Recap Lecture 2: TQM TQM Implementation

The Road to Business Growth Begins with the Senior Managements and the CEOs
commitment
Business Growth
Continuous Improvement Involvement is required
Requires the education of Senior Management in TQM
Supplier Partnering
concepts
Employee Involvement Timing of the implementation process can be very
important
Focus on Quality
Lecture 3: Measured data and Statistics Formation of the Quality Council
Process Orientation Development of Core Values, Vision Statement, Mission
Introduces the concept of measurement Leadership
variation and statistical methods for Statement, Quality Policy Statement
measuring and describing variation
Customer Satisfaction
Clear Vision
Compiled by Ramdziah Md.Nasir
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TQM Implementation TQM Implementation TQM Implementation

Quality Council Duties:
Quality Council: 1. Develop the core values, vision, mission, and Quality Council Duties:
Composed of: CEO, the Senior Managers of the quality policy statements 5. Determine the performance measures for the
functional areas, such as design, marketing, 2. Develop the strategic long-term plan with organization
finance, production, and quality; and a goals and the annual quality improvement 6. Determine projects that improve the processes
coordinator or consultant program with objectives
7. Establish multifunctional project and
3. Create the total education and training plan
The coordinator will ensure that the team departmental or work group team
members are empowered and know their 4. Determine and continually monitor the cost
of poor quality 8. Establish or revise the recognition and reward
responsibilities system

4 5 6

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 TQM Implementation TQM Implementation TQM Implementation
Core Values for the Malcolm Baldrige National Core Values for the Malcolm Baldrige Core Values for the Malcolm Baldrige
Quality Award: National Quality Award Contd: National Quality Award Contd:
Visionary Leadership Agility Social Responsibility
Customer-driven Excellence Focus on the Future Focus on Results and Creating Value
Organizational & Personal Learning Management for Innovation Systems Perspective
Valuing Employees & Partners Management by Fact

8 9
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Continuous Process
TQM Implementation TQM Implementation
Improvement/Development (CPD)
Quality Statements: Seven Steps to Strategy Planning: FEEDBACK

Include the Vision Statement, Mission Customer Needs

Statement, and Quality Policy Statement PROCESS OUTPUT
Customer Positioning INPUT People Information
They are part of the strategy planning process, Materials Equipment Data OUTCOMES
Money Method
Product
which includes goals and objectives Predict the Future Information Procedures
Environment Service, etc.
Data, etc Materials
Develop with input from all personnel Gap Analysis
Closing the Gap
CONDITIONS
Alignment
Figure 2-3 Input/output process model
Implementation
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2
 Taguchis Loss Function Learning Objectives Measurement
Any measurement is only as good as the measuring
L = D2C Understand the errors related to measurement
High loss device/technique or the persons using it.
Unacceptable where Know the round-off rules
Loss (to
producing L = loss to society Measurement error always exist, measured value is
organization,
Poor D = distance from Able to distinguish between two types of variations an estimation.
customer, target value
and society)
Good
C = cost of deviation
special cause and common cause Accuracy is the smallest unit on the measuring device
Best
Low loss
Know what statistic is and its applications Maximum error of a measurement is half the
Target-oriented quality
yields more product in
the best category
Know what distributions are and how they are used in SPC accuracy
Target-oriented quality
Able to calculate the mean, median, mode, range and
brings product toward standard deviation for a set of numbers
the target value
Frequency
Conformance-oriented Able to draw a histogram for a set of numbers Distribution is an ordered set of numbers that are
quality keeps products
within 3 standard grouped in some manners. The distribution maybe in
deviations a table, graph or picture form
Lower Target Upper
Specification

Round-off Rules: Variation

Example:
2.34cm is accurate to the nearest hundredth
of a cm (0.01), therefore maximum error is
0.01/2 =0.005
When a measurement is written, its accuracy
is implied by the number of place value, e.g.
2.34cm and 2.340cm are significantly
different!. The 2.34cm would lie between
2.335 and 2.344, and 2.340 would lie
between 2.3395 and 2.3404!
1. If number to the right is half of that place
value, round UP to next digit, e.g. 23.472 is
23.5 (nearest tenth)
2. If number to the right is half of that place
value, truncate to that place value, e.g.
23.414 to nearest tenth is 23.4
2 types:- (a) Special-cause, (b) common
cause
Individual measurements are different, but
when grouped together, they form a
predictable pattern called distribution
Every distribution has measurable
characteristics such as:
Location - Position of middle value (or
average value)
Spread width of distribution curve
Shape the way measurements stack up

3
 Variation (within or between subgroup)
Special cause variation Common cause variation
Under ideal condition, e.g. for a
(a) Special cause variation (or assignable-cause (b) Common cause variation manufacturing process, only common cause
variation) variation occur within subgroup (batch), and
- It is inherent (built-in) in the process, not special cause variation occurs between
unpredictable variation that do not a derived variation subgroup.
normally occur due to worn parts, improper - Approximately 85% of process problems
allignment, etc Special cause should occur between batch,
are due to common cause variation not within a batch.
- A derived variation - Require process changes to remove the Care must be taken so that differences in
- Can be eliminated by local action on a built-in variation decision by operators, machines, batches of raw
particular segment of the process management materials in production lines do not show up
- Local action can handle ~15% of process within subgroups.
problem Do different control charts for different
operators if operators make a difference

Effect of Variation Histogram Steps to construct a histogram

(a) When Special cause variation is present unpredictable
distribution Graphic representation of the frequencies of observed values, usually Collect data and construct a tally sheet
plotted using rectangles. Determine the range, R = Xh Xl
Vertical axis is the frequency, horizontal axis is the category. Determine Cell interval, i = R / (1+3.322 log n )
Determine cell mid-point, using the lowest data value, MPl = Xl+ (0.5i)
Determine the cell boundary for either upper or lower boundary
Target
Plot the histogram
Day 1 Day 2 Day 3
Frequency

(b) When Special cause variation is eliminated leaving only common Interval, i Tally sheet
cause variation predictable (process is in statistical control)
Sample Tabulation Frequency
Mid-point
1 III 3
Upper boundary 2 IIII 4
3 II 2
Target Category Lower boundary
4 I 1
Day 1 Day 2 Day 3

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What is Statistics? Descriptive vs Inductive Statistics Descriptive Statistics
Statistics is the science of data handling Measure of central tendency- describes the center position of the
Data types: (a) Variable data quality characteristics that are measureable and data (mean, median, mode)
normally continuous (may take on any values);
(b) Attribute data quality characteristics that are either present or not present, Descriptive or deductive statistics attempts Measure of dispersion describe the spread of data (range, variance,
standard deviation)
conforming or non-conforming, countable, normally discrete values (integers) to describe and analyze a subject or group
Its applications normally involve using sample information to make decision
about a population of measurement Inductive statistics is trying to determine Mean, X
1 N
i 1 Xwhere Xi is one observation, N is number of sample
A population is the set of all possible data values of interest, while a sample is
only a subset of a part of the population from a limited amount of data (sample) an N
i

important conclusion about a much larger Median is the middle point of a data series (observation in the middle of sorted data

amount of data (population). Since the Mode the most frequently occuring value
Sample 1 conclusions or inferences cannot be made
Sample 2 Population with absolute certainty, the language of
probability is often used 100 91 85 84 75 72 72 69 65
Sample 3

Mean = 79.22 Mode

Median
Four steps in application of statistics: (a) collection of data; (b) Organization of
data; (c) Analysis of data; (d) Interpretation of data

Descriptive Statistics Descriptive Statistics Descriptive Statistics

Measure of dispersion (range, variance and standard deviation)
The range is calculated by taking the maximum value and subtracting
the minimum value.
Variance is the squared of the summation of the difference between each
value and the mean divided by number of samples
Other measure of dispersion (skewness, kurtosis,
coefficient of variation)
Skewness - lack of symmetry of data distribution. A negative values
indicate skewed to the left, positive indicates skewed to the right.
<0 left 0 = symmetrical >0 right
Measure of Dispersion - Kurtosis
Kurtosis Measure the peakness of the data. It is a dimensionless
value. The value must be compared to a normal distribution to determined
if it more peaked or flatter peaked distribution.

n n
( xi 1, 3, 5, 7, 9, 11

f i ( xi X) / n
4
i 1
Range = 11-1 = 10
a4
n i 1
fi ( xi x) / n
n 3 See example 4.8, p151
= population mean
Note: S = = std dev s4
Std deviation is the square-root of variance. Measures a3 i 1
spreading tendency of the data
Note: S = = std dev s3
If is small, high probability of
n getting the values close to mean
( xi

value
i 1 See examples 4.6, p147 & 4.7, p149
n If is large, high probability of getting
Leptokurtic (more peaked) Mesokurtic (normal) Platykurtic (flatter)
the values away from mean value

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 Population, sample, reading (notations used)
Descriptive Statistics Normal Distribution (Gaussian distribution)
Measure of Dispersion Coefficient of variation Always symmetrical, unimodal, bell-shaped distribution Sample 1
CV measure how much variation exist relative to the mean. Unit in %. with mean, median, mod having the same value
Much variation in nature and in industry follow the Sample 2 Population
normal distribution curves.
Offer good description of variations occuring in most Sample 3
100% quality characteristics in industry it becomes the basis
CV See example 4.9, p152 of many techniques X-bar = Average value for a sample (which has a few
X readings)

Xi s = standard deviation of a sample

Z (Greek letter mu) = Mean (also equivalent to Average)
value for a population (which has a few samples and
readings)
(Greek letter sigma) = standard deviation for a
population
x scale -3 -2 - + +2 +3 n = number of readings from a sample
N = number of samples/groups in a population
z scale -3 -2 -1 0 +1 +2 +3

Statistical Process Control (SPCs)

Historical Background Product Control And Process Control Philosophy

Walter Shewhart suggested that every process
exhibits some degree of variation and therefore is
expected.
identified two types of variation (chance cause) and
Use of Statistics in Quality
(assignable cause)
proposed first control chart to separate these two types of
Changing data into variation.
information SPC was applied during World War II to ensure
interchangeability of parts for weapons/ equipment.
Resurgence of SPC in the 1980s in response to
Japanese manufacturing success.
The product control view:
measures quality of a product in terms of its acceptability as measured
by conformance to engineering specifications.
emphasizes detection and containment of defective material through
inspection/screening, therefore making
quality and productivity opposing rather than supportive forces.
The process control view:
emphasizes the prevention of defective material from being made in the
first place by seeking the root cause of the problem and eliminating it
altogether.
makes quality and productivity enhancement possible simultaneously
by continually seeking ways to reduce
variation, thereby eliminating waste and inefficiency in the process and
variation in performance of the product.

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Product Control And Process Control Philosophy
The product control view:
measures quality of a product in terms of its acceptability as measured
by conformance to engineering specifications.
emphasizes detection and containment of defective material through
inspection/screening, therefore making
quality and productivity opposing rather than supportive forces.
The process control view:
emphasizes the prevention of defective material from being made in the
first place by seeking the root cause of the problem and eliminating it
altogether.
makes quality and productivity enhancement possible simultaneously
by continually seeking ways to reduce
variation, thereby eliminating waste and inefficiency in the process and
variation in performance of the product.
Mean ,standard deviation
Example 1
The scores on a test given to students in a
large class are normally distributed with a
mean of 57 and a standard deviation of 10.
The passing score for the exam is 30. If a
student is randomly selected, what is the
probability that he or she passed the exam?
A score of 75 or greater is needed to obtain
an A on the exam. What percentage of the
students received an A?
Mean ,standard deviation
Given: X = 57 and X = 10, and process represented is normal
distribution.
To calculate the probability of passed, we need to find P (X30). Use z transformation to determine
the values of Z associated with the values of X
z = (30 - 57) / 10 = -2.7
Therefore, we need to find P (Z -2.7). Using Table A.1 in the Appendix,
P (Z -2.7) = 1 - P (Z -2.7)
= 1 - 0.0035 = 0.9965
Therefore, probability of student passing is 99.65 %
To calculate the probability of randomly selected student has score A,
Need to find P (X 75). Use Z transformation to determine the values of Z associated with the values
of X.
z = (75 - 57) / 10 = 1.8
Therefore, we need to find P (Z 1.8). Using Table A.1 in the Appendix,
P (Z 1.8) = 1 - P (Z 1.8)
= 1 0.9641 = 0.0359
Therefore, probability of student scoring an A is 3.59 %

The accompanying table represent the weight in gram of moulded instrument

display panels. The samples were collected at half hour intervals . Prepare a
tally sheet, of the individual measurements and then prepare a frequency
histogram of the data, clearly labelling the cell boundaries. Comment on the
Answer The next step is to make a tally of the frequency of occurrence of the data
appear within each cell, as follows:
shape of the distribution.
Sample X1 X2 X3 X4 X5
To create a frequency histogram is to select the Cell Midpoint Frequency per Cell frequency, fi
1 14 15 13 14 13 number of cells and the cell boundaries. Since the 7 1
8 11 2
2
3
20
14
18
17
14
14
17
11
8
14 data are integer values, the cell boundaries can be 9 1111 4
4
5
15
9
16
17
11
18
18
13
14
12
set at xx.5, xx+ cell width + 0.5, etc. The range of 10 0
6 19 15 14 15 16 the data is 20- 7=13 so using 13 cells might work 11 11111 5
7 16 13 14 13 17
8 14 17 9 16 15 well. Thus, the integer values are the cell midpoints 12 111111111 9
13 11111111111 11
9
10
14
15
14
13
12
17
13
14
13
16
and the cell boundaries are set at 6.5, 7.5, 8.5, ... , 13.5 - 14.0 - 14.5 111111111111111111 18
11
12
18
20
18
12
16
13
15
17
11
14
20.5. For example, the boundaries for the cell with 15 11111111111 11
13 1 8 9 12 7 midpoint 13 are 12.5 and 13.5. 16 111111111111 12
14 12 14 16 14 20 17 11111111111 11
15 18 17 12 19 18 18 111111111 9
16 19 17 16 16 17
17 14 13 15 16 18 19 111 3
18 14 17 12 16 11 20 1111 4
19 18 15 16 15 12 Total, fi = 100
20 15 9 12 13 20

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 Next, this information is used to plot the
histogram: What is Statistics?
8 12 16 20 What is it Not
Frequency
the cell interval, i= R/1+3.322 log n 4
cell midpoint MPl= Xl+i/2 (normally odd value) 8 Has Something to Do With Data.
cell boundaries = 0.1-i =-0.4 (lower boundary), 12 Objectives of Data Collection
3.5+i (upper boundary) 16 Understanding, insights, illumination
frequencies.= from tally sheet Weight in gram
An Inexact Science Given Industrial Realities
From the shape of the histogram, it appears that
the data came from a process that might be
considered as a
candidate for representation by a normal
distribution
(excel form)

Probabilities in Manufacturing

Examples with objectives

classifying parts as being defective or non-defective
-- reducing number of defectives
studying the number of monthly orders received
better adjusting inventory levels to match orders
measuring gas output when acid concentrations are
changed --better predicting and controlling gas levels

8
 Statistical Thinking & Modelling
Engineers Think
Deterministically
Deterministic Models Do Not
Explain Variability
Deterministic Models Do Not
Account for Variability
Engineering Education/Practice
Blames
Factors That Remain a Mystery
Limitations in Measurement
Process
Engineering Method
Depends on Data
Real Data Exhibits
Variability
Obscures Ability to Make
Sound Decisions
Engineers Must Learn to
Think Statistically
Understanding of Risk and
Uncertainty
Key is Discovering Sources
of Variability
Data Collection
Statistic types
What is the fundamental purpose?
What important questions need answers? Deductive statistics describe a complete data
What is the characteristic of interest? set
How will it be measured? Issues
Inductive statistics deal with a limited amount
What is known about the measurement process?
How does engineering model impact data collection? of data
What data does the model require?
How robust is the model to data error?
How do model parameters support problem solution?
Are there physical constraints that impede ability to
collect data?
Types of data `
Variables data - quality characteristics that are
measurable values.
Measurable and normally continuous; may take on
any value.
Attribute data - quality characteristics that are
observed to be either present or absent,
conforming or nonconforming.
Countable and normally discrete; integer
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 Within vs. between subgroup
variation
Under ideal conditions: only common cause
variation occurs within subgroups and special
cause variation occurs among between
subgroups
Special Causes Should Occur
Descriptive statistics
Between Batches not Within
Measures of Central Tendency
Describes the center position of the data
Care must be taken so that differences in Mean Median Mode
operators, machines, lots of raw materials,
production lines do not show up within Measures of Dispersion
subgroups. Describes the spread of the data
Do different control charts for different Range Variance Standard deviation
operators if operators make a difference.

Measures of central Measures of central

Median and mode
tendency: Mean tendency: Median - mode
Arithmetic mean x = N Median = the observation in the middle of
1
x
100 91 85 84 75 72 72 69 65
i sorted data
N i 1 Mode = the most frequently occurring value
Mode
where xi is one observation, means add up
what follows and N is the number of Median
observations
Mean = 79.22
So, for example, if the data are : 0,2,5,9,12 the
mean is (0+2+5+9+12)/5 = 28/5 = 5.6

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Measures of dispersion: Measures of dispersion: Measures of dispersion:
range variance standard deviation
The range is calculated by taking the maximum Calculate the deviation from the mean for The standard deviation is the square root of
value and subtracting the minimum value. every observation. the variance. The variance is in square units
Square each deviation so the standard deviation is in the same units
Add them up and divide by the number of as x.
2 , 4 ,6 ,8 ,10, 12 , 14
observations n
( xi
n
( xi

Range = 14 - 2 = 12
i 1
n
i 1
n

Standard deviation and

Chebyshevs theorem
curve shape
If is small, there is a high probability for
getting a value close to the mean.
If is large, there is a correspondingly higher
probability for getting values further away from
the mean.
As a result
If a probability distribution has the mean and Probability of obtaining a value beyond x
the standard deviation , the probability of standard deviations is at most::
obtaining a value which deviates from the 2 standard deviations
mean by at least k standard deviations is at 1/22 = 1/4 = 0.25
most 1/k2.
3 standard deviations
1 1/32 = 1/9 = 0.11

P ( x k 4 standard deviations
1/42 = 1/16 = 0.0625
2
k

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Other measures of Other measures of The normal frequency
dispersion: skewness dispersion: kurtosis distribution
1 ( x ) / 2
f ( x)
When a distribution lacks symmetry, it is suggests peak-ness of the data 2 2

considered skewed. a can be used to compare distributions e

<0 left 0 = symmetrical >0 right
n
n
f i ( xi X) / n
4
2
f i ( xi x) / n
3
a4 i 1
a3 i 1
s4
s3

The normal curve The normal curve The standardized normal

A normal curve is symmetrical about If x follows a bell-shaped (normal) distribution, =0
then the probability that x is within
The mean, mode, and median are equal
1 standard deviation of the mean is 68% =1
The curve is uni-modal and bell-shaped 2 standard deviations of the mean is 95 %
Data values concentrate around the mean 3 standard deviations of the mean is 99.7%
Area under the normal curve equals 1 x scale -3 -2 - + +2 +3

z scale -3 -2 -1 0 +1 +2 +3

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Test Statistic and Decision Rule

13
 Critical Region, Critical Value,
Type I Error
and Significance Level
A Type I error is the decision error when the researcher
incorrectly rejects the null hypothesis
(when the null is true).
The probability of that error is a..
a. is the probability that the test statistic lies in them
critical region when the null hypothesis is true.
When the null is rejected, we say that the test is
statistically significant at a 100 a % significance level.
The p-Value
A p-value is the lowest level (of significance) at
which the observed value of test statistic is
significant.
The p-value gives researcher an alternative to
merely rejecting or not rejecting the null.
A small p-value clearly refutes Ho

Summary For Hypothesis Testing

State the null hypothesis H0: q = q0

Choose an appropriate alternate hypothesis Ha: q < q0,
q > q0, or q ,q0,
Chose a significant level of size a
Select the appropriate test statistic and critical region (if the decision is
based on a p-value, the critical region is not necessary) and state the
decision rule in terms of the test statistic
Compute the value of test statistic from the sample data
Reject H0 based on the decision rule (if the test statistic is in the critical
region or if the p-value is less than a): otherwise do not reject H0

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