Professional Documents
Culture Documents
A Module in IE 411
QUALITY
MANAGEMENT
SYSTEMS
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TABLE OF CONTENTS
VII. Malcolm Baldrige National Quality Awards / Philippine Quality Awards ……………...46
VIII. General Problem-Solving Tools (e.g., Magnificent 7 Tools, etc.) …………………….. 51
IX. Tools for Measuring Quality (Process Charts, Process Capability Index) ……………….72
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At the end of the course, you are expected to achieve the following outcomes:
ILO 2 Develop an understanding of the role of technology, managers, employees, and customers in
developing a quality-based workplace
ILO 5 Identify current trends and benchmark organizations related to Quality Management
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Learning Objectives:
Define quality both from the customer and producer perspective
Understand the historical movement of Quality
Know the different Quality Gurus and contribution
Demonstrate importance of quality if manufacturing
Differentiate types of quality, dimensions, and cost of quality
Definition
Quality is ….
Is that which makes a being or things such as it is distinguishing elements or characteristic.
The characteristics of anything regarded as determining its values, place, worth, rank, position, etc.
A moral trait or characteristic; and
A degree of excellence; relative goodness; or grade.
Customer: Quality is the ability of a product or service to consistently meet or exceed the expectations.
Purchaser: Quality is the ability to meet all the expectations obtained in goods or services.
International Organization for Standardization (ISO 8402):
Quality is the totality of features and characteristics of a product or service that bear on its ability to
satisfy stated or implied needs.
The strategic approach is proactive, focusing on preventing mistakes from occurring.
A definition of quality that evaluates how well the product performs for its intended use.
Value for price paid
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Quality defined in terms of product or service usefulness for the price paid.
Support services
Quality defined in terms of the support provided after the product or service is purchased.
History of Quality Movement The
Industrial Revolution
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“Hidden plant”
Kaoru Ishikawa
Quality control circles
Cause-effect diagrams
Elemental statistical methods
Philip B. Crosby
Quality Is Free
Zero defects
Defined quality: meeting customer Requirements
Genichi Taguchi
Efficient experimental design
Robust design
Quality loss function
Importance of Quality
1. Customer satisfaction
2. Avoid rework
3. Avoid cost of losing customers
4. Increase efficiency
5. Increase productivity
6. Increase market share
7. Increase moral of workers/employees
Types of Quality
• Quality of Design
• Quality of Product
• Quality of Process
• Quality of Systems
• Quality of Service
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Dimensions of Quality
4. Conformance - How well a product or service corresponds to design specifications, and to the
customer’s expectations
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The reason quality has gained such prominence is that organizations have gained an understanding
of the high cost of poor quality.
Quality affects all aspects of the organization and has dramatic cost implications.
The most obvious consequence occurs when poor quality creates dissatisfied customers and
eventually leads to loss of business.
The first category consists of costs necessary for achieving high quality, which is called quality
control cost. There are of two types: appraisal cost and prevention cost.
The second category consists of the cost consequences of poor quality, is called quality failure
cost. These include external failure cost and internal failure cost.
- Appraisal cost
- Prevention cost Quality Failure Cost
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Learning Objectives
Definition
Organization is a chain of internal suppliers and customers, who are collectively responsible to
deliver finished products to end customer.
Quality Management
Management activities and functions involved in determination of quality policy and its
implementation through means such as quality planning, quality assurance and quality control)
A system comprised of quality planning and quality improvement activities, the establishment of a
set of quality policies and objectives that will act as guidelines within an organization, and QA
and QC.
A planned and established by documenting procedures for the processes of organization to fulfill the
needs and expectations of internal and end customers.
ISO
Refers to the International Organization for Standardization. Comes from the Greek word “isos”
meaning “equal” – a standard for all. ISO establishes common worldwide standards.
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QMS Purpose
• Improving Process
• Facilitating and Indentifying training opportunities
• Engaging Staff
QMS Benefits
• Bring consistency and definition to processes, which will result in fewer defects and more
efficient practices.
• Meet a global requirement by the customers to fulfill their requirements and to be qualified
as a supplier.
QMS Elements
• Quality manual
• Data management
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• Internal processes
• Improvement opportunities
• Quality analysis
Establishing and Implementing a QMS
The QMS design should be influenced by the organization’s varying objectives, needs, and products
and services provided.
This structure is based largely on the plan-do-check-act (PDCA) cycle and allows for continuous
improvement to both the product and the QMS.
1. Design
2. Build
3. Deploy
4. Control
5. Measure
6. Review
7. Improve
These portions serve to develop the structure of a QMS, its processes, and plans for implementation.
Deploy
Best served in a granular fashion by breaking each process down into subprocesses and educating
staff on documentation, education, training tools, and metrics
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Largely accomplished through routine, systematic audits of the quality management system Review
and Improve
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Lesson 3: Current and Emerging Quality Management Systems, Programs, and Initiatives
Learning Objectives:
Definition
ISO
• quality,
• safety,
Helps organization to ensure that they meet the needs of customers while meeting statutory and
regulatory requirements
Advantages of ISO
• Quality is maintained
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The emphasis on customer satisfaction and continuous quality improvement has necessitated a
system of standards and guidelines that support the quality philosophy.
To address this need, the International Organization for Standardization (ISO) developed a set of
standards, ISO 9000, 9001, and 9004
A document that describes all of the requirements needed in order to create and maintain a quality
management system as described in ISO 9000.
Both the ISO 9000 and 9001 standards are based on a number of quality management principles
including a strong customer focus, the motivation, and implication of top management, the
process approach and continual improvement.
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1. Customer focus
- Understand the needs of existing and future customers
- Align organizational objectives with customer needs and expectations
- Meet customer requirements
- Measure customer satisfaction
- Manage customer relationships
- Aim to exceed customer expectations
- Learn more about the customer experience and customer satisfaction
2. Leadership
- Establish a vision and direction for the organization
- Set challenging goals
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6. Continual Improvement
- Improve organizational performance and capabilities
- Align improvement activities
- Empower people to make improvements
- Measure improvement consistently
- Celebrate improvements
7. Factual approach to decision making
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One misconception is that ISO 9000 or 9001 is only for manufactures or large organizations.
As a principles-based standard, ISO 9001 can be applied to any organization regardless of what
type or size it may be.
The standard defines the requirements, but it does not dictate the method of application. The
latest version of the standard has been specifically designed to be more accessible to
organizations outside the manufacturing sector
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ISO 9001 is the standard that sets out the criteria for a quality management system and is also the
only standard within ISO 9000 that an organization can certify to.
• The company meets its customer requirements and statutory and regulatory requirements;
and
ISO 9001 certification process requires an organization to implement ISO 9001:2015 requirements.
Once implemented, an organization must successfully complete registrar’s audit to confirm that the
organization system meets those requirements.
They are designed for use together but may be used independently, with their structures being simila
• customer-related processes
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Learning Objectives:
Definition
• TQM is the integration of all functions and processes within an organization in order to
achieve continuous improvement of the quality goods and services.
• The process to produce a perfect product by a series of measures require an organized effort
by the entire company to prevent or eliminate errors at every stage in production is called
total quality management.
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Manager’s role Plan, assign, control, and enforce Delegate, coach, facilitate and
mentor
Employee Involvement
Continuous Improvement
Continuous Improvement
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2. Process-Centered: If problems are being caused by your process, then any training or
changing the workforce will not help you enough to get through the desired success.
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4. Communication: The communication strategy focus upon the internal and external
communication of an organization. The stakeholders, members, directors and even the
employees must have the same goal and that is the growth of the organization
5. Statistics and Study: Comparative analysis and evaluation help an organization to decrease
the number of flaws. If an organization performs well and don’t devote enough time in
evaluating the workflow, the company will get less competent in no time. The competitors
who are providing the same sort of products or services can get the extra benefit of the
organization not caring about the flaws in their process.
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Learning Objectives:
Define Lean
Discuss waste and value as the two important concepts of Lean
Introduce Six Sigma concept
Discuss Six Sigma and its structured problem-solving methodology.
Explain the concept of lean six sigma
What is Lean?
It is a process that helps to reduce or eliminate processes that doesn’t add value to the product
What is VALUE?
• Value added activities - These activities add value to the process and are essential. They
improve processes for productivity and quality.
• Non- value added (but necessary) activities -These activities do not add value to a customer.
They are necessary for continuity of a process.
• Non- value added (and un-necessary) activities - These activities do not add any value to the
process or products. They form the wasteful steps.
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What is waste?
- “Muda” in Japanese term
D Defects The efforts involved inspecting for and fixing errors, mistakes
through reworks.
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E EXtra Processing Process steps that do not add value to the product or service,
including doing work beyond a customer’s specification.
Continous process improvement with low defects is the goal of this method.
The aim of Six Sigma is to make a process effective with - 99.99966 % defect free. This means a
six-sigma process produces in 3.4 defects per million opportunities or less as a result.
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DEFINE
MEASURE
• Process map
• Capability analysis
• Pareto chart
ANALYZE
• Analyze the process to determine root causes of variation and poor performance (defects).
IMPROVE
CONTROL
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DMAIC Application
Imagine you want to clean up your garage so you can fit a new motorcycle inside. You could use
Lean methods to accomplish this goal.
Define Identify the scope of the cleaning project (cleaning the garage, not
whole house).
Measure Pace off the square footage of the overall garage and of the open floor
space. Set a goal for required amount of open floor space.
Analyze Understand the types and amounts of materials currently in place and
the available storage locations.
Improve Use Lean tools (e.g. 5S) to execute cleaning and organizing, including
removing unessential materials. Install improved vertical storage
facilities to minimize floor space used.
Control Label storage spots. Put “after” photos in place as ongoing targets
“Lean Six Sigma is a fact-based, data-driven philosophy of improvement that values defect
prevention over defect detection.
It drives customer satisfaction and bottom-line results by reducing variation, waste, and cycle time,
while promoting the use of work standardization and flow, thereby creating a competitive
advantage.
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It applies anywhere variation and waste exist, and every employee should be involved.”
TPM etc.
The ultimate objective is to improve processes by reducing variation and eliminating waste. It’s a
continuous improvement process, where Lean methods and Six Sigma approaches, both take their
turn during PDCA. The extent of approaches may differ depending upon process complexities or
improvement sought.
The combination of these two methods helps to develop streamlined processes with high quality
& results. It improves bottom-line profits and helps meeting business goals
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Learning Objectives:
Define CQI
Define and discuss PDCA Cycle as a continuous improvement tool
Know the benefits of PDCA Cycle
What is CQI?
Helps organization to
Reduce waste
Increase Efficiency
Increase Customer Satisfaction
Continuous Improvement
Kaizen means to change for good. Changing the process for the improvement of the product or
service,
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Widely recognized as the basis of continually improving quality of process, products, and services.
Provides a simple and structured approach for solving quality –related problems
Background of PDCA
BENEFITS of PDCA
Ensures that you plan, test and incorporate feedback before you start full-scale implementation.
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Plan
Do
Modify Parameters Another
problem or
improvement
Check
No
Goal
Achieved?
Yes
Act
Plan
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Do
Data collection
Check
Act
Two possibilities:
If the changed did not work, go through the cycle again with a different plan
If you were successful then standardize, document, sustain the improved process and integrate into
organization’s system.
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A common example often used is when a design team is planning for a new product
development.
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Check Review and evaluate the results of Graphical analysis, pareto charts,
the changes made histogram, checksheet , control
charts etc.
Recommend changes
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Lesson 7: Malcolm Baldrige National Quality Award and Philippine Quality Awards
Learning Objectives:
It was created to promote quality awareness, identify the requirements for quality excellence, and
share information about successful quality strategies and benefits.
An annual award given by the government of the United States to every organization in the US (both
profit and nonprofit), which is considered to achieve exceptional performance or excellent.
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The criteria for winning the award are very demanding and simply trying to align a company to them
is highly beneficial.
It can be used as motivational toll for workers to rally behind a common goal,.
Simply by competing for the award an organization sees the importance of quality in their business.
The criteria they use is also known as the 7 Pillars of Malcolm Baldrige.
55% of evaluation is based on how the organization is run, 45% on the basis of performance
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How organization
How is the performance
develops objectives?
level compared to
competitors?
How workforce
capability were assessed
and utilized?
Leadership
Strategic Planning
Customer and Market Focus
Performance Measurement
Human Resource Development and Management
Process Management
Business Result
Board of Examiners
Independent board research each competing organization, and follows the specific criteria previously mentioned.
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PQA?
What is PQA?
Provides training for organizations and would –be assessors and best practice sharing
conferences
Benefits of PQA
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Program Beneficiaries
Public Sector
Private Sector
Agriculture
Manufacturing
Pharmaceutical Medicines
Consumer/ Industrial Goods
Foods/processed foods
Electronics
Services
Educational Institution
Healthcare Institution
Financial Institution
Other industries
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Assessment process
Submission of
Initial
Application Independent
Consensus
Report Eligibility Review
Determination Review
Recognition Levels
Learning Objectives:
Introduction
All organizations need to improve continuously. There is increasing pressure from customers,
competitors, regulators and employees to do things better, faster and at lower cost.
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What is a problem?
• A problem is
A methodical and effective approach for analysing problems and generating workable solutions to
them.
When to use it
• A problem exists
• Needs improvement
• Can identify quick fixes as well as permanent solutions to the ROOT CAUSES.
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• Aim: To identify which possible causes actually contribute to the problem and fix those
that can be acted upon immediately.
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• Aim: To identify possible solutions which could be used to eliminate the identified root
cause(s).
• Aim: To select an effective, practical and implementable solution that will remove the root
cause of a problem
Implementation Stages
Once a viable solution has been identified, you can move on to the Implementation Stages. This
involves the implementation of the solution generated at the previous stage together with the
establishment of indicators to monitor the effectiveness of the solution.
Education, Training and Communication
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Implementation Planning
BRAINSTORMING
Brainstorming is a technique that encourages creative thinking and the generation of ideas.
When to use it
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Affinity Diagram
Allow individuals to Brainstorm onto Cards or Post-it Notes (one idea per card), stick all the ideas
on a wall, then arrange them into groups of similar ideas.
1. Checksheets
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– To collect and analyze data at a fixed place, usually by the same person.
– To record the probability and pattern of events, defects or similar issues.
– To keep track of steps of an established procedure in a production process.
2. Histogram
• Graphical representation of the distribution of numerical data
• Values are assigned “bins or intervals” and frequency of each bin is plotted.
Applications:
To represent numerical data.
To see the shape of the distribution of data.
To see the change in process for different periods of time.
To provide an easy and efficient way of sharing data.
To check the frequency of occurrences between different ranges.
3. Cause and Effect Analysis/Fish- Bone Diagram
It is a cause analysis tool which is used to identify all possible causes leading to an event or a
problem. It is also useful for sorting all ideas into categories. Alternate Names to this approach
are known as Ishikawa diagram and cause-and-effect diagrams.
• Man
• Materials
• Machine
• Methods
• Measurements
• Environment/Mother nature
Applications:
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• For collective brainstorming about resolving the problem with the team.
4. Pareto Charts
It is fundamentally a bar chart. The chart was named after the Pareto principle (80/20
rule). As the principle suggests Pareto charts are used to observe the factors which carry
the highest weight
Applications:
When using the 80/20 rule to analyze the most important causes of a process or event(s).
5. Control Charts
A control chart is a statistical tool for monitoring the behaviour of the processes with
respect to time against the controls dictated by the process itself. The control charts were
introduced by Walter A. Shewhart, who was working for Bell Labs, in order to control
the quality of their transmission systems
Purpose: to monitor process output to see if it is random (in control) or not (out of control).
A time ordered plot representative sample statistic obtained from an ongoing process (e.g.
sample means).
Upper and lower control limits define the range of acceptable variation Applications:
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Control Charts
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• Control charts for attributes are used to monitor characteristics that have discrete values
and can be counted, e.g. defective, number of flaws in a shirt, number of broken eggs in a
box, etc.
• Control charts for variables are used to monitor characteristics that can be measured,
e.g. length, weight, diameter, time, etc.
– X-bar charts
– R charts
• If the sample variability is not in statistical control, then the entire process is judged to be not
in statistical control regardless of what the X bar chart indicates.
1.Find the mean of each subgroup and the grand mean of all subgroups.
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• The control limits of the mean chart is calculated as follows: (first approach)
Where:
3 is recommended)
x
= standard deviation of the sampling distribution of the mean
x
= average of sample means
Example
A quality inspector took five samples, each with four observations of the length of time for glue
to dry. The analyst computed the mean of each sample and then computed the grand mean. All
values are in minutes. Use this information to obtain three-sigma (i.e., z = 3) control limits for the
means of future time. It is known from previous experience that the standard deviation of the
process is 0.02 minute.
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Solution
n=4z=
= 0.02
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Mean Chart
UCL=x+A2R LCL=x−A2R
Where:
This approach is recommended when the process standard deviation is not known
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Example
Twenty samples of n = 8 have been taken from a cleaning operations. The average sample range
for the 20 samples was 0.016 minute, and the average mean was 3 minutes. Determine three-sigma
control limits for this process. Solution
x
= 3 min. , R = 0.016, A2 = 0.37 for n = 8
UCL=x+A2R= 3+ 0.37(0.016) = 3.006
• The R-charts are used to monitor process dispersion; they are sensitive to changes in process
dispersion. Although the underlying sampling distribution of the range is not normal, the
concept for use of range charts are much the same as those for use of mean chart.
• Control limits:
UCL=D4R
LCL=D3R
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R-chart
• Example
Twenty-five samples of n = 10 observations have been taken from a milling process. The average
sample range was 0.01 centimeter. Determine upper and lower control limits for sample ranges.
• Solution
R = 0.01 cm, n = 10
• Mean control charts and range control charts provide different perspectives on a process.
• The mean charts are sensitive to shifts in process mean, whereas range charts are sensitive to
changes in process dispersion.
• Because of this difference in perspective, both types of charts might be used to monitor the
same process.
• Control charts for attributes are used when the process characteristic is counted rather than
measured. Two types are available:
• C-Chart - Control chart used to monitor the number of defects per unit
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Use of p-Charts
– Good or bad
– Pass or fail
• The theoretical basis for the P-chart is the binomial distribution, although for large sample
sizes, the normal distribution provides a good approximation to it.
• A P-chart is constructed and used in much the same way as a mean chart.
• The center line on a P-chart is the average fraction defective in the population, P.
p(1−p)
p= n
replaces p.
P-Chart Example
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Solution
p= = 0.11
^
p(1−p) 0.11(1− 0.11)
p = = = 0.03 n 100
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Use of c-Charts
Use only when the number of occurrences per unit of measure can be counted; non-occurrences
cannot be counted.
• Use of Poisson distribution assumes that defects occur over some continuous region and that
the probability of more than one defect at any particular point is negligible.
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c
• The mean number of defects per unit is c and the standard deviation is:
UCL =c+z c
LCL =c−z c
c
If the value of c is unknown, as is generally the case, the sample estimate, , is used in place of c.
where:
c
= Number of defects ÷ Number of samples
C- Chart Example
Rolls of coiled wire are monitored using c-chart. Eighteen rolls have been examined, and the
number of defects per roll has been recorded in the following table. Is the process in control? Plot
the values on a control chart using three standard deviation control limits.
Solution
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When the computed lower control limit is negative, the effective lower limit is zero. The calculation
sometimes produces a negative lower limit due to the use of normal distribution as an
approximation to the Poisson distribution.
6. Scatter Diagram
It is commonly recognized as the most powerful analysis tool. It is a plot to show the
relationship between “paired data”. The data is plotted in the form of points with the horizontal
and vertical axis determining the value.
Applications:
After using an Ishikawa diagram to better analyze data and determining whether a particular
cause and effect are related.
The line of best fit is the line that comes closest to all the points on a scatter plot.
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7. Flow Charts
Process Flowcharts are used to show the steps in a process. These include the inputs and outputs
as well as the intermediate steps and decision points.
A process is a series of activities that converts an input to an output, by doing work. Process
Flowcharts create a common understanding of the steps involved in carrying out any process.
They can be used to highlight opportunities to streamline a process, making it both more
effective and more efficient.
Applications:
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• Are there control points to prevent errors or rejects? Should there be?
Learning Objectives:
Specifications limits and tolerance limits are often used interchangeably and are defined as the
acceptable bounds on quality characteristics.
Specification Limits - more appropriate for categorizing materials, products, or services in terms of
their stated requirements. Specification limits are determined by the needs of the customer
Tolerance Limit
Can be two-sided (with upper and lower limits) or one-sided with either upper or lower limits
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A lower tolerance limit defines the lower conformance boundary for an individual unit of
manufacturing or service operation; an upper tolerance limit defines the upper conformance
boundary.
Specification Limit
These limits are placed on a product characteristic by designers and engineers to ensure adequate
functioning of the product.
• The determination of process capability begins only after the process has been brought to a
state of statistical control.
• A process is said to be in statistical control when the only sources of variation in the system
are common causes
Process Capability
• A common measure of process capability is given by 6σ, which is also called the process
spread
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• Involves estimating the process mean and standard deviation of the quality characteristic.
• Additionally, the form of the relative frequency distribution of the characteristic of interest is
estimated. If specification limits are known, a process capability analysis will also estimate
the proportion of nonconforming product
1. Uniformity of output
2. Maintained or improved quality
• Natural tolerance limits, also known as process capability limits, are established or influenced
by the process itself.
• They represent the inherent variation in the quality characteristic of the individual items
produced by a process in control.
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• They are estimated based on the population of values or, more typically, from large
representative samples
The diameter of a part has to fit an assembly. The specifications for the diameter are 5 ± 0.015 cm.
The samples taken from the process in control yield a sample mean X of 4.99 cm and a sample
standard deviation * of 0.004 cm. Find the natural tolerance limits of the process. Would you
consider adjusting the process center?
Solution: The upper and lower natural tolerance limits based on the sample estimates are
found using eq
• Assuming a normal distribution of diameters, the process spread is (6)(0.004) = 0.024 cm,
which is the difference between the natural tolerance limits
• For the current process, we would expect the diameters to lie between 5.002 and 4.978 cm
If the process were left in its original state, some proportion of the parts would fall
below the lower specification limit of 4.985 cm.
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Thus, it would be desirable to adjust the process center to the target value of 5 cm. If this is
done, since the process spread is 0.024 cm and the difference between the specification limits
is 0.03 cm, virtually all parts would fall between the specification limits, and we would have
a capable process.
• Technically, there might not be any mathematical relationship between the process capability
limits (or the natural tolerance limits) and the specification limits. The former are determined
by the condition of the process and its inherent variability; the latter are influenced by the
needs of the customer.
SPECIFICATIONS AND PROCESS CAPABILITY
If the process spread is less than the difference between the specification limits, the process is quite
capable.
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If the distribution of the characteristic can be assumed to be normal and the process is in control,
virtually all (99.74%) of the items produced will be within specifications.
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An undesirable situation exists when the process spread is greater than the difference between the
specification limits.
The inherent variability in the process exceeds the specification spread even though the process is in
control.
• A process should first be analyzed to verify that it is in control before its capability is
estimated.
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• In this section we assume that the process output (i.e., the distribution of the quality
characteristic under consideration) is normal.
• The process capability index is an easily understood aggregate measure of the goodness of
the process performance.
• The ability to meet specifications is the criterion used for measuring the attractiveness of the
process.
• The capability indices we describe here are nondimensional, which makes them even more
versatile and appealing because they do not depend on the specific process parameter units
(Kane 1986).
• The indices incorporate the location and/or the variation in the process.
Process Capability Cp
• A common measure for describing the potential of a process to meet specifications is the Cp
• It relates the process spread (the difference between the natural tolerance limits) to
specification spread, assuming two-sided specification limits. It is given by
Cp
• It is desirable to have Cp ≥ 1
• Cp = 1, the process spread equals the specification spread, and the process is said to be barely
capable.
• If the process is centered, only 0.26% of the parts will fall outside the specification limits.
(demonstrated in case II)
• If the process is not centered, it is possible that even for a process with Cp > 1, some
proportion of the product will be nonconforming.
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• However, when Cp > 1, there is some flexibility; that is, the process can go out of control yet
still produce conforming items (case 1)
Cp Index
• If Cp < 1, it implies that the inherent variability in the process, as measured by the process
spread 6σ, is greater than the specification spread.
• For this situation, a process can be in control and still not meet specifications, as described in
case III
• Other capability indices, such as CPU, CPL, Cpk, Cpm, and Cpmk, measure process
performance.
It is desirable to have CPU ≥ 1. Note that the denominator is half the process spread.
• If only lower specification limit is given, the lower capability index (CPL, or Cp lower) is
given by
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Companies desiring a goal of a "six sigma process" are aiming for a Cp-value of 2
Example
In a GE insurance claims process, x = 210.0 minutes, and s = .516 minutes. The design specification
to meet customer expectations is 210 ±3 minutes. So the Upper Specification is 213 minutes and
the lower specification is 207 minutes. The OM manager wants to compute the process capability
ratio.
Because a ratio of 1.00 means that 99.74% of a process’s outputs are within specifications, this ratio
suggests a very capable process.
Cpk Index
• The location of the process mean is another parameter that affects process capability.
Although the Cp index does not incorporate the process location, other indices do.
• One index that accounts for this location, the Cpk index, is used when the process mean is
not at the target value, which is assumed to be halfway between the specification limits. The
Cpk index is given by
• Whereas the Cp index represents the process potential, the Cpk-value represents the actual
capability of the process with the existing parameter values; it measures process performance.
• It measures the difference between the desired and actual dimensions of goods or services
produced.
• When the Cpk index for both the upper and lower specification limits equals 1.0, the process
variation is centered and the process is capable of producing within {3 standard deviations
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• A C pk of 2.0 means the process is capable of producing fewer than 3.4 defects per million.
Example:
You are the process improvement manager and have developed a new machine to cut insoles for
the company’s top-of-the-line running shoes. You are excited because the company’s goal is no
more than 3.4 defects per million, and this machine may be the innovation you need. The insoles
cannot be more than {.001 of an inch from the required thickness of .250 ″ . You want to know if
you should replace the existing machine, which has a Cpk of 1.0.
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Process Performance: Pp
- Use sample sigma for calculation Pp = (USL – LSL) / 6* s where s the standard
Ppk is another performance index that measures how close the current process mean’s proximity is
to the specification limits. In other words, does this process deliver acceptable results?
Process Performance Index basically tries to verify if the sample that you have generated from the
process is capable to meet Customer CTQs (requirements).
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Cp and Cpk are for computing the index with respect to the subgrouping of your data (different shifts,
machines, operators, etc.), while Pp and Ppk are for the whole process (no subgrouping).
Pp and Ppk
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Use an estimate for sigma that takes into account all or total process variation including special
causes (should they exist) and this estimate of sigma is the sample standard deviation, s, applies
to most all situations.
Example:
Food kept at a restaurant should be between 38°C and 49°C . The process used to keep the food
at the same temperature has a process standard deviation of 2°C. What is the process
performance of the process?
= 0.917
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Learning Objectives:
Acceptance Sampling
The third branch of SQC refers to the process of randomly inspecting a certain number of items from
a lot or batch in order to decide whether to accept or reject the entire batch
Acceptance sampling is performed either before or after the process rather than during
– Sampling after involves sampling finished items before shipment or finished components prior to
assembly
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A graph that describes how well an acceptance plan discriminates between good and bad lots.
A curve pertains to a specific plan—that is, to a combination of n (sample size) and c (acceptance
level).
It is intended to show the probability that the plan will accept lots of various quality levels.
With acceptance sampling, two parties are usually involved: the producer of the product and the
consumer of the product.
Producer usually has the responsibility of replacing all defects in the rejected lot or of paying for
a new lot to be shipped to the customer.
Producer’s risk -- The mistake of having a producer’s good lot rejected through sampling.
Consumer’s risk -- The mistake of a customer’s acceptance of a bad lot overlooked through
sampling.
Acceptable quality level (AQL) The quality level of a lot considered good.
Lot tolerance percentage defective (LTPD) The quality level of a lot considered bad.
To derive a sampling plan, producer and consumer must define not only “good lots” and “bad lots”
through the AQL and LTPD, but they must also specify risk levels
Producer’s risk ( ) is the probability that a “good” lot will be rejected. This is the risk that a random
sample might result in a much higher proportion of defects than the population of all items. A lot
with an acceptable quality level of AQL still has an a chance of being rejected. Sampling plans are
often designed to have the producer’s risk set at = .05, or 5%.
Consumer’s risk ( β ) is the probability that a “bad” lot will be accepted. This is the risk that a
random sample may result in a lower proportion of defects than the overall population of items. A
common value for consumer’s risk in sampling plans is β = .10, or 10%
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For example, you sample 52 pens from a shipment of 5000. If the actual % defective is 1.5%, you
have a 0.957 probability of accepting this lot based on the sample and a 0.043 probability of
rejecting it. If the actual % defective is 10%, you have a 0.097 probability of accepting this lot
and a 0.903 probability of rejecting it.
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• Producer’s risk (β) is the chance a lot containing an acceptable quality level will be rejected;
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• Consumer’s Risk (α) is the chance of accepting a lot that contains a greater number of defects
than the LTPD limit
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Developing OC Curves
• OC curves graphically depict the discrimina ting power of a sampling plan
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• Cumulative binomial tables like partial table below are used to obtain probabilities of
accepting a lot given varying levels of lot defectives
• Top of the table shows value of p (proportion of defective items in lot), Left hand column
shows values of n (sample size) and x represents the cumulative number of defects found.
In most sampling plans, when a lot is rejected, the entire lot is inspected, and all defective items
replaced. Use of this replacement technique improves the average outgoing quality in terms of
percent defective. In fact, given (1) any sampling plan that replaces all defective items encountered
and (2) the true incoming percent defective for the lot, it is possible to determine the average
outgoing quality (AOQ) in percentage defective. The equation for AOQ is:
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The maximum value of AOQ corresponds to the highest average percentage defective or the lowest
average quality for the sampling plan. It is called the average outgoing quality limit (AOQL).
• Where to inspect?
– Inbound materials
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The Application of Statistical Process Control Techniques Contributes to the Identification and
Systematic Reduction of Process Variability
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