Statistical Quality Control Chapter 6 OPS 370. Statistical Process/Quality Control at Honda .
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Transcript of Chapter 1 Statistical Quality Control, 7th Edition by ... · PDF file• Deming was asked...
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Chapter 1 1Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 2Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Learning Objectives
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Chapter 1 3Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
1.1 Definitions – Meaning of Quality and Quality Improvement
1.1.1 The Eight Dimensions of Quality
1. Performance2. Reliability3. Durability4. Serviceability5. Aesthetics6. Features7. Perceived Quality8. Conformance to Standards
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Chapter 1 4Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
•This is a traditional definition
•Quality of design
•Quality of conformance
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Chapter 1 5Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
This is a modern definition of quality
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Chapter 1 6Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
The Transmission Example
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Chapter 1 7Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
• 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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Chapter 1 8Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
1-1.2 Terminology
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Chapter 1 9Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Terminology cont’d• 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
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Chapter 1 10Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
1.2. History of Quality Improvement
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Chapter 1 11Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 12Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 13Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 14Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
1.3 Statistical Methods for Quality Control and Improvement
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Chapter 1 15Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
1.3 Statistical Methods for Quality Control and Improvement
• Statistical process control (SPC)– Control charts, plus other problem-solving tools– Useful in monitoring processes, reducing variability through elimination of
assignable causes, applied to the output variable(s) in a system– CL, UCL and LCL
• CL- process characteristics should fall if there are no unusual sources of variability present
• UCL and LCL are determined from some simple stat considerations– On-line technique
• Designed experiments (DOE)– Discovering the key factors that influence process performance– An approach to systematically varying controllable input factors in the process
and determining the effect of these factors on the output product parameters. – Process optimization, crucial on reducing variabilty– Off-line technique-during the development activities
• Acceptance Sampling– Connected with the inspection and testing of product– Inspection can occur at many points in a process
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Chapter 1 16Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Walter A. Shewart (1891-1967)• Trained in engineering and physics
• Long career at Bell Labs
• Developed the first control chart about 1924
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Chapter 1 17Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 18Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 19Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Statistical techniques, including SPC and design of experiments, along with other problem solving tools are technical basis for quality control and improvement.
However, these techniques must be implemented within and be part of a management system.
Effective management of quality requires the execution of three activities:1. Quality Planning2. Quality Assurance3. Quality Control and Improvement
1.4 Management Aspects of Quality Improvement
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Chapter 1 20Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 21Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 22Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 23Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
W. Edwards Deming
• Taught engineering, physics in the 1920s, finished PhD in 1928
• Met Walter Shewhart at Western Electric
• Long career in government statistics, USDA, Bureau of the Census
• During WWII, he worked with US defense contractors, deploying statistical methods
• Sent to Japan after WWII to work on the census
1.4.1 Quality Philosophy and Management Strategy
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Chapter 1 24Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Deming• Deming was asked by JUSE to lecture on
statistical quality control to management• Japanese adopted many aspects of Deming’s
management philosophy• Deming stressed “continual never-ending
improvement”• Deming lectured widely in North America
during the 1980s; he died 24 December 1993
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Chapter 1 25Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Deming’s 14 Points1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of
change, a new economic age3. Cease reliance on mass inspection to improve quality4. End the practice of awarding business on the basis of price
alone5. Improve constantly and forever the system of production and
service6. Institute training7. Improve leadership, recognize that the aim of supervision is
help people and equipment to do a better job8. Drive out fear9. Break down barriers between departments
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Chapter 1 26Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
14 Points cont’d10. Eliminate slogans and targets for the workforce such as zero
defects11. Eliminate work standards12. Remove barriers that rob workers of the right to pride in the
quality of their work13. Institute a vigorous program of education and self-
improvement14. Put everyone to work to accomplish the transformation
Note that the 14 points are about change
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Chapter 1 27Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Deming’s Deadly DiseasesDeming frequently wrote and spoke abput the seven deadly disease of management. Each disease was a barrier to the effective implementation of his philosophy.
1. Lack of constancy of purpose2. Emphasis on short-term profits3. Performance evaluation, merit rating, annual reviews4. Mobility of management5. Running a company on visible figures alone6. Excessive medical costs for employee health care7. Excessive costs of warrantees
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Chapter 1 28Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 29Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Deming’s Obstacles to Success
In addition to Deming’s 14 points and seven deadly diseases of management, he wrote and gave lectures about and extensive collection of obstacles to success.
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Chapter 1 30Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 31Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Joseph M. Juran• Born in Romania (1904-
2008), immigrated to the US• Worked at Western Electric,
influenced by Walter Shewhart
• Emphasizes a more strategic and planning oriented approach to quality than does Deming
• Juran Institute is still an active organization promoting the Juran philosophy and quality improvement practices
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Chapter 1 32Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
The Juran Trilogy
1. Planning2. Control3. Improvement
• These three processes are interrelated• Control versus breakthrough• Project-by-project improvement
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Chapter 1 33Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Some of the Other “Gurus”
• Kaoru Ishikawa– Son of the founder of JUSE, promoted widespread use of
basic tools
• Armand Feigenbaum– Author of Total Quality Control, promoted overall
organizational involvement in quality,– Three-step approach emphasized quality leadership, quality
technology, and organizational commitment
• Lesser gods, false prophets
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Chapter 1 34Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Total Quality Management (TQM)
• Started in the early 1980s, Deming/Juran philosophy as the focal point
• Emphasis on widespread training, quality awareness
• Training often turned over to HR function• Not enough emphasis on quality control and
improvement tools, poor follow-through, no project-by-project implementation strategy
• TQM was largely unsuccessful
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Chapter 1 35Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Total Quality Management (TQM)
• TQM is “just another program” • Value engineering• Zero defects• “Quality is free”
Recipes for Ineffectiveness and maybe Disaster
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Chapter 1 36Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Quality Systems and Standards
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Chapter 1 37Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
• The ISO certification process focuses heavily on quality assurance, without sufficient weight given to quality planning and quality control and improvement
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Chapter 1 38Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 39Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
• The MBNQA process is a valuable assessment tool
• See Table 1-4 for Performance Excellence Criteria and point values
The Malcolm Baldrige National Quality Award
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Chapter 1 40Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 41Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 42Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Six Sigma
• Use of statistics & other analytical tools has grown steadily for over 80 years – Statistical quality control (origins in 1920, explosive
growth during WW II, 1950s)– Operations research (1940s)– FDA, EPA in the 1970’s– TQM (Total Quality Management) movement in the 1980’s– Reengineering of business processes (late 1980’s)– Six-Sigma (origins at Motorola in 1987, expanded impact
during 1990s to present)
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Chapter 1 43Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant
Business Impact• A process is an organized sequence of activities that
produces an output that adds value to the organization• All work is performed in (interconnected) processes
– Easy to see in some situations (manufacturing)– Harder in others
• Any process can be improved• An organized approach to improvement is necessary• The process focus is essential to Six Sigma
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Chapter 1 44Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 45Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 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?
10
4
12
{Single meal good} (0.99) 0.9044Family of four, once a month: {All meals good} (0.9044) 0.6690
{All visits during the year good} (0.6690) 0.0080
PP
P
= =
= =
= =
10 4
12
{single meal good} (0.999) 0.9900, {Monthly visit good} (0.99) 0.9607{All visits in the year good} (0.9607) 0.6186P PP
= = = =
= =
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Chapter 1 46Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Six Sigma Focus• Initially in manufacturing • Commercial applications
– Banking– Finance– Public sector – Services
• DFSS – Design for Six Sigma– Only so much improvement can be wrung out of an
existing system– New process design– New product design (engineering)
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Chapter 1 47Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Some Commercial Applications• Reducing average and variation of days outstanding on
accounts receivable• Managing costs of consultants (public accountants, lawyers)• Skip tracing• Credit scoring• Closing the books (faster, less variation)• Audit accuracy, account reconciliation • Forecasting• Inventory management• Tax filing• Payroll accuracy
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Chapter 1 48Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Six Sigma• A disciplined and analytical approach to process and product
improvement• Specialized roles for people; Champions, Master Black belts,
Black Belts, Green Belts• Top-down driven (Champions from each business)• BBs and MBBs have responsibility (project definition,
leadership, training/mentoring, team facilitation)• Involves a five-step process (DMAIC) :
– Define – Measure– Analyze– Improve– Control
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Chapter 1 49Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
What Makes it Work?
• Successful implementations characterized by:– Committed leadership– Use of top talent– Supporting infrastructure
• Formal project selection process• Formal project review process• Dedicated resources• Financial system integration
• Project-by-project improvement strategy (borrowed from Juran)
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Chapter 1 50Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 51Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Design for Six Sigma (DFSS)Taking variability reduction upstream from manufacturing (or operational six sigma) into product design and development
Every design decision is a business decision
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Chapter 1 52Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
DFSS Matches Customer Needswith Capability
• Mean and variability affects product performance and cost– Designers can predict costs and yields in the design phase
• Consider mean and variability in the design phase– Establish top level mean, variability and failure rate targets for
a design– Rationally allocate mean, variability, and failure rate targets to
subsystem and component levels– Match requirements against process capability and identify gaps – Close gaps to optimize a producible design– Identify variability drivers and optimize designs or make designs robust
to variability• Process capability impact design decisions
DFSS enhances product design methods.
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Chapter 1 53Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 54Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc. 11
DMAIC Solves Problems by UsingSix Sigma Tools
• DMAIC is a problem solving methodology• Closely related to the Shewhart Cycle• Use this method to solve problems:
– Define problems in processes– Measure performance– Analyze causes of problems– Improve processes - remove variations and non-
value-added activities– Control processes so problems do not recur
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Chapter 1 55Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Lean Systems
• Focuses on elimination of waste– Long cycle times– Long queues – in-process inventory– Inadequate throughput– Rework– Non-value-added work activities
• Makes use of many of the tools of operations research and industrial engineering
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Chapter 1 56Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 57Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Little’s Law
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Chapter 1 58Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Lean Focuses on Waste Elimination• Definition• A set of methods and tools used to eliminate waste in
a process• Lean helps identify anything not absolutely required
to deliver a quality product on time.
• Benefits of using Lean• Lean methods help reduce inventory, lead time, and
cost• Lean methods increase productivity, quality, on time
delivery, capacity, and sales
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Chapter 1 59Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 60Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
The supply chain often represents a significant component of the total value of the organization’s products or services
Failures in the supply chain have potentially huge impact on the organization
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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 managementChapter 1 61Statistical Quality Control, 7th Edition by Douglas C. Montgomery.
Copyright (c) 2013 John Wiley & Sons, Inc.
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Key Supply Chain Management (SCM) Activities:
• Supplier qualification or certification• Supplier development• Supplier audits
Chapter 1 62Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Returns Management
Chapter 1 63Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Costs attributable to poor supplier quality
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Chapter 1 64Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Quality Costs
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The Hidden Factory (or Office)
Chapter 1 65Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 66Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Legal Aspects of Quality
• Product liability exposure
• Concept of strict liability1. Responsibility of both manufacturer and
seller/distributor2. Advertising must be supported by valid data
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Chapter 1 67Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
•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
Implementing Quality Improvement
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Chapter 1 68Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
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Chapter 1 69Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2013 John Wiley & Sons, Inc.
Learning Objectives