CHAPTER 9.

Management of Quality
9.1 INTRODUCTION
Quality- The ability of a product or service to
consistently meet or exceed customer
expectations.
9.2 THE EVOLUTION OF QUALITY
MANAGEMENT
Pre-Industrial Revolution
- skilled craftsmen performed all stages of
production.
- presence of pride of workmanship and
reputation
- one person or a small group of people were
responsible for an entire product.
Industrial Revolution
- Division of labor
- Pride of workmanship became less
meaningful
- Quality responsibility shifted to foremen;
inspection varied.
Contributions to Quality:
Frederick Winslow Taylor
- Father of Scientific Management
- emphasized quality by including product
inspection and gauging in his list of
fundamental areas of manufacturing
management.
G. S. Radford
- improved Taylor’s methods.
- Two of his most significant contributions
were the notions of involving quality
considerations early in the product
design stage and making connections
among high quality, increased
productivity, and lower costs.
Statistical Control Emergence:
1924: Bell Telephone Laboratories introduced
statistical control charts.
Around 1930: H. F. Dodge and H. G. Romig
introduced sampling tables.
WWII: U.S. government mandated statistical quality
control for vendors, increasing its usage.
QUALITY EVOLUTION:
1950s: quality movement evolved quality
assurance expanded focus to product design and
raw materials with greater upper management
involvement.
1960s: "Zero defects" concept promoted
perfection and employee motivation.
1970s: Quality assurance extended to service
industries.
1970s Global Impact: OPEC oil embargo led to
Japanese auto market dominance due to fuel
efficiency and improved quality.
9.3 THE FOUNDATIONS OF MODERN QUALITY
MANAGEMENT: THE GURUS
A summary of key contributors to quality
management
Walter Shewhart.
- father of statistical quality control.
- developed control charts for analyzing the
output of processes to determine when
corrective action was necessary
- had a strong influence on the thinking of two
other gurus, W. Edwards Deming and
Joseph Juran.
W. Edwards Deming.
- statistics professor at New York University in
the 1940s
- established the Deming Prize, which is
awarded annually to firms that distinguish
themselves with quality management
programs and to individuals who lead such
efforts.
- Deming compiled a famous list of 14
management points he believed were the
prescription needed to achieve quality in an
organization
- His message was that the cause of
inefficiency and poor quality is the
system, not the employees.
- stressed the need to reduce variation in
output, which can be accomplished by
distinguishing between special causes of
variation and common causes of variation.
- concept of profound knowledge
incorporates the beliefs and values about
learning that guided Japan’s rise to a world
economic power.
Demings 14 points
1. Create constancy of purpose for improving
products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve
quality.
4. End the practice of awarding business on
price alone; instead, minimize total cost by
working with a single supplier.
5. Improve constantly and forever every process

for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets
for the workforce.
11. Eliminate numerical quotas for the workforce
and numerical goals for management.
12. Remove barriers that rob people of pride of
workmanship, and eliminate the annual rating or
merit system.
13. Institute a vigorous program of education
and self-improvement for everyone.
14. Put everybody in the company to work
accomplishing the transformation.
Joseph M. Juran.
- taught Japanese manufacturers how to
improve the quality of their goods,
- viewed quality as fitness-for-use.
- believed that roughly 80 percent of quality
defects are management controllable.
- According to Juran, quality planning is
necessary to establish processes that are
capable of meeting quality standards;
quality control is necessary in order to
know when corrective action is needed; and
quality improvement will help to find better
ways of doing things.
- A key element of Juran’s philosophy is the
commitment of management to continual
improvement.
- credited as one of the first to measure the
cost of quality
Armand Feigenbaum.
- instrumental in advancing the “cost of
nonconformance” approach as a reason
for management to commit to quality.
- recognized that quality was not simply a
collection of tools and techniques, but a
“total field.”
- it is the customer who defines quality.
Philip B. Crosby.
- developed the concept of zero defects
and popularized the phrase “Do it right the
first time.”
- stressed prevention
- presented in his book, Quality Is Free, is
that the costs of poor quality are much
greater than traditionally defined.
- believes that any level of defects is too
high and that achieving quality can be
relatively easy, as explained in his book
Quality Without Tears: The Art of
Hassle-Free Management.
Kaoru Ishikawa.
- Among his key contributions were the
development of the cause-and-effect
diagram (also known as a fishbone
diagram) for problem solving and the
implementation of quality circle
- was the first quality expert to call attention
to the internal customer—the next person
in the process, the next operation, within the
organization.
Genichi Taguchi.
- best known for the Taguchi loss function,
which involves a formula for determining the
cost of poor quality.
- important part of his philosophy is the cost
to society of poor quality.
Taiichi Ohno and Shigeo Shingo.
- both developed the philosophy and methods
of kaizen, a Japanese term for continuous
improvement (defined more fully later in this
chapter), at Toyota. Continuous
improvement is one of the hallmarks of
successful quality management.
9.4 INSIGHTS ON QUALITY MANAGEMENT
Successful management of quality requires that
managers have insights on various aspects of
quality. These include defining quality in
operational terms, understanding the costs and
benefits of quality, recognizing the
consequences of poor quality, and recognizing
the need for ethical behavior.
Defining Quality: The Dimensions of Quality
- degree to which performance of a product
or service meets or exceeds customer
expectations.
The difference between these two, that is
Performance– Expectations:
● zero, and expectations have been met.
● negative, expectations have not been met
● positive, performance has exceeded
customer expectations.
Product Quality.
- is often judged on nine dimensions of
quality:

Examples of product quality for a car
Service Quality.
- often described using the following
dimensions:
Examples of service quality dimensions for
having a car repaired
Assessing Service Quality
SERVQUAL
● an instrument designed to obtain feedback
on an organization’s ability to provide quality
service to customers
● focuses on tangibles, reliability,
responsiveness, assurance, and empathy.
● helps identify service strengths and
weaknesses, especially gaps between
expectations and perceptions.
The Determinants of Quality
● Quality of design - designers' intention to
include or exclude features
● Quality of conformance - degree to which
goods/services achieve design intent
● Ease of use - user instructions enable
proper use
● Service after delivery - actions to remedy
problems and satisfy customers
Responsibility for Quality
● Top management - establish strategies and
programs, guide and motivate
● Design - incorporate features to meet
customer wants and production capabilities
● Procurement - obtain materials and
services meeting quality standards
● Production/operations - processes yield
output meeting design specifications
● Quality assurance - gather and analyze
quality data, identify and correct root causes
● Packaging/shipping - prevent damage in
transit, include instructions
● Marketing/sales - determine customer
needs, communicate issues
● Customer service - communicate
problems, resolve issues, follow up
Benefits of Good Quality
Enhanced reputation, premium prices, increased
market share, greater loyalty, lower liability, higher
productivity, fewer complaints, lower costs, higher
profits
The Consequences of Poor Quality
Major areas affected by quality are:
● Loss of business
● Liability
● Productivity
● Costs
The Costs of Quality
Examples of the costs associated with quality
Appraisal costs - inspection, testing, audits to find
defects
Prevention costs - planning, training, procedures
to prevent defects
Internal failure costs - defects found before
delivery like scrap, rework
External failure costs - defects after delivery like
returns, loss of goodwill
Ethics and Quality Management
Ethical issues include:
● Substandard work - defective products
and substandard service, poor designs,
shoddy workmanship, and substandard
 parts and raw materials and failing to 9.6 QUALITY CERTIFICATION
report/correct known quality problems

9.5 QUALITY AND PERFORMANCE

EXCELLENCE AWARDS

1. The Baldridge Award

- Named after the late Malcolm Baldrige, an
industrialist and former secretary of
commerce
Baldrige Excellence Framework:
● Identifies and recognizes exemplary
organizations.
● Evaluates approaches in leadership,
strategy, customers, measurement,
workforce, operations, and results.
● Assesses continuous improvement and
outcomes in various aspects.
European Quality Award:
● Europe's foremost award for organizational
excellence.
● Sits atop regional and national quality
awards.
● Applicants often winners of previous
regional awards.

Deming Prize:
● Honors successful quality efforts, named
after W. Edwards Deming.
● Focuses on statistical quality control, senior
management involvement, employee
engagement, customer satisfaction, and
training.
● Recognizes companies worldwide, not
limited to Japan.

These prestigious awards like the Baldrige,

European Quality, and Deming Prize serve as
benchmarks for organizational excellence, fostering
continuous improvement, and recognizing entities
that demonstrate outstanding commitment to
quality management and customer satisfaction.
Each award has its distinct focus and criteria while
aiming to promote overall excellence in various
sectors globally.

ISO 9000: A set of international standards on

quality management and quality assurance, critical
to international business.

ISO 14000: A set of international standards for

assessing a company's environmental
performance.

ISO 24700: A set of international standards that

pertains to the quality and performance of office
equipment that contains reused components.
Eight quality management principles form the basis
of the latest version of ISO 9000:
● A customer focus
● Leadership
● Involvement of people
● A process approach
● A system approach to management
● Continual improvement
● Use of a factual approach to decision
making
● Mutually beneficial supplier relationships
The standards for ISO 14000 certification bear
upon three major areas:
● Management systems - systems
development and integration of
environmental responsibilities into business
planning
● Operations - consumption of natural
resources and energy
● Environmental systems - measuring,
assessing, and managing emissions,
effluents, and other waste streams
9.7 Quality and the Supply Chain
● Achievement of quality goals requires
measuring customer perceptions, identifying
problem areas, and correcting those
problems.
● When dealing with supplier quality in global
supply chains, there is a wide range in the
degree of sophistication concerning quality
assurance.
● The emphasis is on reducing outsourcing
risk, product/service variation and overhead.
● Supply chain quality management can
benefit from a collaborative relationship with
suppliers.
9.8 TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) refers to a
quest for quality in an organization.
There are three key philosophies in this approach:
1. Never-ending push to improve, which is
referred to as continuous improvement;
2. Involvement of everyone in the organization;
3. A goal of customer satisfaction, which
means meeting or exceeding customer
expectations.
We can describe the TQM approach as follows:
1. Find out what customers want
2. Design product/service to meet customer
needs
3. Design processes to facilitate doing job right
the first time
4. Keep track of results and use them to guide
improvement
5. Extend concepts throughout supply chain
6. Top management must be involved and
committed
A number of other elements of TQM are important:
● Continuous improvement
● Competitive benchmarking
● Employee empowerment
● Team approach
● Decisions based on facts
● Knowledge of tools
● Supplier quality
● Champion
● Quality at the source
● Suppliers as partners
Differences between cultures of a TQM
organization and a more traditional
organization.
Obstacles
● Lack of a companywide definition of quality
● Lack of a strategic plan for change
● Lack of a customer focus
● Poor intra organizational communication
● Lack of employee empowerment
● View of quality as a “quick fix”
● Emphasis on short-term financial results
● Inordinate presence of internal politics and
“turf” issues
● Lack of strong motivation
● Lack of time to devote to quality initiatives
● Lack of leadership
Criticisms of TQM
● Overzealous advocates may pursue TQM
programs blindly, focusing attention on
quality even though other priorities may be
more important
● Programs may not be linked to the
strategies of the organization in a
meaningful way
● Quality-related decisions may not be tied to
market performance
● Failure to carefully plan a program before
embarking on it can lead to false starts,
 employee confusion, and meaningless
results.
● Organizations sometimes pursue
continuous improvement when dramatic
improvement is needed.
● Quality efforts may not be tied to results.
Note that there is nothing inherently wrong with
TQM; the problem is how some individuals or
organizations misuse it.
9.9 PROBLEM SOLVING AND PROCESS
IMPROVEMENT
Problem solving - is one of the basic procedures
of TQM
Plan-do-study-act (PDSA) cycle
- also referred to as either the Shewhart
cycle or the Deming wheel, is the
conceptual basis for problem-solving
activities.
FOUR BASIC STEP IN THE CYCLE:
1. Plan. Begin by studying the current
process. Document that process, and then
collect data on the process or problem.
Next, analyze the data and develop a plan
for improvement. Specify measures for
evaluating the plan.
2. Do. Implement the plan, on a small scale if
possible. Document any changes made
during this phase. Collect data
systematically for evaluation.
3. Study. Evaluate the data collection during
the do phase. Check how closely the results
match the original goals of the plan phase.
4. Act. If the results are successful,
standardize the new method and
communicate the new method to all people
associated with the process. Implement
training for the new method. If the results
are unsuccessful, revise the plan and repeat
the process or cease this project
Process improvement
- is a systematic approach to improving a
process.
BASIC STEPS IN PROBLEM SOLVING:
Six Sigma
- Statistically it means having no more than
3.4 defects per million opportunities in any
process, product, or service.
- Conceptually, the term is much broader,
referring to a program designed to reduce
the occurrence of defects to achieve lower
costs and improved customer satisfaction.
- A business process for improving quality,
reducing costs, and increasing customer
satisfaction
Motorola
- pioneered the concept of a Six-Sigma
program in the 1980s and actually
trademarked the term.
Management component of Six Sigma:
● providing strong leadership
● defining performance metrics
● selecting projects likely to achieve business
results, and
● selecting and training appropriate people.
Technical component of Six Sigma:
● improving process performance
● reducing variation
● utilizing statistical methods, and
● designing a structured improvement
strategy, which involves definition,
measurement, analysis, improvement, and
control
Other key players in Six-Sigma programs:
● Champions identify and rank potential
projects, help select and evaluate
candidates, manage program resources,
and serve as advocates for the program.
● Master black belts have extensive training
in statistics and use of quality tools. They
are teachers and mentors of black belts.
● Black belts are project team leaders
responsible for implementing process
improvement projects. They have typically
completed four weeks of Six-Sigma training
and have demonstrated mastery of the
subject matter through an exam and
successful completion of one or more
projects.
● Green belts are members of project teams.
Black belts
- play a pivotal role in the success of
Six-Sigma programs.
- They influence change, facilitate teamwork,
provide leadership in applying tools and
techniques, and convey knowledge and
skills to green belts.
- Black belt candidates generally have a
proven strength in either a technical
discipline such as engineering or a business
discipline.
 - Candidates also must have strong “people
skills” and be able to facilitate change. In
addition, they must be proficient in applying
continuous improvement, as well as
statistical methods and tools.
- They must understand the technical aspects
of process improvement, and also the
expected business results (time, money,
and quality improvement)
Six Sigma is based on these guiding principles:
● Reduction of variation is an important goal. •
The methodology is data driven; it requires
valid measurements.
● Outputs are determined by inputs; focus on
modifying and/or controlling inputs to
improve outputs.
● Only a critical few inputs have a significant
impact on outputs (the Pareto effect);
concentrate on those
DMAIC(define-measure-analyze-improve-control)
- is a formalized problem-solving process of
Six Sigma. It is composed of five steps that
can be applied to any process to improve its
effectiveness.
The steps are:
1. Define: Set the context and objectives for
improvement.
2. Measure: Determine the baseline
performance and capability of the process.
3. Analyze: Use data and tools to understand
the cause-and-effect relationships of the
process.
4. Improve: Develop the modifications that
lead to a validated improvement in the
process.
5. Control: Establish plans and procedures to
ensure that improvements are sustained
9.10 QUALITY TOOLS
SEVEN BASIC QUALITY TOOLS:
1. Flowcharts.
- A diagram of the steps in a process
- It is a visual representation of a
process. As a problem-solving tool,
a flowchart can help investigators
identify possible points in a process
where problems occur.
- diamond shapes in the flowchart
represent decision points in the
process,
- rectangular shapes denote
procedures.
- The arrows show the direction of
“flow” of the steps in the process.
2. Check sheets.
- is a simple tool frequently used for
problem identification.
- A tool for organizing and collecting
data; a tally of problems or other
events by category
- Check sheets provide a format that
enables users to record and
organize data in a way that
facilitates collection and analysis.
This format might be one of the
simple checkmarks.
- Check sheets are designed on the
basis of what the users are
attempting to learn by collecting
data.
3. Histograms.
- histogram can be useful in getting a
sense of the distribution of observed
values. Among other things, one can
see if the distribution is symmetrical,
what the range of values is, and if
there are any unusual values.
- A chart that shows an empirical
frequency distribution
4. Pareto Analysis.
- is a technique for focusing attention
on the most important problem
areas.
- A diagram that arranges categories
from highest to lowest frequency of
occurrence
- The Pareto concept, named after the
19th-century Italian economist
Vilfredo Pareto, is that relatively
few factors generally account for a
large percentage of the total cases
(e.g., complaints, defects,
problems).
- The idea is to classify the cases
according to degree of importance
and focus on resolving the most
important, leaving the less important.
- Often referred to as the 80–20 rule,
the Pareto concept states that
approximately 80 percent of the
problems come from 20 percent of
the items.
5. Scatter Diagram
- A graph that shows the degree and
direction of relationship between two
variables
- can be useful in deciding if there is a
correlation between the values of
two variables.
 - High values of humidity
correspond to high numbers of
errors, and vice versa.
- On the other hand, a negative
(downward-sloping) relationship
would mean that when values of one
variable are low, values of the other
variable are high, and vice versa
- The higher the correlation between
the two variables, the less scatter in
the points; the points will tend to line
up.
- Conversely, if there were little or no
relationship between two variables,
the points would be completely
scattered.
6. Control Chart
- A statistical chart of time-ordered
values of a sample statistic (e.g.,
sample means
- can be used to monitor a process to
see if the process output is random.
- It can help detect the presence of
correctable causes of variation.
- also can indicate when a problem
occurred and give insight into what
caused the problem.
7. Cause-and-effect Diagram
- also known as a fishbone diagram
because of its shape, or an Ishikawa
diagram, after the Japanese
professor who developed the
approach to aid workers
overwhelmed by the number of
possible sources of problems when
problem solving.
- A diagram used to organize a search
for the cause(s) of a problem; also
known as a fishbone diagram
- offers a structured approach to the
search for the possible cause(s) of a
problem
- helps to organize problem-solving
efforts by identifying categories of
factors that might be causing
problems.
- often used after brainstorming
sessions to organize the ideas
generated
Run Charts
- can be used to track the values of a variable
over time.
- Important advantages of run charts are
ease of construction and ease of
interpretation
METHODS FOR GENERATING IDEAS:
1. Brainstorming.
- is a technique in which a group of
people share thoughts and ideas on
problems in a relaxed atmosphere
that encourages unrestrained
collective thinking.
- The goal is to generate a free flow of
ideas on identifying problems, and
finding causes, solutions, and ways
to implement solutions.
- In successful brainstorming, criticism
is absent, no single member is
allowed to dominate sessions, and
all ideas are welcomed.
- Structured brainstorming is an
approach to assure that everyone
participates
2. Quality Circles
- Groups of workers who meet to
discuss ways of improving products
or processes
- are usually less structured and more
informal than teams involved in
continuous improvement, but in
some organizations quality circles
have evolved into continuous
improvement teams.
- major distinction between quality
circles and teams is the amount of
authority given to the teams
- They have had very little authority to
implement any but minor changes;
continuous improvement teams are
sometimes given a great deal of
authority. Consequently, continuous
improvement teams have the added
motivation generated by
empowerment.
3. Benchmarking
- is an approach that can inject new
energy into improvement efforts.
- is the process of measuring an
organization’s performance on a key
customer requirement against the
best in the industry, or against the
best in any industry.
- Its purpose is to establish a standard
against which performance is
judged, and to identify a model for
learning how to improve.
- A benchmark demonstrates the
degree to which customers of other
organizations are satisfied.
The benchmarking process usually involves
these steps:
1. Identify a critical process that needs
improvement (e.g., order entry, distribution,
service after sale).
 2. Identify an organization that excels in the
process, preferably the best.
3. Contact the benchmark organization, visit it,
and study the benchmark activity.
4. Analyze the data.
5. Improve the critical process at your own
organization
CHAPTER 10: QUALITY CONTROL
Quality control
• A process that evaluates output relative to a
standard and takes corrective action when output
doesn’t meet standards.
INSPECTION
• Inspection is an appraisal activity that compares
goods or services to a standard.
The basic issues are:
• How much to inspect and how often
• At what points in the process inspection should
occur
• Whether to inspect in a centralized or on-site
location
• Whether to inspect attributes (i.e., count the
number of times something occurs) or variables
(i.e., measure the value of a characteristic)
How Much to Inspect and How Often
• The amount of inspection can range from no
inspection whatsoever to inspection of each item
numerous times.
• The majority of quality control applications lie
somewhere between the two extremes. Most
require some inspection, but it is neither possible
nor economically feasible to critically examine
every part of a product or every aspect of a service
for control purposes.
Where to Inspect in the Process
• In manufacturing, some of the typical inspection
points are:
• Raw materials and purchased parts.
• Finished products
• Before a costly operation.
• Before an irreversible process.
• Before a covering process.
Off-Site versus On-Site Inspection
• The central issue in the decision concerning
on-site or lab inspections is whether the
advantages of specialized lab tests are worth the
time and interruption needed to obtain the results.
• Reasons favoring on-site inspection include
quicker decisions and avoidance of introduction of
extraneous factors.
• On the other hand, specialized equipment and a
more favorable test environment offer strong
arguments for using a lab. offer strong arguments
for using a lab.
STATISTICAL PROCESS CONTROL
• Quality of conformance: A product or service
conforms to specifications.
• Statistical process control (SPC): Statistical
evaluation of the output of a process.
Process Variability
• All processes generate output that exhibits some
degree of variability. The issue is whether the
output variations are within an acceptable range.
• Random variation: Natural variation in the
output of a process, created by countless minor
factors.
• Assignable variation: In process output, a
variation whose cause can be identified. A
nonrandom variation.
Sampling and Sampling Distributions
• A theoretical distribution of sample statistics
• Central limit theorem: The distribution of sample
averages tends to be normal regardless of the
shape of the process distribution.
The Control Process
• Define. The first step is to define in sufficient
detail what is to be controlled.
• Measure. Only those characteristics that can be
counted or measured are candidates for control.
• Compare. There must be a standard of
comparison that can be used to evaluate the
measurements.
• Evaluate. Management must establish a definition
of out of control.
• Correct. When a process is judged to be out of
control, corrective action must be taken.
• Monitor results. To ensure that corrective action
is effective, the output of a process must be
monitored for a sufficient period of time to verify
that the problem has been eliminated.
Control Charts: The Voice of the Process
• developed by Walter Shewhart
• a time-ordered plot of sample statistics
• a visual tool for monitoring forecast errors
• Control limits: The dividing lines between
random and nonrandom deviations from the mean
of the distribution.
• The larger value is the upper control limit (UCL),
and the smaller value is the lower control limit
(LCL).
• Type I error: Concluding a process is not in
control when it actually is.
• Type II error: Concluding a process is in control
when it is not.
• Four commonly used control charts:
2 are used for variables (generate data that are
measured)
1. Mean control chart: Control chart used to
monitor the central tendency of a process.
2. Range control chart: Control chart used to
monitor process dispersion
• mean charts are sensitive to shifts in the process
mean, whereas range charts are sensitive to
changes in process dispersion
2 are used for attributes (generate data that are • Improving process capability requires reducing the
counted) process variability that is inherent in a process.
1. p-chart: Control chart for attributes, used to • This might involve simplifying, standardizing,
monitor the proportion of defective items in making the process mistake-proof, upgrading
a process. equipment, or automating.
2. c-chart: Control chart for attributes, used to Taguchi Loss Function
monitor the number of defects per unit. • Genichi Taguchi, a Japanese quality expert, holds
a nontraditional view of what constitutes poor
Managerial Considerations Concerning Control quality, and hence the cost of poor quality.
Charts • The traditional view is that as long as output is
• Using control charts adds to the cost and time within specifications, there is no cost.
needed to obtain output. Limitations of Capability Indexes
• managers must make a number of important • There are several risks of using a capability index:
decisions about the use of control charts: • The process may not be stable, in which
• At what points in the process to use case a capability index is meaningless.
control charts • The process output may not be normally
• What size samples to take distributed, in which case inferences about
• What type of control chart to use (i.e., the fraction of output that isn’t acceptable
variables or attribute) will be incorrect.
• How often should samples be taken • The process is not centered, but the Cp
Run Tests index is used, giving a misleading result.
• A test for patterns in a sequence. OPERATIONS STRATEGY
Run: Sequence of obser vations with a certain • Quality is a major consideration for virtually all
characteristic. customers, so achieving and maintaining quality
What Happens When a Process Exhibits standards is of strategic importance to all business
Possible Nonrandom Variation? organizations.
• Nonrandom variation is indicated when a point is • Quality assurance and product and service design
observed that is outside the control limits, or a run are two vital links in the process.
test produces a large z-value (e.g., greater than
±1.96).
PROCESS CAPABILITY
• variability of a process becomes the focal point of
the analysis
• Three commonly used terms refer to the variability
of process output. Each term relates to a slightly
different aspect of that variability, so it is important
to differentiate these terms.
• Specifications: A range of acceptable
values established by engineering design or
customer requirements.
• Control limits are statistical limits that
reflect the extent to which sample statistics such as
means and ranges can vary due to randomness
alone.
• Process variability: Natural or inherent
variability in a process.
• Process capability: The inherent variability of
process output relative to the variation allowed by
the design specification.
Capability Analysis
• is performed on a process that is in control (i.e.,
the process exhibits only random variation) for the
purpose of determining if the range of variation is
within design specifications that would make the
output acceptable for its intended use
• If it is within the specifications, the process is said
to be “capable.” If it is not, the manager must
decide how to correct the situation.
Improving Process Capability