IE 402 Quality Control and Planning

ZRVE UNIVERSITY
 IE 402 Quality Control

CHAPTER 1- QUALITY
IMPROVEMENT IN THE MODERN
BUSINESS ENVIRONMENT

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What is Quality?
A subjective term for which each person has his/her own
definition
I know it when I see it
Traditional Definitions
A product or service free of deficiencies
Non faulty systems, Dr. W. Edwards Deming
Fitness for use, Dr. Joseph Juran
Conformance to requirements, Philip Crosby
A Modern Definition
Quality is inversely proportional to variability

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Eight Dimensions of Quality
Performance
Reliability
Durability
Serviceability
Aesthetics
Features
Perceived Quality
Conformance to Standards

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What is Quality Improvement?
Quality is inversely proportional to variability
Variation is present in any natural process, no two products or
occurrences are exactly alike.
Quality Improvement
Reduction of variability in processes and products
Elimination of waste
Following example illustrates the utility of this definition:

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Quality Terminology
Quality characteristics are elements that jointly describe
what the user or consumer thinks of as quality.
Quality characteristics may be of several types:
1. Physical: length, weight, voltage, viscosity
2. Sensory: taste, appearance, color
3. Time Orientation: reliability, durability, serviceability
Quality engineering is the set of operational, managerial,
and engineering activities that a company uses to ensure
that the quality characteristics of a product are at the
nominal or required levels and that the variability around
these desired levels is minimum.

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Quality Improvement Terminology
Since variability can only be described in statistical terms, statistical
methods play a central role in quality improvement efforts.
Two types of data
Variables data (continuous measurements; length, voltage, etc.)
Attributes data (discrete data in the forms of counts)

Specifications: desired target value or dimension

Lower and upper specification limits
Target or nominal values
Tolerance Limits: permissible changes in the dimension
Defective or nonconforming product
Defect or nonconformity

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Statistical Methods for
Quality Control & Improvement

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Statistical Methods
1- Statistical process control (SPC)
Control charts, plus other problem-solving tools
Useful in monitoring processes, reducing variability through
elimination of assignable causes
On-line technique

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Statistical Methods
2- Designed experiments (DOE)
Discovering the key factors that influence process performance
Process optimization
Off-line technique

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Statistical Methods

3- Acceptance Sampling
Closely connected with inspection and testing of product
One of the earliest aspects of quality control
Supplies no feedback into either the production process or engineering
design or development

Variations of
Acceptance
Sampling

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Evolution of Quality Engineering Methods
0. At the lowest level of maturity,
Management completely unaware of quality issues
No effective organized quality improvement effort.
1. Some modest applications of acceptance-sampling and
inspection methods.
The use of sampling will increase until it is realized that quality
cannot be inspected or tested into the product.
At that point, the organization usually begins to focus on process
improvement.
2+. Statistical process control and experimental design
potentially have major impacts on manufacturing, product
design activities, and process development.
The systematic introduction of these methods usually
marks the start of substantial quality, cost, and productivity
improvements in the organization.

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Use of Quality Engineering Methods
The typical evolution in the use
of quality engineering
techniques in most
organizations.
The primary objective of quality
engineering efforts is the
systematic reduction of
variability in the key quality
characteristics of the product.
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Management Aspects of Quality Improvement

Effective management of quality requires the execution of

three activities:
1. Quality Planning
2. Quality Assurance
3. Quality Control and Improvement

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1.Quality Planning
Involves identifying both internal (that operate internal to
business) and external customers and their needs (Voice
of Customer)
Eight dimensions of quality are an important part of this
effort
A strategic activity that is vital for an organizations long-
term business success
Without a strategic plan, a lot of time, money, and effort
will be wasted with
faulty designs, manufacturing defects, field failures, and customer
complaints.

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2.Quality Assurance
Set of activities that ensures the quality levels of products
and services are properly maintained
Supplier and customer quality issues are properly
resolved.
Documentation of the quality system is an important
component.
Documentation components: policy, procedures, work
instructions and specifications, and records
Records are often vital in providing data for dealing with
customer complaints and, if necessary, product recalls.

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3.Quality Control and Improvement
Set of activities used to ensure that the products and
services meet requirements and are improved on a
continuous basis.
Statistical tools, including SPC and designed experiments,
are major tools for quality control and improvement.

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Quality Advocates:
Walter A. Shewart (1891-1967)
Father of Statistical Process Control
Developed the first control chart in 1924

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Quality Advocates:
Walter A. Shewart (1891-1967)
He was the first person to encourage the use of easy-to-
use statistics to remove variation. He proposed:
Common (Chance) Causes normal process fluctuations
Controlled variation that is present in a process due to the very nature
of the process.
Special (Assignable) Causes uncontrolled influence
Uncontrolled variation caused by something that is not normally part of
the process.

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Quality Advocates:
Walter A. Shewart (1891-1967)
Dr. Shewhart originated the PLAN, DO, STUDY, ACT
cycle for analysis of problems
Shewhart Cycle, frequently called Dr. Demings Plan-Do-Study-
Act Cycle

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Quality Advocates:
W. Edwards Deming (1900-1993)

The Father of Quality

Management
Strongly humanistic philosophy
problems in a production
process are due to flaws in the
design of the system
He stressed continual never-
ending improvement
Demings 14 points

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Demings 14 Points
1.Create a constancy of purpose toward improvement of product and
service, with the aim to become competitive and to stay in business and to
provide jobs.
2.Adopt a new philosophy
3.Cease dependence on inspection to achieve quality.
4.End the practice of awarding business on the basis of price tag alone.
Instead minimize total cost.
5.Constantly and forever improve the system of production and
service.
6.Institute training on the job.
7.Institute leadership.
8.Drive out fear.
9.Break down barriers between departments.
10.Eliminate slogans, exhortations, and targets for the workforce.
11.Eliminate arbitrary work standards and numerical quotas. Substitute
leadership.
12.Remove the barriers that rob people of their right to pride of
workmanship.
13.Institute a vigorous program of education and self-improvement.
14.Put everybody in the company to work to accomplish the transformation.
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Demings Deadly Diseases
Lack of constancy of purpose
Emphasis on short-term profits
Performance evaluation, merit rating, annual reviews
Mobility of management
Running a company on visible figures alone
Excessive medical costs for employee health care
Excessive costs of warrantees

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Quality Advocates:
Joseph M. Juran (1904-2008)

VITAL FEW and the TRIVIAL MANY

He worked for Shewhart at AT&T
Bell Laboratories
Dr. Juran felt that leaders must
choose those vital few projects that
will have the greatest impact on
improving ability to meet customer
needs.

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Jurans Trilogy
Quality Planning: The process of understanding what the
customer needs and designing all aspects of a system to
meet those needs reliably.
Quality Control: Used to constantly monitor performance
for compliance with the original design standards.
If performance falls short of the standard, plans are put into action
to deal quickly with the problem.
Quality Improvement: Occurs when new, previously
unobtained, levels of performance.

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Quality Advocates:
Some of the Other Gurus
Kaoru Ishikawa (1915-1989)
Developed cause and effect diagram
Armand Feigenbaum (1920-)
Author of Total Quality Control
Promoted overall organizational involvement in quality.
Philip Crosby (1926-2001)
QUALITY IS FREE". The lack of quality is costly.
Spending money to reduce waste or improve efficiency saves
money in the long run.
Dr. Genichi Taguchi (1924- 2012)
The Taguchi Loss Function

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Quality Tools
Use of statistics & other analytical tools has grown steadily
for over 80 years
Statistical quality control (origins in 1920, explosive growth during
WW II, 1950s)
Operations research (1940s)
FDA, EPA in the 1970s
TQM (Total Quality Management) movement in the 1980s
Reengineering of business processes (late 1980s)
Six-Sigma (origins at Motorola in 1987, expanded impact during
1990s to present)

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Total Quality Management (TQM)
Started in the early 1980s, Deming/Juran philosophy as
the focal point by Armand Feigenbaum
Emphasis on widespread training & quality awareness
A three-step approach to improve quality:
Quality leadership
Quality technology (Statistical and Analytical methods)
Organizational commitment.
Not enough emphasis on quality control and improvement
tools, poor follow-through, no project-by-project
implementation strategy
TQM was largely unsuccessful

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Why TQM had little success
Lack of topdown, high-level management commitment and
involvement;
Inadequate use of statistical methods and insufficient recognition of
variability reduction as a prime objective;
General as opposed to specific business-results-oriented objectives;
Too much emphasis on widespread training as opposed to focused
technical education.
Managers regarded it as just another program to improve quality
Zero Defects; Value Engineering (1950s &1960s)
Little real impact on quality and productivity improvement.
Quality is Free (1980s)
Focus was on the cost of nonquality;
No usage of statistical methods.

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Six Sigma
A disciplined and analytical approach to process and
product improvement
Specialized roles for people; Champions, Master Black
belts, Black Belts, Green Belts
Top-down driven (Champions from each business)
BBs and MBBs have responsibility (project definition,
leadership, training/mentoring, team facilitation)
Involves a five-step process (DMAIC) :
Define
Measure
Analyze
Improve
Control

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Focus of Six Sigma

Reduce variability in key product quality characteristics to

the level at which failure or defects are extremely unlikely.
Products with many components typically have many opportunities
for failure or defects to occur. Focus on key products!
Process improvement with an emphasis on achieving
significant business impact
A process is an organized sequence of activities that produces an
output that adds value to the organization
All work is performed in (interconnected) processes
Easy to see in some situations (manufacturing)
Harder in others
Any process can be improved
An organized approach to improvement is necessary
The process focus is essential to Six Sigma
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What Makes 6 Work?
Successful implementations characterized by:
Committed leadership
Use of top talent
Supporting infrastructure
Formal project selection process
Formal project review process
Dedicated resources
Financial system integration
Project-by-project improvement strategy (borrowed from
Juran)

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Design for Six Sigma (DFSS)

Only some improvement can be wrung out of an existing

system
New process design
New product design (engineering)
Overall business improvement cannot be achieved by
focusing on reducing variability in manufacturing alone
(operational six-sigma), and DFSS is required to focus on
customer requirements while simultaneously keeping
process capability in mind.
Every design decision is a business decision
The cost, manufacturability, and performance of the
product are determined during design.
Once a product is designed and released to
manufacturing, it is almost impossible for the
manufacturing organization to make it better.
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 Lean Systems
Focuses on elimination of waste
Long cycle times
Long queues in-process inventory
Inadequate throughput
Rework
Non-value-added work activities
Makes use of many of the tools of operations research and
industrial engineering
Helps identify anything not absolutely required to deliver a
quality product on time.
Helps reduce inventory, lead time, and cost
Increases productivity, quality, on time delivery, capacity,
and sales

Chapter 1
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The Process Improvement Triad:
6/DMAIC, DFSS & Lean
Ideally, six-sigma/DMAIC, DFSS, and Lean Systems are used
simultaneously and harmoniously in an organization to achieve high
levels of process performance and significant business improvement.

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Why Quality Improvement is Important:
A Simple Example
A visit to a fast-food store: Hamburger (bun, meat, special
sauce, cheese, pickle, onion, lettuce, tomato), fries, and
drink.
This product has 10 components - is 99% good okay?

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Quality costs
Quality costs are associated with producing, identifying, avoiding, or
repairing products that do not meet requirements.

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International Standards Organization (ISO)
Founded in 1946 in Geneva, Switzerland
Developed a series of standards for quality systems
The current version is ISO 9000 series
ISO 9000:2000 Quality Management SystemFundamentals and
Vocabulary
ISO 9001:2000 Quality Management SystemRequirements
ISO 9004:2000 Quality Management SystemGuidelines for
Performance Improvement
Often used to demonstrate a suppliers ability to control its
processes
ISO certification process focuses heavily on quality
assurance rather than quality planning, control and
improvement

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The Malcolm Baldrige Quality Award
Created by the US Congress in 1987
Given annually to recognize performance
excellence
Five categories: manufacturing, service, small
business, health care, and education
It is a valuable assessment tool

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