QUALITY MANAGEMENT

PROCESS CAPABILITY
 Quality Specifications

• Design quality: Inherent value of the

product in the marketplace

– Performance, Features,
Reliability/Durability, Serviceability,
Aesthetics, and Perceived Quality.

• Conformance quality: Degree to which

the product or service design
specifications are met
 SPECIFICATIONS
• Performance Specifications

• Functional Specifications : ( End use of the

item)

• Design Specifications : Physical

Characteristics
• Tolerance limits
 Target and Tolerance Design
• Manufacturing specifications consist of nominal
dimensions and tolerances.
– Nominal refers to the ideal dimension or the
target value that manufacturing seeks to
meet.
– Tolerance is the permissible variation,
recognizing the difficulty of meeting a target
consistently.
DESIGN SPECIFICATIONS
 Tolerance Design
• Tolerance design involves determining the
permissible variation in a dimension.
– Narrow tolerances tend to raise
manufacturing costs but they also increase
the interchangeability of parts within the plant
and in the field, product performance,
durability, and appearance.
– Wide tolerances have a negative impact on
product characteristics
 Traditional Economic View of
Conformance to Specifications

7
 Taguchi Concepts
 Taguchi Concepts
 Quality robustness
 Quality loss function
 Target-oriented quality
 Quality Robustness
 Ability to produce products uniformly
in adverse manufacturing and
environmental conditions
 Remove the effects of adverse
conditions
 Small variations in materials and
process do not destroy product quality
 Quality Loss Function
 Shows that costs increase as the
product moves away from what the
customer wants
 Costs include customer
dissatisfaction, warranty
and service,
 Traditional conformance
specifications are too simplistic
 Taguchi’s View of Variation
• The quality loss function is based on the
concept that a service or product that
barely conforms to the specifications is
more like a defective service or product
than a perfect one.
 Taguchi’s View of Variation

High High

Incremental Incremental
Cost of Cost of
Variability Variability

Zero Zero

Lower Target Upper Lower Target Upper

Spec Spec Spec Spec Spec Spec

Traditional View Taguchi’s View

 Taguchi Loss Function
High loss
Unacceptable
Loss (to
producing Poor
organization,
customer, Fair
and society) Good
Best
Low loss Target-oriented quality
yields more product in
the “best” category
Target-oriented quality
brings product toward
Frequency the target value
Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower Target Upper
Specification
Loss Function
 Taguchi Loss Function

𝑳𝑶𝑺𝑺 𝑿 = 𝑲 ∗ (𝑿 − 𝑻)𝟐
 ASSIGNMENT
• A company selling fruit juice has specified
a pack size as 500 ml. As per packaging
act, the pack must contain within ± 5% of
quantity specified. If the quantity is found
to be less by the costumer, the company is
required to replace it with a new pack at a
cost of `100/-. Calculate the loss in each
case if the deviation is 2%,3%& 4%. Will
you like to specify a different tolerance
limit to reduce the hidden costs?
 MEAN COST
500 100
K 0.16
% CHANGE
FROM
MEAN Change in ml LOSS
0.05 0.25 0.01
0.1 0.5 0.04
0.15 0.75 0.09
0.2 1 0.16
0.25 1.25 0.25
0.5 2.5 1
0.75 3.75 2.25
1 5 4
1.25 6.25 6.25
1.5 7.5 9
1.75 8.75 12.25
2 10 16
2.25 11.25 20.25
2.5 12.5 25
2.75 13.75 30.25
3 15 36
3.25 16.25 42.25
3.5 17.5 49
3.75 18.75 56.25
4 20 64
4.25 21.25 72.25
4.5 22.5 81
4.75 23.75 90.25
5 25 100
 Taguchi Concepts
 Engineering and experimental design
methods to improve product and process
design
 Identify key component and process
variables affecting product variation
 PROCESS CAPABILITY
• Process capability is the ability of a
process to produce output that conforms
to specifications.
 PRODUCT & PROCESS
Lower Upper
specification specification
limit limit

Process mean, m
 Process Capability
Nominal
value

Process distribution
Lower Upper
specification specification

Minutes
20 25 30

(a) Process is capable

 Process Capability
Nominal value

Six sigma

Four sigma

Two sigma

Lower Upper
specification specification

Mean
PROCESS CAPABILITY

LSL CL USL
 Process Capability
Measurement
• A process capability study : study specific information
about the performance of a process .
– Where is the process centered?
– How much variability exists in the process?
– Is the performance relative to specifications acceptable?
– What proportion of output will be expected to meet
specifications?
– What factors contribute to variability?
 Process Capability

• Process limits

• Specification limits
 PROCESS CAPABILITY

A simple ratio:
Specification Width
_________________________________________________________

Actual “Process Width”

Generally, the bigger the better.
 Process Capability
Nominal
value

Process distribution

Lower Upper
specification specification

Minutes
20 25 30

(b) Process is not capable

Process Capability Indexes
 Process Capability Index

 X  LTL UTL  X 
C pk  Min  ; 
 3 3 
 The Cereal Box Problem
• We are the maker of this cereal. Consumer reports
has just published an article that shows that we
frequently have less than 470gms of cereal in a box.
The print on the pack shows contents to be of
500gms.
• Let’s assume that as per the packaging act we
must be within ± 5 percent of the weight printed on
the box.
• We go out and buy 1,000 boxes of cereal and find
that they weight an average of 480.45gms with a
standard deviation of 10.55gms.
 Process Capability
• Specification or
Tolerance Limits
Upper Spec =525 gm
 X  LTL UTL  X 
Lower Spec =475 gm C pk  Min  ; 
• Observed Weight  3 3 
– Mean = 480.45gm
– Std Dev = 10.55gm  480.55  475 525  480.55 
C pk  Min ; 
 3 * (10.55) 3 * (10.55) 

C pk  Min.1754; 1.4044

C pk  .1754
Assessing Process Capability

 The intensive care unit lab process has an average

turnaround time of 26.2 minutes and a standard deviation of
1.35 minutes
 The nominal value for this service is 25 minutes with an
upper specification limit of 30 minutes and a lower
specification limit of 20 minutes
 The administrator of the lab wants to have four-sigma
performance for her lab
 Is the lab process capable of this level of performance?
Assessing Process Capability
SOLUTION
The administrator began by taking a quick check to see if the
process is capable by applying the process capability index:
26.2 – 20.0
Lower specification calculation = = 1.53
3(1.35)
30.0 – 26.2
Upper specification calculation = = 0.94
3(1.35)

Cpk = Minimum of [1.53, 0.94] = 0.94

Since the target value for four-sigma performance is 1.33, the

process capability index told her that the process was not
capable. However, she did not know whether the problem was
the variability of the process, the centering of the process, or
both. The options available to improve the process depended
on what is wrong.
Assessing Process Capability
She next checked the process variability with the process capability
ratio:

30.0 – 20.0
Cp = = 1.23
6(1.35)

The process variability did not meet the four-sigma target of

1.33. Consequently, she initiated a study to see where
variability was introduced into the process.
Two activities, report preparation and specimen slide
preparation, were identified as having inconsistent procedures.
These procedures were modified to provide consistent
performance. New data were collected and the average
turnaround was now 26.1 minutes with a standard deviation of
1.20 minutes.
Assessing Process Capability
She now had the process variability at the four-sigma level of
performance, as indicated by the process capability ratio:

30.0 – 20.0
Cp = = 1.39
6(1.20)

However, the process capability index indicated additional

problems to resolve:

(26.1 – 20.0) (30.0 – 26.1)

Cpk = Minimum of , = 1.08
3(1.20) 3(1.20)
 Expected Loss
• The expected loss over the distribution of output

Expected loss = k(2 + D2)

where 2 is the process variation and D is the

deviation from the target.
D = Difference between process mean &
specification mean
 ASSIGNMENT
• A component has a specification of
0.65±0.0275. The Taguchi’s loss function
is 99 ∗ 𝑥 − 𝑇 2 . The process is normally
distributed with an average value of
0.6620 and standard deviation of 0.0087.
What is the expected loss?
 VARIATIONS IN THE
PROCESS
• Random reasons

• Assignable causes
 Process Capability
Measurement
• Process capability is the ability of a process to produce
output that conforms to specifications.
• A process capability study is a carefully planned study
designed to yield specific information about the
performance of a process under specified operating
conditions. Typical questions include:
– Where is the process centered?
– How much variability exists in the process?
– Is the performance relative to specifications acceptable?
– What proportion of output will be expected to meet
specifications?
– What factors contribute to variability?
Types of Process Capability
Studies
• Process characterization study - how a
process performs under actual operating
conditions : long period of time
• Peak performance study - how a process
performs under ideal conditions
• Component variability study - relative
contribution of different sources of variation
(e.g., process factors, measurement
system)
 Process Capability
Measurement
• Samples from market
• Decide to study one m/c or process
• Decide the measurement devices
• Fairly large sample for study
Process Variation Histograms
 Measurement System
Evaluation
• Observed variation in process output
stems from the natural variation that
occurs in the output itself as well as the
measurement system.
• The total observed variation in production
output is the sum of the true process
variation plus variation due to
measurement:
 Errors in Manual Inspection
• Complexity: The number of defects caught by
an inspector decreases with more parts and
less orderly arrangement.
• Defect rate: When the product defect rate is
low, inspectors tend to miss more defects
than when the defect rate is higher.
• Inspection rate: The inspector’s performance
degrades rapidly as the inspection rate
increases.
 Metrology
• …the science of measurement is defined broadly
as the collection of people, equipment, facilities,
methods, and procedures used to assure the
correctness or adequacy of measurements.
• National and international trade requires weights
and measures organizations that assure uniform
and accurate measures used in trade, national or
regional measurement standards laboratories,
standards development organizations, and
accredited and internationally recognized
calibration and testing laboratories.
 Accuracy and Precision
• Accuracy is defined as the difference between the
true value and the observed average of a
measurement.
– Accuracy is measured as the amount of error in a
measurement in proportion to the total size of the
measurement.
– Caused due to lack of calibration
• Precision is defined as the closeness of repeated
measurements to each other.
– Precision relates to the variance of repeated
measurements.
– Robustness of the instrument/ variance due to
random reasons
 EXAMPLE

True value of a product is 0.250. The measurement by 2 instruments are

given below
INSTRUMENT
A B

1 0.248 0.258
2 0.246 0.259
3 0.251 0.258
AVG 0.2483333 0.2583333
ERROR % 0.6666667 3.3333333
VARIANCE 0.00000633 0.00000033
 Calibration
• …the process of verifying the capability and performance of an item
of measuring and test equipment compared to traceable
measurement standards.
• The National bodies maintain national measurement standards.
• In India Depart of Weights & Measures
 Repeatability and
Reproducibility Analysis
• Repeatability (equipment variation, EV) – variation
in multiple measurements by an individual using
the same instrument.
• Reproducibility (appraiser variation, AV) - variation
in the same measuring instrument used by different
individuals.
• Parts variation PV
• Total variation TV
• A repeatability and reproducibility (R&R) study is a
study of variation in a measurement system using
statistical analysis.
 R&R Studies
1. Select m operators and n parts
2. Calibrate the measuring instrument
3. Randomly measure each part by each
operator for r trials
4. Compute key statistics to quantify repeatability
and reproducibility
5. 𝑴𝒊𝒋𝒌 is the measurement done by operator i on
part j on trial k
 AVERAGE OF OPERATOR
• Average measurement of each operator
𝒙𝒊 = ( 𝒋 𝒌 𝑴𝒊𝒋𝒌)/nr

• Largest - smallest
𝐱 ̅𝑫 = max(i){ 𝒙 ̅𝒊 } − 𝐦𝐢𝐧(𝐢)⁡
{𝒙𝒊 }

• Range for each part & each operator

𝑹𝒊𝒋 = 𝒎𝒂𝒙(𝒌) 𝑴𝒊𝒋𝒌 − 𝒎𝒊𝒏(𝒌){𝑴𝒊𝒋𝒌}
 RANGE
• Average range for each operator
𝑹𝒊 = ( 𝑹𝒊𝒋 )/𝒏
𝒋

• Overall average range

𝑹=( 𝑹𝒊 )/𝒎
 EV,RV & R&R

𝑬𝑽 = 𝑲𝟏 ∗ 𝑹

𝑨𝑽 = (𝑲𝟐 ∗ 𝒙𝑫)^𝟐 − (𝑬𝑽𝟐/𝒏𝒓)

𝑹&𝑹 = 𝑬𝑽𝟐 + 𝑨𝑽𝟐

 PART VARIATION & TOTAL
VARIATION
• Part variation measures the variations among different
parts. 𝑅𝑝 is the range of part averages

𝑷𝑽 = 𝑹𝒑 ∗𝑲𝟑

• Total variation

𝑻𝑽 = 𝑬𝑽𝟐 + 𝑨𝑽𝟐 + 𝑷𝑽𝟐

 Spreadsheet Template

56
 R&R Evaluation
• A measurement system is adequate if R&R is low relative to the
total variation, or equivalently, the part variation is much greater
than the measurement system variation.

• Under 10% error - OK

• 10-30% error - may be OK
• over 30% error - unacceptable