FTQ

SAP Course #: 62006505

First Time Quality

PPM

TIME

Revised September 11, 2006

FTQ

First Time Quality

What First Time Quality Is

Why It Is Important
Why We Need to Measure It
How to Calculate It
FTQ Deployment, Evaluation and Improvement
Process
Responsibilities
The Structured Approach Steps
The Basic Quality Tools
How to Apply the Quality Tools
Monitoring and Reporting
Class Exercise

Revised September 11, 2006

FTQ

First Time Quality

What is First Time Quality?

First Time Quality is a measure of the number of
pieces rejected in a manufacturing process versus
the total number of pieces attempted.

REJEC
TS

Revised September 11, 2006

FTQ

First Time Quality

Define ALARM LIMITS

A structured approach

Catch and Count Defects

React to ALARM LIMITS

Reaction Plan

Follow Reaction Plan

ZERO Defects Forward

Initiate Structured Problem Solving
Voice of the Customer
Revised September 11, 2006

FTQ

First Time Quality

FTQ can be viewed as a two phase approach:

Immediate action and containment
Whenever alarm limits are exceeded
Helps ensure customer protection

Continual Improvement
Management objective to reduce quantity of rejects and
operational cost
Leadership MUST ensure, support and follow-up with
implementation of FTQ in their facility to be successful

Revised September 11, 2006

FTQ

First Time Quality

Why is FTQ important?

Because if we dont make good parts the first time,
we have to inspect in quality
We know inspection is at best 85% effective
Therefore, anytime FTQ is greater than 0, we are
dependent on inspection to protect the customer

To reduce manufacturing costs and defects through

continual improvement (FTQ Tracker or Step Down Chart
are tools to utilize)

To monitor process stability and react quickly to

potential issues (Alarm limits and process
monitoring sheets)
Revised September 11, 2006
6

FTQ

First Time Quality

FTQ should be viewed as a tool to facilitate

operational improvement in:

Quality

PPM
TIME

Cost

Revised September 11, 2006

FTQ

First Time Quality

FTQ is Key to our Success to turn this

into this!

PPM

TIME

Revised September 11, 2006

FTQ

First Time Quality

Why does FTQ need to be measured?

Main

Reasons:

It

is the early signal that a process is out of control

It allows us to respond to problems internally before they
reach our customers
It measures improvement from corrective actions
implemented

If we dont fix our quality problems internally,

we will never be able to fix our external
customer issues
Revised September 11, 2006

FTQ

First Time Quality

The fatal flaw of inspection
Catch Defects

Inspection is like a filter.

Filter

Inspection misses some defects

Defects not caught

Problem

Voice of the Customer

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10

FTQ

Inspection Exercise

Count the Number of Fs contained in the paragraph below (60sec)

THE NECESSITY OF TRAINING FARMHANDS FOR FIRST

CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRSTCLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.

Revised September 11, 2006

11

FTQ

Inspection Exercise

Total of 36 Fs
THE NECESSITY OF TRAINING FARMHANDS FOR FIRST
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRSTCLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.

Revised September 11, 2006

12

FTQ

First Time Quality

How is First Time Quality calculated?

FTQ is reported in parts per million (PPM) defective
It can be measured at any step in the manufacturing process where
parts are rejected especially where the defect is originated.
It is calculated by counting the number of pieces rejected versus the
total number of pieces attempted
The total number of pieces attempted includes all good pieces
produced plus all pieces rejected
Pieces rejected are all parts scrapped or reworked prior to usage by
subsequent processes. The actual calculation looks like this:

Number of Pcs. Rejected

Total Number of Pcs. Attempted

X 1,000,000 = FTQ PPM

Revised September 11, 2006

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FTQ

First Time Quality

How is First Time Quality calculated?

Tally Sheet

An example at the cell level:

Cell A has six operations

28

6
16

Reject data is collected at operations 3

and 6.
Cell A produced 1040 good pieces during the first hour.
At OP.3, 28 pcs. were rejected.
At OP.6, 16 pcs. were rejected.
What is the FTQ in PPM for Cell A?

28 + 16
44
1040 + 28 + 16 =1084
X 1,000,000 = 40,590 PPM FTQ
Revised September 11, 2006

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FTQ

First Time Quality

What First Time Quality Is

Why It Is Important
Why We Need to Measure It
How to Calculate It

FTQ Deployment, Evaluation and Improvement Process

Responsibilities
The Structured Approach
The Basic Quality Tools
How to Apply the Quality Tools
Monitoring and Reporting

Class Exercise

Revised September 11, 2006

15

FTQ

FTQ Improvement Process

Stakeholder involvement
CELL

Plant A
CELL
1

Plt B

OPERATOR

OPERATOR

OPERATOR

OPERATOR

OPERATOR

Plt C
TEAM
LEADER

CROSSFUNCTIONAL
TEAM

PROCESS
ENGINEERING

OPERATIONS

PRODUCT
ENGINEERING

Potential Members:
- TEAM LEADER
- OPERATIONS/MANUFACTURING
- QUALITY ENGINEER
- PROCESS ENGINEER
- INDUSTRIAL ENGINEER
- MAINTENANCE
- PRODUCT ENGINEER
- SUPPLIER QUALITY

QUALITY

MAINTENANCE

PC&L

PLANT MANAGER

Revised September 11, 2006

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FTQ

FTQ Improvement Process

Typical Responsibilities Flowchart
CFT

PROCESS

QUALITY
ENGINEER

OPERATIONS

PROCESS
ENGINEER

PRODUCT
ENGINEER

MAINTENANCE

INDUSTRIAL
ENGINEER

DEFINE REACTION
PLAN & ALARM LIMITS

IDENTIFY & COUNT

DISCREPANT PARTS

IMPLEMENT ALARM
REACTION PLAN (IF
EXCEEDED)
RECORD DATA

ANALYZE DATA

SELECT & PLAN

IMPROVEMENT

IMPLEMENT
IMPROVEMENT

EVALUATE

INSTITUTIONALIZE
LESSONS LEARNED

LEAD

SUPPORT
Revised September 11, 2006

17

FTQ

FTQ Implementation

Delphi SQ or SDE Responsibilities

Ensure supplier understands, and if necessary,
obtains appropriate training on the FTQ
Improvement process
Monitor implementation progress during FTQ
activities
Conduct 5 step site evaluation for FTQ
implementation
Set stage for improvement activities
Outline plan of attack
Document improvement plan ( i.e. through an A3)
Revised September 11, 2006

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FTQ

FTQ Improvement Process Overall

IMPLEMENT
ALARM
REACTION
PLAN

NO

YES
DEFINE
REACTION
PLAN &
ALARM
LIMITS

IDENTIFY &
COUNT
DISCREPANT
PARTS

ALARM
EXCEEDED
?

NO

RECORD
DATA

SELECT &
PLAN
IMPROVEMENT

IMPLEMENT
IMPROVEMENT

EVALUATE

NEW LEVEL
OF
QUALITY?

YES

INSTITUTIONALIZE
LESSONS
LEARNED
TOOLS:
- PFMEA
- PROCESS CONTROL PLAN
- LOOK-ACROSS-CHART
- 5 WHY'S

TOOL:
TOOL:
TOOLS:
EXAMPLES:
TOOLS:
- CROSS-FUNCTIONAL - ACTION PLAN - RUN CHART
- CONTROL - PARETO
- CAUSE & EFFECT
TEAMS
CHART
(FISHBONE)
- CHANGE BOARDS
- CONCENTRATION - RPN REDUCTION
DIAGRAM
- STATISTICAL ENGINEERING
- FLOW CHART
PROJECTS
- GATE CHART
- HISTOGRAM
- SCATTER
ACTION PLAN:
DIAGRAM
- WHAT, WHEN, WHO
- CHECK SHEET
- 5 WHY'S

TOOLS FOR
IDENTIFICATION:
- PROCESS CONTROL
PLAN
- BOUNDARY SAMPLES
TOOLS FOR COUNTING:
- PARTS COUNTERS
- TALLY SHEETS
- SIZED CONTAINERS

IDENTIFY

SELECT

ANALYZE
DATA

CONTAIN

ANALYZE

PLAN

IMPLEMENT

CORRECT

EVALUATE

PREVENT

Delphi Problem
Solving Process
Revised September 11, 2006

19

FTQ

First Time Quality

Define ALARM LIMITS

A structured approach

Catch and Count Defects

React to ALARM LIMITS

Reaction Plan

Follow Reaction Plan

ZERO Defects Forward

Initiate Structured Problem Solving
Voice of the Customer
Revised September 11, 2006

20

FTQ

FTQ Improvement Process

Define alarm limits and reaction plan

Alarm limits must be based on current process reject
data or available data from Machine qualification runs,
Run at Rate, historical data, etc.
Need to collect data long enough to ensure you
understand the types and quantities of defects that fall
out from your current process. Limits for common cause
(chronic) rejects may be statistically calculated
Understand process and expected defects (what
types and quantities of defects)
Determine the process normal range of variation by
charting the reject data over time

Revised September 11, 2006

21

FTQ

FTQ Improvement Process

Define alarm limits and reaction plan

Limits for special cause (non chronic) rejects must be set
at one piece
Limits must be communicated to operators so they can
react
If alarm limits are exceeded, there must be a
documented reaction plan which includes containment of
product and process corrections.
Employees may find clever ways to identify abnormal
process state as the process matures
The immediate action taken is the most important step in
containing the problem until it has been eliminated and
verified
Revised September 11, 2006

22

Alarm Limit Calculation using

np Chart

FTQ
20
25
18

NP Charting for FTQ

Defects Pareto

100

16
20
14

UCL=16.1

90
80

Nonconforming

UCL=

12
15
10

70

avg= 9.8

60

108
6

avg=

54
2

LCL=

50
40
30

LCL=3.4

20
10

00

8 14 9
1017 11
1322 14
11 2 32 4 35 64 7 5
8 9 6
10 11712 13
15 16
18 1912
20 21
23 2415
25 16 17 18 19 20 21 22 23 24 25
Subgroups ( Days)
Hours or Days
Non-conforming
18
Sample Size (Avg)
Defects
wing mark
wing / body fold
wrong paint dot
paint location
wrong or no clip
Total nonconforming:
Production
PPM Defective
np

1
8

2
10

3
9

4
11

5
9

2
3
2

1
2
2
3
2
10
18

5
1
1

4
2
5

2
5
1

11
18

1
9
20

1
8
18

2
9
19

np1+np2+..npk

6
8

1
2
4
1
8
18

7
6

8
8

9
7

10
11

11
12

12
11

13
13

14
18

15
17

16
12

17
9

18
10

1
2

3
2

4
2

2
5
3

1
3
4

3
4
3
3

2
1
6
2
6
17
17

1
4

2
5

3
8
18

1
5
3
7
2
18
18

1
2
8

2
1
6
17

2
2
5
2
1
12
18

2
2
9
18

2
1
10
19

1
7
18

1
11
19

3
11
19

13
19

1
12
18

19
7

20
8

21
5

6
1

7
1

1
3

7
18

8
20

1
5
18

22
9

23
11

24
8

25
7

1
1
1
2
4
9
18

1
2
4
4

2
3

1
3
3

3
8
18

7
19

11
20

where np= number nonconformin, k= subgroups

k
n = avg sample
size (18)
np

"=SUM(C3:AA3)/25"
np = number
nonconforming

UCLnp
k = subgroups
UCLnp =
0

(25)

__
np
= np1+np2+..npk
LCLnp
LCLnp =
k 0

UCL=np
+ 3*
=
0
=

LCL=np - 3*
Revised September 11, 2006

(np(1-np/n))
(np(1-np/n))

23

FTQ

Alarm Limit Calculation using

np calculation and Stop Light control method
A

1.-

Broken case

CELL:

Quality

(U C L )

T u rn o s

DEFECTS

In d ic a d o r

DEPT:

AREA: HVAC

Monday

259W

Tuesday

WEEK:
Wednesday

to Feb 5

Jan 30
Thursday

8
8

C
A

2.-

Wrong assembled case

B
C
A

3.-

Damaged cases

B
C
A

4.-

Missing screws

B
C
A

5.-

Warped cases

B
C
A

6.-

Vibration

B
C
A

7.-

Wrong assembled thermistor

B
C
A

8.-

Damaged evaporator pipes

B
C
A

9.-

Damaged mounting plate

B
C
A

10.- Air leak

B
C

11.11.11.12.12.12.-

5
5
5
4
4
4
4
4
4
4
4
4
3
3
3
3
3
3
3
3
3
2
2
2
2
2
2

A
B

NC

C
A
B

NC

Instructions
1.-

Mark to be used by each shift:

GP-12 X (Red X)

Final insp./Rework/Process/Scrap

X (Black X)

2.- Team: a) Shift leader will give follow up to each defect recorded. b) When a defect reaches the yellow color limits, apply supervisor's reaction protocol; if the red co
reaction protocol. c) The Quality auditor is responsible for checking the squares with the appropriate color in case that a defect is detected. d) This format is for one we
responsible for archiving this format on a weekly basis. f) The Quality engineer is responsible for monthly updating the reaction and control limits.
3.-

Control limits calculation for non chronic defects (np):

a)

b)

Calcular avarage del numero por defecto

np =
np1 + np2 + np3 + .. + npk
np = Son los numeros de defectos de cada subgrupo de k
k
Calcular limites de control superior e inferior (UCL, LCL)

UCL

np + 3

np ( 1 - np / n )

np

np ( 1 - p )

Revised September 11, 2006

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FTQ

Example: Rejected Parts Counter

Quality Alarm
Limit:
The counter is flipped
for each defect. The
color will change from
green to yellow to
red.
Yellow indicates
action required and
red will stop the
process.
Small white tags are
placed with each
defective part to
identify the specific
defect.
Revised September 11, 2006

25

FTQ

FTQ Improvement Process

Identify and count rejected parts

Operators must have sufficient tools and skills in order to identify
product discrepancies
It is recommended that rejected parts be removed from the cell station
at a defined frequency so they may be counted and categorized by
defect or rework code
Tools to enhance the operators ability to identify product discrepancies
include:

Boundary Samples
Illustrations
Photographs
Gages

Tools for counting rejected parts include:

Parts Counters
Tally Sheets
Sized Containers

Revised September 11, 2006

26

FTQ

FTQ Improvement Process

Special Cause (Non-chronic) Rejects

FAILURE
REACT

MODE HAS A KNOWN ASSIGNABLE CAUSE.

AT FIRST OCCURRENCE

IMMEDIATE
BASED

FIX / CORRECTION.

ON OPERATOR CERTIFICATION PROGRAM.

STOP & Contain

FIX

S
F
S

START

Revised September 11, 2006

27

FTQ

FTQ Improvement Process

Common Cause (Chronic) Rejects

FAILURE MODE ROOT CAUSE NOT IDENTIFIED.*

NO IMMEDIATE FIX / CORRECTION.
USE PROBLEM SOLVING METHODOLOGIES (RED X / 6 SIGMA)
REACTION BASED ON CONTROL LIMITS (STATISTICALLY CALCULATED)
np chart

np

15

LCLnp

10

np-bar

UCLnp

0
0

10

20

30

40

Lot number

DEFECTS
SEGREGATION PROCESS VERIFICATION
Or many sources or causes ( i.e. technology
STOP and Contain
inherent defects or defects caused by many
sources of a root cause such as contamination/foreign material.)
No known immediate fix is available to eliminate root cause of defect.
Revised September 11, 2006

S
F
S

FIX
START

28

FTQ

FTQ Improvement Process

Implement Alarm Reaction Plan if Limit Exceeded

Reaction Plan:
Yes

Alarm Limit Exceeded?

Contain
Investigate

Containment Plan

Implement Containment Plan

Until Problem Fixed
Revised September 11, 2006

29

FTQ

FTQ Improvement Process

Record Data
Data must be recorded and plotted over time:
At the cell level, the number of pieces rejected shall be
recorded by defect category at a defined frequency. This data
must be used to react to abnormal process conditions (process
monitoring)
Since the area of opportunity varies from sample to sample, the
reject count must be converted into a rate (FTQ PPM) prior to
charting
Each area should have a performance tracking board that would
reflect the manufacturing FTQ information by shift
Revised September 11, 2006

30

FTQ

FTQ Improvement Process

Analyze Data

The basic quality tools are:

Flow Charting
Check Sheets
Pareto
Cause and Effect
Run Chart
Histogram
Scatter Diagram
Control Chart

Revised September 11, 2006

31

FTQ

First Time Quality Process

Initiate Structured Problem Solving

Understand Defects and
Decide the Order of Priority:

Problems
4

A B C D

Assign problems to
Cross-Functional Group:
1

Select and
Plan the Improvement: 1

Right Information 2

Responsible
Team Works
Problems

Right Cause 3 Right Timing

DEFECT
1. ---------------------2. ---------------------3. ----------------------

Fix the Biggest Problems First:

Revised September 11, 2006

32

FTQ

FTQ Improvement Process

Analyze Data

Problem Identification

Flowchart
Brainstorming

Problem Analysis

Pareto Chart
Cause & Effect
Control Chart
Check Sheet
Run Chart
Stratification

Histogram
Scatter Diagram
Process Capability

Charts can be used for different purposes in various stages of the problem-solving process
The tools included in the intersecting portion of this diagram can be used in both the
problem identification and problem analysis phase of problem solving
Revised September 11, 2006

33

FTQ

Histogram
FTQ Tools

A histogram is a
specialized type of
bar chart. Individual
data points are
grouped together in
classes, so that you
can get an idea of how
frequently data in
each class occur in the
data set. High bars
indicate more points in
a class, and low bars
indicate fewer points
Revised September 11, 2006

34

FTQ

Pareto
FTQ Chart
Tools

Pareto charts are used to display the Pareto principle in

action, arranging data so that the few vital factors that
are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have
a greater impact and be more cost-effective than
undirected efforts.

Revised September 11, 2006

35

FTQ

FTQDiagram
Tools
Scatter

Scatter Plots (also called scatter diagrams) are

used to investigate the possible relationship
between two variables that both relate to the
same "event." A straight line of best fit (using
the least squares method) is often included.

Revised September 11, 2006

36

FTQ

Control
Charts
FTQ Tools

The point of making control charts is to look at

variation, seeking special causes and tracking
common causes.

Revised September 11, 2006

37

FTQ

Flow
Charting
FTQ
Tools

Flowcharts are maps or graphical representations of a process.

They are particularly useful for displaying how a process currently
functions or could ideally function. Flowcharts can help you see
whether the steps of a process are logical, uncover problems or
miscommunications, define the boundaries of a process, and develop
a common base of knowledge about a process. Flowcharting a
process often brings to light redundancies, delays, dead ends, and
indirect paths that would otherwise remain unnoticed or ignored.

Revised September 11, 2006

38

FTQ

Check
FTQSheets
Tools

Check sheets are employed to verify compliance and ensure specific

events are completed in the timing and sequence required.

Revised September 11, 2006

39

FTQ

Cause
Effect
FTQ&Tools

The cause and effect diagram is used to explore all the

potential or real causes (or inputs) that result in a single
effect (or output). Causes are arranged according to
their level of importance or detail, resulting in a
depiction of relationships and hierarchy of events. This
can help you search for root causes, identify areas where
there may be problems, and compare the relative
importance of different causes.

Example Cause & Effect Diagram (Fishbone)

Revised September 11, 2006

40

FTQ

Run
Charts
FTQ
Tools

Run charts (often known as line graphs outside the

quality management field) display process performance
over time. Upward and downward trends, cycles, and
large aberrations may be spotted and investigated
further. In a run chart, events, shown on the y axis, are
graphed against a time period on the x axis.

Revised September 11, 2006

41

First Time Quality

Manager Audit Checklist Example

FTQ

FIRST TIME QUALITY

AUDIT CHECKLIST

Supplier:

Date:

Location:

Duns:

Part No./Description:

Auditor/Title:

Yes

A.) Define Reaction Plan & Alarm Limits.

No

Comments:

1. Are the alarm limits established based on current process

rejects data?
2. Are the alarm limits communicated to operators?
3. Is the reaction plan established by defect?
4. Has the PCP the FTQ information for Chronic Rejects, KPCs
and QCIs?
B.) Identify and Count Rejected Parts.
. Does the operator have sufficient tools and skills in order to
1.

Yes

Comments:

No

Comments:

Yes

No

Comments:

Yes

No

Comments:

Yes

No

Comments:

identify product discrpancys?

2. Are rejected parts removed from cell station on the established
frequency basis?

m
a
Yes

C.) Record Data

1. Is the FTQ trend chart in PPM s by cell and shift?

x
E

e
l
p
No

2. Is the FTQ Tri Chart or Gate Chart used as standards to

record the data?

D.) Implement Alarm Reaction Plan if Limit Exceeded. (Max- Min)

1. Is there an evidence of reaction plan implementation?
E.) Select Plan Improvement and Implementation?

1. Is there an evidence of an improvement plan developed?

2. Are corrective actions been implemented?
F.) Evaluate
1. Was the record data up-dated to reflect the corrective actions
effect?
2. If corrective actions were effective new alarm limits were
established?

Revised September 11, 2006

42

FTQ

Additional tools to Facilitate

FTQ Improvement

Quality Tools
Statistical Engineering to develop solutions
6 Sigma
Shainin

Lean Tools
Value Stream Mapping
Workplace Organization
Error Proofing

Revised September 11, 2006

43

FTQ

FTQ Improvement Process

Select and Plan Improvement

After FTQ problems have been identified through
data analysis, improvement plans must be developed
A recommended template has been provided to track
implementation status of corrective actions (FTQ
Tracker or Step Down Chart)
To be make problem solving truly effective, standard
work must be utilized. Standard work is like a recipe:
varying method and content will not yield same results!

Revised September 11, 2006

44

FTQ

FTQ Improvement Process

Implement and Evaluate

Once the Corrective Action has been implemented, the data must be
evaluated for trends or shifts
Did the problem stay killed? Can you turn the problem on and off? If
so, change alarm limits and update the documentation
This is one of the reasons it is so important to collect data over time
Without data there is no way to evaluate the impact of the corrective
action on the process
If no significant reduction in FTQ PPM is observed, then it is possible
the cause was misidentified
Revised September 11, 2006

45

FTQ

5 Step Site Evaluation Plan

1
Understand
the
Value Stream

1. Walk the
Value Stream
and OBSERVE
(5S,
standardization,
training, metrics,
etc.)

2
Pareto
Customer
Issues

2. Does
standardization
exist in facility?

1. Pareto
customer issues
by systemic
root causes from
past (6-12 mo) of
Problem Cases
- Input for
improvement
priorities

3. Review using
PFD or Current
State Value
Stream Maps as
needed. Identify
Kaizen
opportunities.

2. What systems
are in place to
identify and
improve the top
issues daily,
weekly, and/or
monthly?

3
Review
Internal
Issues

1. Review pareto
of internal issues
from past 6-12
mo (FTQ, scrap,
rejects, audits)
2. What systems
are in place to
identify and
improve the top
issues daily,
weekly, and/or
monthly?

4
Review Other
Improvement
Activities

1. What other
continual
Improvement
Activities are
in progress?
2. How were the
activities
selected?
3. How is the
effectiveness of
the activities
measured?

Revised September 11, 2006

5
FTQ
Process

1. Implement
FTQ
Improvement
Process
2. Prioritize,
assign resp., and
set target dates
for action items
3. Use A3 format
to document the
plan

46

FTQ

5 Step Site Evaluation Plan

Example: Customer Issues

Problem Case Problem Descriptions
(Jan03 - Mar03)
7
6
5
4
3
2

(1 ) 1 0
O th e rs

P a rts n o t
d is p e n s in g

C o re w id th
in c o rre c t

W ro n g
b a rc o d e
p rin te d

W ro n g c o p y

S m e a re d
g ra p h ic s

B a rc o d e n o t
re a d in g

C o v is in t la te
re s p o n s e

W ound
w ro n g

L a te
S h ip m e n t

W ro n g in fo
o n c a rto n
la b e l

Proble m Case Root Cause s - Syste mic Issue s

(Jan03-Mar03)

16

12

0
Lack of
standardized
instructions
(press setup;
f inishing)

No formal system Lack of standard

Inadequate fin
to manage
process f or
goods inv levels;
customer issues
containment
No re-order
points

Poor Mtrl ID

No PPAP
submittal tracking
system

Lack of
understanding
customer ship
requirements
(Overship)

Revised September 11, 2006

Transmission
system f ailure;
No system to
assure
functionality

APQP failure;
No system to ctrl
Print
revisions
requirements not
f ully review ed

47

FTQ

5 Step Site Evaluation Plan

Example: First Time Quality (internal)

First Time Quality - July 2003
62, 849 PPM
25000

PPM

20000
15000
10000

Die Cut

W rink les

Hous ek eeping
/ 5S

Regis tration

S tic k y

P roc es s /
S etup

Ink / P rint
Q uallity

5000

Next steps:
1. Determine root cause /
systemic issue
2. Pareto
3. Attack top 70~80%

FTQ Per Press #

(July 2003)
20000
18000
16000

PPM

14000
12000
10000
8000
6000
4000
2000
0
6

NR

Press #

Revised September 11, 2006

48

FTQ

FTQ Improvement Process

Institutionalize Lessons Learned and Look Across

Lessons Learned must be incorporated into all existing documentation.
Then Look Across to ensure implementation in all applicable processes,
products.
DFMEAs
Process Flow Diagram
PFMEAs
Process Control Plans
Process Routings
Operating Instructions
Employee Instructions
Product Drawings
Tool Drawings
Total Productive Maintenance (T.P.M.)
Boundary Samples

Revised September 11, 2006

49

FTQ

Alarm Limit Calculation using np

Chart- Class Exercise

Class Exercise (notes contain details)

Revised September 11, 2006

50

FTQ

First Time Quality

How is First Time Quality calculated?

Tally Sheet

An example at the cell level:

Cell A has six operations

28

6
16

Reject data is collected at operations 3 and 6.

Cell A produced 1040 good pieces during the first hour.
At OP.3, 28 pcs. were rejected.
At OP.6, 16 pcs. were rejected.
What is the FTQ in PPM for Cell A?

28 + 16
44
1040 + 28 + 16 =1084
X 1,000,000 = 40,590 PPM FTQ
Revised September 11, 2006

51

Alarm Limit Calculation using np

Chart- Class Exercise

FTQ

NP Charting for FTQ

25

Defects Pareto

100
90

20

80

Nonconforming

UCL=

70

15

60

avg=

10

50
40
30

LCL=

20
10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Subgroups ( Days)
Hours or Days
Non-conforming
18
Sample Size (Avg)
Defects
wing mark
wing / body fold
wrong paint dot
paint location
wrong or no clip
Total nonconforming:
Production
PPM Defective
np

1
8

2
10

3
9

4
11

5
9

2
3
2

1
2
2
3
2
10
18

5
1
1

4
2
5

2
5
1

11
18

1
9
20

1
8
18

2
9
19

np1+np2+..npk

n = avg sampleksize (18)

6
8

1
2
4
1
8
18

7
6

8
8

9
7

10
11

11
12

12
11

13
13

14
18

15
17

16
12

17
9

18
10

1
2

3
2

4
2

2
5
3

1
3
4

3
4
3
3

2
1
6
2
6
17
17

1
4

2
5

3
8
18

1
5
3
7
2
18
18

1
2
8

2
1
6
17

2
2
5
2
1
12
18

2
2
9
18

2
1
10
19

1
7
18

1
11
19

3
11
19

13
19

1
12
18

19
7

20
8

21
5

6
1

7
1

1
3

7
18

8
20

1
5
18

22
9

23
11

24
8

25
7

1
1
1
2
4
9
18

1
2
4
4

2
3

1
3
3

3
8
18

7
19

11
20

where np= number nonconformin, k= subgroups

Reference Attribute Data, AIAG SPC Manual, page 111

np

"=SUM(C3:AA3)/25"
np = number
nonconforming

k = subgroups (25)

UCLnp
__
UCLnp =

LCLnp =

np = np1+np2+..npk
k
LCLnp

UCL=np
+ 3*
=
0
=

LCL=np - 3*
Revised September 11, 2006

(np(1-np/n))
(np(1-np/n))

52

FTQ Tools

FTQ

FTQ - Performance Tracking

2004 CY FTQ Performance

FTQ

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Projection

2003 Dec Final

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

FTQ Value (PPM)

Goal

Monthly Values

Daily Values

2004 CY FTQ Performance Data

FTQ
Projection
Goal

2003 Dec Final

Jan
Feb
Mar
Apr
9000
8000
7000
6000
8000
6500
6000
4500
4500
4500

May
5000
5500
4500

Revised September 11, 2006

Jun
4000
5000
4500

Jul
3000
4500
4500

Aug
3000
4500
4500

3000
4000
4500

54

FTQ

FTQ - Performance Tracking

FTQ
In this row put in actual monthly values for FTQ PPM.
Chart below will automatically generate and will
automatically show up in FTQ display format tab.
You can print out the FTQ Display tab to post on you
cell " Glass Wall"

FTQ
Projection
Goal

Year-End Final %:
Put in 2003 month of December FTQ
value in PPM here

2003 Dec Final Jan

Feb
Mar
Apr
May
Jun
Jul
Aug
9000
8000
7000
6000
5000
4000
3000
3000
3000
8000
6500
6000
5500
5000
4500
4500
4000
4500
4500
4500
4500
4500
4500
4500
4500

Goal:
Forecast
Put in your Forecast by month here. Forecast
line will automatically be plotted above.

Put in your year end goal. Corporate goal is a

minimum of 50% from December month actual
in previous year

Revised September 11, 2006

55

FTQ

FTQ - Top 5 Issues

800
325

120

Branch out
of tolerance

Unseated
Ternimals

400

Missing
Components

575

Damaged
Terminals

1000
800
600
400
200
0

Crossed
Wires

PPM

FTQ Top 5 Pareto

Cell/Process

Top 5 Quality Defects

Revised September 11, 2006

56

FTQ
FTQ Tools Step Down
Chart
FTQ IMPROVEMENT PROCESS - STEP DOWN CHART
Supplier DUNs #

Supplier Name
Oct-04

FTQ of
Relevant
Processes
contributing
to Delphi
APR/WAR/
LP/ FTQ

Supplier

Nov-04

Dec-04

Metric

Start Past 6 Month

Ave.

Actual

Target

PPM

5.80

4.7

5.0

10

15.0

(per month)

(monthly average)

Number of Defects

17

(per month)

(monthly average)

FTQ - Process 1

10300

(per month)

(monthly average)

FTQ - Process 4

9700

(per month)

(monthly average)

FTQ - Process 5

1400

(per month)

(monthly average)

FTQ - Process 6

14400

(per month)

(monthly average)

FTQ - Process 9

400

(per month)

(monthly average)

(per month)

(monthly average)

9500

Jan-05

Actual

Target

4.86

4.5

10

13.0

Actual

Target

4.0

10.0

Feb-05
Actual

Target

(per month)

Metric
PPM
CYTD

CS

36200

7.0

8500

6300
6600

7500

1100

1100

1300

6500
1200

1200

5500

12000

1000
8500

11000

900
7900

10000

700

320

400

9000
600

33400

33200

(monthly average)

Start Month Status

360

8000

Level 2

27100

25500

27220

24080

20940

Red /
Green
will
indicate
whether
targets are
met

Action Item List Color Code:

Level 1

Level 2

(number new i nitiated)

(number of open)

Action item target dates met

Action item target dates not met
No actions items assigned for this month

Delphi Single Point SQE

Name
Phone Number

Delphi Purchasing Contact

Name
Phone Number

Delphi SQ Champion
Name
Phone Number

240

30360

Current Month
Status

6.0
Level 1

3.0

8300

280

FTQ - 5 Processes
Total

Actual

7300
7300

900

Target

Apr-05

8.0

9500

2000

Actual

9300
9200

11400

Mar-05

3.5

10000
9500

9600

Kickoff Date

Supplier Contact
Name
Phone Number

Revised September 11, 2006

57

FTQ

FTQ Tools

FTQ IMPROVEMENT PROCESS - ACTION PLAN

Target Dates

Action Items List

Item

Resp

Plan

Impl.

Verify

Issue Identified

Action Plan Implemented

Action Plan Proposed

Issue Resolved

Actual Completion Dates

Plan

Impl.

Verify

Comments

Process 1
Top Defect Action Items

Process 4
Top Defect Action items

Process 6
Top Defect Action items

Process 9
Top Defect Action items

Revised September 11, 2006

58

FTQ
FTQ PPM
by Issue Pending Actions to address Top 5 Issues
Issue
Problem Discription
Crossed
Wires
800
Damaged
Terminals
575
Unseated
Ternimals
400
Missing
Components
325
Branch out
of Tolerance
120
99 Issue 6
80 Issue 7
70 Issue 8

Action Plans to Address

Top 5 Issues
Corrective Action Planned Start Date

mments on each column noted above in red. Mouse over to see.

Target Date

Status

FTQ Impact

Owner(s)

= On track to meet target date

= Off track to meet target date by < 1 month
= No Plan or off track to meet target date >1 month
These have to pasted into the cells in column H above manually.
Revised September 11, 2006

59

FTQ

Wrap Up Quiz

Class participants complete FTQ Quiz(10 minutes)

Review Responses

Revised September 11, 2006

60

FTQ

FTQ Quiz Responses

First Time Quality (FTQ) is an improvement measurement of PPM

reduction over time .
We measure FTQ by counting the number of pieces rejected versus
the total number of pieces attempted.
If we dont make good parts the first time, we have to inspect in
quality. Inspection is only 85% effective at best.
FTQ is a tool to facilitate our operational improvement in quality and
cost.
Inspection is like a filter, and will miss some defects.
If we dont fix our quality problems internally, we will never be able
to fix our external customer issues.
Number of pieces rejected /Total number of pieces attempted
X
1,000,000 = FTQ PPM
Revised September 11, 2006

61

FTQ

FTQ Quiz Responses

The most important step in containing the problem is the immediate

action taken, which leads to the elimination of the problem.
Non-chronic rejects require immediate reaction at the first
occurrence.
Chronic rejects are those whose failure mode root cause has not been
identified or fixed.
When alarm limit is exceeded, the reaction plan must be implemented,
and we implement a containment plan until the problem is fixed.
One example of a basic quality tool used to analyze data is a Pareto
chart.
The tool used to track implementation status of corrective action and
improvement is the FTQ Tracker (or Step Down Chart).
All existing documentation must be updated in order to institutionalize
lessons learned.
Revised September 11, 2006

62

FTQ

Closing Comments - FTQ Improvement Process

Implement Improvement
Work the Action Plan
Update plan as required
Document improvements

Revised September 11, 2006

63

FTQ

Closing Comments - FTQ Improvement Process

Remember Delphis Suppliers are responsible for their

sub-tier suppliers:
Roll the FTQ process out to sub-tier suppliers to
help them gain the improvement benefits and to
lower the probability of your company receiving nonconforming parts

Revised September 11, 2006

64

FTQ

FTQ Expectations & Key Points

FTQ is a Requirement:
A FTQ Process, that Monitors & Controls at the point of build.
Set FTQ Alarm Limits to 1 reject for all safety critical features.
Set FTQ Alarm Limits to 1 reject for all non-chronic(special cause) failures
Reaction Plans include extra containment to Protect the Customer.
Customer notification evaluated by engineering on special cause events.
FTQ Reduction through a Rolling Top 5 or equivalent process.
Delphi Tier 1 suppliers ensure FTQ is correctly implemented
Delphi Customer Specific Requirement 7.3.6.3: Product Approval Process,
The supplier is expected to develop and implement a FTQ process with
appropriate alarms and reaction plans defined.
Goal is Zero Incidents, Zero Spills, Zero Defects to our Plants.
Revised September 11, 2006

65