Statistical Quality

Improvement
SQQS 3063
Mohamad Shukri Abdul Hamid
School of Quantitative Sciences
Universiti Utara Malaysia
Room 4053
04-9286315
mohdshukri@uum.edu.my
Consultation hours:
Sunday & Wednesday: 10.00 11.59 AM
SQQS3063- Chapter 1

What can you tell?

SQQS3063- Chapter 1

Course Outline
1.0 Introduction:
(W1-3)
1.1 Quality concepts
1.2 Total Quality Management (TQM) and ISO
1.3 Managing Six Sigma
1.4 Quality Function Deployment (QFD)
1.5 The 7 basic QC tools
2.0 Probability and Sampling Distribution:
(W4)
2.1 Concept of probability and sampling distribution.
2.2. Discreet probability distribution (Binomial and Poisson
distribution)
2.3. Continuous probability distribution (Normal distribution)
2.4. Sampling distribution

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Course Outline
3.0 Control Chart and Capability Analysis:
3.1 Theories and concepts of control charts
3.2 Control charts for variables
3.3 Continue control charts for variables
3.4 Control charts for attributes
3.5 Analysis of patterns on control charts

(W5-8)

4.0 Stabilizing and Improving a Process with Control Charts:

(W8-9)
4.1 Stabilizing a Process with Control Charts
4.2. Improving a Process with Control Charts.
4.3. Some out-of-control evidence.

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Course Outline
5.0 Process and Measurement System Capability Analysis:
(W10)
5.1 Introduction to process capability
5.2 Process Capability measurement.
6.0 Acceptance Sampling: (W11-14)
6.1 Acceptance sampling theories
6.2 Single sampling plan for attribute
6.3 Double and multiple sampling plans.
6.4 Sequential sampling plans.
6.5. Military Standard 105E (MIL-STD 105E) sampling plan and its
applications
6.6 The Dodge-Romig sampling plans

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Chapter 1
Introduction

1.1
1.2
1.3
1.4
1.5

QUALITY CONCEPTS
TQM AND ISO
MANAGING SIX SIGMA
QUALITY FUNCTION DEPLOYMENT (QFD)
THE 7 BASIC QC TOOLS

SQQS3063- Chapter 1

Learning Outcomes: W1
Describe different perspectives on
quality
List and describe the concepts of
TQM and ISO.

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1.1 Quality Concepts

What is Quality?

Is there a single definition?

Is it context-based?
Many concepts?
Define in your own words.

1.1 Quality Concept

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QUALITY
Quality is what customer wants. It is
the customers perception about the
degree to which the product or
service meets his/her expectations.
Therefore, quality is defined by
customer needs and expectation.
Like beauty, quality lies in the eyes
of the beholder.
SQQS3063- Chapter 1

QUALITY CONCEPTS
QUALITY is
Perceived differently by different people.
In manufacturing rated as e.g. fit, finish,
appearance, function, and performance
In servicing rated as degree of
satisfaction by the customer receiving the
service
Dictionaries defined as degree of
superiority or excellence
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 A study that asked managers of 86 firms in the

eastern United States to define quality
produced several dozen different responses
including:
i. Perfection
ii. Consistency
iii. Eliminating wastes
iv. Speed of delivery
v. Compliance with policies and procedures
vi. Providing a good, usable product
vii.Doing it right the first time
viii.Delighting or pleasing customers
ix. Total customer service and satisfaction
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 The American National Standard

Institutes and the American Society
for Quality define the QUALITY as
the totality of the features and
characteristics of a product that
bears on its ability to satisfy the
stated or implied needs.

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 The main reason to pursue the

quality is to satisfy the customers i.e.
to ensure that they will be satisfied
to pay for the products or services.
should result in a reasonable profit
for the producer or the service
provider.

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 quality would be an essential requirement for

survival (Arora KC, 1998). To beat the
competition, organizations often must exceed
customer satisfactions. Thus one of the most
popular definitions of quality is meeting or
exceeding customer expectation (Evans,
2008).
The argument is that peoples perceptions of
quality and what exactly it is will depend upon
their preferences and interpretations (Basu,
2004).
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Quality is meeting or exceeding

customer expectation !!!!

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Definition of Quality

"Degree to which a set of inherent characteristic fulfills

requirements" as ISO 9000

"Fitness for use" (Joseph M. Juran). Fitness is defined by the

customer.

"Conformance to requirements" (Philip B. Crosby in the 1980s).

The difficulty with this is that the requirements may not fully
represent what the customer wants; Crosby treats this as a
separate problem.

(W. Edwards Deming), "Costs go down and productivity goes up,

as improvement of quality is accomplished by better
management of design, engineering, testing and by improvement
of processes.

Better quality at lower price has a chance to capture a market. Cutting costs
without improvement of quality is futile."
"Quality and the Required Style of Management" 1988 See
http://www.deming.org/
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1.1 Quality
Concept

Dimensions of Quality
Garvin (1987) states 8 components:
1. Performance how well will the product do
the intended job?
2. Reliability how often will it fail?
3. Durability how long will it last?
4. Serviceability how easy is it to repair it?
5. Aesthetics what does it look like?
6. Features what else can it do?
7. Perceived Quality what is the market
ranking of the product or company?
8. Conformance to Standards is it made
exactly per its design?

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Service Quality Dimensions

Parasuraman, Zeitamel and Berry state 5 dimensions:
TANGIBLES - physical appearance of service
facility (e.g. equipment, personnel)
RELIABILITY ability of service provider to perform
the promised service dependably and accurately
RESPONSIVENESS - willingness to be helpful and
prompt in providing service
ASSURANCE knowledge, courtesy of personnel
and their ability to inspire trust and confidence.
EMPATHY caring, individual attention,
understanding the customers needs.

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Application of some quality

concepts
Product design, development and research
Purchasing, Contract review
Manufacturing engineering process, Just In time,
Production
Inspection and Measurement testing
Sales and Marketing, After sales service
Service sector
Personal life
Maintenance, terotechnology
Human Resource Management
Handling, storage, packaging and delivery
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The importance of QUALITY

Quality certain benefits. The benefits
can be external and the internal
benefits

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Internal

Improve cost effectiveness

Better control in the process
Reduction of wastages
Improved productivity
Better relations, employees job satisfaction,
employees participation
Increased customer retention
Standardization of work routine
Increase sales and market share
Improved competitiveness
Better profitability
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External
Customers get the correct product
and services
Correct specification
Appropriate intangibles
Customer satisfaction
Customer retention.

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HISTORY OF QUALITY
The issue of Quality of goods and services
is not new. Throughout history say 1700
B.C, King Hammurabi of Babylon
introduced the concept of product quality
and liability into the building industry
declaring if the building falls into pieces
and the owner is killed, then the builder
shall also be put to death. If the owners
children die, then the builders children
also die.
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During middle ages.

quality was to a large extent controlled
by the long periods of training required
by the unions. The training instilled pride
in workers for quality of a product. Before
industrial revolution manufacture was
essentially conducted by the cottage
industry approach and relied heavily on
craftsmen. The craftsmen trained
apprentices to ensure the quality and
standard of work.
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During Industrial
Revolution.
the concept of specialization of labor was introduced.
As a result, a worker no longer made the entire
product, only a portion. This change brought about the
decline in the workmanship. The craftsmen became the
inspectors and standards emerged. Because most
products manufactured during that period were not
complicated, quality was not greatly affected.
As products become more complicated and jobs more
specialized it became necessary to inspects products
after manufacture. The industries rely on the use of
inspectors to ensure the quality of the product leaving
the factory.

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Early 20 Century..
th

The beginning of the 20th century marked the

inclusion of processes in quality practices.
A process is defined as a group of activities that
takes an input, adds value to it and provides an
output, such as when a chef transforms a pile of
ingredients into a meal.
Manufacturers began to include quality processes in
quality practices.
In 1924, W.A. Shewhart of Bell Telephone
Laboratories developed a statistical chart for the
control of product variables. This chart is considered
to be the beginning of statistical quality control.
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 In 1950, W Edwards Deming, who

learned statistical quality control
from Shewhart gave a series of
lectures on statistical methods to
Japanese engineers and on quality
responsibility to the CEO s of the
largest organizations in Japan later
become the national folk hero in
Japan as he was influential in the
spectacular rise of Japanese industry
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 Joseph M Juran made his first trip to

Japan in 1954 and further emphasized
managements responsibility to achieve
the quality. Using these concepts the
Japanese set the quality standards for
the rest of world to follow. In 1960, the
first quality circles were formed for the
purpose of quality improvement. Simple
statistical techniques were learned and
applied by Japanese workers.
As a result, the Japanese became
leaders in quality by the 1970s
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Today.
Most products and services must adhere to the
minimum quality standards established by the
International Organization for Standardization
(ISO).
Since 1987, ISO 9000 standards have served as
the basis of quality management structures used
around the world and have regulated
international trade and production. The ISO has
broadened its formal concepts of quality in
recent years by developing advanced standards
for environmentally and ethically sound
production.
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 Several individuals made significant

contributions to quality control and
improvement:
W. Edwards Deming is perhaps the bestknown quality expert in the world. He was
instrumental in the post-war industrial
revival of Japan. Subsequently his ideas
were increasingly adopted in industry in the
United States and other countries. Degree
in Electrical Engineering and PhD in
Mathematical Physics.
Deming firmly believed that quality is the
responsibility of the management.
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Demings 14 points
1. Create constancy of purpose for continual
improvement.
2. Adopt the new philosophy.
3. Eliminate mass inspection as a way to
achieve quality.
4. End the practice of awarding business solely
on the basis of price.
5. Improve constantly and forever the system.
6. Institute modern methods of training for
everyone.
7. Adopt and institute leadership aimed at
helping people to do a better job.
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Demings 14 points
8. Encourage effective 2-way communication and other
means to drive out fear.
9. Break down barriers between depts and staff areas.
10. Eliminate the use of slogans, posters and exhortations.
11. Eliminate arbitrary numerical targets substitute aid
and helpful leadership.
12. Enable pride of workmanship.
13. Encourage education and self-improvement.
14. Top managements commitment and action to improve
quality and productivity.
Source: Henry R. Neave. 1990, The Deming Dimension, SPC Press.

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 Joseph M. Juran is the founder of the Juran

Institute, which offers consulting and
management training in quality. Obtained
degree in Electrical Engineering.
He defined quality as fitness for use. Juran
proposed the quality trilogy: quality planning,
quality control, and quality improvement to
develop a universal thought process for
quality.
Juran conceptualized the Pareto principle,
which helps in identifying the vital few out of
the trivial many. This is commonly referred to
as the 8020 principle 80% of the problems
are created by 20% of the causes
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Juran Trilogy
1. Quality Planning:

Identify our customers and their needs.

Translate those needs into our product requirements.
Develop a product that can respond to those needs.
Optimize the product features to meet our customer needs.

2. Quality Control:

Prove that the process can produce the product under

operating conditions with minimal inspection.

Transfer the process to Operations.

3. Quality Improvement:

Develop a process which is able to produce the product.

Optimize the process.

Source: Juran Institute, http://www.juran.com/

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 Philip B. Crosby is a businessman and

author who influenced quality improvement
through his writings and lectures. Crosbys
response to the quality crisis was the
principle of doing it right the first time. He
also included four major principles:
(1) quality is conformance to
requirements,
(2) the management system is prevention,
(3) the performance standard is zero
defects,
(4) the measurement system is the cost of
nonconformance.
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 Armand V. Feigenbaum is a pivotal

figure in the history of quality. He
received his Ph.D. from MIT.
Broadened a discipline that had
relied primarily on production
employees to a new stage in which
everyone in an organization
participates in the process of quality
improvement. He proposed a threestep process for quality
improvement: quality leadership,
quality technology, and
organizational commitment
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 Kaoru Ishikawa is considered as

Japan's leading figure in the area of
Total Quality Management. His
inspiration came from the works of
Deming and Juran and to a lesser
extent Feignenbaum. He will be
respected for introducing Quality
circles and practice successfully. He
is the originator of the fish bone
diagrams which are now used
worldwide as the cause-effect
analysis.
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