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SECTION 22
OPERATIONS
Frank M. Gryna
INTRODUCTION
22.2
QUALITY IN THE OPERATIONS FUNCTIONOF THE FUTURE
22.2
PLANNING FOR QUALITY DURINGOPERATIONS
22.3
Responsibility for Planning
22.4
INITIAL PLANNING FOR QUALITY
22.4
Emerging Technologies
22.4
Review of Product Designs Prior toOperations
22.5
Relative Importance of ProductCharacteristics
22.6
Identification of Critical Items
22.6
Classification of Characteristics
22.6
Process Diagram
22.7
Correlation of Process Variables withProduct Results
22.10
PROCESS CAPABILITY: THE CONCEPT 
22.1
1
Basic Definitions
22.10
Uses of Process Capability Information
22.12
Process Patterns
22.12
Process Mixture
22.14
Standardized Formula
22.15
Relation to Product Specification
22.16
Capability Index
22.16
Capability and Performance Studies
22.17
PROCESS CAPABILITY MEASUREMENT
22.18
The Control Chart
22.18
Determination of ProcessCapability froma Control Chart Analysis
22.18
The Assumption of Statistical Control andIts Effect on Process Capability
22.19
PROCESS PERFORMANCE MEASUREMENT
22.19
Measuring Present Process Performance
22.19
Process Performance Indices
22.20
Interpretation of
C 
 pk 
22.20
Frequency Distribution and Histogram
22.20
Plots of Individual Measurements
22.21
Limitations of Histograms and ProbabilityPaper Analyses
22.21
Six-Sigma Concept of Process Capability
22.21
Attributes Data Analysis
22.21
OTHER ASPECTS OF PROCESS CAPABILITY
22.22
Process Capability in Service Industries
22.22
Process Capability and QualityImprovement
22.23
Planning for the Process Capability Study
22.23
ERROR-PROOFING THE PROCESS
22.24
Methods of Error-Proofing
22.24
Error-Proofing Principles
22.26
OTHER ELEMENTS OF EQUIPMENT ANDWORK METHODS PLANNING
22.26
Providing for Adjustments to Processes
22.26
Preventive Maintenance
22.27
OVERALL REVIEW OF MANUFACTURINGPLANNING
22.28
Preproduction Trials
22.28
Preproduction Runs
22.29
Failure Mode, Effect, and CriticalityAnalysis for Processes
22.29
Evaluation of Processes
22.31
Evaluation and Reduction of ProcessCycle Time
22.31
PLANNING PROCESS CONTROLS
22.32
Control Criteria
22.32
Relation to Product Controls
22.33
Control Systems and the Concept ofDominance
22.33
Evaluation of Proposed Control Tools
22.34
PLANNING FOR EVALUATION OFPRODUCT
22.34
AUTOMATED MANUFACTURING
22.35
Benefits to Product Quality
22.35
Key Functions of Computer-IntegratedManufacturing
22.35
Group Technology
22.36
Flexible Manufacturing System
22.36
Quality Planning for AutomatedProcesses
22.36
PLANNING FOR SELECTION, TRAINING,AND RETENTION OF PERSONNEL
22.37
Selectionof Personnel
22.37
Training
22.38
Retention
22.39
ORGANIZATIONAL FORMS ON THEOPERATIONS FLOOR
22.39
CONCEPT OF CONTROLLABILITY; SELF-CONTROL
22.41
22.1
 
INTRODUCTION 
The word
operations
as used in this handbook encompasses two areas:manufacture in the manu-facturing sector and backroom activities in the service sector. In manufacturing industries,opera-tions are those activities,typically carried out in a factory,which transform material into the finalproduct. In service industries,operations are those activities which process customer transactionsbut which do not involve direct contact with external customers (e.g.,backroom activities such ascustomer order preparation and payment processing). These two industry sectors have their ownspecial needs. The discussion in this section covers both the planning and the execution of opera-tions activities.Activities that involve direct contact with external customers are clearly of high priority. In thishandbook,such activities are discussed in Section 25,Customer Service,and in the group of indus-try sections,Sections 27 to 34.I will use
 product 
to denote goods or services.
QUALITY IN THE OPERATIONS FUNCTION OF THE FUTURE 
For many industries—manufacturing and service—emerging factors demand different approaches toquality in the twenty-first century. This galaxy of factors includes
1.
 Demand for lower levels of defects and errors:
As products and processes have become morecomplex,new “world-class quality”levels are increasingly common. For many products,levelsof 1 to 3 percent are being replaced by 1 to 10 parts per million. Also,many processes must meet“good manufacturing practices”and other forms of regulation.
2.
 Emphasis on reduced inventory levels:
Under the “just-in-time”(JIT) production system,theconcept of large lot sizes is challenged by reducing setup time,redesigning processes,and stan-
22.2
SECTION TWENTY-TWO
KNOWLEDGE OF “SUPPOSED TO DO”
22.43
Product Specifications
22.43
Process Specifications
22.44
Checklist for Manufacturing
22.45
Checklist for Services
22.47
KNOWLEDGE OF “IS DOING”
22.47
Measurement Inherent in the Process
22.48
Measurements by Workers
22.48
Measurements by Inspectors
22.48
Feedback Related to Worker Action
22.50
Feedback to Supervisors
22.50
Automated Quality Information
22.51
Checklist for Manufacturing
22.51
Checklist for Services
22.52
ABILITY TO REGULATE
22.53
Process Control Tools
22.54
Checklist for Manufacturing
22.54
Empowerment
22.55
Checklist for Services
22.55
Use of Checklists on Self-Control
22.56
TROUBLESHOOTING
22.57
ChronicversusSporadicTroubles
22.57
ResponsibilityforTroubleshooting
22.57
SELF-INSPECTION
22.58
Criteria for Self-Inspection
22.58
Sequence for Instituting the Self-Inspection Concept
22.59
Audit of Decisions
22.59
Results of Self-Inspection
22.59
AUDIT OF OPERATIONS QUALITY
22.60
Systems Audit
22.60
Who Performs the Audits
22.62
Product Audit
22.62
OVERALL QUALITY MEASUREMENT INOPERATIONS
22.62
MAINTAINING A FOCUS ON CONTINUOUSIMPROVEMENT
22.63
QUALITY AND OPERATIONS CULTURE
22.65
Determining the Quality Culture
22.65
Changing the Quality Culture
22.65
REFERENCES
22.66
 
dardizing jobs. The results can be smaller lot sizes and substantial reductions in inventory. Sucha system relies on a process that is capable of meeting quality requirements because little or noinventory exists to replace defective product. Thus JIT is not viable unless product quality isacceptable. Schonberger (1996) explains JIT and the impact on product quality.
3.
Time-based competition:
Performance is now measured not only by costs and quality but alsoby responsiveness to customer needs. This responsiveness means offering more products (i.e.,product features) at lower cost and in less time. The time parameter puts pressure on the productdevelopment process,which can result in inadequate review of new designs. Increasingly,how-ever,managers realize that quality problems can be on a critical path that will slow down thedelivery process. Stalk and Hout (1990) examine a variety of issues,not only issues of quality,onthe impact of time-based competition.
4.
 Impact of technology:
Technology (including computer information systems) is clearly improv-ing the quality of goods and services by providing (a) a wider variety of outputs and (b) more con-sistent output. One of the effects has been to reduce the emphasis on direct labor efficiency inoperations. The infusion of technology makes some jobs more complex,thereby requiring exten-sive job skills and quality planning; technology also makes other jobs less complex but may con-tribute to job monotony.
5.
 Agile competition:
This term refers to competition based on a group of correlated concepts thatincludes responding to constantly changing customer opportunities,being able to change overfrom one product to another quickly,manufacturing goods and producing services to customerorder in arbitrary lot sizes,customizing goods and services for individual customers,and draw-ing on the expertise of people and facilities within a company or among groups of cooperatingcompanies. Clearly,the impact on both product features and defect levels will be far reaching.Goldman,Nagel,and Preiss (1995) describe the concept and include examples. To cite one exam-ple from the apparel industry,a blouse and skirt were designed,cut to customer size order,printed,sewn,and distributed—at a trade show.
6.
Outsourcing:
Many organizations have reduced their total personnel by transferring completefunctions to a supplier (outsourcing). In one survey,86 percent of firms used outsourcing in 1995versus 58 percent in 1992 (
 Business Week,
April 1,1996). In a financial services firm of about8000 people,74 percent are “contract”personnel,most of whom come from one supplier.Extensive steps are taken to ensure the quality of the services. Examples of activities for out-sourcing include manufacturing operations,billing,service,and human resource tasks. Clearly,steps must be taken to ensure the quality of these tasks. Bettis,Bradley,and Hamel (1992) exam-ine the implications of outsourcing on competitiveness and offer cautions and suggestions. Theimpact of contract workers and outsourcing on quality has been selected as a research project bythe National Science Foundation.These “lean manufacturing”factors,which are not independent,suggest that quality duringoperations can no longer focus on inspection and checking. We must recognize these factors as wepursue universal—and intoxicating—principles such as customer focus,continuous improvement,and employee empowerment in the operations function.Schonberger (1996) explores the future of world-class manufacturing; Godfrey (1995) identifiescritical issues in service quality.
PLANNING FOR QUALITY DURING OPERATIONS 
Increasingly,planning for quality
before
the execution of operations is seen as essential. Internationalstandards such as the ISO 9000 and ISO 14000 series provide a minimum framework for planning(for elaboration,see Section 11,The ISO 9000 Family of International Standards). These standardscover important matters such as process control,inspection and testing,material control,producttraceability,control of measuring equipment,control of nonconforming product,quality documenta-tion,process environmental conditions,and the impact of processes on the external environment.
OPERATIONS
22.3
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