Professional Documents
Culture Documents
Failure Costs
Control Costs
Appraisal Prevention
What
“failsafe”
should
have been
included
in the crib
design?
Source: http://www.parentcentral.ca/parent/newsfeatures/article/729871--deaths-spark-huge-crib-recall
D. Customer Satisfaction
Customers’ prior expectations and perception of
performance affect their satisfaction:
Satisfaction = (Perception of Performance) – (Expectation)
OPMA 8. Quality Management & Control 8.20
Defining Quality (Cont’d)
E. Service Guarantees
Even after a service or product failure, a service
guarantee can increase the customer’s perception of
performance.
OPMA
Six Sigma Black Belt Certification:
8. Quality Management & Control 8.22
Lead process improvement project and teams
B. PDCA Cycle
Developed by Walter
Shewhart (1891-1967)
Principle of continuous
improvement
C. ISO 26000
Guidance on social and environmental
responsibilities.
Not intended as a certification standard (like ISO 9000 and ISO
14000), but rather a voluntary guidance tool to help move
organizations from “good intentions to good actions” by:
Developing an international consensus on what social responsibility means
Providing guidance on translating principles into effective actions
Refining and disseminating the information worldwide
1. Organizational Governance
2. Human Rights
3. Labour Practices
4. The Environment
5. Fair Operating Practices
6. Consumer Issues
7. Community Involvement and Development
OPMA 8. Quality Management & Control 8.26
VII. Quality Control Graphical Tools
A. Pareto Analysis
B. Scatter Diagrams
C. Cause-and-Effect Diagrams (Fishbone)
Florence Nightingale: Founder of nursing and pie charts:
During the Crimean War (1853-1856) the British public was shocked
by reports of the terrible conditions of British hospitals.
Florence Nightingale (1820-1910), founder of the modern profession
of nursing, was sent to Turkey to improve them.
She introduced nurses, and improved sanitary conditions.
Central to her approach was collecting, tabulating, interpreting, and
graphically displaying data relating to process care changes on
outcomes. (She is credited as being the developer of the pie chart!)
The results of these innovations were astounding: The mortality of
patients decreased from 42 percent in February 1855 to 2.2 percent in
June of that year.
Nightingale's approach, termed evidence-based medicine, underlies
current approaches to medical practices.
OPMA 8. Quality Management & Control 8.27
Quality Control Graphical Tools
A. Pareto Analysis
Distinguishing the vital few (“80/20 rule”)
Gather data on the frequency of various events
Checksheets are a
fast way to record
occurrences of
process problems!
Source: http://www.sixsigmadigest.com/pareto-chart.shtml
OPMA 8. Quality Management & Control 8.28
Example: Pareto Analysis
The service department has tracked customer complaints
regarding our field service. Their data shows 29 complaints
related to installation, 20 for delivery, 50 for shipping, 10 for
clerical, and 9 miscellaneous complaints.
Complaint Type
OPMA 8. Quality Management & Control 8.30
Example: Pareto Analyses for Call
Centers
In a technical support call center, a small number of issues collectively
make up a very large percentage of all calls.
Using a pareto analysis, the call centre can drive specific actions such as
product and documentation improvements, publication of specific
solutions on websites (FAQs), and agent training. This helps eliminate
phone calls, substantially lower costs and improve customer satisfaction.
Adapted from V. Mehrotra, ”Ringing Up Big Business”, OR/MS Today, August 1997, pp. 18-19.
Sample Mean:
Xi
X i
n
If we have m samples, each with n observations, then
m
Grand Mean:
X
j 1
j
X
m
Example: At a local potato chip producer, a quality control employee
pulls 5 bags of chips 4 times daily to measure the contents.
What is the value for n? n=5
What is the value for m? m=4
OPMA 8. Quality Management & Control 8.36
C. Measures of Dispersion
Sample Range (R) = largest X – smallest X
X X
2
i
Sample Standard Deviation (S):
s i
n 1
N=10
68.3
% Inherent /
·2 Central value Random
95.4
·1 when in control Variation
%
99.7 ·3
%
-3s -2s -1s m +1s +2s +3s
b) Using the average and standard deviation, find the upper and lower
control limits for the process in question.
Binomial p (1 p )
Distribution sp
n
n sample size
UCL (upper control limit ) p zs p
LCL (lower control limit ) p zs p
If the calculated LCL is a negative number, the LCL is equal to zero.
OPMA 8. Quality Management & Control 8.43
Measurement by attributes – quick example
mean (p) = .05 sample size (n) = 50 assume z = 3
UCL =14.3%
p = 5.0%
LCL =0.0%
p (1 p ) 0.071(1 0.071)
sp sp
n 200
= 0.0182
UCL=0.1256
0.12
0.09
p=0.071
0.06
0.03
LCL=0.0164
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
sample number
Is the process in control? If not, which sample(s) should be investigated? Why?
The process is not in control.
Sample 9 is above the UCL (poor performance should be investigated)
Samples 6 & 13 are below the LCL (good performance should be investigated)
2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
16 0.21 0.36 1.64
17 0.20 0.38 1.62
18 0.19 0.39 1.61
19 0.19 0.40 1.60
20 0.18 0.41 1.59
Note: The above approach, strictly speaking, requires that individual observations from the
population follow a normal distribution. If this assumption is markedly violated, there are
more appropriate procedures involving use of the sample std. dev. instead of its range.
OPMA 8. Quality Management & Control 8.50
Measurement by Variables – Quick Example
X-Chart R-Chart
UCLX = 598.2 + (0.73 x UCLR = 2.28 x 22.4
22.4) = 51.07
= 614.55
LCLR = 0.00 x 22.4
LCLX = 598.2 – (0.73 x 22.4) = 0.00
= 581.85
R = 618 – 570
X = (570 + 603 + 618 + 583) In Control
= 48
4 In Control
Process In Control
= 593.5
OPMA 8. Quality Management & Control 8.52
Measurement by Variables - Example 2
Smart Phone battery life performance is typically compared by
measuring how long the battery takes to completely discharge in three
modes (standby mode, web browsing, and music playback). After
media reports of poor battery performance, a major battery supplier
has conducted sampling recently and would like to know if the process
is in control. Historically the process average music playback battery
life has been 50 hours and the average range has been 4 hours.
UCL = 8.00
6.00
7.00
Sample Range (hours)
5.00
R = 4.00
4.00
3.00
LCL = 0.00
1 2 3 4 5
R-Chart is in control
UCL = 51.92
51.3
Sample Mean (hours)
50.5 50.5
X = 50.00
49.3
LCL = 48.08
47.3
1 2 3 4 5
T T
Defective
product
T TX
15m
Scenario: An automobile manufacturer is trying to obtain the
“platinum” rating at the lowest product design cost. Determine if the
following product design alternatives are capable of meeting this
specification
X 15m
10m
X 15m
10m
10m X 15m
13m
X 15m
10m