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Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 1


Copyright (c) 2012 John Wiley & Sons, Inc.

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 2


Copyright (c) 2012 John Wiley & Sons, Inc.

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Learning Objectives

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 3


Copyright (c) 2012 John Wiley & Sons, Inc.

1.1 Definitions Meaning of Quality and


Quality Improvement
1.1.1 The Eight Dimensions of Quality

1. Performance
2. Reliability
3. Durability
4. Serviceability
5. Aesthetics
6. Features
7. Perceived Quality
8. Conformance to Standards

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 4


Copyright (c) 2012 John Wiley & Sons, Inc.

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This is a traditional definition


Quality of design
Quality of conformance

This is a modern definition of quality

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 5


Copyright (c) 2012 John Wiley & Sons, Inc.

The Transmission Example

The transmission example illustrates the utility of this


definition
An equivalent definition is that quality improvement is the
elimination of waste. This is useful in service or transactional
businesses.
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1-1.2 Terminology

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 7


Copyright (c) 2012 John Wiley & Sons, Inc.

Terminology contd
Specifications
Lower specification limit
Upper specification limit
Target or nominal values
Defective or nonconforming product
Defect or nonconformity
Not all products containing a defect are
necessarily defective

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 8


Copyright (c) 2012 John Wiley & Sons, Inc.

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1.3 Statistical Methods for Quality


Control and Improvement

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 9


Copyright (c) 2012 John Wiley & Sons, Inc.

Statistical Methods
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
Designed experiments (DOX)
Discovering the key factors that influence process
performance
Process optimization
Off-line technique
Acceptance Sampling
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 10
Copyright (c) 2012 John Wiley & Sons, Inc.

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Walter A. Shewart (1891-1967)


Trained in engineering and physics
Long career at Bell Labs
Developed the first control chart
about 1924

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 11


Copyright (c) 2012 John Wiley & Sons, Inc.

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 12


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Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 13


Copyright (c) 2012 John Wiley & Sons, Inc.

1.4 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

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 14


Copyright (c) 2012 John Wiley & Sons, Inc.

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Quality Planning

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 15


Copyright (c) 2012 John Wiley & Sons, Inc.

Quality Assurance

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 16


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Quality Control and Improvement

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 17


Copyright (c) 2012 John Wiley & Sons, Inc.

Quality Topics for self reading


1. Demings 14 Points
2. Shewhart Cycle (Plan Do check Act )
3. The Juran Trilogy (Planning ,Control, Improvement)
4. Total Quality Management (TQM)
5. Quality Systems and Standards
6. Six Sigma
7. The Malcolm Baldrige National Quality Award
8. Quality Costs

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 18


Copyright (c) 2012 John Wiley & Sons, Inc.

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Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 19


Copyright (c) 2012 John Wiley & Sons, Inc.

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?

P{Single meal good} (0.99)10 0.9044


Family of four, once a month: P{All meals good} (0.9044) 4 0.6690
P{All visits during the year good} (0.6690)12 0.0080

P{single meal good} (0.999)10 0.9900, P{Monthly visit good} (0.99) 4 0.9607
P{All visits in the year good} (0.9607)12 0.6186

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 20


Copyright (c) 2012 John Wiley & Sons, Inc.

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Key Supply Chain Processes


Service management
Demand management
Order fulfillment
Quality
Manufacturing flow management
Supplier relationship management
Logistics and distribution
Returns management
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 21
Copyright (c) 2012 John Wiley & Sons, Inc.

Key Supply Chain Management (SCM) Activities:

Supplier qualification or certification


Supplier development
Supplier audits

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 22


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Quality Costs

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 23


Copyright (c) 2012 John Wiley & Sons, Inc.

Implementing Quality Improvement


A strategic management process, focused along the
eight dimension of quality

Suppliers and supply chain management must be


involved
Must focus on all three components: Quality Planning,
Quality Assurance, and Quality Control and Improvement

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 24


Copyright (c) 2012 John Wiley & Sons, Inc.

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