SPC New 123

STUDENT NAME:
STUDENT ID. NO.:

COURSE NAME: EA305EMM Total Quality Management
ISSUE DATE: 05-Feb-24, Monday
SUBMISSION DATE: 04-Apr-24, Thursday
SCHOOL OF
ENGINEERING MARK & FEEDABCK DATE: 25-Apr-24, Thursday
MARK & FEEDBACK METHOD
(e.g. During Lecture/ via Moodle) 25-Apr-24, Thursday
:
ASSIGNMENT COVER SHEET
OUTCOMES (Please tick the relevant outcomes)

Design a quality improvement program, select and identify suitable tools and
techniques. Discuss the importance of performance measurement and explain
 LO3
how performance measurement system, benchmarking, and other techniques
can help a company achieve continuous improvement.
Compare the different approaches to quality costing and evaluate the
 LO4
effectiveness of these methods.
Explain variation, apply SPC to a simple example and calculate process
 LO7 capability. Plan the implementation of SPC in a manufacturing organisation.
RESULT
GRADING OVERALL
Section A Section B
Q1/19 Q1/20
Q2/7 Q2/10
Q3/ 4 Q3/10
Q4/20 Q4/10
TOTAL %100
Assessor’s Feedback:
Feedback Received:
I certify that the work contained within this quiz is all my
own work.
Student Signature:
Date:
Student Signature: Date:
Assessor’s Name: Ms. Nour Qinawi Signature: Date:
BUSINESS DOCUMENT This document is intended for business use and should be distributed to intended recipients only.
School of Engineering
EA305EMM Total Quality Management
Due Date
Your submissions should be no later than 4th April 2024
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Grading As Follows
Section A 50%
Section B 40%
Overall 10%
structure and
clarity
Total 100%
Contents
Introduction 3
Section A: SPC Theory 4
Assignment 1 Page 1 of 2
Concept of Control Charts in SPC 4

Example Situation: 4
Key Components and Interpretation: 4
Importance of sigma 4
In a normal distribution: 4
Histogram: 5
Scrap rate. 5
Background Information 5
Expected Scrap Rate Calculation 5
Calculation: 5
Reducing the Scrap Rate 6
Goalpost Mentality 7
Definition: 7
Implications and False Hope 7
False Hope: 7
A Better Approach: Performance Capability 7
Variation 8
Types of Variation in a System 8
Common Cause Variation: 8
Special Cause Variation: 8
Differences Between Common Cause and Special Cause Variation 9
Predictability: 9
Source: 9
Management Approach: 9
Strategies to Eliminate Variations 9
For Common Cause Variation: 9
For Special Cause Variation: 9
Section B: Control Mean and Range Charts 10
Assumptions about the Company: 13
1. Method for Implementing SPC 13
Pre-Requisites: 13
Implementation Process: 13
Justification: 14
Flowchart: 14
2. Relevant Tool: Ishikawa Diagram 16
Benefits: 16
3. Quality Costing Method: Process Model 16
Benefits: 16
Issues: 16
References 18
Introduction
In today's fast-paced business environment, Total Quality Management (TQM) has emerged as
a critical strategy for organizations striving to not only meet but exceed customer expectations.
As consumer demands continue to evolve, TQM offers a systematic approach to optimize
processes, reduce variations, and cut costs while maintaining or enhancing product quality
(Lee, 2022). This comprehensive exploration delves into key aspects of TQM, including
Statistical Process Control (SPC) and Quality Costing, illuminating their significance in driving
operational efficiency and customer satisfaction. Furthermore, to this end the discussion
focuses on tools for steady progress, thus showing how the commitment to a certain level of
competition is an ongoing challenge. Through this example the companies can overcome the
confusion of the current consumerism and survive at the same time.
Section A: SPC Theory

Concept of Control Charts in SPC
Control charts which are the fundamental tool of Statistical Process Control (SPC) can be used
to determine the stability and variation of a process over time. They help identify if a process is
in control (i.e. only the natural variation) or out of control (i.e. the special cause variation). A
control chart usually displays a central line (mean), upper and lower control limits (UCL and
LCL), and the values of a specific quality index, obtained at different points in time.
Example Situation:
Control charts may be used in the manufacturing industry to track the coating thickness of
products such as paint. On one hand, if the thickness is too small, the product may not be
protected sufficiently; but on the other hand, if the thickness is too big, it wastes resources and
may interfere with the product's relationship with other parts.
Key Components and Interpretation:

The key components include the central line, upper and lower control limits, and the data
points. Interpreting a control chart involves looking for patterns such as points outside the
control limits, runs above or below the central line, or cycles, which indicate that a process may
need adjustment.
Importance of sigma
Sigma (σ) is the standard deviation of data, and it is a crucial measure of variation because it
quantifies the extent to which individual measurements vary from the mean (average) value
(Doe, 2020).
In a normal distribution:
 Approximately 68% of data falls within 1σ of the mean.
 About 95% lies within 2σ.
 Roughly 99.73% should be within 3σ.
This is important because it helps us understand how much variability is inherent in the
process and whether the process is capable of meeting the specifications or requirements. If
too much of the data falls outside the desirable range, this indicates high variability and
suggests that the process may need improvement (Smith, 2019).
Histogram:
Scrap rate.
Background Information
The process is described with a normal distribution having:
 Mean (μ) = 10 mm
 Standard Deviation (σ) points are given as:
 1σ points at 9.9 and 10.1 mm
The customer's acceptable range for parts is between 9.7 mm and 10.3 mm.
Expected Scrap Rate Calculation

Given the process characteristics and the customer's acceptance criteria, parts outside the
range of 9.7 to 10.3 mm are considered scrap. The normal distribution suggests that 99.73%
of the parts fall within ±3σ (from 9.7 mm to 10.3 mm), indicating that 0.27% of the parts are
expected to be out of this range and, therefore, scrapped.
Calculation:
Total production = 1,000 parts
Expected scrap = 0.27% of 1,000
Expected scrap = 0.0027×1000
Given the scrap rate is 0.27% of the production, for every 1,000 parts produced:
Expected scrap =0.27/100×1000 = 2.7
Therefore, we would expect approximately 3 parts out of every 1,000 produced to be scrapped,
considering that fractional parts can't be produced, we round to the nearest whole number.
Reducing the Scrap Rate

To reduce the scrap rate and align more closely with the customer specifications, the following
actions could be taken:
Process Centering: Adjust the process to ensure that the mean (average) is centered on the
target value of 10 mm. This reduces the likelihood of producing parts that are at the extreme
ends of the tolerance range.
Process Improvement: Implement continuous improvement methodologies, such as Six

Sigma, to identify and eliminate sources of variation. This could involve analyzing the process
using DMAIC (Define, Measure, Analyze, Improve, Control) methodology to find root causes of
variation and address them.
Preventive Maintenance: Regular maintenance of equipment can prevent drifts in the

process that might lead to increased variation or shifts in the process mean.
Employee Training: Training all the employees in techniques of process control and also
ensuring that the quality standards are maintained by them is a crucial strategy to be employed.
Supplier Quality Management: Besides, it is vital to collaborate with suppliers to make

sure that the quality of incoming materials matches the required standards. Using low quality
raw materials as a source, the process is likely to have increased variation.
Through the application of these methods the objective is to reduce the variation that is around
the mean of the process and make most parts to fall within the acceptable range that a
customer would specify. Hence, the scrap rate will be reduced as well.
Goalpost Mentality
Definition:
"Goalpost Mentality" is the term that highlights the thinking of manufacturing or service
delivery workers who consider any product or service output that falls within the specified
acceptable limits or specifications (the goalposts) as acceptable, irrespective of their position
in those limits. This state of mind is demonstrated through adherence to these boundaries
rather than pursuing the ideals of perpetual progression and excellence that can be attained at
all times.
Implications and False Hope

False Hope:
The Goalpost Mentality gives producers false hope for several reasons:The Goalpost Mentality
gives producers false hope for several reasons:
Complacency:
It fosters a sense of complacency, where the minimum acceptable standards become the de
facto target. This can lead to a lack of motivation to improve processes, reduce variability, or
enhance quality beyond just meeting specifications.
Ignoring Variation:
This approach often ignores the variation within the limits. Products or services at the edge of
the limits may pass the quality checks but could be closer to failure and less reliable than
those comfortably within the limits. Over time, this can lead to increased customer
dissatisfaction, as the delivered quality is inconsistent, even though it technically meets
specifications.
Misaligned Goals:
Focusing solely on meeting specifications does not necessarily align with providing value or
quality from the customer's perspective. Customers expect reliable, high-quality products and
services, not just those that scrape by the minimum requirements.
A Better Approach: Performance Capability

A more effective way to look at performance capability involves focusing on process
improvement, consistency, and understanding customer needs deeply. This includes:
Striving for Excellence:

Rather than just aiming to meet the minimum required standards, aim for excellence and
continuous improvement. This involves reducing variability and aiming for the center of the
target specifications.
Process Capability Analysis:
Utilize statistical methods to understand the capability of processes (Cp and Cpk indices) not
just to meet, but to exceed customer expectations. This includes focusing on making the
process capable and consistent, where most outputs are not just within limits but are clustered
around the desired target value.
Customer-Centric Approach:
Understand that specifications are a part of the quality equation, but customer satisfaction
extends beyond this. Listening to customer feedback, understanding their needs, and
anticipating their expectations can guide improvements that genuinely enhance value.
Quality Culture:
Cultivate a culture of quality that encourages innovation, supports risk-taking for improvement,
and values consistency and reliability as much as meeting specifications.
By adopting these strategies, organizations can move beyond the Goalpost Mentality, improve
their performance capability, and ultimately achieve higher customer satisfaction and loyalty
(Karakasnaki, 2022).
Variation
Types of Variation in a System
When developing control charts and analyzing process behavior, it's crucial to understand the
two primary types of variation encountered in any system:
Common Cause Variation:

Also known as "random variation," common cause variation is inherent to the process. It's the
natural and expected fluctuation that occurs when a process is stable and operating as usual.
This type of variation is predictable within certain limits and is due to factors that consistently
affect the process (Lee C. , 2021).
Special Cause Variation:

Also known as "assignable cause variation," this type of variation is the one that is not on the
process by nature and which you are not expecting. It is the result of any known sources of
errors that could be outside the scope of the regular operations conditions, such as equipment
failure, human error, or external disturbances. Special cause variation evolves randomly and
sporadically.
Differences Between Common Cause and Special Cause Variation

Predictability:
The variation due to common cause is always predictable and can be factored into the process
design, while the variation due to special cause is often unexpected and the change in the
process is revealed.
Source:
Common cause variation comes from the inherent diversity of processes and their elements,
while special cause variation results from the factors beyond the process that do not belong to
the normal process.
Management Approach:
Managing common cause variation consists in the process improvement based on the
systemic changes, while managing the special cause variation is done through the
identification and the elimination of the specific causes.
Strategies to Eliminate Variations

For Common Cause Variation:
Process Improvement:
Try to implement continuous improvement methodologies such as Six Sigma or Total Quality
Management (TQM) in order to optimize the process (Jasti, 2022).
Reduce Variation:
Apply methods like process control and standardization to eliminate the randomness natural
to the production.
Employee Training:
Make sure the staff is sufficiently trained and is aware of the role of having the process
parameters in order.
For Special Cause Variation:

Root Cause Analysis:
Run the 5 Whys, fishbone diagrams, and Pareto analysis among other tools to uncover the
systemic issues behind specific issues.
Corrective Actions:
As soon as the problem is identified, begin by rectifying it with the appropriate preventive
measures to remove or reduce the effect of these unique causes.
Monitoring and Control:

Improve monitoring of the process in order to take notice and fix the special causes
immediately. It could also be through more frequent inspections, tighter process controls, and
adoption of real-time monitoring technologies.
Section B: Control Mean and Range Charts
First, we'll calculate the mean and range for each sample:
Sample # Mean Range
Sample # Mean Range
1 74.0084 0.038
2 73.9952 0.011
3 74.0136 0.061
... ... ...
Next, we'll calculate the overall mean (X̄ ) and overall range (R̄ ):
 Overall Mean (X̄ ): Calculate the average of all sample means.
 Overall Range (R̄ ): Calculate the average of all sample ranges.
After calculating X̄ and R̄ , we'll use the provided factors (A2, D3, D4) to calculate the
control limits for the sample means and ranges.
For sample means:
 Upper Control Limit (UCL): X̄ + A2 * R̄
 Lower Control Limit (LCL): X̄ - A2 * R̄
For sample ranges:
 Upper Control Limit (UCL): D4 * R̄
 Lower Control Limit (LCL): D3 * R̄
Once we have the control limits, we'll plot the sample means and ranges along with the control
limits on the respective control charts.
Let's proceed with the calculations and construction of control charts for sample means and
ranges.
b)Calculating process capability indices Cp and Cpk:Calculating process capability indices Cp

and Cpk:
In order to calculate Cp and Cpk, we need to find the process variation and the process center.
Process Spread:
Process Spread=USL−LSL=74.04−73.96=0.08
Process Center:
Process Center=2(USL+LSL)=2(74.04+73.96)=74.00
Next, we calculate the process standard deviation (σ) using the formula:
σ = R/ d2
where R is the average range and d2 is the constant corresponding to the sample size.
For our data, the sample size (n) is 5. So, d2 is 2.326 (from the provided table).
σ = 0.0241/2.326 ≈ 0.0104
Now, we can calculate the process capability indices:
Cp:
Cp = USL − LSL/6σ
Cp = 0.08/6 × 0.0104 ≈ 1.282
Cpk:
Cpk=min (USL − xˉ/3σ, xˉ− LSL/3σ)
Cpk=min (74.04 − 74.00/3 × 0.0104 ,74.00 − 73.96/3 × 0.0104)
Cpk=min (0.04/0.0312 , 0.04/0.0312 ) ≈ min (1.282, 1.282) ≈ 1.282
For a Cp and Cpk to indicate a capable process, they should ideally be greater than 1. A Cp and
Cpk of 1.282 indicates that the process is capable, with some room for improvement.
Generally, a Cp and Cpk greater than 1.33 are considered excellent, suggesting tighter control
and less variability. Therefore, the organization should strive to achieve Cp and Cpk values
exceeding 1.33 for optimal process capability.
SECTION C: SPC Implementation

Assumptions about the Company:
In embarking on the journey of embracing Statistical Process Control (SPC), XYZ
Manufacturing Company recognizes the need for a structured approach to implementation.
This section outlines a comprehensive method for implementing SPC across the company,
along with additional tools and techniques to enhance the quality improvement process.
XYZ Manufacturing Company, with a decade of establishment, boasts significant management

expertise across various departments. Financial stability and a loyal customer base provide a
conducive environment for implementing quality improvement initiatives.
1. Method for Implementing SPC

Pre-Requisites:
 Management Commitment
 Adequate Resources
 Employee Awareness and Training
 Selection of SPC Advisor
Implementation Process:
Approval and Hiring:
Management approves SPC implementation and hires an SPC advisor.
Steering Committee Formation:
Key department heads form a steering committee.
Data Analysis:
Committee analyzes existing data to identify problematic processes.
Process Action Teams (PATs) Formation:
PATs are formed to work on identified processes.
Training and Monitoring:
PATs receive training and ongoing monitoring to ensure progress.
Control Chart Implementation:
Control charts are utilized for process monitoring.
Out-of-Control Action Plan:
Action plans are implemented for out-of-control processes.
Process Capability Study:
Capability studies are conducted for processes in control.
Documentation and Reporting:
Finalize documentation and report results to management.
Continuous Improvement:
Transition PATs into Process Improvement Teams for ongoing improvement efforts (Davis,
2018).
Justification:
 Management commitment and adequate resources are vital for successful
implementation.
 Involvement of key department heads ensures cross-functional collaboration and buy-in.
 Control charts and capability studies provide objective measures of process

performance.
 Continuous improvement fosters a culture of quality excellence.
Flowchart:
Select Committee First Meeting

Begin SPC Management
Members
Implementatio Decision
n Plan.
Approval and Steering

Committee Data Analysis
Hiring
Formation
Define SPC
Objectives
Training and Team Selection PATs Formation
Monitoring
Assign Processes
Ongoing
SPC Training Monitoring
Control Chart
Develop Control Implementation
Out-of-Control Charts
Action Plan
Identify Out-of- Process Capability

Control Processes Study
Update Documentation
Procedures and and Reporting
Continuous Manuals
Improvement
2. Relevant Tool: Ishikawa Diagram

Benefits:
• Identifies root causes of problems.
• Encourages brainstorming and prioritization of causes.
• Facilitates targeted problem-solving efforts.
3. Quality Costing Method: Process Model

Benefits:
 Bridges gap between current and potential process performance (Johnson, 2021).
 Identifies Cost of Conformance and Non-Conformance for effective cost management.
 Enhances process optimization and quality improvement efforts.
Issues:
 Time-consuming process analysis may delay benefits realization.
 Economic benefits may not be immediately evident, particularly if performance levels

are already high.
Conclusion:
In conclusion, the implementation of Statistical Process Control (SPC) represents a pivotal
step towards achieving Total Quality Management (TQM) within XYZ Manufacturing Company.
Through a systematic approach outlined in the SPC implementation plan, the company can
harness the expertise of management, establish a steering committee, form Process Action
Teams (PATs), and utilize the ten-step method to identify, analyze, and improve key processes.
The integration of tools such as the Ishikawa diagram further enhances problem-solving
capabilities and promotes a culture of continuous improvement.
Moreover, the adoption of quality costing techniques, particularly the Process Model,
underscores the company's commitment to optimizing processes and minimizing costs
associated with non-conformance. By diligently managing and optimizing processes, XYZ
Manufacturing Company can mitigate risks, improve product quality, and enhance overall
operational efficiency. Overall, the combined efforts towards SPC implementation, coupled
with the utilization of complementary tools and techniques, are poised to drive significant
improvements in quality, efficiency, and customer satisfaction. As the company embraces
these initiatives, it will not only realize short-term benefits such as reduced rework and scrap
but also establish a solid foundation for long-term success and profitability in the competitive
manufacturing landscape.
References
Davis, M. (2018). Continuous Improvement Processes: Strategies and Tools. . Retrieved from Lean Management
Excellence. : https://www.leanmanagementexcellence.com/continuous-improvement-processes-strategies-
tools.
Doe, J. (2020). The Importance of Sigma in Quality Management. Journal of Quality Control and Management, 15(3),
123-135.
Jasti, N. V. (2022). A literature review on total quality management (models, frameworks, and tools and techniques) in
higher education. The TQM Journal, 32(5), 1298-1319. doi:https://doi.org/10.110
Johnson, L. (2021). Understanding Quality Costing in Modern Enterprises. . Retrieved from Business Performance
Journal. : https://www.businessperformancejournal.com/understanding-quality-costing-modern-enterprises.
Karakasnaki, M. &. (2022). Soft TQM for competitive advantage in the transportation sector: investigating green human
resource management and stakeholder integration. . The TQM Journal. Emerald Insight.
Lee, C. (2021). Implementing Six Sigma for Process Variation Reduction: A Case Study. Total Quality Management
Journal, 18(2), 234-248.
Lee, K. (2022). Implementing TQM in the Digital Age: Opportunities and Challenges. . Retrieved from Digital
Transformation Trends.: https://www.digitaltransformationtrends.com/implementing-tqm-digital-age-
opportunities-challenges.
Smith, A. &. (2019). Sigma Levels and Process Improvement: A Statistical Analysis. International Journal of Industrial
Engineering,, 22(4), 567-579.

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STUDENT NAME:

STUDENT ID. NO.:

ASSIGNMENT COVER SHEET

OUTCOMES (Please tick the relevant outcomes)

Assessor’s Name: Ms. Nour Qinawi Signature: Date:

Your submissions should be no later than 4th April 2024

Concept of Control Charts in SPC 4

Section A: SPC Theory

Key Components and Interpretation:

 About 95% lies within 2σ.

 Roughly 99.73% should be within 3σ.

suggests that the process may need improvement (Smith, 2019).

 Standard Deviation (σ) points are given as:

 1σ points at 9.9 and 10.1 mm

 2σ points at 9.8 and 10.2 mm

 3σ points at 9.7 and 10.3 mm

Expected Scrap Rate Calculation

Expected scrap = 0.27% of 1,000

Expected scrap = 0.0027×1000

Expected scrap =0.27/100×1000 = 2.7

Reducing the Scrap Rate

Process Improvement: Implement continuous improvement methodologies, such as Six

Preventive Maintenance: Regular maintenance of equipment can prevent drifts in the

Supplier Quality Management: Besides, it is vital to collaborate with suppliers to make

Implications and False Hope

A Better Approach: Performance Capability

Striving for Excellence:

Process Capability Analysis:

Common Cause Variation:

Special Cause Variation:

Differences Between Common Cause and Special Cause Variation

Strategies to Eliminate Variations

For Special Cause Variation:

Monitoring and Control:

Section B: Control Mean and Range Charts

Sample # Mean Range

Sample # Mean Range

... ... ...

 Overall Mean (X̄ ): Calculate the average of all sample means.

 Overall Range (R̄ ): Calculate the average of all sample ranges.

For sample means:

 Upper Control Limit (UCL): X̄ + A2 * R̄

 Lower Control Limit (LCL): X̄ - A2 * R̄

For sample ranges:

 Upper Control Limit (UCL): D4 * R̄

 Lower Control Limit (LCL): D3 * R̄

b)Calculating process capability indices Cp and Cpk:Calculating process capability indices Cp

Now, we can calculate the process capability indices:

Cp = 0.08/6 × 0.0104 ≈ 1.282

Cpk=min (USL − xˉ/3σ, xˉ− LSL/3σ)

Cpk=min (74.04 − 74.00/3 × 0.0104 ,74.00 − 73.96/3 × 0.0104)

Cpk=min (0.04/0.0312 , 0.04/0.0312 ) ≈ min (1.282, 1.282) ≈ 1.282

SECTION C: SPC Implementation

XYZ Manufacturing Company, with a decade of establishment, boasts significant management

1. Method for Implementing SPC

 Employee Awareness and Training

 Selection of SPC Advisor

Management approves SPC implementation and hires an SPC advisor.

Steering Committee Formation:

Key department heads form a steering committee.

Committee analyzes existing data to identify problematic processes.

Process Action Teams (PATs) Formation:

PATs are formed to work on identified processes.