2. Background
Habitat for Humanity (HfH) is an international, non-
governmental, and non-profit organization, which was founded in
1976
Functions: To provide affordable housing to people
3.
4. Diagnostic of HfH
HfH is facing criticism for a number of reasons such as:
Unsafe work environment
Slow delivery
Lack of volunteers
Untrained volunteers
Lack of power to do management work
Failure to meet customers requirements
Slow and inefficient process
Inefficient usage of resources
Sub standard housing materials
5. Diagnostic of HfH
The net effect of these issues will create following problems:
Short term:
Several customer’s complaints will cause the organization to lose
valuable opportunities.
Due to these inefficiencies the process of fundraising will/has
becomes tedious as the donors may have second thoughts about
donating to HfH.
Long term:
It will discount the function of HfH
6. HfH and Six Sigma
To help eliminate the problems and help regain its former and
needed glory, that is to build affordable homes, we have used Six
Sigma method
Process Flow of Six Sigma Method
7. Define: Evaluating Problem Areas
Based on Voice of Customers(VoC) analysis and Pareto principle we
have shorted down the top three customers requirements:
Quality work
Fast delivery
Affordable house
8. Define: Cost of Poor Quality(COPQ) Concerns
Internal Failure Cost:
Untrained volunteer’s low performance
Slow and Inefficient building process: downtime and extra money
Inefficient use of resources: non-value added activities
Sub standard material quality
Conflicts with local affiliates
9. External Failure Cost:
Volunteers got injured in the project need medical care
Difficulty in getting capital investment from people and
government
Fail to build some “affordable” homes for low income people
Conflicts with local authority
Define: Cost of Poor Quality(COPQ) Concerns
10. Define: Selecting Problems Areas For
Improvement
Based on all pre analysis we decided to work on:
Increasing the quality of building
Shorten the delivery time
11. Measure: Verify Need
Setting a standard for their building based on the review of
architect and the feedback of house owners
The house quality are rated from unacceptable (score 0) to
qualified (score 5) to excellent (score 10)
Most houses are around and below score 5
12. Measure: Process Documentation
Start
Request/Need
Background information
(climate, building style
feasibility)
Qualification
for project
Determining resources available
locally and resources needed from
outside
(food, materials, equipment, labor)
Building houses
and managaing
labor/resources
Training the new
home owners to
maintain houses
Collecting non-
profit mortgage
from home owners
Establish managing
commitee to
overlook on area
project
End of
project
Yes
No
13. Measure: Understanding Quality Prerequisites
Society Personnel
Finance Equipment
Quality
Attention
from people
Society Level
Responsibility
Training
Level Education
Level
Scope of
Equipments
Materials
Number of
Equipments
Stability of
Equipments
Corruption
prevention
Funding
Allocating
Funds
Culture
Quality Fishbone Chart
14. Measure: Baseline Performance
Because the target of HfH is to build affordable house, the
baseline of their project would not be very high.
An ideal project would be rated between qualified (score 5) and
advanced (score 7)
If a score from 0 to 4 exists then it needs immediate attention to
improve
16. Measure: Other Data Collections
Measured house quality in three completely different
geographical locations/projects to measure influence of material
quality and labor training level(in terms of cost to train them)
Measured the influence of repeatability, reproductively, and part
to part
17. Analyze: Quality Performance between 3 Projects
Null hypothesis: Means are equal
Alternative hypothesis: Atleast one mean is different
Test: ANOVA
Result: Alternative hypothesis is true
Meaning: Quality performance in different projects are
significantly different
18. Analyze: Finding Quality Gap BW These
Projects
Test: Tukey Pairwise Comparisons
Result: Quality gap between project 1 and project 2 is the biggest
Meaning: House quality of project 1 is better
Next course: Finding if correlation exist between training level
and house quality or material and house quality in project 1
19. Analyze: Finding If Correlation Exist
Test: Pearson correlation
Result: Correlation exist between material and quality of house
Next course: Finding the correlation
20. Analyze: Finding Correlation BW Material
Quality And House Quality
Test: Regression Analysis
Result: House Quality = -0.324 + (8.727 x Material Quality)
Meaning: The quality of material is the driving factor of house
quality
21. Improve: Design Of Experiments
We did quality check based on vendor selection from local
supplier and overseas supplier
Result: Higher quality local supplier is preferred
Reason: Lower cost and Less delivery time with almost equal
materials quality
22. Improve: Optimizing Inventory In Supply
Chain
Tested inventory with materials cap at 9 and 15
Result: Inventory of 15 is better
Reason: Total cost is lower as inventory of 15 decreases cost of
overflow
23. Improve: Other Measures In Need of
Improvement
Proper capital management
Give high priority to employ skilled workers
Finding out sporadic problem areas & dynamic implementation of
solutions proposed
Incentives for skilled employees
Aggressively promoting the need for skilled volunteers
Renting necessary quality equipment, locally if available, to
reduce cost of own equipment deterioration as well as using
improved tech
Establishing a supervising committee
24. Improve: Measures To Improve Sustainability
Using green building techniques and materials that are
comparable in price to traditional counterpart
Cutting energy waste while building and fitting energy star
electrical devices
Improving design of houses to minimize deteriorating weather
effects based on locations
Training quality engineers for sustainability
Efficient use of raw materials
25. Control: Use Of Control Charts
In order to control the building quality, a quality inspection
standard should be set for the incoming raw material
Because materials are always purchased by huge lot size in a
short period, a sampling plan should be set
Used: Nomograph
Result: Sample size (n)=65 and acceptance number (c)=7
26. Control: Use Of Control Charts
According to the relationship between material and quality:
House Quality = -0.324 + (8.727 x Material Quality)
We can calculate that if we want to get an average house quality
scoring 6, with upper limit 7 and lower limit 5 the raw material
quality should have a mean equal to 0.72
27. Control: Use Of Control Charts
37332925211713951
0.80
0.75
0.70
0.65
Sample
SampleMean
__
X=0.72
UCL=0.7950
LCL=0.6450
37332925211713951
0.12
0.09
0.06
0.03
0.00
Sample
SampleRange
_
R=0.0399
UCL=0.1303
LCL=0
Xbar-R Chart of C1 , ..., C2
Control Chart After
Improvement
28. Control: Use Of Control Charts
We can see that the mean and range of material quality are fairly
stable by now.
Because the quality performance may shift over time, it’s critical
to keep checking the situation when new material are purchased.
Once they have a sample fall out of the limit or go beyond
warning limits, we should stop the process or check the situation
respectively, to assess whether the supplier has deviated from its
stable state.
29. Control: Assessing Final Process Capability
New Process Capability
Cp=1.43
Cpk=1.33
Old Process Capability
Cp=1.09
Cpk=0.87
30. Control: For Ongoing Projects
Mistake Proofing
Supervisors to overlook that every house construction follows
the same plan
Also, if there is a problem in the current plan and a solution is
found out, then making sure that it's implemented on every
house aka dynamic implementation
Control Plan
If any individual in a team needs to be replaced then selecting
from equally trained individual
This way there is consistency in trained people and house
quality is not compromised
31. Control: For Ongoing Projects
Management Control
Managing committee to overlook the project after its
completion
Having proper hierarchy of authority among the managing
committee
Supervisors to check the quality of houses (eg. like in 1mth,
6mths, 12mths basis) and report to the managing committee
for any immediate action needed on their part
32. Control: For New Projects-Use Of 5S
Sort
As the quality of houses also depend on quality training of
volunteers, this stage consist of sorting out workers who have
received equal training
Pre selecting teams with trained individuals based on their
corresponding work
Set in order
After sorting out the necessary resources we need to document it
for quick selection and preventing waste of time
Documentation of workers according to training level and their
post
Equipment documentation is also a part of this stage
33. Control: For New Projects-Use Of 5S
Shine
In this stage it is necessary to prevent machinery and equipment
deterioration as it will have immediate impact on houses quality
and time needed to complete the project
Standardize
Standardizing the best practices in the work area. Some research
is needed to understand which type of houses, materials,
equipments etc. are suitable in the given geographical area
Maintain orderliness
Everything in its right place during and after the completion of
project
Making sure that workers comply with process standard
34. Control: For New Projects
Sustain
To keep everything in working order
Perform regular audits
Training and Discipline whenever necessary
35. Conclusion
By successfully implementing the techniques suggested the
quality of work and delivery time will improve which is the
required target for our project
If the targets are attained, HfH can bury their current
shortcomings and be known as THE international organization for
bringing quality & affordable houses to low income families