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OPMA 317

8. Quality Management & Control


Text: Chapter 10
Learning Highlights
 How can Quality cost a lot but also be “free”?
 What is the “Cold Chain”?
 How can a process be “idiot-proofed”?
 How can a “self-destructing” syringe save lives?
 How does one define a “quality dentist”?
 Black Belts: karate or quality?
 What do those “ISO9000” and “ISO14000” banners mean?
 FAQs - how do they know?
 How can a fish help us identify the source of a quality problem?
 How do we determine if a process “is in control”?
 How can we determine if our process is capable of meeting
certification requirements? (Ex. CSA, 5-star safety ratings, automobile emissions)
OPMA 8. Quality Management & Control 8.2
Summary
I. Quality Management Process Overview
II. The Cost of Quality
III. Prevention (failsafes & checklists)
IV. Defining Quality
V. Quality Management Philosophies
VI. Quality Certification
VII. Quality Control Graphical Tools
VIII. Overview of SQC
IX. Brief Statistics Review
X. Control Charts
XI. Process Capability

OPMA 8. Quality Management & Control 8.3


Quality Strategy and Management
 What are the effects on an organization if its
services/goods are of poor quality?
Best Case
Scenario
● Higher transformation costs (rework, scrap, etc.)
● Higher warranty costs (returns, repairs, etc.)
● Loss of sales (short term)
● Loss of reputation (long term)
● Lawsuits
Worst Case
Scenario

OPMA 8. Quality Management & Control 8.4


I. Quality Management Process Overview
Alarm Bell Investigate Prevent

Checksheets Root Cause Analysis Process Failsafes


Pareto Analysis Fishbone Diagrams Checklists
Scatter Diagrams
Control Charts Man (person)?
Material?
Machine?
Method?
Measurement?

OPMA 8. Quality Management & Control 8.5


II. The Cost of Quality
 “The cost of quality is significant – as
high as 25% of revenues for goods How can both of
and 40% of operating expenses in these statements
services.” be ‘true’?
 "Quality is free" P. Crosby

Failsafing, Inspection: Rework, Returns, Warranty,


Training labour, equip Downtime, Lawsuits,
Scrap Reputation
OPMA 8. Quality Management & Control 8.6
The Cost of Quality
Total Quality
Cost Same total quality costs Costs

Failure Costs

Control Costs

Low Number of Defects High

Quality can be improved if money can be moved out of “failure”


costs and into “control” costs (no “new money” needed)

OPMA 8. Quality Management & Control 8.7


The Cost of Quality
Source: Exhibit 6.4,
Proactive Fundamentals of
Operations
Management, Second
Canadian Edition,
McGraw-Hill, 2007

Appraisal Prevention

Ex. Impaired driving Ex. Anti-drinking and


checkstops driving campaigns
OPMA 8. Quality Management & Control 8.8
Example: Inspection Vs. Prevention
 “Cold Chain”? Source: “Technology Conquers Logistics Challenges”, APICS
magazine, July/August 2016, p.41-45

 Maintaining the integrity of refrigerated


/ frozen products throughout the supply chain
 Example: frozen seafood can have up to a 12-week
journey from Asia to the U.S.

Inspection Approach VS. Prevention Approach


 Incoming products can be checked for  Employ cold chain real-time
“temperature abuse” (max temp measured) monitoring and satellite tracking
 “If a container comes with 45,000 pounds of devices that can set off alarms
seafood and it hit 45F for more than 30  If the temperature begins to rise,
minutes, it can cause all kinds of problems. the driver is contacted to check
If we refuse that load, it is another 12 weeks on the shipment
for us to replace that load.”
 In the past, they would order more seafood
than necessary during the summer to
compensate for spoiled loads (expensive).
OPMA 8. Quality Management & Control 8.9
III. Prevention Failsafes & Checklists
 Identify five preventative measures
from the Honda video clip:
1 Doors taken off at start of assembly process

2 Plastic “film” placed on car exterior at start of assembly process


3 Materials used in design of product
4 Magnetic “Label” template for location / level

5 Ring & watch guards

OPMA 8. Quality Management & Control 8.10


Prevention - Process Failsafes
 Failsafing: Creating a control condition where the
customer or employee can only take the correct action
while performing the process.
SafeSaw Clip…
 Examples:
Failure / Problem Solution / Poka-Yoke

Airplane bathroom – another passenger Bathroom light not activated


opens door while bathroom is occupied until door is locked
Recycling bins filling quickly – public are not Only opening is small “slot” in
“crushing” their cardboard boxes before cardboard recycling containers
placing them in the recycling bin
Spreadsheet quote error – Employee “cut
and paste” error cost TransAlta $24M on Protect certain spreadsheet
electricity contract bids in New York state. cells from editing
http://www.theregister.co.uk/Print/2003/06/19/excel_snafu_costs_firm_24m/

OPMA 8. Quality Management & Control 8.11


Prevention - Process Failsafe Examples
 During the Cold War, the risk of
accidentally launching a Nuclear
weapon was very real.
 The United States failsafed this
by using non-technical terms:

Source: CNN’s “Cold War”

OPMA 8. Quality Management & Control 8.12


Failsafe Example: 5¢ Self Destructing Syringes
 What? The syringe’s plunger breaks when it is pulled back for reuse.
 Why?
 1.3 million people die every year because of the reuse of syringes (WHO)
 A syringe is used four times on average in the developing world
 In Africa 20 million injections contaminated with HIV are given every year
 After seeing undercover video of children being injected with used needles (in
one case, a nurse used a syringe on a man with HIV and syphilis, then reused
the needle on a one-year-old baby), Tanzania has become the first country in
the world to exclusively use “auto-disable” syringes to prevent such
occurrences.

TED talk clip..


(0:20-2:56 &
3:48-4:17)
 Marc Koska, has founded a charity called SafePoint (www.safepointtrust.org) to educate and
encourage more organizations and countries to adopt such syringes.
Source: Sarah Boseley, “How a 5 cent self-destructing syringe can save untold lives”, The Globe and Mail, October 31st 2011, L6
OPMA 8. Quality Management & Control 8.13
Failsafe Example: Stork Craft Crib Recall

What
“failsafe”
should
have been
included
in the crib
design?

Source: http://www.parentcentral.ca/parent/newsfeatures/article/729871--deaths-spark-huge-crib-recall

OPMA 8. Quality Management & Control 8.14


Prevention - Process Failsafe Examples
source:http://csob.berry.edu/faculty/jgrout/everyday.html

Failure Possible Failsafe


Confidential letter to one customer Envelopes with
accidentally put into envelope addressed “windows” (saves labour
to another customer too)
Person forgets to take client card after Must remove client card
making cash withdrawal at a bank machine before cash comes out
Person entering an underground parking
Hang a “clearance bar”
garage gets vehicle stuck (vehicle higher
than clearance) before entrance

Vehicles driving too fast near entrance (risk


Speed Bumps
of serious vehicle – pedestrian accident)
Person opens multiple drawers of a filing
cabinet and it tips over on them Cannot open more than
one drawer at a time

OPMA 8. Quality Management & Control 8.15


Those that fail to
Prevention – Checklists learn from history
are doomed to
 Checklists are effective and efficient repeat it.
 Formalize previous `lessons learned` Winston Churchill
1874-1965
 Shares Best Practices
 Improvement is typically immediate and significant
https://www.youtube.com/watch?v=18ns58FyPmY

OPMA 8. Quality Management & Control 8.16


Source: http://apps.who.int/iris/bitstream/10665/44186/2/9789241598590_eng_Checklist.pdf

OPMA 8. Quality Management & Control 8.17


IV. Defining Quality
A. Design Quality vs. Conformance Quality
Design (product) quality – Conformance (process) quality –
the inherent value of the the degree to which the service
product in the market place or product design specifications
(the level of performance are met.
targeted by the design).
Mercedes Toyota
Palliser Hotel Super 8

Typically, organizations that target design quality also


incorporate conformance quality:

OPMA 8. Quality Management & Control 8.18


Defining Quality (Cont’d)
B. Quality as Fitness for Use
 According to Juran, the quality of a product is defined as
fitness for use, consisting of 5 components:
 Quality of design
 Quality of conformance
 Availability
 Safety
 Field use
 Examples of “quality” products that might not meet the
“fitness for use” criteria?
Fuel gauges: extremely accurate electronic fuel tank sensors are
available, however car manufacturers continue to use much older
“floats” to show drivers how much fuel remains. Why?
OPMA 8. Quality Management & Control 8.19
Defining Quality (Cont’d)
C. Technical Quality vs. Functional Quality
Technical quality: Functional quality:
 The core element of the  Customer perception of
good or service. how the good functions or
the service is delivered
Eg: dentist’s medical Eg: dentist’s manner /
knowledge and ability interpersonal skills

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.

 Effective Service Guarantees:


 Unconditional
 Easy to understand
 Meaningful
 Easy and painless to invoke
 Easy and quick to collect on

OPMA 8. Quality Management & Control 8.21


V. Quality Management Philosophies
A. Six Sigma
 Goal: to reduce process variation to the point where only 3.4
defects per million are produced by a process that involves a
high volume of manufactured units or service transactions.
 Visual Example:
High process variation Low process variation

Defects regularly Extremely low


occurring chance of a defect

 Provides a framework and methodologies to analyze and


“DMAIC”
evaluate –business
Define, Measure, Analyze,
processes Improve,
and reduce Control
waste.

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

Observe The current condition / status / process

Plan The improvement (objectives / specifications)


Do Implement the improvement plan

Check Actual results versus planned results


Act “Adjust” so actual meets planned results

OPMA 8. Quality Management & Control 8.23


VI. Quality Certification
A. ISO 9000 (Text, p. 309) www.iso.org

 A series of international “generic management system standards”


 Purpose: to facilitate international trade by providing a single set of
standards that people everywhere will recognize and respect.
 They are process standards (not product standards)
 they indicate how processes should be measured and documented from a
quality view, but do not prescribe specific tolerances for individual products
 ISO 9001:2015 (revised every 5 years), has been implemented by over
1.1 million organizations worldwide.
 Requires thorough documentation of processes and procedures - can
be expensive and time consuming:
 Registration audit: $10K – $30K, may take 2 years

Examples of aerospace ISO standards under development…

OPMA 8. Quality Management & Control 8.24


Quality Certification (Cont’d)
B. ISO 14000 (Text, p. 309)
 Primarily concerned with "environmental management“
regarding what the organization does to
 minimize harmful effects on the environment caused by its
activities
 achieve continual improvement of its environmental performance
 Over 324,000 organizations worldwide have achieved ISO 14001
certification
 This standard has several advantages:
 Positive public image and reduced exposure to liability
 Good systematic approach to pollution prevention through the
minimization of ecological impact of products and activities
 Compliance with regulatory requirements and opportunities
for competitive advantage

OPMA 8. Quality Management & Control 8.25


Quality Certification (Cont’d) Link to website…

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!

 Events are ranked in decreasing order of importance


 Graph displays:
 Histogram (bar chart) of frequencies
 Line graph of cumulative percentage

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.

Step 1: Structure the Data (prioritize)


Complaint # of % of Cumulative %
Occurrences Total of Total
Shipping 50 42.4% 42.4%
Installation 29 24.6% 67.0%
Delivery 20 16.9% 83.9%
Clerical 10 8.5% 92.4%
Miscellaneous 9 7.6% 100.0%
Total = 118

OPMA 8. Quality Management & Control 8.29


Pareto Analysis Example Cont’d:
Step 2: Graph the Data

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.

OPMA 8. Quality Management & Control 8.31


B. Scatter Diagrams
 Plot data points and visually interpret the results
Example:
An upscale restaurant tracked customers’ wait time to order after
they arrived and the resulting customer satisfaction ratings

OPMA 8. Quality Management & Control 8.32


C. Root Cause Analysis – Fishbone Diagram
 Also known as: Cause-and-Effect Diagram and Ishikawa Diagram
 Keep asking ‘why?’ to determine the root cause of a problem
Example: Diagram for customer complaints in a restaurant

OPMA 8. Quality Management & Control 8.33


VIII. Overview of SQC
Statistical Quality
Control (SQC)

Acceptance Statistical Process


Sampling Control (SPC)

Attributes Variables Attributes Variables

 Acceptance  Process Control


Sampling:  A form of prevention
 A form of appraisal  sets standards to indicate
 acceptance or rejection when adjustments should
of goods which already be made while the service
exist or good is being produced

OPMA 8. Quality Management & Control 8.34


IX. Brief Statistics Review
A. What is Statistics?
 Study of numerical data to better understand the
characteristics of a population or process.
 There are several important statistical measures used
for Quality Control:
 Measures of “Central Tendency”
 Measures of “Dispersion”

OPMA 8. Quality Management & Control 8.35


B. Measures of Central Tendency

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

Sample Mean Range Std. Deviation


5,10,8,13 (5+10+8+13)/4 (13 - 5) = 8 (5  9) 2  (10  9) 2  (8  9) 2  (13  9)2
3
=9
= 3.37

OPMA 8. Quality Management & Control 8.37


D. The Central Limit Theorem
If we calculate sample means,X ’s, rather than just
individual observations, then for large n the distribution of
the X 's will tend to normality.
Example: results from rolling dice
Individual Observations
Distribution of (uniform
individual
distribution)
observations Distribution of
sample mean
N=20

N=10

What if after every 10 rolls we


mean or average value
calculated the average (for those 10
rolls) and plotted it as a single point.
What would the distribution look like?
Normal Distribution
OPMA 8. Quality Management & Control 8.38
E. Sampling Errors
When you sample, the sample may mislead you:
“Type l error” “Type ll error”
Sample Says Problem! OK
Action Taken Stop & Investigate None
Actual (Population) OK Problem!
Result
 Which error type is called:
Consumer’s risk Producer’s risk
Operations Strategy & Sampling Errors:
Strategy Want to avoid... Therefore controls Results in more…
are…
High Quality Type ll errors “tight” Type l errors
Low Cost Type l errors “loose” Type ll errors

OPMA 8. Quality Management & Control 8.39


X. Control Charts
 We use control charts to make inferences about the state (in control
versus out of control) of the process on the basis of one or more
statistics of samples drawn from the on-going process
 First we must estimate the central value and likely range of variation
of each statistic being plotted (when the process is in control)
“Stop process & Assignable /
investigate” Nonrandom
Upper control
·4 limit (UCL)
Variation

68.3
% Inherent /
·2 Central value Random
95.4
·1 when in control Variation
%
99.7 ·3
%
-3s -2s -1s m +1s +2s +3s

Time  Lower control


limit (LCL) 8.40
OPMA 8. Quality Management & Control
B. In a State of Control vs. Out of Control
 In a state of control:
 The process is operating in its usual fashion
 The variations are only by random fluctuations (common causes)
 Out of control:
 The process is not operating in its usual way
 The variation is not purely random - assignable (or special) causes for
the variability are present
 Note: “Out of control” does not mean that a process is producing goods
or services that are bad
 it merely indicates that the process is not behaving in the way it is
expected, given what is known about the process.

Honda Clip #2 Polygraphs (lie detector)


example…

OPMA 8. Quality Management & Control 8.41


II. Control Chart Types

data which count data which measure


(ex. # of complaints) (ex. cm, kg, ml, etc.)

p-chart X-chart & R-chart

 Bank Branch Examples:


Errors made in teller transactions Attribute (count)
Time spent waiting for teller Variable (measure)
E-Transfer support calls Attribute (count)

OPMA 601 8. Quality Management & Control 8.42


D. Control Charts – Measurement by Attributes
(COUNT)
1. Setting up the p-Chart (proportion defective)
a) Determine the average proportion defective from a number of
samples. total number of defectives from all samples
p
number of samples  sample size

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

What are the upper and lower control limits?


p (1  p ) 0.05(1  0.05)
sp  sp  = .031
n 50
UCL  p  zs p LCL  p  zs p
= 0.05 + 3(.031) = 0.05 - 3(.031)

= 0.143 = -0.043 Therefore set to “0”

UCL =14.3%
p = 5.0%
LCL =0.0%

OPMA 8. Quality Management & Control 8.44


p-chart example
 MGM Grand Hotel & Casino in Las Vegas (5,690 guest
rooms) routinely monitors the cleaning of guest rooms.
Results from the last 20 samples, each containing 200
randomly selected rooms are shown below.
 Is the process in control? (use z = 3).
Sample Number of Rooms not Sample Number of Rooms not
Number Satisfactorily Cleaned Number Satisfactorily Cleaned
1 12 0.06 11 20 0.10
2 16 0.08 12 20 0.10
3 8 0.04 13 2 0.01
4 24 14 10 0.05
0.12
5 20 15 16 0.08
0.10
6 2 16 8 0.04
0.01
7 16 17 24 0.12
8 12 0.08 18 10 0.05
9 28 0.06 19 16 0.08
10 8 0.14 20 12 0.06
0.04 TOTAL 284

In order to do a p-chart, the numbers have to be in proportion. Thus each number


has to be divided by the sample size of 200.
OPMA 8. Quality Management & Control 8.45
p-chart example solution
p = mean proportion of rooms not cleaned satisfactorily

= total number of rooms not cleaned satisfactorily


Total number of rooms examined

= total number of rooms not cleaned satisfactorily


Sample size x number of samples

= 284 = 0.071 7.1% of the rooms are not


cleaned satisfactorily
(200x20)

OPMA 8. Quality Management & Control 8.46


p-chart example solution cont’d

p (1  p ) 0.071(1  0.071)
sp  sp 
n 200
= 0.0182

UCL (upper control limit )  p  zs p = 0.071 + 3(0.0182) = 0.1256


LCL (lower control limit )  p  zs p
UCL (upper control limit )  p  zs p
LCL (lower control limit )  p  zs p = 0.071 - 3(0.0182) = 0.0164

OPMA 8. Quality Management & Control 8.47


p-chart example solution cont’d
0.15
proportion of unclean rooms

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)

OPMA 8. Quality Management & Control 8.48


E. Control Charts: Measurement by Variables
 Two charts used in tandem:
1. A chart for central tendency ( x  chart )
2. A chart for variability (we'll use R-chart).
 Both the process variability and process average must be in

control before the total process is said to be in control.

Two sets of control limits: (the most common case is z = 3)


Average Range
X Chart control limits: R Chart control limits:
UCLX  X  3s X  X  A2 R UCLR  R  3sR  D4 R
LCLX  X  3s X  X  A2 R LCLR  R  3s R  D3 R

OPMA 8. Quality Management & Control 8.49


R Chart
A2 for
Number of Units in Sampling n
Chart D3 for LCL D4 for UCL

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

 An important business process is monitored with SPC.


One of the key characteristics of the process is
measured and the sample size is 4.

 When the process is in control, R = 22.4, and X = 598.2.

 The first sample today had the following readings: 570,


603, 618, and 583.

 Using z = 3, is the process still in control?

OPMA 8. Quality Management & Control 8.51


Quick Example Solution
From table for n =4: A2 = 0.73D3 = 0.00
D4 = 2.28

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.

Sample Observations of Battery Life (hours) Sample Sample


# Avg. Range
1 2 3 4 5 6
1 49 53 49 50 48 47 49.3 6
2 50 53 49 51 52 53 51.3 4
3 50 49 54 51 49 50 50.5 5
4 52 50 51 49 52 49
50.5 3
5 51 44 48 50 46 45 47.3 7
= A2 =
X = 50 hours 0.48
D3 =0.0
R = 4 hours
n
6 D4 =2.00

OPMA 8. Quality Management & Control 8.53


Example 2 Solution: R-Chart
UCLR =D4 R = 2.00 * 4 hours = 8.00 hours
LCLR =D3 R = 0.00 * 4 hours = 0.00 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

OPMA 8. Quality Management & Control 8.54


Example 2 Solution: x  chart
UCLX  X  A2 R  50.00
0.5  0+.73  0.18
0.48*4  0.631
hours cm hours
= 51.92
LCLX  X  A2 R  50.00
0.5  0–.73  0.18
0.48*4  0.369
hours = 48.08
cm hours

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

x-Chart is not in control. Sample 5 is below the LCL and should


be investigated. Thus, process as a whole is not in control.
OPMA 8. Quality Management & Control 8.55
F. Additional Reasons to Stop & Investigate
 Other evidence that the process requires investigation:
Trends in either direction Consecutive points near UCL /
LCL

five consecutive points above / Erratic behavior


below central line

OPMA 8. Quality Management & Control 8.56


Other Issues in the Use of SPC
 How Often to Sample? Depends on:
 Cost of sampling
 Variability of process
 Cost of quality faults (ex. pencils vs. pacemakers)

 Where to Monitor (Control) in a Multistage Process:


 Before “costly” stages in the process
 At the end, to ensure customer satisfaction
 At historically unreliable stages
 Near beginning to isolate supplier problems
 Why not monitor at almost every stage of the
process? Too expensive, too slow

OPMA 8. Quality Management & Control 8.57


XI. Process Capability
 Process capability measures whether or not the output will routinely
(i.e., when the process is in control) meet the design specifications.
 Specification limits:
 The upper (USL) and lower (LSL) specification limits are
externally set and are not affected by improving the process or
sampling.
 Examples: - CSA (helmets, fire / electrical safety, etc.)
- NTSB Automobile crash-test ratings, emissions, etc.

 Measured by the relationship of the variation of individual values


of the process with the USL and LSL
 Each individual product must meet the specification

OPMA 8. Quality Management & Control 8.58


A. Process Capability Analysis
 Are the following processes ‘capable’?
Yes - just Yes – excellent
LSL USL LSL USL

T T

No No – the mean has shifted.


LSL USL LSL USL

Defective
product

T TX

OPMA 8. Quality Management & Control 8.59


B. Process Capability Examples:
Article: What Crash Test Scores Mean

OPMA 8. Quality Management & Control 8.60


B. Process Capability Examples:
 To achieve a “platinum” safety rating, a vehicle must be able to
come to a complete stop when traveling at a speed of 35 mph (56
km/h) in 15 metres or less.
 A vehicle is considered “capable” if there was a very little chance
(1% or less) of a braking distance exceeding this standard.
 To determine this one can calculate the probability that a breaking
distance will exceed 15 metres.

Use the formula ZUSL = USL – X


σ

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

OPMA 8. Quality Management & Control 8.61


OPMA 8. Quality Management & Control 8.62
B. Process Capability Examples cont’d
Alternative 1 (Original Design):
The mean braking distance has been 10 meters
with a individual  of 5 meters. Is it capable?
USL

ZUSL = USL – X = 15m – 10m = 1


σ 5m

X 15m
10m

Z value probability Probability of


(from normal table): exceeding 15m = (1 - 0.8413) = 0.1587
0.8413 almost 16% ‘defective’
NOT CAPABLE
(not even close!)
OPMA 8. Quality Management & Control 8.63
B. Process Capability Examples cont’d
Alternative 2 (Modern Sensor):
The mean braking distance is still 10 metres but
the  has been reduced by using a more modern
sensor. The new  is 1.5 meters. Is the process
now capable?
USL

ZUSL = USL – X = 15m – 10m = 3.33


σ 1.5m

X 15m
10m

Z value probability Probability of


(from normal table): exceeding 15m = (1 - 0.9996) = 0.0004
0.9996 only 0.04% ‘defective’
VERY CAPABLE
OPMA 8. Quality Management & Control 8.64
B. Process Capability Examples cont’d
Alternative 3 (Low Cost Brake-Pad):
A lower cost brake-pad is being tested. The  is
still 1.5 meters, however the mean braking
distance has now risen to 13 metres. Is the
process capable?
USL

ZUSL = USL – X = 15m – 13m = 1.33


σ 1.5m

10m X 15m
13m

Z value probability Probability of


(from normal table): exceeding 15m = (1 - 0.9082) = 0.0918
0.9082 over 9% ‘defective’
NOT CAPABLE
OPMA 8. Quality Management & Control (not close!) 8.65
B. Process Capability Examples cont’d
Alternative 4 (Carbon Brake-Pad):
By using more expensive carbon brake pads, the
mean braking distance is back to 10 meters.
Furthermore, the  has been reduced to 0.8 meters.
Is the process capable?
USL

ZUSL = USL – X = 15m – 10m = 6.25


σ 0.8m

X 15m
10m

Z value probability Probability of


(from normal table): exceeding 15m = (1 - 0.9999997) = 0.0000003
0.9999997 only 3 per million ‘defective’
EXTREMELY CAPABLE
OPMA 8. Quality Management & Control (Six Sigma) 8.66

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