IE 4653/6653 Industrial Quality Control I

Lecture 1 Quality Improvement in the Modern Business Environment Chapter 1

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Definitions - Meaning of Quality and Quality Improvement

The Eight Dimensions of Quality 1. Performance - Will the product do the intended job? 2. Reliability - How often does the product fail? 3. Durability - How long does the product last? 4. Serviceability - How easy is it to repair the product? 5. Aesthetics - What does the product look like? 6. Features - What does the product do? 7. Perceived Quality - What is the reputation of the company or its
product?

8. Conformance to Standards - Is the product made exactly as the

designer intended?
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 2

Definitions
Quality means fitness for use
This is a traditional definition
Quality of design Quality of conformance

Quality is inversely proportional to variability

This is a modern definition of quality

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Water Faucet Example

Target: best performance when internal diameter = 1.25cm 100 faucets from supplier A, 100 from supplier B, 100 from supplier C Supplier A: mean diameter 1.25cm, every faucet close to target Supplier B: mean diameter 2cm Supplier C: mean diameter 1.25cm, faucets more variable Conclusion: A has the best quality
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 4

Quality Improvement
Quality improvement is the reduction of variability in processes and products The water faucet example illustrates the utility of this definition An equivalent definition is that quality improvement is the elimination of waste. This is useful in service or transactional businesses.

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Terminology
Quality (critical-to-quality) characteristics
Physical: length. weight, voltage, viscosity Sensory: taste, appearance, color Time orientation: reliability, durability, serviceability

Statistical methods: describe the variability

Variables data: continuous measurements
Length Voltage Viscosity

Attributes data: discrete data

# of emergency room arrivals

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Terminology contd
Specifications
Lower specification limit Upper specification limit Target or nominal values

Defective or nonconforming product Defect or nonconformity

A specific type of failure

Not all products containing a defect are necessarily defective

Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 7

Statistical Methods for Quality Control and Improvement

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Statistical Methods
Statistical process control (SPC)
Control charts, plus other problem-solving tools Useful in monitoring processes, reducing variability through elimination of assignable causes On-line technique

Design of experiments (DOE)

Discovering the key factors that influence process performance Process optimization Off-line technique

Acceptance Sampling

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

Typing Example
Consider improvement of typing quality, which is measured by typing accuracy and clearness. Statistical process control (SPC) - Every hour one page is selected and its quality is measured. Plot the measurements from each hour on a control chart. If a shift of quality is detected, the root cause of this shift (e.g., typist tiredness, lack of ink) is identified and fixed. Design of experiment (DOE) - Conduct experiments with combinations of different typists, typewriters, papers, working schedules. The best combination of these factors are selected to achieve optimal typing quality. Acceptance sampling - Several sample pages are inspected from every lot (e.g., every 100 typed pages). If the selected sample pages have satisfactory quality, the whole lot is accepted. Otherwise, the whole lot is rejected and rework should be done.
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 10

Statistical Process Control

Walter A. Shewart (1891-1967)
Trained in engineering and physics Long career at Bell Labs Developed the first control chart about 1924

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Design of Experiments

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Acceptance Sampling
Outgoing inspection
Inspection before the product is shipped to the customer

Incoming inspection
Inspection after the product is received from the supplier

Disposition of lots

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Variation Reduction Approaches

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Management Aspects of Quality Improvement

Effective management of quality requires the execution of three activities Quality Planning
Strategic activity

Quality Assurance
Ensure the quality levels of products and services are properly maintained

Quality Control and Improvement

Ensure the products and services meet requirements and are improved on a continuous basis
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 15

Shewhart Cycle

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Statistical Quality Control Procedures

Process

Implementation Take action

Observation Data collection

Decision Formulate action

Diagnosis Faulty discovery

Evaluation Data analysis

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Six Sigma
A disciplined and analytical approach to process and product improvement First developed by Motorola in the late 1980s Specialized roles for people; Master Black belts, Black Belts, Green Belts BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) Involves a five-step process (DMAIC)

Chapter 1

Define Measure Analyze Improve Control

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 18

 Three sigma quality

2700 ppm defective (0.9973)100=0.7631

Six sigma quality

0.002 ppm defective (0.999999998)100=0.9999998

Three sigma quality

66810 ppm defective

Six sigma quality

3.4 ppm defective

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Why Quality Improvement is Important: A Simple Example

A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink. This product has 10 components - is 99% good okay?
P{Single meal good} (0.99)10 0.9044 Family of four, once a month: P{All meals good} (0.9044) 4 0.6690 P{All visits during the year good} (0.6690)12 0.0080

P{single meal good} (0.999)10 0.9900, P{Monthly visit good} (0.99)4 0.9607 P{All visits in the year good} (0.9607)12 0.6186

Chapter 1

Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

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Three Generations of Six Sigma Implementations

Generation I
Defect elimination and basic variability reduction

Generation II
Emphasis on variability and defect reduction remained Strong effort to business performance improvement through cost reduction

Generation III
Additional focus of creating value throughout the organization and for its stakeholders
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 21

Lean Systems
Focuses on elimination of waste
Long cycle times Long queues in-process inventory Inadequate throughput Rework Non-value-added work activities

Makes use of many of the tools of operations research and industrial engineering
Discrete-event simulation
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 22

Lean Focuses on Waste Elimination

Definition
A set of methods and tools used to eliminate waste in a process Lean helps identify anything not absolutely required to deliver a quality product on time.

Benefits of using Lean

Lean methods help reduce inventory, lead time, and cost Lean methods increase productivity, quality, on time delivery, capacity, and sales
Chapter 1 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. 23