Master Supply Chain Management

SC592E: QUALITY CONTROL

MANAGEMENT

Pr. Siham BIDDI

COURSE DESCRIPTION

This course provides a comprehensive view on modern

quality control and improvements methods and their
implementation in a real business context. The course covers
the subject from basic principles to state-of-the-art concepts
and applications. The objective is to give students a global
understanding of the of the principles and the basis for
applying them in a variety of situations
COURSE OBJECTIVES

 Understanding the fundamental concepts of quality

control and improvement as well as its philosophy;
 Describe in detail the DMAIC process and its steps;
 Demonstrate the ability to use statistical process control
methods;
 Demonstrate the ability to design, use and interpret control
charts for variables and attributes;
 Perform process capability and measurement system
capability analysis;
COURSE OBJECTIVES

 Design and interpret exponentially weighted moving

average control charts;
 Understand the importance of quality control in the supply
chain;
 Providing the necessary knowledge and techniques to
manage quality in a supply chain;
 Apply the accumulated knowledge from statistics courses
on real operations management issues;
 Acquiring the professional foundations of quantitative
methods in the field of operations and supply chain
management.
 REQUIRED TEXTBOOK AND RESOURCES
Title: Introduction to Statistical
Quality Control, 7th edition, Wiley
& Sons
Author(s): Douglas C.
Montgomery
ISBN: 978-0-470-16992-6

TEACHING METHODS
The course material is based on the material provided
with the reference book presented above. Course slides
will be provided. Practice examples will be taken from
each chapter of the book. Students are expected to pre-
read the chapter before coming to class in order to have a
stimulating discussion during the session.
 GRADING CRITERIA

 Continuous evaluation 50 %
 Mid-term exam 40 %
 Attendance and Participation 10 %

 Final exam 50 %
 Total 100 %
COURSE CONTENT
Part I: Introduction

Chapter 1: Quality improvement in the modern business environment

Chapter 2: The DMAIC process

 Part II: Statistical Methods Useful in Quality Control and
Improvement
Chapter 4: Inferences about process quality
 Part III: Basic Methods of Statistical Process Control and
Capability Analysis
Chapter 5: Methods and philosophy of SPC

Chapter 6: Control charts for variables

Chapter 7: Control charts for attributes

Chapter 8: Process and measurement system capability analysis

COURSE CONTENT

 Part IV: Other Statistical Process-Monitoring and Control

Chapter 9: Cumulative sum and exponentially weighted moving average
control charts

 Part V: Process Design and Improvement with Designed

Experiments
Chapter 13: Factorial and fractional factorial experiments for process
design and improvement
 Chapter 1:

QUALITY IMPROVEMENT IN THE MODERN

BUSINESS ENVIRONMENT
Introduction

Managing, controlling and improving quality is becoming

a critical activity in modern business organizations. It’s is
directly linked to productivity, competitiveness, business
growth, customer satisfaction, elimination of waste, and
other non-value added activities. Defects and errors might
occur in every type of organization, not only in factories,
they occur also in transactional and service business such
as insurance companies, banks, and hospitals.
Quality is a competitive advantage to all Businesses,
since it affects consumer’s purchasing decisions,
company’s image and profits.

Quality = Conformance

Conformance is achieved by ensuring consistency in

the processes through Quality Control.
CH 1. Quality Improvement in the Modern Business
Environment

1.1 The meaning of quality and quality improvement

1.2 A brief history of quality control and improvement

1.3 Statistical methods for quality control and improvement

1.4 Management aspects of quality improvement

1.1 The Meaning of Quality and Quality Improvement

Quality can be defined in many ways

Traditionally definition of quality is based on the viewpoint

that:

“Products and services must meet the requirement of

those who use them”

“One or more characteristics that a product or

service should possess”.

Quality means fitness for use

1.1 The Meaning of Quality and Quality Improvement

 Understanding quality and its improvement leads to

business growth and enhanced competitive position 

Success

 Applying quality measures has become an integral part of

the successful business’s strategy

1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
Quality can be evaluated in many ways.

 David A. Garvin in his article in Harvard Business Review

has discussed quality in terms of eight dimensions:

 Performance  Aesthetics
 Reliability  Features
 Durability  Perceived Quality
 Serviceability  Conformance to
standards
Performance will the product do the intended job?

Reliability how often does the product fail or need repair?

Durability how long does the product last ( service life )?

Serviceability how easy it is to repair the product time-wise

and economically?

Aesthetics what does the product look like?

Features what does the product do (i.e added features)?

Perceived quality what is the reputation of the company or its

product?

Conformance to standard is the product made exactly as the designer

intended?
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
Operationalizing the dimensions of quality

Dimensions have to be operationalized into measures or

metrics that are measurable.

Take an example of a Car:

 Performance
 Acceleration, handling, mileage
 quiet car engine for a rally car ???

 Features
 Larger number of options (ie. cruise control or climate control)
 Automatic light
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
 Reliability
 Mean time between failures or emptying
 Conformance
 To the international safety standards ( airbags, shatter resistant glass, anti-
lock brakes, stability control, and more)
 Durability
 Estimated time to obsolescence (new designs)
 Expected life of major components (light, …)

 Serviceability
 Availability of authorized repairing centers
 how quickly/easily it can be repaired
 Availability of spare parts in the market
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
 Aesthetics
 quiet car engine
 the style of the lights

 Perceived quality
 Brand name recognition (German cars vs French cars ….)
 Ratings in yearly consumer report
 Ratings in magazines ( ie. Car of the year)
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
 Aesthetics
 quiet car engine
 the style of the lights

 Perceived quality
 Brand name recognition (German cars vs French cars ….)
 Ratings in yearly consumer report
 Ratings in magazines ( ie. Car of the year)
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality
 Example:

 Comparing the quality between brand A & B using the 8

dimensions:
Dimensions Weight
1. Performance 30 %
2. Reliability 15 %
3. Durability 15 %
4. Serviceability 10 %
5. Aesthetics 5 %
6. Features 5 %
7. Perceived Quality 10 %
8. Conformance to Standards 10 %
TOTAL 100%
 BRAND A BRAND B

Dimensions Weight Score WTD Score Score WTD Score

Performance 30% 8 2,40 7 2,10

Reliability 15% 5 0,75 6 0,90

Durability 15% 9 1,35 8 1,20

Serviceability 10% 6 0,60 9 0,90

Aesthetics 5% 7 0,35 9 0,45

Features 5% 8 0,4 2 0,10

Perceived 10% 9 0,90 6 0,60

quality
C. to the 10% 8 0,80 7 0,70
standards
Total 100% 7,55 6,95
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality

CONCLUSION

Brand A is determined to be superior than Brand B

1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality

Conclusion: quality is indeed a multifaceted entity.

Consequently, a simple answer to questions such as
“What is quality?” or “What is quality improvement?” is
not easy.
The traditional definition of quality is based on the
viewpoint that products and services must meet the
requirements of those who use them “Fitness for use”
with two general aspects:
 quality of design

 quality of conformance
1.1 The Meaning of Quality and Quality Improvement
1-1.1 Dimensions of Quality

However, we prefer the modern definition of :

Quality is inversely proportional to variability.

 Quality Improvement

Quality improvement is the reduction of variability in

processes and products.

Alternatively, quality improvement is also seen as

“waste reduction”.
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology

Every product possesses a number of elements that

describes its quality. These parameters are known as
quality characteristics, also known as CTQ( critical to
quality characteristics)

The different types of quality characteristics are

 Physical: length, weight, volume

 Sensory: taste, color, appearance

 Time orientation: reliability, durability, serviceablity

1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology
 Quality engineering: operational, manufacturing, and
engineering activities companies use to ensure that the
required or nominal values of quality characteristics
are achieved and variability is at minimum

 Variability: differences in quality characteristics from

unit to unit of the product
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology

Statistical methods are used to control variability and

data is categorized in variables and attributes.

 Attributes Data - discrete data, often in the form of

counts.

 Variables Data - continuous measurements such as

length, weight.
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology

Quality characteristics being measured are often

compared to standards or specifications

Example:

For a product, specifications are desired measurements

for quality characteristics on components and
subassemblies that make up the product as well as the
desired values of the quality characteristics in the final
product.
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology
For services- maximum amount of time to process an
order or to provide a particular service

A value of a measurement that corresponds to the desired

value for that quality characteristic is called the nominal or
target value for that characteristic.

 Lower specification limit: the smallest allowable

value for a quality characteristic

 Upper specification limit: The largest allowable

value for a quality characteristic
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology

When a component or product does not meet

specifications, they are considered to be nonconforming.

A nonconforming product is considered defective if it has

one or more defects.

Defects are nonconformities that may seriously affect the

safe or effective use of the product.
1.1 The Meaning of Quality and Quality Improvement
1-1.2 Quality Engineering Terminology

Concurrent Engineering
Team approach to design. Specialists from
manufacturing, quality engineering, management, etc.
work together for product or process improvement at the
earliest stages of the product design process.
1-2. A Brief History of Quality
Control and Improvement
(Refer to Table 1-1)
 Walter Shewhart (1924) introduced statistical
control chart concepts.
 The American Society for Quality Control
formed in 1946 (now known as the American
Society for Quality (ASQ)).
 1950s and 1960s saw an increase in reliability
engineering, experimental design, and
statistical quality control
1-2. A Brief History of Quality
Control and Improvement
(Refer to Table 1-1)
 Competition from foreign industries (Japan)
increases during the 1970s and 1980s.
 Statistical methods for quality improvement
use increases in the United States during the
1980s
 Total Quality Management (TQM) emerges
during 1970s and into the 1980s as an important
management tool to implement statistical
methods. Introduction
Edition
to Statistical Quality Control, 4th
1-2. A Brief History of Quality
Control and Improvement

 Malcolm Baldridge National Quality Award is

established in 1988.
 ISO 9000 certification activities increase in U.S.
industry in the 1990s.
 Motorola’s Six-Sigma initiative begins in the
1990s.
1.3 STATISTICAL METHODS FOR QUALITY
CONTROL AND IMPROVEMENT

Three major areas:

 Statistical process control (SPC)

 Design of experiments (DOX)
 Acceptance sampling
1-3. Statistical Methods for Quality
Control and Improvement
Statistical Process
Control (SPC)

 Control charts are used

for process monitoring
and variability
reduction.

 SPC is an on-line
quality control tool.
1-3. Statistical Methods for Quality
Control and Improvement
Design of Experiments

 Experimental design is an approach to

systematically varying the controllable input
factors in the process and determine the effect
these factors have on the output responses.

 Experimental designs are off-line quality tools.

 Crucial for variability reduction.

1-3. Statistical Methods for Quality
Control and Improvement
Acceptance Sampling
 Acceptance sampling is the inspection and
classification of a sample of the product
selected at random from a larger batch or lot
and the ultimate decision about disposition of
the lot.
 Two types:
1. Outgoing inspection - follows production
2. Incoming inspection - before use in
production
1-4. MANAGEMENT ASPECTS OF QUALITY
IMPROVEMENT

Effective management of quality requires the

execution of three activities:

1. Quality planning: identifying customers and

their needs, planning to make products which
exceeds customer expectations, planning for
quality improvement
1-4. MANAGEMENT ASPECTS OF QUALITY
IMPROVEMENT
2. Quality assurance: set of activities which
ensure the maintenance of quality levels of
product and services.

3. Quality control and improvement: set of

activities used to ensure that the products and
services meet the requirements and are
improved on the continuous basis.
1-4. MANAGEMENT ASPECTS OF QUALITY
IMPROVEMENT

1.4.1 Quality Philosophy and Management Strategies

1.4.2 The Link Between Quality and Productivity

1.4.3 Supply Chain Quality Management
1.4.4 Quality Costs
1.4.5 Legal Aspects of Quality
1.4.6 Implementing Quality Improvement
1-4.1 Quality Philosophy and Management
Strategies
Three Important Leaders
 W. Edwards Deming
- Emphasis on statistical methods in quality
improvement (see Deming’s 14 points)
 Joseph Juran
- Emphasis on managerial role in quality
implementation
 Armand V. Feigenbaum
- Emphasis on organizational structure
1-4.1 Quality Philosophy and Management Strategies

 Total Quality Management (TQM)

 Quality Standards and Registration

 ISO 9000

 Six Sigma

 Just-In-Time, Lean Manufacturing, Poka-Yoke,

etc.
1-4.1 Quality Philosophy and Management Strategies
PDCA
 Japanese adopted
many aspects of
Deming’s
management
philosophy

 Deming stressed
“continual never-
ending
improvement”

Shewhart cycle
1-4.1 Quality Philosophy and Management Strategies

• Focus on bringing about improvements in product

and service quality by reducing uncertainty and
variability in goods and services design and
associated processes (the beginning of his ideas in
1920s and 1930s).

• Higher quality leads to higher productivity and

lower costs.

• “14 Points” management philosophy.

• Deming Cycle – Plan, Do, Study, and Act.

Deming’s 14 Points
1. Create a vision and demonstrate commitment . No short term
thinking.

2. Adopt a new philosophy, recognize that we are in a time of change, a

new economic age

3. Understand Inspection: focus on process improvement not

inspection

4. Stop Making Decisions Purely on the Basis of Cost

5. Improve constantly and forever the system of production and

service

6. Institute training for all employees.

Deming’s 14 Points
7. Improve leadership, recognize that the aim of supervision is help
people and equipment to do a better job

8. Drive out fear to ask questions, report problems etc

9. Break down barriers between departments

10. Eliminate slogans and targets for the workforce such as zero defects

11. Eliminate 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

 Deming’s Deadly Diseases of management
1. Lack of constancy of purpose and improvement

2. Emphasis on short-term profits

3. Performance evaluation, merit rating, annual reviews

results in short term performances

4. Mobility of management or job hopping. Thinking

about careers rather than current job

5. Running a company on visible figures alone

6. Excessive medical costs for employee health care

7. Excessive costs of warrantees

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

 These three processes are interrelated

 Control versus breakthrough
 Project-by-project improvement
The Juran Trilogy
Joseph Juran was a quality pioneer whose activities
paralleled that of Deming.

Unlike Deming who emphasizes statistics and the role of

management, Juran’s strengths are in the
implementation and organization for change.

He describes his steps for solving quality problems as a

“breakthrough sequence” which are summarized below:
The Juran Trilogy
Juran’s breakthrough sequence is more of a problem-
solving technique than it is a list of management
objectives. From a management viewpoint, Juran (like
Deming) subscribes to the view that the majority of
quality problems can only be fixed by management and
not by the workforce.

He describes his steps for solving quality problems as a

“breakthrough sequence” which are summarized below:
The Juran Trilogy
1. Establish the existence of a problem.

2. Pare down the list of possible projects to the ‘vital

few’ whose solution will provide the greatest impact.

3. Organize for change

4. Collect and analyze the data.

The Juran Trilogy
5. Ascertain the effect (on people as well as on
processes) of proposed changes and try to limit
resistance to these changes.

6. Make the changes.

7. Put controls in place to maintain the improvements

Total Quality Management
(TQM)
A strategy for implementing and managing quality
improvement activities on an organization wide basis
involving participative organizations, work culture,
customer focus, supplier quality improvement,
integration of the quality system with business goals,
and many other activities to focus all elements of the
organization around the quality improvement goal
Six Sigma
A business improvement approach that seeks to find
and eliminate causes of defects and errors in
manufacturing and service processes by focusing on
outputs that are critical to customers and results in a
clear financial return for the organization.

Used by companies including Motorola, Allied

Signal, Texas Instruments, and General Electric.
Six Sigma
Defects are any mistakes or errors that are passed on to
the customer (many also use the term nonconformance).

Defects per unit (DPU)=Number of defects discovered

Number of units processed
Six Sigma

The Six Sigma concept characterizes quality

performance by defects per million opportunities
(dpmo), computed as DPU  1,000,000 opportunities
for error (or, as is often used in services, errors per
million opportunities – epmo).
Six Sigma
Example:
A DPU measure might be lost bags per customer.
However, customers may have different numbers of bags;
thus the number of opportunities for error is the average
number of bags per customer.
If the average number of bags per customer is 1.6, and the
airline recorded 3 lost bags for 8,000 passengers in one
month
Calculate DPU & EPMO
Six Sigma
Example:

Defects per unit (DPU)=Number of defects discovered

Number of units processed

epmo = (3/8,000 DPU)  1,000,000/1.6 = 234,375

Quality Systems and Standards

Set of international standards on quality management and

Quality assurance, critical to international Business
ISO 9000 series standards, briefly, require firms to
document their quality-control systems at every step
(incoming raw materials, product design, in- process
monitoring and so forth) so that they’ll be able to identify
those areas that are causing quality problems and correct
them.
Quality Systems and Standards
ISO 9000 requires companies to document everything
they do that affects the quality of goods and services.
– Hierarchical approach to documentation of the
Quality Management System
Quality Systems and Standards
WHY ?

They promote trade and cooperation

Product standards allow consumers to purchase items
from different manufacturers and know those items will
perform equally

Management system standards promote common

approaches to managing quality and the environment.
They promote dependability and a consistent use of
statistics
ISO 9000 Consensus Process
1-4.2 The Link Between Quality and Productivity

 Effective quality improvement can be

instrumental in increasing productivity and
reducing cost.

 The cost of achieving quality improvements and

increased productivity is often negligible.
1-4.3 Supply Chain Quality Management

Most companies and business organizations rely on

suppliers to provide at least some of the materials and
components used in their products.

This requires collaboration between buyers and

suppliers
1-4.3 Supply Chain Quality Management

SCM consists of three major activities:

 Supplier qualification
or certification
 Supplier development.

 Supplier audit
1-4.4 Quality Costs
Quality Costs are those categories of costs that
are associated with producing, identifying,
avoiding, or repairing products that do not meet
requirements. These costs are:
 Prevention Costs

 Appraisal Costs

 Internal Failure Costs

 External Failure Costs

 1-4.4 Quality Costs
 Appraisal costs- costs associated with measuring,
evaluating, or auditing products, components, and
purchased items to ensure conformance to
standards.

 Internal failure costs- incurred when products,

components, materials, and services fail to meet
quality requirements, and this failure is discovered
prior to delivery.

 External failure costs- when the product does not

perform satisfactorily after it is delivered to the
customer.
1-4.5 Legal Aspects of Quality
The re-emergence of quality assurance as an
important business strategy is in part a result of:
 Consumerism

 Product Liability
1-4.6 Implementing Quality Improvement

 Strategic Management of Quality

 Almost all successful efforts have been
management-driven.
 Too much emphasis on registration and
certification programs (ISO, QS)
 Involving the three components : quality
planning, quality assurance, and quality control
and improvement.
THANK YOUR FOR YOUR
ATTENTION