Lecture 2

Quantification and
classification assumptions,
quality measurement.
Measuring and
Controlling Quality

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 10E, © 2017 Cengage Publishing, 1
 Quantification Measurement for
Quality Control

Measurement is the act of collecting data to quantify the values of

product, service, process, and other business metrics.

Measures and indicators refer to the numerical results obtained from

measurement.
• The term indicator is often used for measurements that are not a direct or exclusive
measure of performance.
Good measures should be SMART: Simple, Measurable, Actionable,
Related (to customer and operational requirements), and Timely.

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 Quality measurement for pizza
delivery
• Percent of calls placed on hold
• Percent of accurate orders
(transmitted to the kitchen)

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 Dashboards measures

• … summaries of key performance measures, typically

consisting of a small set of measures (five or six) that
provide a quick summary of process performance.
• Dashboards often use graphs, charts, and other visual
aids to communicate key measures and alert workers and
managers when performance is not where it should be.

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Common Quality Measurements

• A unit of work is the output of a process or an

individual process step.
• A nonconformance is any defect or error associated
with a unit of work.
• In manufacturing we often use the term defect, and in
service applications, we generally use the term error to
describe a nonconformance.
• A nonconforming unit of work is one that has one
or more defects or errors.

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 Types of Quality Control
Measures
• An attribute measurement characterizes the presence or absence
of nonconformances in a unit of work, or the number of
nonconformances in a unit of work.
• Attribute measurements often are collected by visual inspection and
expressed as proportions and counts.
• Variable measurements apply to dimensional quantities such as
length, weight, and time, or any value on a continuous scale of
measurement.
• Variable measurements are generally expressed with statistical measures
such as averages and standard deviations.

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 Attribute Measurements

• In manufacturing it is common to use the terms “proportion

defective” and “defects per unit,” DPU, in these formulas.

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Nonconformance

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 Defect Classification
1. Critical defect: A critical defect is one that judgment and
experience indicate will surely result in hazardous or unsafe
conditions for individuals using, maintaining, or depending on the
product and will prevent proper performance of the product.
2. Major defect: A major defect is one not critical but likely to result
in failure or to materially reduce the usability of the unit for its
intended purpose.
3. Minor defect: A minor defect is one not likely to materially
reduce the usability of the item for its intended purpose, nor to
have any bearing on the effective use or operation of the unit.

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 Throughput Yield (TY)
• …the number of units that have no nonconformances

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 Rolled Throughput Yield (RTY)
• …the proportion of conforming units that results from a series
of process steps.
• Mathematically, it is the product of the yields from each process step.

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