How to Reduce the Cost of Quality

with Industry 4.0

Presented by:
Dr. Joseph A. DeFeo, Juran Chairman
Saul Lustgarten, Tulip

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Webinar Objectives

• Become acquainted with Industry 4.0 and Quality 4.0

• Understand what Manufacturing Apps are and their impact on product quality
and the Quality Management profession

• Understand how Manufacturing Apps can reduce Cost of Quality

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 What is Industry 4.0?

18th century 19th century Mid 20th century Today

Cyber physical systems,

Enabling Steam power Electricity
ICTs
Internet of things (IoT),
Technology Electronics networks

Production Mechanical production

Mass production and Automation and Intelligent, flexible,
Change assembly lines networked production distributed production

Quality 2.0: Quality 3.0: Quality 4.0:

Quality Quality 1.0: Inspection / control / Software for QMS, Continuous quality
Self-inspection assurance / military improvement and with real-time data
standards planning and IoT

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Key Elements of a Quality Management System
Design Process Develop Control Continuously Improve

Poor Performance

Breakthrough

COPQ

Time
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What is the Cost of Quality?
Prevention Cost of Conformance
▪ The cost of planning, controlling and checking
Appraisal to assure we have no defects. These costs fall
into two buckets: prevention and appraisal
COQ

COPQ (Cost of Non-Conformance)

Internal Failures ▪ COPQ is the financial quantification of
problems created by defects. It Includes
cost of 7 wastes.

▪ Theses costs fall into two buckets: Internal

External Failures and External

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Positive Impact of Smart Factory on Cost of Quality
Profit Profit Profit Profit

Prevention Impact of
Appraisal Digitalization

TCOQ Internal Failures

External Failures Prevention

Total Cost of Appraisal
Operations Internal Failures
External Failures

Total Cost of Total Cost of Total Cost of

Operations Operations Operations

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Quality Management Today
Look deeper into a process

CTQ CTQ CTQ CTQ

Process Process Process Process

Input Output
Step Step Step Step

Work Work Work Work

Instructions Instructions Instructions Instructions

BLUE = Production Steps

GRAY = Appraisal, Control
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The QC Loop
And even deeper into a process

CTQ Establish
Baseline
Performance

Monitor Actual
Performance
Process
Input Output
Step
Compare to
CTQ Targets

Take Action
on Difference
BLUE = Production Steps
GRAY = Appraisal, Control
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Manufacturing Apps: A Definition
Manufacturing Apps turn your workflows into instrumented, data collecting, digital
processes.

Continuous Improvement, Lean

Create, test, and deploy quickly--then iterate and
improve.

Visual
User-friendly interfaces and rich media provide an
intuitive experience.

IoT Enabled
Connect with machines, tools, and sensors.

Data-driven
Automatically collect production data.

Interactive logic
Guide workflows with dynamic logic.
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 Manufacturing Apps Marry Process and Quality
Interactive and dynamic logic guides people through
decision making and quality control loop

Critical to quality
CTQ CTQ CTQ CTQ
variables are
automatically
measured and
collected with IoT

Input
Process Process Process Process Output
Step Step Step Step

Real-time data is
Process is digitized, guiding people as they complete manufacturing collected and
operations used to improve
faster
BLUE = Manufacturing
GREEN = Quality
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Quality 4.0 with Manufacturing Apps
Fewer mistakes throughout your operations and faster error detection and improvement
minimize need for additional quality measures.

PLAN CONTROL
SHOP-FLOOR PROCESS REAL-TIME
MANUFACTURING APP
PRODUCTION DATA

PROCESS
OPTIMIZATION
IMPROVE
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Key Elements of a QMS & Apps

Plan with Apps Control with IoT Improve with real-time data

Poor Performance

Breakthrough

COPQ

Time
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Adopting Apps in Your Operations Digitizes Your QMS
From work instructions to quality checks, to the right machine setup, all the quality
processes in your shop floor can be managed through apps

Quality inspection
Audits Kaizen event

Work
Instructions
Part
Sampling
Machine
Maintenance

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Real-World Examples from
Customers Using Tulip Apps

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Faster root-cause analysis and improvement with better data
BEFORE AFTER

CHALLENGES USING MANUFACTURING APPS IMPACT

- Quality data recorded manually
- 25% of Qual Eng time
- Excel used to store data
- Formal quarterly review
- Scrap & rework collected in real time - 96% reduction in rework
- Continuous reporting to stakeholders - 68% reduction in scrap
- Drive accountability and action to associates - 25% quality engineer time saved
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Fewer operator mistakes through error proofed workflows
BEFORE AFTER

“You can depend on Tulip to show you what

to do.”
90% 11% 98%
- MFG Associate Training Time Cycle Time Defect Rate
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Leverage IIoT to bring quality in-line
BEFORE AFTER

"The process before Tulip was slow, depended on

operator experience, and was prone to error.”
0% 20%
Transcription Errors Cycle time
- Manufacturing Engineer
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Summary: Cost of Quality with Manufacturing Apps
WITHOUT APPS ...WITH MANUFACTURING APPS

Data is collected sporadically, used Data is collected in real time, so you can
Data Quality when it’s already outdated improve processes faster

Siloed databases with data keepers Stakeholders can access integrated data
Information Sharing that block information from process, machines and people

Speed of “Monday meetings” focused on “Monday meetings” focused on

improvement fixing spikes of poor quality improvement opportunities

Need to perform additional audits, Audits, tests, appraisals, etc, become

Cost of Quality tests, appraisals, etc embedded in the system

Smart worker, focused on prevention

Low skills, repetitive tasks (i.e.
Skills inspection, testing, etc)
through data analysis, IoT and app
development
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 Thank You for Joining!
Stay tuned for the next webinar by the end of March
Learn more: https://tulip.co/quality/

Dr. Joseph De Feo Saul Lustgarten

jdefeo@juran.com saul@tulip.co

Proprietary & Confidential. Copyright 2019, Tulip Interfaces, Inc.

 Tulip, the Manufacturing App Platform, is a no code platform-as-a-service that lets
manufacturers build IoT-enabled manufacturing apps without having to write any
code. Some of the world’s leading manufacturers are already using Tulip to increase
the productivity, quality, and efficiency of their operations. Launched out of MIT, the
company has customers in over 14 countries, is headquartered in Somerville, MA,
with offices in the UK and Germany.

"Tulip’s distinctive "Tulip’s key differentiator is
nature is its simplicity." its ease of use and time to
value."
"The platform’s flexible,
self-serve, smart
manufacturing apps enable
people, processes, and
machines to work together."
"Tulip merges the needs "Tulip and its fellow
of the human workforce pioneers are front and
with data-centric IIoT centre in shaping the
devices." ongoing Fourth
Industrial Revolution."
© 2019 Tulip Interfaces, Inc.