Final Project: QUALITY TOOLS

 Submitted by.

Muhammad Taimoor
Roll # 28
BBA BATCH # 4

Dept. of Management Sciences, Ciit University Lahore

 ATM: Implementation of
Quality Tools

EXECUTIVE SUMMARY

The report focuses on the implementation of old and new quality tools that can be used in order
to facilitate the customers, increase the output of the firm, take corrective actions for the
problems and to inprove the product features. In this project, the implementation of quality tools
to improve the quality of “NCR” ATM has been done. The use of Quantity tools helped in
finding the gaps and filling them by using various actions. The ways to improve the functioning
of ATM has been done by focusing on “sense,respond and make” philosophy. Initially, cutomer
feedback was taken which showed the existing problems and deficiencies in the system. After
getting the feedback, the ways to solve these problems were identified by using quality tools such
as Fish Bone Diagram, PDPC Diagram, Histogram and Pareto chart. The resulted information can
be used to improve the quality and the productivity of the company.

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1. INTRODUCTION TO THE COMPANY

NCR Corporation is a technology company specializing in solutions for the retail and check
processing systems, barcode scanners, business consumables and high-powered data warehousing
systems. They also are one of the largest providers of IT maintenance support services.

The company was founded in 1884 and acquired by AT&T in 1991. A restructuring of AT&T in
1996 led to NCR's re-establishment on 1 January 1997 as a separate company, On 26 January
2006, the company reported revenue of $6.028 billion for the twelve months ending 31 December
2005.

Automated Teller Machines (ATMs) are now arguably NCR's principal product line. NCR had
made its first ATM in the late 1970s, but it was not until the Model 5040, developed at its Dundee
plant in Scotland and introduced in 1983 that the company began to make serious inroads into the
ATM market. Subsequent models included the 5084, 56xx series and the current 58xx (Personas)
series. NCR currently commands over a third of the entire ATM market, with an estimated $18
trillion being withdrawn from NCR ATMs every year. NCR is no.1 in ranking of ATM
manufacturers worldwide.

The product projected in the next steps will be the latest in market for NCR Corporation and it
will be based on “Quality Function Deployment” based on the demands of customer and its
transformation in technicalities is provided by the engineers.

2. COMPETITORS OF OUR ATM

The two major competitors of NCR Corporation are Diebold, Inc & Wincor Nixdorf. These
companies are discussed briefly in the following lines:

Diebold, Inc. (pronounced DEE-bold) is a United States-based security systems corporation that
is engaged primarily in the sale, manufacture, installation and service of self-service transaction
systems (such as ATMs), electronic and physical security products (including vaults and currency
processing systems), voting machines, and software and integrated systems for global financial
and commercial markets. Diebold was incorporated under the laws of the State of Ohio in August

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1876, The existing product line in ATMs of Diebold is Diebold i-Series ATMs and Diebold
Opteva ATMs.

Wincor Nixdorf Founded by Heinz Nixdorf, Nixdorf Computer AG was formed in 1952. In 1990
the company was purchased by Siemens AG and renamed Siemens Nixdorf Information system.
The company was re-focused exclusively on its current product set in 1998 and renamed Siemens
Nixdorf Retail and Banking Systems GmbH. On October 1, 1999, the company was renamed
Wincor Nixdorf is a corporation that provides retail and retail banking hardware, software, and
services. Wincor Nixdorf is engaged primarily in the sale, manufacture, installation and service of
self-service transaction systems (such as ATMs), retail banking equipment (such as passbook
printers), lottery terminals, software and services for global financial and commercial markets.

3. QUALITY

Quality has many meanings, ranging from luxury and merit to excellence, good value for money
or convenience and even practicality. It is often defined simply as 'fitness for purpose'. Quality is
a multi-faceted concept; different dimensions of quality will be important to different users. In
terms of data quality the following dimensions are used: Relevance, Accuracy, Timeliness,
Accessibility, Comparability, and Coherence.

For some it meant delivering services to the best standard possible. Some saw it as operating
effectively and efficiently. Others spoke about conforming to a set of acknowledged quality
standards or delivering outcomes that met the needs and expectations of their users. Quality is not
something you just do once. It is a continuous process of review and action.

4. THE HISTORY OF QUALITY - OVERVIEW

The quality movement can trace its roots back to medieval Europe, where craftsmen began
organizing into unions called guilds in the late 13th century.

Until the early 19th century, manufacturing in the industrialized world tended to follow this
craftsmanship model. The factory system, with its emphasis on product inspection, started in
Great Britain in the mid-1750s and grew into the Industrial Revolution in the early 1800s.

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In the early 20th century, manufacturers began to include quality processes in quality practices.

After the United States entered World War II, quality became a critical component of the war
effort: Bullets manufactured in one state, for example, had to work consistently in rifles made in
another. The armed forces initially inspected virtually every unit of product; then to simplify and
speed up this process without compromising safety, the military began to use sampling techniques
for inspection, aided by the publication of military-specification standards and training courses in
Walter Shewhart’s statistical process control techniques.

The birth of total quality in the United States came as a direct response to the quality revolution
in Japan following World War II. The Japanese welcomed the input of Americans Joseph M.
Juran and W. Edwards Deming and rather than concentrating on inspection, focused on
improving all organizational processes through the people who used them.

By the 1970s, U.S. industrial sectors such as automobiles and electronics had been broadsided by
Japan’s high-quality competition. The U.S. response, emphasizing not only statistics but
approaches that embraced the entire organization, became known as total quality management
(TQM).

By the last decade of the 20th century, TQM was considered a fad by many business leaders. But
while the use of the term TQM has faded somewhat, particularly in the United States, its practices
continue.

In the few years since the turn of the century, the quality movement seems to have matured
beyond Total Quality. New quality systems have evolved from the foundations of Deming, Juran
and the early Japanese practitioners of quality, and quality has moved beyond manufacturing into
service, healthcare, education and government sectors.

5. QUALITY IN PAKISTAN

Pakistan Institute of Quality Control (PIQC) was established in 1991. It was renamed as PIQC
Institute of Quality during 2006. It is Pakistan’s leading organization working nationally as well

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as internationally in the field of Quality and Human Resource Management. Its services include
training and education, consulting, publishing, and conferences.

It should be clearly understood that quality objectives are to all individuals performing their
assigned duties in strict compliance with the standards as outlined in their respective policies and
procedures. The measurement, control and improvement of quality, shall therefore be the
responsibility of every Wing. In this regard, all the resource persons and officers under their
command are accountable for the quality of their Wings/ departments/ Sections. In order to do
that, they will assign the role of Departmental Quality Assurance Coordinators (DQACs) in each
Wing, who will work in close liaison with and under the guidance of the Quality Assurance Wing
to achieve the quality policy, objectives and goals of company.

Achievements of PIQC

Recognized Quality Leader in the country with a tract record of high performance, professional,
and value driven services.

 Introduced major new Quality Improvement initiatives and drives in the country.

 Trained more than 25,000 persons.

 Provided Consulting Services to more than 200 firms.

 Held 14 national and international conferences and conventions.

 Affiliations and networking with top class team of tutors and organizations from the country
and region.

 Internationally popular website for disseminating large scale of information and case studies.

6. OLD & NEW QUALITY TOOLS

6.1 OLD QUALITY CONTROL TOOLS

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These are the seven old quality control tools.

Histogram:

The most commonly used graph for showing frequency distributions, or how often each different
value in a set of data occurs.

Pareto chart:

Shows on a bar graph which factors are more significant.

Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible
causes for an effect or problem and sorts ideas into useful categories.

Control charts:

Graphs used to study how a process changes over time.

Check sheet:

Check sheet is a structured, prepared form for collecting and analyzing data; a generic tool that
can be adapted for a wide variety of purposes.

Stratification:

A technique that separates data gathered from a variety of sources so that patterns can be seen
(some lists replace "stratification" with "flowchart" or "run chart").

Scatter diagram:

Graphs pairs of numerical data, one variable on each axis, to look for a relationship.

6.2 NEW QUALITY CONTROL TOOLS

Total Quality Management

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A comprehensive program to lay the foundation of Total Quality
Management involving TQM Principles, Structure, Tools, and Methodology.

Sis Sigma

Six Sigma program to improve the performance of organizations by use of selected

six sigma improvement teams, six sigma methodology and metrics with targets
as close to six sigma levels (3.4 defects per million opportunities).

ISO 9001 Certification

A basic quality system with key focus on four main areas: Strategic Quality
Management, Resource Management, Process Management, Performance
Management and Document Management.

ISO 14001 Certification

An Environmental Management System focusing on Pollution Control and

elimination methodology.

OHSAS 18001 Certification

A Safety Management System focusing on Risk Assessment, mitigation and controls.

Social Compliance

These days Export oriented companies are under immense pressure from their customers, the
general public, pressure groups and governments (local & foreign) to demonstrate their
commitment to socially responsible and legally compliant workplace. SA –8000 (Social
Accountability 8000) & WRAP (worldwide responsible Apparel program) and C-TPAT
(Customer: Trade Partnership against Terrorism) are the well known standards generally
demanded.

7. QUALITY GURUS

Old and New quality gurus are divided on the basis of pre-gurus, Gurus, and Post Gurus.

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7.1 Era One - The Pre Gurus

The era of the Pre Gurus starts with the beginnings of statistical study (approximately three
hundred years ago) and runs through the early half of the 20th century. This era contains the early
statisticians that developed many of the tools that we use in quality today. It would also include
some of the earliest practitioners of the quality movement.

Gauss

One of the most important of the early statisticians would be Gauss. Gauss gave us two of the
most widely used tools of statistics. The first tool is the Central Limit Theorem, which allows us
to make assertions about the population based on a sample. The second tool given by Gauss was
the Normal Distribution. The Normal Distribution is based on the Central Limit Theorem and
gives us the whole area of variables data analysis quality professionals use.

Student

Another important early statistician was Student. Student gave us another important distribution.
The distribution given by Student was the t distribution. This distribution allows the comparison
of two means to determine statistical significance. Other distribution allows the comparison of
means, but the Student t test of significance is most widely used. Other early statisticians gave us
the Poisson distribution, binomial distribution, Weibull distribution, F distribution, and the basic
laws of probability. These statistical evaluations are the basic tools that quality professionals use
on a daily basis. Generally, these statisticians are not given the credit deserved for the impact that
was made on the quality profession.

Vilfredo Pareto

Along with these statisticians, an economist must be recognized, Vilfredo Pareto (1848-1923).
Pareto, an Italian, researched the distribution of wealth. During his studies, he discovered that
most of the wealth was concentrated in the hands of a few people. Thus, the Pareto principle of
the "vital few and trivial many" (phrased by J.M. Juran) was developed. We now apply the Pareto
principle as an important tool in the field of quality.

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Sir Ronald Fisher

As the time span moves into the 20th century, the first era introduces two new concepts in the
area of quality, and / or statistics. Sir Ronald Fisher invented the concept of classical
experimental design. This is the method by which all variables controlling a process are varied at
the same time as opposed to one at a time. This gives the ability to actively manipulate the
process, while maintaining economic viability.

7.2 Era Two - The Gurus

Walter a. Shewhart

Walter A. Shewhart could be considered the "Father of Quality." Shewhart laid the first seed of
the quality movement with his book "Economic Control of Quality of Manufactured Product."
This book introduced the concept of Statistical Process Control. SPC has become the cornerstone
for process control in industry.

As influential as SPC is, this is not the only contribution made by Shewhart. He planted ideas in
the head of Deming that were later turned into the management concepts that Deming took to
Japan and finally brought home in the 1980's. One of these ideas was the concept of Profound
Knowledge, an idea discussed later in the section on Deming.

An idea that is commonly credited to Deming, but in actuality belongs to Shewhart is the PDCA
(or PDSA) cycle of management. This is the Plan-Do-Check (or Study)-Act cycle that should be
used for all management projects. Plan what you want to do, do it, study the results, make
corrections, and then plan for the improvements (starting the cycle again).

Kaoru Ishikawa

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Ishikawa contributed the term "Seven Tools of Quality." These tools are: (1) histograms, (2) cause
and effect diagrams, (3) check sheets, (4) Pareto diagrams, (5) graphs, (6) control charts, and (7)
scatter diagrams. Although he did not develop any of these tools, he put them into wide use. He
used these tools because they were simple. He believed that 90% of all problems can be solved by
the use of simple tools.

A simple tool that Ishikawa developed and put into wide use in Japan is the Quality Circle.
Quality circles eventually led to the development of team concepts around the world. Finally, four
points that totally encompass the beliefs of Kaoru Ishikawa:

 Revolution in the philosophy of management; that is, management in which humanity is

respected.
 Company Wide Quality Control.
 Effective use of catch phrases those are adapted to the trend of the times.
 Quality first concept; that is, customer satisfaction.

Armand v. Feigenbaum

Armand Feigenbaum probably stands as the least appreciated quality guru. He does not get the
great attention that the others (Shewhart, Deming, Juran, Ishikawa, etc.) get. But, he is special.
He contributed the concept of Total Quality Control in his book of the same name. Feigenbaum
also believed that quality was a way of operating or a way of life, thus the term "Total Quality."
But, he contributed more than terminology...he added his beliefs of how quality proceeds. His
believes that there are three elements to quality:

 The management in a company must always be striving for quality. There must be
constant feedback and oversight of the organization to assure that quality continues.

 The quality function (little Q) cannot achieve quality without the help of others. Everyone
must be trained and led to quality.

 Everyone in the organization must believe in quality.

Table#1 Comparison of Deming, Juran, and G. Taguchi

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W. Deming J.M. Juran G. Taguchi

Basic orientation Technical Process Technical, proactive

toward quality

What is quality? Non-faulty systems Fitness for use; freedom Customer's performance
from trouble requirements

Who is responsible for Management Management Engineers

quality?

Importance of customer Very important Very important; Very important

requirements as customers at each step
standard of product life cycle

Goal of quality Meet/exceed customer Please customer; Meet customer

needs; continuous continuous requirements; continuous
improvement improvement improvement

Methods for achieving Statistical; constancy of Cost of quality; quality Statistical methods such
quality purpose; continual trilogy: planning, as Loss Function;
improvement; cooperation control, improvement
between functions

Chief elements of 14-point program Breakthrough projects; Statistical design of

implementation quality council; quality experiments; quality
Main points Participation, teams teams
Prevention before cure,
Adoption of changes,
Consistent Output

Role of training Very important for managers Very important for Important but not defined
and workers managers and
employees

7.3 Era Three - The Post Gurus

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The post gurus consist of people working in the quality field today or, at least, a closely related
field. For example, Peter Senge is considered to be one of the post gurus. He developed the
concept of the Learning Organization. True, training (or education) does not look to be part of
Quality, but it is very closely related. As a matter of course, good quality depends on an
organization's ability to educate its work force, so this may be to educate its work force, so this
may be considered the foundation for quality.

8. RELATIONSHIP MATRIX:

 The matrix diagram method clarifies problematic spots through multidimensional thinking.
The matrix diagram method identifies corresponding elements involved in a problem situation
or event.
 These elements are arranged in rows and columns on a chart that shows the presence or
absence of relationships among collected pairs of elements.
 Of the seven new QC tools, this is the only numerical analysis method. The results of this
technique, however, are presented in diagram form.
 Implementation for ATM Machine

The third step in the development of latest ATM is to make relationship between the voice of
customer and voice of engineer. The extent of relation will be also discussed. There could be a
strong, medium, weak, or no relation between the two voices i.e. VOC and VOE. In this step we
will find the relationship between the VOC i.e. performance, usability, and utility and VOE i.e.
hardware, software, supply changes.

The box shows that there is a strong relation between voice of customer and voice of engineer.
The circle shows a weaker relation between voice of customer and voice of engineer. Similarly
the triangle shows a medium relation between voice of customer and voice of engineer. For
example there is strong relation between Processor (voice of engineer) and fast processing (voice
of customer) because more will be the frequency of processor, faster will be the processing. The
above table summarizes similar type of relation between voice of customer and voice of engineer.

FIGURE#1 : RELATIONSHIP MATRIX

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Importance
VOE
Pri

VOC
Hardwares Softwares Supply
Sec

Cash Supply

Power Supply
Network Components

FRS
MGS
Processor

VGS

OS
Touch Screen
Pri Sec

Fast 3
processing
Performance

1
Secure
transactions
2
24*7
transacti
ons
Multi- 5
language
Usability

Menu
Voice 6
Directions in
Major
Languages

7
Touch
system
Guidelines 8
option in
Menu
Bill 9
payment
Utility

Cash 10
Deposit
E-shopping 11

Cash 12
Transfer
Selection of 4
Currency
Denominatio
ns
Figure .4 Relationship matrix

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Relations: = Strong = Medium = Weak

9. PROCESS DECISION PROGRAM CHART (PDPC)

The PDPC method helps determine which processes to use to obtain desired results by evaluating
the progress of events and the variety of conceivable outcomes.

PDPC method can be used to

 Establish an implementation plan for management by objectives

 Establish an implementation plan for technology-development themes
 Establish a policy of forecasting and responding in advance to major events predicted in the
system
 Implement countermeasures to minimize nonconformities in the manufacturing process
 Set up and select adjustment measures for negotiating process

 Implementation for ATM Machine

In case of our ATM machine, with the help of PDPC Diagram systematic identification of the
problems in the plans under development will be done. Objectives, What If, and Counter
measures will be shown through diagram.

The main objective in this case will be the customer satisfaction. Factors that can affect or cause
problem to Customer satisfaction will be shown through diagram after that the counter measures
will be shown those can be use used for solution of the problem.

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FIGURE#2 : PDPC DIAGRAM

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10. PROCESS FLOW DIAGRAM

The PDPC method helps determine which processes to use to obtain desired results by evaluating
the progress of events and the variety of conceivable outcomes.

PDPC method can be used to

 Establish an implementation plan for management by objectives

 Establish an implementation plan for technology-development themes
 Establish a policy of forecasting and responding in advance to major events predicted in the
system
 Implement countermeasures to minimize nonconformities in the manufacturing process
 Set up and select adjustment measures for negotiating process

 Implementation for ATM Machine

First of all, a person goes to ATM Place for transaction purpose. After entering the ATM room,
one enters and checks if machine is on/off. If machine is off then he goes out. If the ATM is
working then he will carry on using ATM for the transaction otherwise he will go out and he will
surely try another ATM. If the ATM is working then he inserts his card into the machine and
enters the pin code. If the pin is verified then he will have to continue otherwise in case pin code
is not verified, he will go out. After the pin is being verified, the next step he would take is either
balance enquiry or he will do cash withdrawal, he can also want mini statement. In case a person
wants balance enquiry he will go on, other wise he will either go, or he will withdraw cash or go
for mini statement. If he is withdrawing cash then after withdrawing he will collect the cash. If he
is not withdrawing then he will go for mini statement. After doing either of the discussed actions

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he will go out of the ATM. The major steps in process flow of ATM are pin verification, Balance
enquiry, cash withdrawal and mini statement.

FIGURE#3 : PROCESS FLOW DIAGRAM

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11. THE CAUSE AND EFFECT DIAGRAM (A.K.A. FISHBONE)

When utilizing a team approach to problem solving, there are often many opinions as to the
problem's root cause. One way to capture these different ideas and stimulate the team's
brainstorming on root causes is the cause and effect diagram, commonly called a fishbone. The
fishbone will help to visually display the many potential causes for a specific problem or effect. It
is particularly useful in a group setting and for situations in which little quantitative data is
available for analysis.

 Implementation for ATM Machine

Customers are dissatisfied with the ATM machine, so we will find out the factors behind the
dissatisfaction of customers. Dissatisfaction can be due to the factors such as Link Down,
Regular Power failure, security, difficult software, ATM room atmosphere. The fish bone diagram
on the next page will show the causes and the ultimate effect they are producing that is customer
dissatisfaction.
We will infect find out the cause and effect relationship.

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FIGURE#4 : FISH BONE DIAGRAM

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12. THE ACTIVITY DIAGRAM

The Activity Diagram for ATM shows how different activities should be completed to reach the
final step that is installment of ATM machine at desired place. The activity map on the next page
elaborates dependencies of activities on their predecessor. It depicts that in order to fulfill the
project, the mentioned activities should be completed.

 Implementation for ATM Machine

Activities Activit Predeces D
y sor ays
Research A --- 20
Data compilation in Organized form B A 10
Planning C B 12
Purchase: Raw Materials D C 7
Purchase: OS Softwares E D 2
Software Development F E 8
Manufacturing: ATM Body G D 5
Manufacturing: ATM Body H D 3
Adding: ATM Card Scanner I D 1
Adding: Security Devices J D 2
Fixing: Monitors K D 6
Installing Processor with system L D 4
components
Creating Network b/w Hardwares and M L ,F,G,H,I,J,K 3
Softwares
Installing OS Software & Application N M 2
Softwares
Finishing: Result: Finished Product O N 4
Product Testing P O 3
Installment on said Location Q P 7

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FIGURE#5: ACTIVITY MAP DIAGRAM

 Activity Path and their Respective Sums

Activity Path Path Sum

1 A-B-C-D- G-M-N-O-P-Q 20+10+12+7+5+3+2+4+3+7 = 73
2 A-B-C-D- H-M-N-O-P-Q 20+10+12+7+3+3+2+4+3+7 = 71
3 A-B-C-D- I-M-N-O-P-Q 20+10+12+7+1+3+2+4+3+7 = 72
4 A-B-C-D- J-M-N-O-P-Q 20+10+12+7+2+3+2+4+3+7 = 69
5 A-B-C-D- K-M-N-O-P-Q 20+10+12+7+6+3+2+4+3+7 = 70
6 A-B-C-D- L-M-N-O-P-Q 20+10+12+7+4+3+2+4+3+7 = 74

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7 A-B-C-D- E-F-M-N-O-P-Q 20+10+12+4+10+3+2+4+3+7 =75
(critical path)
13. THE PARETO & HISTOGRAM

A Pareto chart is used to graphically summarize and display the relative importance of the
differences between groups of data.

What Questions the Pareto Chart Answers?

 What are the largest issues facing our team or business?

 Where should we focus our efforts to achieve the greatest improvements?

45

40

35

30

25

20

15

10

0
Regular Link Less Low Security Difficult to
Down functions ATM room
understand atmosphere

FIGURE#6: PARETO DIAGRAM

In case of ATM, the customers are dissatisfied. What can be the reasons behind
this?

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With the help of Pareto charts we will be able to know that the 45% customer
dissatisfaction is due to regular link down, 23% are dissatisfied with the less
functions in ATM, 18% are dissatisfied with the low security, 10% are dissatisfied
due to reason that ATM operation is difficult to understand and 4% are dissatisfied
due to ATM room atmosphere.
Histogram will discuss the contribution of each factor towards customer
dissatisfaction. The difference is that in histogram the factors are shown in graph in
un-organized way as compared to Pareto which shows factors in organized form.

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
ATM Room Low security Less functions
atmosphere Regular Link Diificult to
Down understand

FIGURE#7: HISTOGRAM

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14. APPENDIX

TABLE#1 COMPARISON OF DEMING, JURAN, AND G. TAGUCHI

FIGURE#1: RELATIONSHIP MATRIX

FIGURE#2: PDPC DIAGRAM

FIGURE#3: PROCESS FLOW DIAGRAM

FIGURE#4: FISH BONE DIAGRAM

FIGURE#5: ACTIVITY MAP DIAGRAM

FIGURE#6: PARETO DIAGRAM

FIGURE#7: HISTOGRAM

15. REFERENCES

http://www.google.com.pk

http://www.asq.org

http://www.isixsigma.com/

http://syque.com/quality_tools/tools/

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http://www.wikipedia.com/

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