Quality Management

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Meaning of Quality

Webster’s Dictionary
degree of excellence of a thing

American Society for Quality

totality of features and characteristics that satisfy
needs

Consumer’s and producer’s perspective

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Meaning of Quality: Consumer’s
Perspective
 Fitness for use
 how well product or service
does what it is supposed to
 Quality of design
 designing quality
characteristics into a product
or service
 A Mercedes and a Ford are
equally “fit for use,” but with
different design dimensions

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Meaning of Quality: Producer’s
Perspective
Quality of conformance
-Making sure product or service is produced
according to design
- if new tires do not conform to specifications, they
wobble
-if a hotel room is not clean when a guest
checks in, hotel is not functioning
according to specifications of its design

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Meaning of Quality:
A Final Perspective
Consumer’s and producer’s perspectives
depend on each other
Consumer’s perspective: PRICE
Producer’s perspective: COST
Consumer’s view must dominate

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Dimensions of Quality:
Manufactured Products
 Performance
- basic operating characteristics of a product; how well a
car is handled or its gas mileage
 Features
- “extra” items added to basic features, such as a stereo
CD or a leather interior in a car
 Reliability
- probability that a product will operate properly within
an expected time frame; that is, a TV will work without
repair for about seven years

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Dimensions of Quality:
Manufactured Products (cont.)

 Conformance
- degree to which a product meets pre–
established standards
 Durability
- how long product lasts before replacement?
 Serviceability
- ease of getting repairs, speed of repairs,
courtesy and competence of repair person

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Dimensions of Quality:
Manufactured Products (cont.)

 Aesthetics
- how a product looks, feels, sounds, smells, or
tastes?
 Safety
- assurance that customer will not suffer
injury or harm from a product; an
especially important consideration for
automobiles
 Perceptions
- subjective perceptions based on brand
name, advertising, etc..
Dimensions of Quality:
Service

 Time and timeliness

- how long must a customer wait for service, and
is it completed on time?
- is an overnight package delivered overnight?
 Completeness:
- is everything customer asked for provided?
- is a mail order from a catalogue company
complete when delivered?

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Dimensions of Quality:
Service (cont.)

Courtesy:
- how are customers treated by employees?
- are catalogue phone operators nice and are
their voices pleasant?
Consistency
- is same level of service provided to each
customer each time?
- is your newspaper delivered on time every
morning?
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Dimensions of Quality:
Service (cont.)
Accessibility and convenience
- how easy is it to obtain service?
- does service representative answer you calls quickly?
Accuracy
- is service performed right every time?
- is your bank or credit card statement correct every month?
Responsiveness
- how well does company react to unusual situations?
- how well is a telephone operator at able to respond to a
customer’s questions?

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Deming Wheel: PDCA Cycle

4. Act 1. Plan
Institutionalize Identify problem
improvement; and develop
continue cycle. plan for
improvement.

3. Study/Check 2. Do
Assess plan; is it Implement plan
working? on a test basis.

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Total Quality Management
 Commitment to quality throughout organization
 Reducing cycle time without reducing quality

• Principles of TQM
–Customer-oriented
–Leadership
–Strategic planning
–Employee responsibility
–Continuous improvement
–Cooperation
–Statistical methods
–Training and education
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Quality Improvement and Role of
Employees
1. Participative problem
solving
• employees involved in quality
management
• every employee has undergone
extensive training to provide quality
service to Disney’s guests
2. Kaizen
• involves everyone in process of
continuous improvement of personal
& professional life
3. Process/Quality
improvement teams (QITs)
• focus attention on business processes
rather than separate company
functions .
Six Sigma

 First developed at Motorola

 A process for developing and delivering near
perfect products and services
 Measure of how much a process deviates from
perfection
 3.4 defects per million opportunities (3.4 DPMO)
 Champion: an executive responsible for project
success

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 Six Sigma:
Breakthrough Strategy—DMAIC
DEFINE MEASURE ANALYZE IMPROVE CONTROL

3.4 DPMO

67,000 DPMO
cost = 25% of
sales
Six Sigma:
Black Belts and Green Belts

Black Belt
- project leader

Master Black Belt

- a teacher and mentor for
Black Belts

Green Belts
- project team members

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Six Sigma

Design for Six Sigma (DFSS)

- a systematic approach to designing products and
processes that will achieve Six Sigma

Profitability
- typical criterion for selection Six Sigma project
- one of the factors distinguishing Six Sigma from
TQM
Seven Quality Control Tools
 Pareto Analysis
 Flow Chart
 Check Sheet
 Histogram
 Scatter Diagram
 SPC Chart
 Cause-and-Effect Diagram

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Pareto Analysis:

Helps in determining the cause of poor quality

NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %

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 70
(64)
60 Pareto Chart
Percent from each cause
50

40

30

20
(13)
(10)
10 (6)
(3) (2) (2)
0

Causes of poor quality

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Flow Chart:
A diagram of the steps in a process
Helps focus on location of problem in a process

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Check Sheet:

To tally the number of defects.

COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |

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Histogram:

Frequency of data related to quality

20

15

10

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
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Scatter Diagram:

X
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Statistical Process Control Chart:

24
UCL = 23.35
21
Number of defects

18 c = 12.67

15

12

6
LCL = 1.99
3
2 4 6 8 10 12 14 16
Sample number
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Cause-and-Effect Diagram/Fish bone:

Measurement Human Machines

Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Inaccurate Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment Materials Process

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Baldrige Award
Created in 1987 to stimulate growth of
quality management in United States
Categories
- Leadership
- Information and analysis
- Strategic planning
- Human resource
- Focus
- Process management
- Business results
- Customer and market focus
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Other Awards for Quality

National individual International awards

awards - European Quality Award
- Armand V. Feigenbaum - Canadian Quality Award
Medal - Australian Business
- Deming Medal Excellence Award
- E. Jack Lancaster Medal - Deming Prize from Japans
- Edwards Medal
- Shewart Medal
- Ishikawa Medal

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 ISO 9000
ISO is a word derived from Greek word: “ISOS”
meaning equal
• A set of procedures and • ISO 9001:2000
policies for international • Quality Management
quality certification of Systems—Requirements
suppliers • standard to assess ability to
achieve customer satisfaction
• Standards
• ISO 9000:2000 • ISO 9004:2000
• Quality Management • Quality Management
Systems—Fundamentals and Systems—Guidelines for
Vocabulary Performance Improvements
• defines fundamental terms • guidance to a company for
and definitions used in ISO continual improvement of its
9000 family
quality-management system
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Implications of ISO 9000 for U.S.
Companies
 Many overseas companies will
not do business with a supplier
unless it has ISO 9000
certification
 ISO 9000 accreditation
 ISO registrars
 A total commitment to quality is
required throughout an
organization

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Acceptance Sampling

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 Acceptance Sampling

• Accepting or rejecting a production lot based on the

number of defects in a sample

• Not consistent with TQM or Zero Defects philosophy

• producer and customer agree on the number of acceptable
defects
• a means of identifying; not preventing poor quality
• percent of defective parts versus PPM

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 Single–Sample Attribute Plan

Single sampling plan

o N = lot size
o n = sample size (random)
o c = acceptance number
o d = number of defective items in sample
If d ≤ c, accept lot; else reject

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 Producer’s and Consumer’s Risk

• AQL or acceptable quality level

• proportion defect the customer will accept a given lot
• LTPD or lot tolerance percent defective
• limit on the number of defectives the customer will accept
•  or producer’s risk
• probability of rejecting a good lot
• β or consumer’s risk
• probability of accepting a bad lot

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 Producer’s and Consumer’s
Risk (cont.)
Accept Reject
Good Lot

Type I Error
No Error
Producer’ Risk

Type II Error
Bad Lot

No Error
Consumer’s Risk

Sampling Errors
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(Reference: Chapter 3 – Process Capability and Statistical
Process Control from Russell & Taylor)
 Basics of Statistical Process Control

• Statistical Process Control

(SPC)
• monitoring production
process to detect and UCL
prevent poor quality
• Sample
• subset of items produced to
use for inspection LCL

• Control Charts
• process is within statistical
control limits

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Quality Measures

•Attribute
• a product characteristic that can be evaluated
with a discrete response
• good – bad; yes - no

•Variable
• a product characteristic that is continuous and
can be measured
• weight - length

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Control Charts
• A graph that establishes •Types of charts
control limits of a • Attributes
process • p-chart
• c-chart
• Control limits • Variables
• upper and lower bands • range (R-chart)
of a control chart • mean (x bar – chart)

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Process Control Chart

Out of control
Upper
control
limit

Process
average

Lower
control
limit

1 2 3 4 5 6 7 8 9 10
Sample number
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Normal Distribution

95%
99.74%
-3 -2 -1 =0 1 2 3

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A Process Is in Control If …

1. … no sample points outside limits

2. … most points near process average
3. … about equal number of points above
and below centerline
4. … points appear randomly distributed

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Control Charts for Attributes

• p-charts
- uses portion defective in a sample
• c-charts
- uses number of defects in an item

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p-Chart

UCL = p + zp
LCL = p - zp
z = number of standard deviations from
process average
p = sample proportion defective; an estimate
of process average
p = standard deviation of sample proportion

p(1 - p)
p = n
p-Chart Example

NUMBER OF PROPORTION
SAMPLE DEFECTIVES DEFECTIVE
1 6 .06
2 0 .00
3 4 .04
: : :
: : :
20 18 .18
200

20 samples of 100 pairs of jeans

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p-Chart Example (cont.)

total defectives
p= = 200 / 20(100) = 0.10
total sample observations

p(1 - p) 0.10(1 - 0.10)

UCL = p + z = 0.10 + 3
n 100
UCL = 0.190

p(1 - p) 0.10(1 - 0.10)

LCL = p - z = 0.10 - 3
n 100
LCL = 0.010

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p-Chart Example (cont.)
0.20

0.18 UCL = 0.190

0.16
Proportion defective

0.14

0.12
p = 0.10
0.10

0.08

0.06

0.04

0.02 LCL = 0.010

2 4 6 8 10 12 14 16 18 20
Sample number
..
c-Chart

UCL = c + zc
c = c
LCL = c - zc

where
c = number of defects per sample

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c-Chart (cont.)
Number of defects in 15 sample rooms
NUMBER
OF
SAMPLE DEFECTS
190
1 12 c= = 12.67
15
2 8
UCL = c + zc
3 16
= 12.67 + 3 12.67
: : = 23.35
: : LCL = c + zc
15 15 = 12.67 - 3 12.67
190 = 1.99
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c-Chart (cont.)
24
UCL = 23.35
21
Number of defects

18
c = 12.67

15

12

3 LCL = 1.99

2 4 6 8 10 12 14 16
Sample number

..
Control Charts for Variables

• Mean chart ( x -Chart )

- uses average of a sample

• Range chart ( R-Chart )

- uses amount of dispersion in a sample

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x-bar Chart

x1 + x2 + ... xk
x= = k

= =
UCL = x + A2R LCL = x - A2R

where
=
x = average of sample means

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 x-bar Chart Example
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5
1 5.02 5.01 4.94 4.99 4.96
2 5.01 5.03 5.07 4.95 4.96
3 4.99 5.00 4.93 4.92 4.99
4 5.03 4.91 5.01 4.98 4.89
5 4.95 4.92 5.03 5.05 5.01
6 4.97 5.06 5.06 4.96 5.03
7 5.05 5.01 5.10 4.96 4.99
8 5.09 5.10 5.00 4.99 5.08
9 5.14 5.10 4.99 5.08 5.09
10 5.01 4.98 5.08 5.07 4.99

Example 15.4
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 x-bar Chart Example

OBSERVATIONS (SLIP- RING DIAMETER, CM)

SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

Example 15.4
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x- bar Chart Example (cont.)

= x 50.09
x= = = 5.01 cm
k 10

UCL = x= + A2R = 5.01 + (0.58)(0.115) = 5.08

LCL = x= - A2R = 5.01 - (0.58)(0.115) = 4.94

Retrieve Factor Value A2

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 5.10 –

5.08 –
UCL = 5.08
5.06 –

5.04 –

5.02 –
x= = 5.01
Mean

x- bar 5.00 –
Chart 4.98 –
Exampl 4.96 –
e (cont.) 4.94 – LCL = 4.94

4.92 –
| | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

..
R- Chart

UCL = D4R LCL = D3R

R
R= k

where
R = range of each sample
k = number of samples

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 R-Chart Example
OBSERVATIONS (SLIP-RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

Example 15.3
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 R-Chart Example (cont.)

R 1.15 UCL = D4R = 2.11(0.115) = 0.243

R= = = 0.115
k 10 LCL = D3R = 0(0.115) = 0

Retrieve Factor Values D3 and D4

Example 15.3
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R-Chart Example (cont.)
0.28 –
0.24 –
UCL = 0.243
0.20 –
0.16 –
Range

R = 0.115
0.12 –
0.08 –
0.04 – LCL = 0
0– | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

..
Control Chart Patterns

UCL

UCL

LCL

Sample observations
consistently below the LCL
center line
Sample observations
consistently above the
center line
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Control Chart Patterns (cont.)
UCL

UCL

LCL

Sample observations
consistently increasing LCL

Sample observations
consistently decreasing

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 Appendix:
Determining Control Limits for x-bar and R-
Charts
SAMPLE SIZE FACTOR FOR x-CHART FACTORS FOR R-CHART
n A2 D3 D4

2 1.88 0.00 3.27

Fact 3
4
1.02
0.73
0.00
0.00
2.57
2.28
ors 5
6
0.58
0.48
0.00
0.00
2.11
2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.44 0.18 1.82
10 0.11 0.22 1.78
11 0.99 0.26 1.74
12 0.77 0.28 1.72
13 0.55 0.31 1.69
14 0.44 0.33 1.67
15 0.22 0.35 1.65
16 0.11 0.36 1.64
17 0.00 0.38 1.62
18 0.99 0.39 1.61
19 0.99
Return 0.40 1.61
20 0.88 .. 0.41 1.59
Thank You!

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