Download - Ch03 Quality

7/28/2019 Ch03 Quality

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Chapter 3: Quality Management 2

What business are you in?

CEO of GM announced, GM wasnt in

the business of making cars, GM was in

the business of making money. Taylor > Drucker > McNamara

According to Tom Peters from In Search of

Excellence fame


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Chapter 3

Quality Management


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4

Chapter 3:

Quality Management


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Examples


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West Babylon School District

Began applying continuousimprovement and quality to its

administrative and education processes. TQE

Applied Demings 14 Points for

management to administrative process. Numerous improvements made.


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National Semiconductorcont inued

Second stage of quality initiatives (1990s) Focused on customer-supplier relationships

Customer satisfaction Customer score cards

Process analysis

Employee empowerment

Team strategies

Problem solving techniques

Visioning


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NCR

Produces business informationprocessing systems

Recognized need to continuouslyimprove its products

Major component of its continuous

improvement program is use ofstatistical techniques


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NCR cont inued

Began using statistical process controltechniques in 1985 to monitor its

autoinsertion operation on its printedcircuit board assembly line.

Line was producing an unacceptable

number of defects. Reasons included misinserted or broken

parts, using the wrong parts and so on.


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NCR cont inued

Quality engineering departmentestablished process averages, controllimits and guidelines for action for out-of-control conditions. Production was stopped when out-of-control

condition detected until cause identified.

Random samples of 1000 insertions were collectedeach hour and the results plotted on a cchart.

Out-of-control situations were investigated toidentify the assignable cause.


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Timber Companies

Because of environmental restrictionsand limited quantities of large-diameter

trees, many timber companies are usingstatistical quality control techniques tomaximize the quality and quantity of

finished lumber produced


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Converting Logs into Finished

Lumber

Debarked log split down the middle

Split log resawed to create boards

Ends of boards trimmed Boards are stacked

Log debarked

Boards dried in kiln for 2 to 30 days

Boards are planed


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Applying SPC

to the Stacking Operation

Important because this determinesstraightness of finished lumber.

Lumber stacked in layers. Separators placed between layers to form

air channels and transfer weight of wood.

Automated equipment used to stacklumber making it necessary to monitorthe alignment of the separators.


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Stacking Operation cont inued

Estimated cost of misplaced separator is$31.50 owing to board warping.

Average sawmill handles upwards of30,000 separators each day.

Measuring board placed in front of eachcolumn of separators to monitor separatoralignment.

Stack of lumber contains approximately 15

columns of separators and 360 separators.


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Stacking Operation conc luded

Total number of misplaced separators isdivided by the total number of

separators in the stack of lumber andresult plotted on p chart.

Usingp chart, workers monitor the

stacking equipment and identifyproblems before an out-of-controlsituation arises.


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Quality ManagementPerspectives


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Quality Costs

Two primary sets of costs involved inquality

Control costs Failure costs

These costs are often as high as 15 to

35% of sales Costs often broken down into four

categories


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Category 1:

Prevention Costs

Costs associated with trying to preventdefects and errors

Training for quality Educating suppliers

Designing product for quality

Designing production system for quality Preventive maintenance


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Category 2:

Appraisal Costs

Costs of determining current quality

Measuring and testing parts

Running special test laboratories Acquiring special testing equipment

Conducting statistical process control

Inspecting incoming materials


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Category 3:

Internal Costs of Defects

Costs incurred when defects are foundbefore shipment/delivery to customer.

Labor and materials going into scrap Reworking and retesting to correct defects

Downtime of equipment and labor while

waiting for repairs Yield losses


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Category 4:

External Costs of Defects

Costs of trying to correct defects afterreceipt by customer.

Lost of customer goodwill Recalls to correct problem

Warranty, insurance, and legal suit

settlements


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W. Edwards Deming

Major source of poor quality is variat ion

Quality improvement the responsibility

of top managementAll employees should be trained in use

of problem solving tools and especially

statistical techniques


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Demings 14 Points

Create constancy of purpose

Adopt the new philosophy

Cease dependence on mass inspection End practice of awarding business on

basis of price tags

Improve constantly and forever

Institute modern methods of training


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Demings 14 Points cont inued

Institute modern method of supervision

Drive out fear

Breakdown organizational barriers Eliminate arbitrary numerical goals

Eliminate work standards and quotas

Remove barriers that reduce pride ofworkmanship


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Joseph Juran


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Joseph Juran

Quality Control Handbook(1951)

Quality Trilogy

Quality Planning Quality Control

Quality Improvement

Need to place more emphasis onplanning and improvement


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Phillip Crosby


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Philip B. Crosby

Quality is conformance to requirements,not elegance

Better to produce item right the first timethan to try to inspect quality in

Qual ity at the source- responsibility

shifted from quality control departmentto workers


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Economic Control of Quality of Manufactured Product(1931)

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http://www.expira.se/images/shewh1.gif


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History of TQM

Dr. Shewart began using statisticalcontrol at the Bell Institute in 1930s

Military standards developed in 1950sAfter World War II, Japanese Union of

Scientist and Engineers began

consulting with Deming Deming Prize introduced in Japan in

1950


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History of TQM cont inued

Juran writes Total Quality Control 1951

Juran makes first trip to Japan in 1954

Quality Japans national slogan in 1956 First quality circles created in 1957

10,000 quality circles by 1966

100,000 quality circles by 1977 First U.S. quality circle 1974


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Tools for Quality Control


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Tools for Quality Controlcont inued


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Taguchi Methods

Design fo r Manu factu rabi l i ty (DFM)

Procedure for statistical testing to

determine best combination of productand transformation system design thatwill make output relatively independent

of normal fluctuations in the productionsystem

Q lit F ti D l t


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Quality Function Deployment

(QFD)

Tools for helping translate customerdesires directly into product service

attributes.


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Benchmarking

Comparing an organizations performance

to performance of other organizations.


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Steps in Benchmarking

Preparing for the study

obtaining top management support

Collecting data published data

original research

Using what was learned to improveorganizational performance


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Benchmarking Goals

Learning from experiences of others

Determining how organization is

performing relative to the best Helping to prioritize improvement efforts

developing stretch goals

overcoming complacency withinorganization


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R ti th P f f


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Rating the Performance of

Domestic Airlines

On-time performance (25%)

Airport check-in (11%)

Courtesy of flight attendants (11%) Seating comfort (11%)


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Service Defections

Organizations should monitor customerdefections

feedback from defecting customers can beused to identify problem areas

can determine what is needed to win themback

changes in defection rate can be used asearly warning signal


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QualityAwards/Certifications


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Deming Prize Criteria

Policies andobjectives

Operation of the

organization

Education

Information

Management

Analysis

Standardization

Control

Quality assurance

Results

Future plans

2001 Malcolm Baldrige Award


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Criteria

Leadership (120 points)

organizational leadership

public responsibility and citizenship Strategic planning (85 points)

strategy development process

strategy deployment



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Criteria cont inued

Customer and market focus (85 points)

customer and market knowledge

customer relationship and satisfaction Information and analysis (90 points)

measurement and analysis of

organizational performance information management



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Criteria cont inued

Human resource focus (85 points)

work systems

employee education, training, anddevelopment

employee well-being and satisfaction



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Criteria cont inued

Process management (85)

product and service processes

business processes support processes



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Criteria cont inued

Business results (450 points)

Customer-focused results

financial and market results human resource results

organizational effectiveness results


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ISO 9000

Guidelines for designing,manufacturing, selling, and servicingproducts.

Selecting an ISO 9000 certified supplierprovides some assurance that supplier

follows accepted business practices inareas covered by the standard


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Elements of ISO 9000

Management Responsibility

Quality System

Contract Review

Design Control

Document and Data Control

Purchasing

Control of Customer SuppliedProduct

Product Identification andTraceability

Process Control

Inspection and Testing

Control of Inspection, Measuring,and Test Equipment

Inspection and Test Status

Control of Nonconforming Product

Corrective and Preventive Action Handling, Storage, Packaging,

Preservation, and Delivery

Internal Quality Audits

Training Servicing

Statistical Techniques


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ISO 14000

Series of standards covering environmentalmanagement systems, environmentalauditing, evaluation of environmental

performance, environmental labeling, andlife-cycle assessment.

Intent is to help organizations improve theirenvironmental performance throughdocumentation control, operational control,control of records, training, statisticaltechniques, and corrective and preventive

actions.


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Process Capability


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Process Capability

TQMs emphasis on making it right the firsttime has resulted in organizations

emphasizing the ability of a production

system to meet design specifications ratherthan evaluating the quality of outputs after thefact with acceptance sampling.

Process capabi l i tymeasures the extent towhich an organizations production system

can meet design specifications.

Engineering Tolerance Versus


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Engineering Tolerance Versus

Process Capability

Process Capability


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Process Capability

Depends On:

Location of the process mean.

Natural variability inherent in the

process. Stability of the process.

Products design requirements.

Natural Variation Versus


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Natural Variation Versus

Product Design Specifications


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Process Capability Index

6

LSL-USL

systemproductiontheofdeviationsstandard6

rangeionspecificatdesignsproduct'p

C

Cp< 1: process not capable of meeting design specs

Cp> 1: process capable of meeting design specs

As rule of thumb, many organizations desire a Cp index

of at least 1.5.

Six sigma quali ty(fewer than 3.4 defective parts permillion) corresponds to a Cp index of 2.

Effect of Production System


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Effect of Production System

Variability on Cp


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Statistical QualityControl


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Control Based on


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Control Based on

Attributes and Variables

Inspect ion for Variables:measuring avariable that can be scaled such asweight, length, temperature, anddiameter.

Inspect ion of A t t r ibu tes:determining

the existence of a characteristic such asacceptable-defective, timely-late, andright-wrong.


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Control Charts


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Control Charts

Developed in 1920s to distinguishbetween chance variation in a systemand variation caused by the systems

being out of control - assignablevariation.


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Control Charts cont inued

Repetitive operation will not produceexactly the same outputs.

Pattern of variability often described by

normal distribution.

Random samples that fully represent thepopulation being checked are taken.

Sample data plotted on control charts todetermine if the process is still undercontrol.

Control Chart with Limits Set


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Control Chart with Limits Set

at Three Standard Deviations


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Control Charts forVariables

T C l Ch


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Two Control Charts

Sample Means Chart

Range Chart

Sample Data of Weights


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Sample Data of Weights

of Tacos (ounces)

Sample Scenario 1 Scenario 2

1 4, 5, 6 4, 5, 6

2 6, 7, 8 3, 5, 7

3 7, 8, 9 2, 5, 8

A l i f S i 1


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Analysis of Scenario 1

Sample Mean Range

1 5 2

2 7 2

3 8 2

Sample means show problem having increasedfrom 5 ounces to 8 ounces. Sample ranges havenot changed from sample to sample.

A l i f S i 2


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Analysis of Scenario 2

Sample Mean Range

1 5 2

2 5 4

3 5 6

Sample ranges show problem having increasedfrom 2 ounces to 6 ounces. Sample means havenot changed from sample to sample.


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M A f I C


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Mean Age of Ice Cream

R i I C A


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Range in Ice Cream Age


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Control Charts for

Attributes

F ti d f ti ( ) Ch t


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Fraction-defective (p) Charts

pp

pp

p

zp

zp

n

pp

p

LCL

UCL

)1(

sampledunitsofnumbertotal

defectsofnumbertotal

Number of defects ( ) Charts


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Number-of-defects (c) Charts

cc

cc

c

zc

zc

c

c

LCL

UCL

sampledunitsofnumber

observedincidentsofnumber