Quality and Capability

DSC 335
Zhibin Yang, Assistant Professor
Decision Sciences

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 DSC 335 Roadmap

Operations Strategy Decision Making Tools

Process strategy/analysis
Capacity analysis/planning Littlefield Game 1
Process Management
Case: Kristen‟s Cookie
Lean systems
Quality management

Inventory management Littlefield Game 2

Supply Chain Mgmt. Case: Blanchard

Supply chain dynamics Case: A Pain in Chain

Beer game
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Quality and Capability – Outline

Quality management

6-Sigma

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What is Quality (quoted)

Quality is hard to define and measure

“…If no one knows what it is, then for all practical

purposes it doesn‟t exist at all. But for all practical
purposes it really does exist. What else are the grades
based on? Why else would people pay for some things
and throw others in the trash pile? Obviously some
things are better than others – but what‟s the
„betterness‟…?”
--- From Zen and the Art of Motorcycle Maintenance, by Robert Pirsig

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What is Quality?

Design quality: Inherent value of the product in the

marketplace
 Dimensions include: …

 Good quality does not mean luxury.

Conformance quality: Degree to which the product or

service design specifications are met

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Total Quality Management (TQM)

TQM – managing the entire organization so that it

excels on all dimensions of products and services that
are important as perceived by the customer
Three principles of TQM


Two fundamental operational goals of TQM



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Quality and Capability – Outline

Quality management

6-Sigma
 Philosophy
 Methodology (DMAIC)
 Statistics & Process Capability Index

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What is Six Sigma (6)?

A philosophy and set of methods to eliminate defects in

products and processes
Developed by Motorola for manufacturing
 Extended by General Electric to non-manufacturing sectors
Practiced by many industrial leaders

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What is Six Sigma (6)?

 Seeks to reduce variation in the

processes that lead to product defects
  - standard deviation of
probability distribution
 For normal distribution:
 (Mean  3) contains about _____
of the data values
 (Mean  6) contains about
______ of the data values
 A sample falling out of interval is
considered a _____
 With 6 process, __ defects per
billion products (literally zero defects)
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Magnitude of Difference for Sigma Levels

Sigma Spelling Time

1-Sigma 170 misspelled words per page 31.75 years per century

2-Sigma 25 misspelled words per page 0.45 years per century

3-Sigma 1.5 misspelled words per page 3.5 months per century

4-Sigma 1 misspelled word per 30 pages 2.5 days per century

1 misspelled word in a set of
5-Sigma 30 minutes per century
encyclopedias
6-Sigma 1 misspelled words in a library 6 seconds per century

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Six Sigma Roles in Organizational
Implementation
 Executive Leaders
 Setting up a vision
 Empowering other roles with freedom and resources
 Champions (Quality Leaders, in GE)
 Integrating implementation across the organization
 Mentoring (Master) Black Belts
 Master Black Belts (MBB)
 Acting as in-house coaches
 Integrating at the function and department level
 Black Belts
 Focusing on project execution under MBBs
 Green Belts (Trained employees)
 Implementing six-sigma on their jobs
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Quality and Capability – Outline

Quality management

6-Sigma
 Philosophy
 Methodology (DMAIC)
 Statistics & Process Capability Index

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Six Sigma Methodology: DMAIC Cycle

 Developed by General Electric as a means of focusing

effort on quality using a methodological approach
1. Define (D) Customers and their priorities

2. Measure (M) Process and its performance

3. Analyze (A) Causes of defects

4. Improve (I) Remove causes of defects

5. Control (C) Maintain quality

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Step 1. Define

Identify customers and their priorities

Identify key characteristics of the process‟s output that

are critical to quality (CTQ) and customer satisfaction

Identify gaps between these characteristics and process

capabilities

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Step 2. Measure

Identify the key aspects of the current process that

influence Critical To Quality (CTQs) characteristics

Collect relevant data of the current process

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Measure: Run Chart – Precision Drift over
Time in a Drilling Process

Tracks process behavior

“Eyeball” trends
Diameter of a drill process

0.58
0.56
0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)

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Measure: Pareto Charts

Focus on most important problems

using the 80/20 rule
80%
Frequency

Assy. Training Others

Design Purch.
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Step 3. Analyze – Diagnose Root Cause

Fishbone Diagram

Possible categories of causes

Symptoms
Equipment People /effects

Environment Effect

Methods Materials

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Analysis: 5 Whys

A question-asking method used to explore the

cause/effect relationships
Example: My car will not start. (the problem)
1. Why? - The battery is dead. (first why)
2. Why? - The alternator is not functioning. (second why)
3. Why? - The alternator belt has broken. (third why)
4. Why? - The alternator belt was well beyond its useful service
life and has never been replaced. (fourth why)
5. Why? - I have not been maintaining my car according to the
recommended service schedule. (fifth why, a root cause)

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Step 5. Control

Use tools such as statistical process control chart to

maintain the level of quality

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Quality and Capability – Outline

Quality management

6-Sigma
 Philosophy
 Methodology (DMAIC)
 Statistics & Process Capability Index

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Six Sigma Statistics

Control charts and control limits

Tolerance Limits and process capabilities

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Control Charts and Control Limits

Set Upper Control Limits (UCL) and Lower Control

Limits (LCL)

Example: Not too much or too little raisin in cereal

 On average a box of cereal contains 80 grams of raisin.
 The quality is considered good if the amount of raisin is more
than 75 grams and less than 85 grams.
 Your control limits are LCL= ___ and UCL= ___ grams.

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Control Charts and Control Limits

x (central line): ______________________________

UCL and LCL define __________________________

1020 UCL
1010
1000 x
990 LCL
980
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

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Use Control Charts & Control Limits

Plot your samples / observations of a process

When observation falls outside control limits
 You must take action – ____________________________
A process is called “________”, if samples are reliably
within the control limits

1020 UCL
1010
1000 x
990 LCL
980
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Typical Control Limits

UCL =x + 3; UCL =x – 3

 x – Average of past sample means
  – standard deviation of a process
distribution 99.73%
 3 is taken to be “natural variation”

LCL =x – 3 x UCL =x + 3

Covering 99.73% occurrences
 Only 3 in 1,000 are out of control
limits
 Out of control observations do
occur, but infrequently
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Statistical Process Control (SPC) Charts

UCL

Normal Behavior

LCL
1 2 3 4 5 6 Time

UCL

Possible problem,
investigate

LCL
1 2 3 4 5 6 Time

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Statistical Process Control (SPC) Charts

UCL
Normal Behavior

LCL
1 2 3 4 5 6 Time

UCL

Possible problem,
investigate

LCL
1 2 3 4 5 6 Time

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Tolerance Limits (a.k.a. specification in text)

Example: Not too much or too little raisin (con’t)

A customer might complain if there is more than 90
grams or less than 70 grams of raisin
 So, you obtain the tolerance limits:
 LTL = ___ g
 UTL = ___ g

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Tolerance Limits vs Control Limits

Tolerance limits set performance target of a process

Control limits characterize the current process

Tolerance Limits Control Limits

Who determines?

What type of quality

does it pertain to?

What happens beyond

limits?

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 Tolerance Limits vs Control Limits

Ideally, 3σ control limits fall within tolerance limits.

 This makes the process easy to monitor and avoid defects.

UTL
1020 UCL=X + 3σ
1010
1000
990 LCL=X – 3σ
980 LTL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

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 (cont‟d)

But, we‟re not always so lucky…

 Depends on the spread of the distribution
UTL
1020 UCL=X + 3σ
1010
1000
990 LCL=X – 3σ
980 LTL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

We need to measure how well the process is satisfying

customers (or the designer)
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Process Capability Index, Cpk

Process Capability Index measures how well the

process is centered as well as whether the variability is
acceptable

Based on closest tolerance limit.

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Cases of Process Capability Index

 Cpk >1, the process is _______ LTL UTL

___________

LCL x UCL

 Cpk = 1
LTL UTL

LCL x UCL

 Cpk < 1, the process is _______ LTL UTL

____________

LCL x UCL
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Example

Not too many or too few raisins in cereal (con‟t)

 LTL = 70g, UTL = 90g, x = 80,  = 3

Process capability index

 Cpk =

What isx shift to 84?

 Cpk =  x  LTL UTL  x 
C pk  min  , 
 3σ 3σ 

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Improving Process Capability by Variance
Reduction
σ = 10 σ=5
LTL UTL LTL UTL

99.73 % 99.73 %

LCL UCL LCL UCL

Even if the process distribution is not centered

LTL UTL LTL UTL

σ = 10 σ=5

99.73 % 99.73 %

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Exercise: Process Capability

 A metal fabricator produces connecting rods with an outer

diameter that has a 1plus/minus 0.01 inch specification. A
machine operator takes several sample measurements over time
and determines the sample mean outer diameter to be 1.002 inches
with a standard deviation of 0.003 inch.
1. Calculate the process capability index for this example

2. What does the index tell you about the process

 This process is not capable at present due to the process mean off the
center. The process center should be adjusted.

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(cont‟d)

Suppose the production manager can improve the

process by reducing the standard deviation, , of the
process
At what value of , the process would be capable of
process?

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Effect of # of Parts / steps in a Process

Quality drops as # processing steps increases

6 process remains high quality than a 6 process
100.0%

10.0% 3 - sigma
process meets specs
Probability that

4 - sigma
1.0% 5 - sigma
6 - sigma
0.1%

0.05%

0.0%
1 10 100 1000 10K 100K 1M

# parts / steps
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6 Example: Mumbai‟s “Dabbawallahs”

 Mumbai‟s network for delivering lunch boxes from family

kitchens to workplaces
 Dabba – lunch box
 Wallah – delivery guy
 Youtube Video: Follow that bicycle

 Employs 5000 people.

 Using bicycles, carts, and city rail network.
 Delivery Cost: $4 / month.
 400,000 lunches delivered / day,
 Quality: 1 error in 8 million deliveries
Process is > 5-sigma.
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