosophy during the 1990s in Japan, particularly emphasizing manufacturing enterprises. He is often referred to as the “father of the Toyota Production System.” Lean is based on the concept pioneered by Henry Ford.

Fundamental Lean Management Principles

1. Specify what creates value from the customer’s perspective.

2. Identify all the steps in the process chain.

3. Make those processes flow.

4. Make only what is pulled by the customer.

5. Strive for perfection by continually removing wastes.

Building Blocks of Lean

1. 5S: A method for organizing and standardizing the workplace, consisting of five steps denoted by Japanese terms starting with the letter S (seiri, seiton, seiso, seiketsu, and shitsuke).

2. Visual controls: The strategic display of essential information, tools, parts, production activities.

3. Streamlined layout: A layout structure based on the most efficient operational sequence.

4. Standard work: Consistent execution of tasks following prescribed methods, minimizing waste, and considering human movement (ergonomics).

5. Batch-size reduction: When single-piece flow isn't feasible, decrease batch sizes to the smallest possible.

6. Team: Within the lean framework, the focus lies on collaborative efforts in teams, whether they are aimed at process improvement or daily tasks.

7. Quality at the source: Employees conduct inspections and control processes.

8. Point-of-use storage: Raw materials, parts, information, tooling, work standards, supplies, and procedures are stored where they are needed.

9. Quick changeover: The capability to swiftly change tooling and fixtures, typically within minutes.

10. Pull/Kanban: A method of transmitting production and delivery directives from downstream to upstream operations.

11. Cellular/flow: The arrangement and connection of manual and machine processes to optimize efficiency, focusing on maximizing value addition while reducing waste.

12. Total productive maintenance (TPM): A lean approach to equipment maintenance aimed at maximizing overall equipment effectiveness.

Guidelines for Preparing the Kaizen Proposal

1. The Kaizen should be self-explanatory.

2. Sustenance of results must be evident.

3. Ease of replication for other units/areas must be evident.

4. A clear impact on customer/quality/bottom line/intangible benefit must be presented.

5. Each team should have a maximum of five members including a coordinator.

6. The team must be a natural operating team.

7. The presentation must follow a systematic flow.

• A Kaizen Sheet is an effective method for illustrating information concerning the execution of Kaizen is proposed by either an individual or a team of employees.

5S Movement

• 5S is integral to both Kaizen and lean manufacturing, emphasizing visual organization, cleanliness, and standardization to enhance profitability, efficiency, service, and safety.

5S Steps

1. Seiri (Straighten Up): Sorting, distinguishing between essential and non-essential items, and eliminating the unnecessary ones.

2. Seiton (Put Things in Order): Systematic arrangement following seiri, emphasizing organizing the remaining items for efficiency.

3. Seiso (Clean Up): Maintaining cleanliness throughout the workplace entails consistently maintaining cleanliness in both personal habits and the workplace environment.

4. Seiketsu (Standardization): Emphasizes maintaining cleanliness throughout the workplace entails consistently maintaining cleanliness in both personal habits and the workplace environment.

5. Shitsuke (Discipline): Emphasizes instilling discipline through repetitive practice to foster positive workplace habits.

Summary of 5S Movement

Kaizen vs. Innovation

• Innovation is seen as a major change in the wake of technological breakthroughs. Innovation is dramatic and a real attention-getter.

• Kaizen, on the other hand, is often undramatic and subtle, and its results are seldom immediately visible.

• While Kaizen is a continuous process that implies continuous improvement and involves every employee in every company function at all levels of the organization, innovation is generally a one-shot phenomenon.

Company-Wide Quality Control (CWQC)

• This approach emphasizes the integration of human-ware, hardware, and software to foster a culture of improvement and problem-solving throughout an organization.

• CWQC prioritizes human resources as the foundation for improvement initiatives, recognizing that engaged and trained employees are essential for success.

Benefits of CWQC

• Customer Satisfaction: CWQC aims to provide products and services that meet customer requirements and build trust.

• Improved Profitability: Through measures like enhanced work procedures and reduced defects, CWQC contributes to higher profitability.

• Employee Development: CWQC supports employees in achieving corporate goals and emphasizes areas like policy deployment and voluntary activities.

• Adaptability: CWQC helps organizations cope with environmental changes, secure customer confidence, and improve profitability.

Methodological Foundation of CWQC

1. Company-wide total quality control (TQC) with the participation of all employees

2. Emphasis on education and training

3. Quality control circle activities

4. CWQC audits as exemplified by the Deming Prize audit

5. Application of statistical methods

6. Nationwide CWQC promotion

Characteristics of CWQC

1. Quality before profit

2. Consumer-oriented quality control, not producer-oriented quality control

3. The next process is the customer

4. Application of statistical methods

5. Cross-functional management

6. CWQC starts with training and ends with training

Kaizen - The Practice

• A well-planned Kaizen program can be broken down into three segments—Management Oriented Kaizen, Group-Oriented Kaizen and Individual-Oriented Kaizen—depending on the complexity and the level of Kaizen.

Management Oriented Kaizen

• Management-oriented Kaizen is the foundation for continuous improvement in Kaizen philosophy. Managers play a crucial role, dedicating significant time to identify and eliminate waste in processes.

• Collaboration is key, with teams combining management and staff to tackle improvement initiatives. System enhancement and strong leadership are vital for long-term success. Top management commitment, allocating up to half their time, is essential for successful Kaizen implementation.

Group Oriented Kaizen

• Through small teams like quality control circles, use the PDCA cycle (Plan-Do-Check-Act) to solve problems. This permanent approach involves identifying issues, analyzing causes, implementing solutions, and establishing new standards.

• These small groups, formed for various purposes, offer several benefits:

  1. Setting group objectives and working for their attainment strengthens the sense of teamwork.

  2. Group members share and coordinate their respective roles better.

  3. Communication between labor and management, as well as between workers of different ages, is improved.

  4. Morale is greatly improved.

  5. Workers acquire new skills and knowledge and develop more cooperative attitudes.

  6. The group is self—sustaining and solves problems that would otherwise be left to the management.

  7. Labour—management relations are greatly improved.

Individual Oriented Kaizen

• This empowers employees to suggest improvements through a suggestion system. This system, though not always focused on immediate financial gains, is crucial for boosting morale and fostering "thinking workers."

• To ensure its effectiveness, top management needs to actively engage and implement a well-designed plan.

• Common examples of suggestions in many companies:

  • Improvements in one's own work

  • Savings in energy, material and other resources

  • Improvements in the working environment

  • Improvements in machines and processes

  • Improvements in jigs and tools

  • Improvements in office work

  • Improvements in product quality

  • Ideas for new products

  • Customer services and customer relations

Three Segments of Kaizen

Quality Function Deployment (QFD)

• Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements (also known as the “voice of the customers”) and translating them into specific plans (subsequently leading to actions) to produce products to meet those needs.

• It was initiated by Dr. Mizuno, Professor Emeritus of the Tokyo Institute of Technology. Wherein, this particular planning tool has the main objective of fulfilling the customer’s expectation and satisfaction.

• In the system of QFD, the primary planning tool is referred to as the “house of quality” It translates the voice of the customer into design requirements that meet specific values and matches those against the way in which an organization meets those requirements

Framework of the House of Quality (QFD)

Steps in Building the House of Quality

1. List Customer Requirements: This step focuses on the question “What/s” that represents the client’s need. The whats are then presented in hierarchy from primary, secondary and tertiary requirements, in descending order.

2. List Technical Descriptors: This step focuses on determining the technical characteristics of the client’s requirements. Whereas, this technical characteristics should either meet or exceed the client’s expectation. One example for the processes in this determination phase is brainstorming of engineering staffs.

3. Compare the Relationship between Customer Requirements and Technical Descriptors: This process involves the identification of the connection between the customer requirements and technical descriptors. Whereas this specifically pertains to QFD’s translation of customer requirements to engineering characteristics (technical descriptors)

4. Develop an Interrelationship between each of the Technical Descriptors: Trade-offs between similar and/or conflicting technical descriptors are identified.

5. Implement Competitive Assessments: This competitive assessment is divided into two, namely, customer and technical competitive assessment. This assessments are essential in understanding the position of the product in the market.

   • Customer competitive assessment - aims to determine if the customer requirements have been met and to identify areas to concentrate on in the next design.

   • Technical competitive assessment - assessment useful in covering gaps in engineering judgment. If technical descriptors contain a direct relation with customer requirements, therefore, a comparison between the customer competitive assessment and object measure ranking should be made.

6. Develop Prioritized Customer Requirements:

7. Develop Prioritized Technical Descriptors: It contains the most necessary technical descriptors in fulfilling the client’s requirements and satisfaction and for the product’s or project’s improvement.

Quality Control Circle

• It’s a small team of people usually from the same work area who voluntarily meet on a regular basis to identify, investigate, analyse and solve their work-related problems.

Basic Organizational Structure

• A steering committee: The steering committee is at the top of the structure of the quality circle. It establishes policy, plans and directs the programme as a whole including organizing training for the personnel.

• Coordinators: The coordinators may be personnel or administrative officers. They coordinate and supervise the work of the facilitators and administer the programme. The coordinators help in case of difficulties and facilitate arrangements and interdepartmental communication.

• Facilitator: A facilitator may be a senior supervisory officer or a foreman. He coordinates the work of several quality circles through the circles leaders. His role is to keep the circles on track and enthusiastic.

• Circle leader/deputy leader: Circle leaders may be from among the lowest level of supervisors. A circle leader organizes and conducts circle activities.

• Circle members: Circle members may be line and/or staff workers. The programme cannot exist without circle members.

QCC Operational Cycle

• Organization (8-10 Members)

• Training (Group process, data collection, problem analysis)

• Problem identification (Brainstorming)

• Problem analysis (Cause and effectData collectionData analysis)

• Generate solutions (List alternativesConsensus)

• Select the best solution

• ImplementationPrepare plan of action

• Monitor and feedbackresults

• Presentation

The Suggestion System

• Employee suggestion systems are designed to encourage active cooperation of of employees in the activities of business and industry through seeking ideas for cost reduction or cost prevention or increasing productivity or efficiency.