Sehoon ParkProfessor Dr. Tauno KekaleQuality management24 February, 2014ISO/TS 16949 APQP development and application for Zero defectThe competitiveness of firms is said to rely on quality, cost, and delivery. However, around 80 percent of the cost of products is mainly calculated and determined at the product development stage. From the side of quality cost, if problems and defects are not caught in the development stage, they will become more expensive and harder to fix. In addition to it, the cost of correcting the problem or defect at the delivery stage is 10 times higher than the cost of correcting at the manufacturing stage and 100 times higher than the cost of correcting at the development stage (Kim el al., 2001).The core purposes of TS16949 APQP (Advanced Product Quality Planning) are customer satisfaction and profit creation through fault protection, variation reduction, and continuous improvement (AIAG, 2002). Most of automobile part suppliers are not process centered enviro concrete framework of procedures and techniques to develop products that can satisfy the customerFMEA (Failure Mode Effect Analysis)A technical tool that assumes and prevents possible defects in the production line and the design developmentMSA (Measurement System Analysis)A tool of checking changes in the measurement system to maintain precision and accuracyPPAP (Production Part Approval Analysis)A set of procedures in which customers approve part suppliers and their production processesSPC (Statistic Process Control)A statistical method of quality control which monitors and controls processes1.2. APQA (Advanced Product Quality Planning)Product quality planning is to support the product development that the product will satisfy customers. Its benefits are avoidance of required design changes and product problems in the earliest time, on-time delivery of proper quality products at the lowest cost, and reduction in field failures with an increase in the customer satisfaction (AIAG, 199 experimentation by using new approach, experiential learning method, learning from others, and knowledge spillover(Kim, 2001).APQP development and applicationIt is now found out how five phases work out according to the case of the development of CHFUS 0.22SQ in YURA. CHFUS, as a halogen free ultra thin-wall cable, is durable, lightweight, small size, and environmentally friendly.2.1. Plan and Define ProgramThe first phase is a stage that converts product characteristics from customer requirements. In this phase, main inputs can be the voice of customer, benchmark data, quality history record, and marketing strategy. Outputs also can be design and reliability goals, preliminary process flow charts and bill of materials, and any governmental and environmental safety regulations. For example, QFD (Quality Function Deployment) is used to provide visual monitoring of customer needs through to production as representing inputs and outputs.YURA was asked for a lightweight and environmentalle analysis tools and statistic techniques are used (Moon, 2007).The main purpose of this phase is to remove special causes and decrease common causes. KPC (Key product characteristics) can verify design FMEA and KCC (Key Control Characteristics) can give some alternatives about process FMEA failures.YURA made a process flow diagram and block diagram and looked through each process by analyzing how failure modes affected the whole.Figure 5Process FMEA in YURANote. Each process has its failure modes that YURA takes care of.2.4. Product and Process Validation and Production FeedbackThis is to check if product characteristics and process characteristics, set up in the former phases of APQP, are still valid under mass production machines and conditions. Also, it is the step for establishment of control plan. Under Y=f(X), Y can be stabilized when X is stabilized. In other words, 4M (Man, Machine, Material, Method) that affects X must be stabilized.Phase 4 must guarantee the validation of cuducts before delivery but about finished products after delivery as keeping updating process FMEA and control plan. Based on internal improvement flow, YURA has been improving itself continuously.Figure 7Continuous Improvement Flow in YURANote. Under internal quality rules, it is implemented quarterly and once a month, YURA startsinternal process auditing to improve its process system effectively and efficiently.ConclusionThere are two types of APQP development process. One is ‘detection’. In the beginning stage, expected troubles are not properly dealt with, but later in the mass production phase, they are dealt with. This type of the development process makes the situation worse since problems grow more serious. Moreover, it occurs with customer complaints and expenses. However, the other type, ‘prevention’, takes action against expected problems in the beginning stage before they happen in the later phase. It can reduce the loss of materials, shorten the development schedule, and len10
A study of quantitative and qualitative performance analysis of ERP (Enterprise Resource Planning) system applicationPark SehoonIntegral and operational managementProfessor Dr. Ilija Cosic23 August. 2014TABLE OF CONTENTS1. Introduction ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙11.1. Background and purpose ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙11.2. Method and scope ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙12. Theoretical background∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙22.1. Definition of ERP system∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙22.2. ERP development process∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙gement and financial management.Thus, this paper is to analyze the quantitative and qualitative efforts of ERP installation through case analysis of YURA.Method and scopeTo accomplish the purpose of this paper, the financial statements of YURA from 2005 to 2011 are analyzed for the quantitative performance effects. Also, based on the questionnaires, the qualitative performance efforts are analyzed.This paper is comprised of five chapters. The first chapter explains its background and purpose. And, the theoretical background of ERP system is explained. In the third chapter of research plan and method, hypotheses about ERP are established. The following chapter presents the results of the hypotheses testing. Last of all, the paper draws conclusions.Theoretical backgroundDefinition of ERP systemERP is an acronym for Enterprise Resource planning. Whlie (1990) defines ERP as a set of applications designed to maintain the balance of business functions and a business system for next generatio(Park, 2000). Therefore, it is easy for users to have access to ERP system. It is also possible to customise user interface environment. Furthermore, its database consistency and standardization help all employees from different departments adjust to their new environments, which minimizes losses when manpower relocation and recruitment are carried out.2.3.4. Executive Information System (EIS) serviceERP supports decision-making needs. It is easy for the management to use. Accordingly the management can frequently monitor and analyze its business situation through ERP system. And, ERP timely provides delivery of information and the management can make decisions promptly and efficiently.Research plan and methodResearch hypothesesHypotheses are established to find out any correlation between ERP and quantitative and qualitative performance variables.3.1.1. Quantitative performance variablesERP system improves inventory management ability with respect to materials, goods in process, and ftity, two-sample T-test was like Figure4.Figure4: Two-sample T-test of before and after ERP installationC1: Average of 2005, 2006 and 2007, C4: Average of 2009, 2010 and 2011From two-sample T-test, it can be found whether the two different groups are related to each other or not. P-value calculated by two-sample T-test is a good criterion of significance level. If P-value is larger than level of significance under alternative hypothesis testing, the hypothesis is rejected. Otherwise, it is adapted. Accordingly, since the result showed that P-value (0.025) was smaller than the significance level (0.05), the hypothesis was adopted. It means that the two groups of before and after ERM were different. In other words, ERP influenced inventory turnover in a positive way.H 1-2) Operating incomes to total assets improved after ERP system installation.The trend of operating income ratios was shown in Table4.Table4: Operating income to total assets (Million Won)YearBefore ERPAfter ERP20052006200 information quality.The result of the question about information quality was gathered like Table5.Table5: Result of information qualityDivisionVery goodGoodFairPoorVery poorDon't knowInformation quality1Informationaccuracy101446--2Information usefulness1318-3--3Information sufficiency20104---Average141433--Based on the above result, most members thought that information quality actually improved after ERP installation. To be specific, 24 members positively answered to the first question about information accuracy and 31 out of total participants, 34, expressed that information was useful after ERP installation. In addition, 30 members said that information was sufficient. In short, it can be seen that ERP improved information quality.H 2-2) ERP brought about work efficiency improvement.In terms of the question that ERP caused work improvement, the result of the survey was summarised in Table6.Table6: Result of work improvementDivisionVery goodGoodFairPoorVery poorDon't knowWorkimproven16
EUROPEAN CENTER FOR PEACE AND DEVELOPMENTOF THE UNIVERSITY FOR PEACE ESTABLISHED BY THE UNITED NATIONSSehoon ParkANALYSIS AND ASSESSMENT OF EFFECTS OFIMPLEMENTATION OF THE SIX-SIGMA STANDARD ONPRODUCTIVITY AND COST REDUCTION(CASE STUDY BASED ON PRACTICE AT YURA ENTERPRISE)MBA ThesisMentor: Prof. Dr. Tauno KekäleBelgrade, 2015I hereby solemnly declare under moral, material and legal liability that this thesis/paper is free of plagiarism.TABLE OF CONTENTSABSTRACT ⅲLIST OF TABLES ⅳLIST OF FIGURES ⅵLIST OF ABBREVIATIONS ⅶChapter1 Introduction1.1. Background 11.2. Aim, objectives and research rationale 21.3. Research structure 3Chapter2 Literature review2.1. Total Quality Management 42.1.1. Historical evolution and definition 42.1.2. Quality awards and quality standards 62.1.3. Comparison of quality awards with quality standards 122.2. Advent of Six Sigma 142.3. Six Sigma evolution and definition 152.4. Six Sigma characteristics 192.4.1. Belt system 192.4.2. Top-down approach 202.5. Six Sigsinesses.After the success in the manufacturing industry, many leaders realised that the Six Sigma could be applied to the services industry with certain modifications (Bartholomew, 2014). The Six Sigma has been modified according to the characteristics of businesses and widely introduced into service organisations including financial services, hospitals, food industry and hotels. For example, Starwood Hotels and Resorts have executed more than hundreds of projects based on the Six Sigma methodology, which increases their profits and customer satisfaction (Abou Kamar, 2014).2.3. Six Sigma evolution and definitionSince the advent of Six Sigma, there has been three generations of Six Sigma. As Motorola showed, the first generation of Six Sigma focused on defect elimination and variability reduction mainly in the manufacturing industry. In the Six Sigma second generation, it began to focus on projects and activities of cost reduction and product design to improve business performance togenomena under investigation (Sekaran, 2006). However, it does not answer questions regarding how, when and why an even has occurred. Blumberg et al. (2005) point out that the main discrepancy in the descriptive study is that it cannot explain why.The explanatory study is to investigate the relationships between variables (Terre Blanche et al, 2006). It is simply to examine a situation or problem in order to identify the cause-and-effect relationships.In this thesis, the above studies were used. The exploratory study was conducted to create an initial understanding of the current situation in YURA Serbia. The descriptive study also provided a more comprehensive and accurate profile of the situation. It was also used to analyse the relevant factors for the improvement of the current situation, based on statistical calculation. The explanatory research was used to observe variation in potential variables that caused changes in other variables and examine the relationships between causes anable increases, the other tends to decrease.No correlation: when one variable increases, the other does not tend to either increase ordecrease.The strength of a correlation between two variables can be rated from -1, which is the strongest negative linear relationship, to +1, which is the strongest linear relationship. The closer the value is to either +1 or -1 the stronger the linear relationship is. And, a value of 0 denotes no relationship between them. (Ford and Flynn, 2005)Figure26: Pearson’s correlation between replacement number and defect ratioAs shown above, the Pearson correlation coefficient value of 0.464 confirmed that there appeared to be a moderate positive correlation between the replacement number and the defect ratio. Also, the p-value of 0.019 was statistically significant. The null hypothesis was rejected.Join insideWhen drawn wires are broken or the following drawn wires are put into a stranding machine, it is necessary to join one section of a fine drawn wire to tploratorystudy using analytic hierarchy process’. TQM Magazine. 15(5) pp. 334-344.Banuelas, R., Tennant, C., Tuersley, I. & Tang, S. (2006) ‘Selection of six sigma projects in the UK’.TQM Magazine. 18(5) pp.514-527.Barney, M. & McCarty, T. (2002) The New Six Sigma: A Leader’s Guide to Achieving Rapid BusinessImprovement and Sustainable Results. New Jersey, USA: Prentice Hall PTR Upper SaddleRiver.Bartholomew, E. (2014) Six Sigma – A Brief History. Available at Hyperlink "http://www.morganmckinley.co.uk/article/six-sigma-brief-history" http://www.morganmckinley.co.uk/article/six-sigma-brief-history [Accessed: 15 May 2015]Basu, R. & Wright, J.N. (2003) Quality beyond Six Sigma. Butterworth Heinemann: Oxford.Bendell, T. (2006) ‘A review and comparison of six sigma and the lean organisations’. TQMMagazine. 18(3) pp. 255-262Bergman, B. & Klefsjo, B. (2003) Quality from Customer Needs to Customer Satisfaction. (2nd ed.).Lund: Studentlitteratur.Bergman, B., Korslid, D. & Magnusson, K. (2003) AT 1