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Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery.

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Learning Objectives

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Problem Definition
What are our duties as an engineer in industry?

Desired situation

Difference = Problem, Opportunity for improvement

Actual situation
Fact-based management
Data
▪ To measure is to know

▪ If you can not measure it, you can not


improve it

▪ Until you can measure something and express


it in numbers, you have only the beginning of
understanding

Lord Kelvin
You are trained to be a good problem solver!
1.1 Definitions – Meaning of Quality and
Quality Improvement

What factors influence your decision to buy things?

1. Excellent Quality of product (Q)

2. Lowest Cost (C)

3. On time delivery (D)

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How do you define the quality of a TV?

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1.1 Definitions – Meaning of Quality and
Quality Improvement
1.1.1 The Eight Dimensions of Quality

1. Performance: Will the product do the intended job?


2. Reliability: How often does the product fail?
3. Durability: How long does the product last?
4. Serviceability: How easy is it to repair the product?
5. Aesthetics: What does the product look like?
6. Features: What does the product do? (options)
7. Perceived Quality: What is the reputation of the company?
8. Conformance to Standards: Is it product made exactly as the
designer intended?

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Service Industry becomes more and more important!
Characteristics of Goods

❑ Tangible product
❑ Consistent product definition
❑ Production usually separate from
consumption
❑ Can be inventoried
❑ Low customer interaction
Characteristics of Service

❑ Intangible product
❑ Produced and consumed at same time
❑ Often unique
❑ High customer interaction
❑ Inconsistent product definition
❑ Often knowledge-based
❑ Frequently dispersed
Goods and Services

Automobile
Computer
Installed carpeting
Fast-food meal
Restaurant meal/auto repair
Hospital care
Advertising agency/
investment management
Consulting service/
teaching
Counseling
100% 75 50 25 0 25 50 75 100%
| | | | | | | | |

Percent of Product that is a Goods Percent of Product that is a Service


1.1 Definitions – Meaning of Quality and
Quality Improvement
Additional three dimensions for
service industry

1. Responsiveness: how long did


it take the service provider to
respond your request?
2. Professionalism: This is the
knowledge and skill of the
service providers
3. Attentiveness: Customers want
caring and personalized
attention

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Service
Specifications
at UPS
(he looks
professional)
•This is a traditional definition
Toyota
– Quality of design Camry

– Quality of conformance
• How well the product conforms
to the specification required by
design?
- Toyota
Vios

Differences in intended designs

Higher performance/ More Luxurious


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This is a modern definition of quality

HP
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The Transmission Example

An US company conducted comparison study of transmission that


was produced by Domestic Plant and Japanese Plants

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What is Quality

The totality of features and


characteristics of a product or service
that bears on its ability to satisfy stated
or implied needs (of customers)

American Society for Quality (ASQ)


• 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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1-1.2 Terminology

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Terminology (continued)
• 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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1.2. History of Quality Improvement

IE
Work
Study

t-test

DOE
SPC
ASP

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Control
Chart

Quality
Era
Deming
Award

TPS

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CCD,
BBD

Juran

FFD

TQM

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ISO and SIX-SIGMA

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https://youtu.be/1I4vjxlyKrw

ASP

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1.3 Statistical Methods for Quality
Control and Improvement

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Industrial System Understanding
Errors/ Noises/ uncontrolled variables Desired
situation

Difference =
Input Variables Problem,
Output
Controlled variables Systems Opportunity
Responses for
Explanatory variables
Dependent improvement
Independent variables
variables
Predictors

Actual
situation

A system is a collection of entities that work and are linked


together in order to achieve pre-defined goals.

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Understanding a Problem
Analytical Skill

CTQ

API: Active Phamaceutical Ingredients


Excipient: an inactive substance that serves as the vehicle or medium for a
drug or other active substance
Understanding of Industrial Systems
Z1 Z2 … Z n

1
X
Systems Y

Actual Target
X1 X2 Xm

Quality Improvement
- Adjust the process responses (Y) close to Target
- Reduce variation of responses (Y) to zero

By setting the condition of (X) while minimizing the effect of error


Statistical Methods
• Designed experiments (DOX/DOE)
– Discovering the key factors that influence process
performance
– Process optimization
– Off-line technique
• Statistical process control (SPC)
– Control charts, plus other problem-solving tools
– Useful in monitoring processes, reducing variability
through elimination of assignable causes
– On-line technique
• Acceptance Sampling
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1.4 Management Aspects of Quality
Improvement

Effective management of quality requires the


execution of three activities:
1. Quality Planning
2. Quality Assurance
3. Quality Control and Improvement

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https://youtu.be/mGIteuvPxRQ

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1.4.1 Quality Philosophy and Management Strategy

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

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https://youtu.be/Dc2ZWOPIbfc

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Deming Price
• The Deming Price is
the oldest and most
widely recognized
quality award in the
world for Quality
management

http://www.juse.or.jp/deming_en/award/index.html

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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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Deming’s 14 Points
1. Create constancy of purpose toward improvement
2. Adopt a new philosophy, recognize that we are in a time of
change, a new economic age
3. Cease reliance on mass inspection to improve quality
4. End the practice of awarding business on the basis of price
alone
5. Improve constantly and forever the system of production and
service
6. Institute training
7. Improve leadership, recognize that the aim of supervision is
help people and equipment to do a better job
8. Drive out fear
9. Break down barriers between departments

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14 Points cont’d
10. Eliminate slogans and targets for the workforce such as zero
defects
11. Eliminate numerical quotas and work standards
12. Remove barriers that rob workers of the right to pride in the
quality of their work
13. Institute a vigorous program of education and self-
improvement
14. Put everyone to work to accomplish the transformation

Note that the 14 points are about change

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Deming’s Obstacles to Success

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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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https://youtu.be/XbkMcvnNq3g

Interviewed in 1990s

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The Juran Trilogy
1. Planning
2. Control
3. Improvement

• These three processes are interrelated


• Control versus breakthrough
• Project-by-project improvement

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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

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1. TQM
2. ISO 9000 Series Standard: QMS
Principles from
Gurus 3. National Awards: Baldrige Award
4. Six Sigma
5. Lean System

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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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Key component of TQM (Kano’s house)
Employee Satisfaction Customer Satisfaction

QA
TPM
Market-in Why-Why Policy
7 QC tools Management
Next Process
7 New QC tools
Daily

PROMOTIONAL VEHICLES
PDCA Task Achieving
E&C F Charting Management
Fact & Data Problem Solving
TECHNIQUES
CONCEPTS

Statistics Cross-
เน้น Process DOE Functional
Management
QFD
Standardize FMEA Suggestion, QCC,
Bottom-Up 5S, Safety &
Innovation &TQM Activity Environment
Prevention AQC & NPD
แรงผลักดันและจูงใจ (Motivation)
เทคโนโลยีเฉพาะด้าน(Intrinsic Technology)
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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Quality Systems and Standards

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• 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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The Malcolm Baldrige National
Quality Award

• The MBNQA process is a valuable assessment tool


• See Table 1-4 for Performance Excellence Criteria and point values

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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)
– 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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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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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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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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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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DMAIC Solves Problems by Using
Six 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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https://youtu.be/R50llXT_xrY

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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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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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Quality Costs

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Legal Aspects of Quality
• Product liability exposure

• Concept of strict liability


1. Responsibility of both manufacturer and
seller/distributor
2. Advertising must be supported by valid data

Liability is the state of being responsible for something, especially by law.

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Implementing Quality Improvement
•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

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Learning Objectives

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