Quality & Risk
Quality & Risk
REG.NO. HDE314-COO4-3351/2017
REG.NO. HD317-C004-8086/2015
REG.NO: HDE314-COO4-3691-2017
GROUP ASSIGNMENT
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ACKNOWLEDGMENT
We thank God for keeping us healthy fundamental and giving us strength to do this group
assignment.
We would also like to thank the course lecturer Steve Gachie for His sincere guidance and
To our families, we wish to thank you for your unceasing support that is extended to us as we
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ABSTRACT
According to Philip Mason Ishikawa throughout his life had the obsession of achieving
affirmed that man should always be considered a good being, and for this reason he should be
trusted in his work. For Ishikawa a worker compromises his well-being, indicating that he is
interested in performing his duties in the best possible way. From the quality approach,
company managers must be able to recognize this interest of the workers. Ishikawa thought
that all business activity should be aimed at subjects who needed certain products or services,
which is why it was important to know them. He considered that participation and teamwork,
through quality circles, should be present at all levels of the organization. It identified
products and services for stakeholders. He firmly believed that working for quality was
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Table Contents
ACKNOWLEDGMENT........................................................................................................................i
ABSTRACT..........................................................................................................................................ii
Table Contents......................................................................................................................................iii
LIST OF FIGURE................................................................................................................................iv
DEFINITION OF TERMS....................................................................................................................v
1.0 INTRODUCTION...........................................................................................................................1
1.1 BACKGROUNG INFORMATION.............................................................................................2
1.2 DR. KAORU ISHIKAWA CONTRIBUTION TO QUALITY...................................................3
1.2.1 Cause-effect model...............................................................................................................4
1.2.2 Quality Circles......................................................................................................................4
1.2.3 Company-wide Quality.........................................................................................................5
1.2.4 Plan-do-check-act model......................................................................................................7
1.2.5 Dr. Ishikawa’s seven quality tools........................................................................................8
2.0 INFLUENCE OF ISHIKAWA’S POSTULATES OF QUALITY................................................20
3.0 CRITIQUE OF ISHIKAWA QUALITY MANAGEMENT THEORY.........................................23
4.0 CONCLUSION.............................................................................................................................24
REFERENCES....................................................................................................................................25
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LIST OF FIGURE
Figure 1.1 Metal Box Thickness Histogram
Figure 1.2. Example of Cause and Effect Diagram from “Guide to Quality Control”
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DEFINITION OF TERMS
Quality – the degree or grade of excellence according to Webster
Kaizen - it is the Japanese word for "improvement". In business, kaizen refers to activities
that continuously improve all functions and involve all Kaizen in kanji employees from the
Total Quality Control - Total Quality Management or TQM for short, is defined as
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1.0 INTRODUCTION
Ishikawa’s Philosophy
take pride in the quality of their work. Often times in his book, “What is Total Quality
Control?” he mentions the fact that top management cannot be disconnected from the total
He wrote about challenging managers not only to implement the quality into their company,
but to keep the mentality of continuous improvement. Besides just continuous improvement
of quality, Ishikawa also promoted something slightly different from the other gurus. He
valued the idea of a company-wide quality control that was based on a continuous customer
service mentality. He argues that quality control extends beyond the product and
His dream was for this level of service to seep its way through all levels of management and
then make its way into the everyday lives for all those involved.
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1.1 BACKGROUNG INFORMATION
Kaoru Ishikawa is internationally known as the quality guru. Among its main contributions
is the creation of the cause-effect model, focused on identifying the problems that a company
must face. Ishikawa was born in Tokyo in 1915 into a family of eight children. His father was
an important industrialist, from whom he inherited his love for the organizations. From a very
young age Ishikawa had contact with the industry thanks to the works carried out by his
father, and became chemist, engineer and administrator of companies, obtaining a doctorate
At the age of 24, he obtained an engineering degree from Tokyo Imperial University, and
later worked in a naval company and a large Japanese oil company, where he obtained an
important practice in the knowledge of labor relations and the motivations of the workers.
He studied business administration and eight years later became a full professor at the same
university; in his desire to investigate statistical methods, was invited to participate in a study
group on quality in organizations. This invitation marked the rest of his life, since from that
experience he became an expert and brought to humanity a great knowledge about success in
business. In 1960, he was part of the International Organization for Standardization (ISO),
Seven years later he was appointed chairman of the ISO delegation in Japan, where he
continued to work to rescue and strengthen the companies affected after World War II.
In the field of organizations, Ishikawa is recognized mainly by the invention of the cause-
effect model or fishbone, which seeks to solve the problems detected. Ishikawa died in 1989.
In life he received numerous awards for his contributions to business administration, as well
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1.2 DR. KAORU ISHIKAWA CONTRIBUTION TO QUALITY
Over Ishikawa’s career, he has greatly impacted the world of total quality. In this section, we
will discover the several ways he did so. The first contribution includes enhancing Deming’s
PDCA model or Plan Do Check Act model, he transformed it into a six step plan; the six
steps include: Determine goals and targets, determine methods of reaching goals, engage in
education and training, implement work, check the efforts of implementation, and lastly take
appropriate action to accomplish goals and targets. Often times this six step process was used
by quality circles. Quality circles, which were started by Ishikawa, were extremely popular
after they were first tested in the early 1960’s (Hayes, 2002).
The main idea of the quality circles was to seek out and solve work-related problems.
Arguably the most impressive and widely used quality principle of Ishikawa’s is the Fishbone
Diagram. Commonly known as the: Cause and Effect diagram, the Fishbone Diagram, and
lastly the Ishikawa diagram. It was developed to “graphically represent the relationship
between a problem and its potential causes. Fishbone diagrams can help a group examine
thoroughly all possible causes of a quality problem and discern the relationships among them
Through the construction and use of this diagram, companies can get a good look at the cause
of a problem and then figure out how to reduce or eliminate that problem through the use of
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1.2.1 Cause-effect model
He was the creator of the cause-effect model, which starts with identifying a problem facing a
particular company. Once identified and with the help of a group of members of the
organization, the causes and their possible effects are identified, based on a scheme known as
members throughout the organization. Some categories are determined for the study and,
through a brainstorm; these are written on the schematic in the form of a fishbone.
The members of the organization identify causes to find the source of the problem in each
case. For this reason, it is stated that it is the model of why. Leaders should constantly ask
organizations. They consist of work groups made up of people who carry out similar
activities in the same area of the company. Together with a leader or supervisor, they analyze
the problems that exist within their group and elaborate possible solutions. In this way it is
Quality circles were at their most popular during the 1980s, but continue to exist in the form
of Kaizen groups and similar worker participation schemes. Examples of quality circles are
improving occupational safety and health, improving product design, and improvement in the
workplace and manufacturing processes. The term quality circles were most accessibly
defined by Professor Kaoru Ishikawa in his 1988 handbook, "What is Total Quality Control?
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The Japanese Way" and circulated throughout Japanese industry by the Japanese Union of
Quality circles are typically more formal groups. They meet regularly on company time and
are trained by competent persons (usually designated as facilitators) who may be personnel
and industrial relations specialists trained in human factors and the basic skills of problem
identification, information gathering and analysis, basic statistics, and solution generation.
Quality circles are generally free to select any topic they wish (other than those related to
salary and terms and conditions of work, as there are other channels through which these
issues are usually considered). Quality circles have the advantage of continuity; the circle
employees have greater role to play, arguing that an over-reliance on the quality professional
would limit the potential for improvement. Maintaining that company-wide participation was
required from the top management to the front-line staff. As every area of an organization can
affect quality, all areas should study statistical techniques and implement as required with
clerical, planning, accounting, business and personnel that can not only improve internally
but also provide the essential information to allow strategic management decisions to be
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Under the “company-wide” Ishikawa umbrella are not just a company’s internal quality
control activities but the company itself, the quality of management, human respect, after
sales service and customer care. Therefore, suggesting the following benefits:
Reduced defect
Increased reliability
Reduced costs
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1.2.4 Plan-do-check-act model
Besides his own developments, Ishikawa drew and expounded on principles from other
quality gurus, including those of one man in particular: W. Edwards Deming, creator of the
Plan-Do-Check-Act model. Ishikawa expanded Deming's four steps into the following six:
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1.2.5 Dr. Ishikawa’s seven quality tools
HISTOGRAMS
The histogram is the first tool introduced by Dr. Ishikawa. A histogram is a “snapshot” in
time of the dispersion (variation) in your process. A histogram tells you four things about
your process:
1. What value or range of values occur most frequently (called the mode)
An example using the metal box thickness data from the book is shown in Figure below.
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Figure 1: Metal Box Thickness Histogram
The x-axis is the measurements. The y-axis is the frequency each value or range of values
occurred. The histogram in Figure appears to be bell-shaped. There are some data above the
Systems Thinking: This is the art of seeing the world in a joined up way. It involves seeing
your organization as a system, rather than taking a reductive approach to considering only the
individual parts. It is important that everyone in the system understand the system aims and
understands the process through which outcomes are obtained. Changes need to consider
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CAUSE AND EFFECT DIAGRAMS
The second tool introduced is the cause and effect diagram. This chapter starts with the
question “why does quality dispersion occur?” In other words, why does the data shown in
our histogram have variation? A cause and effect diagram summarizes reasons for variation
in our process. The effect is placed on the right-hand side of the chart. The “effect” can be a
problem or a goal. The major categories are selected. These are often the 4M’s, a P and an
reasons for variation are then brainstormed under each of the major categories.
An example of cause and effect diagram is shown below. It deals with wobble during
machine rotation. Note that this cause and effect diagram does not have the 4M’s, a P and an
E. In fact, most of the examples in the book have different major categories. In this example,
the four major categories are workers, materials, inspection and tools.
Figure 2: Example of Cause and Effect Diagram from “Guide to Quality Control”
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The above cause and effect diagram is called a “dispersion analysis” cause and effect
diagram. With this method, the diagram’s center line follows the production process. All
things that can impact quality are added to the appropriate process stage..
Create a backbone for the fish (straight line which leads to the head).
Identify at least four “causes” that contribute to the problem. Connect these four causes with
arrows to the spine. These will create the first bones of the fish.
Brainstorm around each “cause” to document those things that contributed to the cause. Use
the 5 Whys or another questioning process such as the 4P’s (Policies, Procedures, People and
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Continue breaking down each cause until the root causes have been identified.
CHECK SHEETS
When was the last time you used a check sheet? It probably has been a long time. This is the
third tool introduced in the book. Check sheets used to be a major way of collecting data. If
you wanted to track reasons for defective items, you developed a check sheet and tracked the
reasons over time on that sheet. Now it seems, all the information is entered in a computer
system and the system tracks things for us. Figure 4 is an example of a check sheet from the
The reasons for defects are listed on the left-hand side. Each time a defect occurs, a tick
mark is placed in the column for the reason for the defect. When the product has finished
being inspected, the defects are totaled and the total placed in the last column.
PARETO DIAGRAMS
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The fourth tool introduced in the book is the Pareto diagram. A Pareto diagram is a bar chart
that is used to help separate the “vital few” problems from the “trivial many” problems. It is
a data-based approach to help decide what problem to work on first. An example of the
This Pareto summarizes the reasons for defective items. The item with the most defects is
“caulking.” It is listed first. The other reasons for defectives items are listed in descending
order. The bar height represents how often each reason occurred. The line on the Pareto
diagram is the cumulative percent line. The figure gives 72% for the “connecting” bar.
These means that 72% of the defectives items were due to “connecting” and “caulking”
defects. It is clear from the Pareto diagram that “caulking” is the reason that needs to be
addressed first.
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GRAPHS
The fifth tool introduced is “graphs.” There are actually a number of different graphs shown
1. What is the purpose of the chart? 2. How is the chart used? 3. How can it be made more
useful?
These are actually three interesting questions. Too often, a chart is put out without much
thought of the purpose of the chart or how it will be used. And how to make it more useful?
Probably not many of us think about that. Good advice from decades ago.
A variety of graphs are shown in this chapter of the book including graphs by groups (like
If you search on-line for the basic seven tools of quality, you will often find this one called
stratification. This is the graphing by group where you are looking for patterns based on a
variety of sources. You sometimes will see this one replaced by a flow chart or a simple run
chart.
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Figure 6: Stratification Graph by Group
It plots the output from two groups: A and B. It is clear that group A’s production is higher
each day that Group B’s. If you plotted one group by itself, you would have a run chart.
CONTROL CHARTS
The sixth tool is the control chart. Dr. Ishikawa wrote “the purpose of a control chart is to
determine whether each of the points on the graph is normal or abnormal, and thus know the
changes in the process from which the data has been collected.”
He also wrote “we draw limits on the graphs to indicate the standards for evaluation. These
lines will indicate the dispersion of the data on a statistical basis and let us know when an
abnormal situation occurs in production.” Control limits do provide a method for people to
look at the same data set and make the same conclusion.
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Five control charts are introduced in the book: X-R, p, np, c and u control charts. A X-R
Runs
A run is defined by a series of consecutive points on one side of the centerline. “If a run has
a length of 7 points, we consider there is an abnormality in the process.” He also says that
there are out of control situation if 10 out of 11 or 12 out of 14 points lie on one side of the
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average. The centerline for the X control chart is the average. Interestingly, it is
recommended that the median be used for the R, p, np, c and u control charts.
Trends
According to the book, if there is trend of seven points in a row up or down, there is an
Periodicity
Periodicity occurs “if the points show the same pattern of change over equal intervals.”
There is no test for periodicity. You just have to look at the chart and make a decision if it
exists or not.
Hugging of centerline
To determine if the data “hug” the centerline, the chart is divided into four zones. A line is
drawn between the centerline and the upper control limits and the center line and the lower
control limit. So each line is 1.5 sigma from the center line. If most of the points lie between
these two lines, there is an abnormality in the process. He does not define “most.”
There is also a test to determine if the points hug a control limit. The chart is divided into six
zones, three on each side of the centerline. This is the same as for the common tests for
zones A, B and C. However, this test just focuses on zone A. There is an abnormality if 2 out
of 3 consecutive points are in zone A or beyond. This is the same as the common Zone A
test. However, he adds two more. If 3 out of 7 points or 4 out of 10 points are in zone A are
A scatter diagram is the seventh basic tool. According to Dr. Ishikawa, when you talk about
the relationship of two types of data, you are talking about one of the following usually:
a cause and effect relationship a relationship between one cause and another relationship
A scatter diagram shows the relationship between these two types of data. Figure 8 shows a
scatter diagram for the data on conveyor speed (cm/sec) and severed length (mm). The
scatter diagram plots paired samples of data. For example, when the conveyor speed was 8.1,
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The scatter diagram is trying to determine if there is a positive, a negative or no correlation
between the two data sets. If there is a positive correlation, increasing one variable increases
the other. If there is a negative correlation, increasing one variable decreases the other. If
there is no correlation, changing one variable does not impact the other variable.
This scatter diagram shows a positive correlation between conveyor speed and severed
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2.0 INFLUENCE OF ISHIKAWA’S POSTULATES OF QUALITY
Planning- In recent applications some major airport security teams discovered to be using the
Fishbone Diagram not as a problem-solving tool but instead as a planning tool. This was
never the intended design of Ishikawa’s model. They use it to plot out how a passenger can
board a Plane with a weapon. So, as to the way the diagram is set up, they layout the possible
ways a passenger can board with a weapon as the “bones” of the fish. They will involve the
security experts at that particular airport and think through the potential issue before it
happens. Since the terrorist attacks on September 11, 2001, this has been a growing use for
the Fishbone Diagram. The application of this method is a great way to analyze how your
quality work, the top management requires hands on leadership thus quality should be viewed
as the first basic operating principle of an organization (Evans & Dean, 2003).
He focused the world on defining quality from the view of the customer rather than the
internal perspective of the company. His emphasis on the business customer was unique at
the time because most quality efforts focused on industrial quality control and internal
applications for manufacturing. Ishikawa created customer focus within the quality
Worker involvement: Ishikawa was the father of quality control circles. He believed all
workers must be involved in quality improvement through teams to enhance the capability of
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Presently most organizations consider work as both corrective and preventive action to
uncover and resolve problems downstream from the customer engagement point. This is the
most cost effective way to operate. To be able to perform these tasks, workers must be trained
in basic problem solving tools and quality control methods and work in cross functional
teams to resolve process problems that cross the functional boundaries of workgroups.
Ishikawa emphasized teaching workers about the basic quality tools to equip them with the
ability to be self-regulatory in their work environment. This supported both the quality
conviction that workers had the ability to make creative contributions to improve the
performance of their work arose out of his direct experience with Japanese workers in
improving chemical work processes and grew with each subsequent exposure to the frontline
workers of the gemba (workplace). Today, we think walking around the workplace and
involving employees are natural aspects of good management, but we should really be
Quality begins and ends with education: To understand the true meaning of Ishikawa’s
and training. He believed training improves skills and competence, and education builds a
person’s character and develops a deeper level of understanding. Ishikawa put his ideas
Education accelerates life experience and enables people to understand truth. Ishikawa taught
that the next step in each work process is the customer, who deserves attention, and processes
should be analyzed to uncover the facts and data about performance from the viewpoint of
the customer.
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Customer oriented quality requires breaking down functional boundaries that inhibit the flow
of detect free products to the market. Education transforms workers into informed skeptics.
confidence in their ability to find the truth. If members of a management team provide
education for their workers, the workers can collectively determine the best way to manage
the work processes and produce the outcomes required by customers. Universal worker
education in basic
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3.0 CRITIQUE OF ISHIKAWA QUALITY MANAGEMENT THEORY
The critics of Ishikawa on quality control were related to the greatest strength of the fish bone
That Brainstorming in quality circle produces irrelevant potential causes along with
Quality circle results are often based on opinion as on fact and evidence.
A very large space for working out the diagram is needed for complex problems with
On the other hand, the fishbone works best when its completed by a team, if the team
does not agree on the central why question or if the why question is not the question
that should be analyzed, then the organizer will never really solve any problems.
A fishbone diagram does not single out the rout Couse of the problem. Graphically
speaking all causes look equally important. Sometimes effort is wasted in identifying
A fishbone diagram is based on the opinion rather than evidence. This process
involves a democratic way of selecting the cause, I.e. voting down the causes, which
If the discussion is not controlled properly it may deviate from the objective. The
worthiness of a fishbone diagram is dependent on how you develop the diagram, if the
participants are not experienced, less involved and not more knowledgeable the
diagram will be very clean and you might not be able to identify the root cause of the
problem
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4.0 CONCLUSION
Ishikawa defines quality as being the development, design, production and service of a
product that is most economical, most useful, and always satisfactory to the customer. He
argues that quality control extends beyond the product and encompasses after-sales service,
Ishikawa is one of the six most influential economic personalities in the realm of business
quality. He is best known for his Fishbone Diagram theory; this quality tool diagram which
identifies the possible causes and effects of a problem. Ishikawa constructed the idea that
customers are the only reason why business exists. Now thanks to Ishikawa, Japan are no
longer looked at by the world as producing products with poor quality, in fact it’s just the
opposite. Today Japan makes some of the best quality products that the market has to offer.
All companies can add value to their business by using the principles that Ishikawa created.
In the long run they would most likely save the company money and lead them to have a
superior product.
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REFERENCES
Chaston, I. & Mangles, T., “E-commerce and small UK accounting firms: influences of
marketing style and orientation,” The Service Industries Journal, 21(4), (2001), 83–99.
Evans, J. R., Dean, J., & J.W. (2003). Total quality: Management, organization, and strategy
(3 ed.). Mason, OH: Thomson South-Western.
Ishikawa, K. (1985). What is total quality control? – The Japanese way. New York,
Englewood Cliffs: Prentice-Hall.
Ishikawa, K. (1990). Introduction to quality control. Tokyo: 3A Corporation.
Johnson, M. E., Whang, S., “E-business and supply chain management: An overview and
framework,” Production and Operations Management, 11(4), (2002), 413–423.
Molla, A., “E-Commerce Systems Success; An Attempt To Extend And Respecify The
Delone And Maclean Model of IS Success,” Journal of Electronic Commerce Research, 2(4),
(2001), 131-141.
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