Slide 2 Process Performance and Quality Chapter 5 Slide 3 Ch.5
Agenda Definition of quality Quality costs TQM Employee Involvement
Continuous improvement Control Charts for Variables Control Chart
for Attributes Six sigma Quality Philosophy ISO 9000 and 14000
standards Quality awards and standards Slide 4 What is Quality?
Prior to 1980s quality was not a top priority 1980s US
manufacturers was loosing market share Mid-1980smore attention
given to quality Later total quality concept was embraced Slide 5
Benefits of Quality Increased market share Reduced production costs
Increased price Slide 6 Customer-Driven Definitions of Quality
Conformance to Specifications Value Fitness for Use Support
Psychological Impressions Slide 7 The Costs of Poor Quality
Prevention Costs Appraisal Costs Internal Failure Costs External
Failure Costs Slide 8 Prevention Costs Re-design the process to
remove causes of defects Re-design the product to make it simpler,
easy to produce Train employees Train suppliers Slide 9 Appraisal
Costs Inspections Quality audits Statistical quality control
program Slide 10 Internal Failure Costs Scrap Rework Slide 11
External Failure Costs Warranty service Litigation Loss of market
share Increased regulation Slide 12 What are the hidden costs of
internal and external failure More labor More machine capacity
needed Increased wip Extended lead times Reduced employee morale
Slide 13 Costs of Detecting Defects Slide 14 Figure 6.2 Process
Final testing Customer Where defect is detected Cost of detection
and correction Slide 15 Customer satisfaction TQM Wheel Figure 5.2
Slide 16 Employee Involvement Cultural Change Teams Slide 17
Cultural Change Top management should facilitate cultural change
Everyone is supposed to participate Slide 18 Team Building Common
commitment Shared leadership roles Collective performance
evaluation Open-ended Communication Slide 19 Managements role in
Team Building Assign meaningful projects, clear rules Set some
immediate performance oriented tasks and goals for early success
Facilitate team members to spend a lot of time together Have ways
other than direct compensation to give the team positive
reinforcement Slide 20 Three Approaches to Teamwork Problem-solving
teams Special-purpose teams Self-managing teams highest level of
worker participation Slide 21 Individual Development Education
seminar University courses and degrees On the job training Cross
training Web-based learning Slide 22 Getting started with
Continuous Improvement SPC training Make SPC a normal aspect of
Daily Operations Build Work Teams and Employee Involvement Utilize
problem Solving Techniques within the work teams Develop operator
process ownership Slide 23 Plan Do Check ActDemingWheel Figure 5.3
Slide 24 Problem Solving process: The Deming Wheel Plan select a
process needing improvement, document process, analyse data, set
improvement goals, discuss alternatives, assess benefits and costs,
develop a plan and performance measures. Do implement plan Check
Analyse data and check the performance Act- document and
disseminate the improved process as standard Slide 25 Show changes
in data pattern e.g., trends Make corrections before process is out
of control Show causes of changes in data Assignable causes Data
outside control limits or trend in data Natural causes Random
variations around average Control Chart Purposes Slide 26
Characteristics for which you focus on defects Classify products as
either good or bad, or count # defects e.g., radio works or not
Categorical or discrete random variables AttributesVariables
Quality Characteristics Characteristics that you measure, e.g.,
weight, length May be in whole or in fractional numbers Continuous
random variables Slide 27 Using Control Charts for Process
Improvement Measure the process When changes are indicated, find
the assignable cause Eliminate problems, incorporate improvements
Repeat the cycle Slide 28 Control Charts R Chart Variables Charts
Attributes Charts X Chart P C Continuous Numerical Data Categorical
or Discrete Numerical Data Control Chart Types Slide 29 Type of
variables control chart Interval or ratio scaled numerical data
Shows sample means over time Monitors process average Example:
Weigh samples of coffee & compute means of samples; Plot X
Chart Slide 30 Type of variables control chart Interval or ratio
scaled numerical data Shows sample ranges over time Difference
between smallest & largest values in inspection sample Monitors
variability in process Example: Weigh samples of coffee &
compute ranges of samples; Plot R Chart Slide 31 Using Control
Charts for Process Improvement Sample the process When changes are
indicated, find the assignable cause Eliminate problems,
incorporate improvements Repeat the procedure Slide 32 Control
Charts for Variables Example 5.1 Sample Number1234R x
10.50140.50220.50090.5027 20.50210.50410.50240.5020
30.50180.50260.50350.5023 40.50080.50340.50240.5015
50.50410.50560.50340.5047 Special Metal Screw _ Slide 33 Control
Charts for Variables Sample Number1234R x
10.50140.50220.50090.50270.00180.5018
20.50210.50410.50240.50200.00210.5027
30.50180.50260.50350.50230.00170.5026
40.50080.50340.50240.50150.00260.5020
50.50410.50560.50340.50470.00220.5045 R =0.0021 x =0.5027 Special
Metal Screw Example 5.1 = _ Slide 34 Control Charts for Variables
Control ChartsSpecial Metal Screw x -Charts UCL x = 0.5027 + 0.729
(0.0021) = 0.5042 in. LCL x = 0.5027 0.729 (0.0021) = 0.5012 in.
UCL x = x + A 2 R LCL x = x - A 2 R = = R = 0.0021 A 2 = 0.729 x =
0.5027 = Slide 35 Example 5.1 Control Charts for Variables Control
ChartsSpecial Metal Screw R -Charts R = 0.0021 D 4 = 2.282 D 3 = 0
UCL R = 2.282 (0.0021) = 0.00479 in. LCL R = 0 (0.0021) = 0 in. UCL
R = D 4 R LCL R = D 3 R Slide 36 Factors for Computing Control
Chart Limits Slide 37 x -Chart Special Metal Screw Figure 5.9 Slide
38 Range Chart - Special Metal Screw Figure 5.8 Slide 39 Different
Out of Control Situations Slide 40 Type of attributes control chart
Nominally scaled categorical data e.g., good-bad Shows % of
nonconforming items Example: Count # defective chairs & divide
by total chairs inspected; Plot Chair is either defective or not
defective p Chart Slide 41 Control Charts for Attributes Hometown
Bank UCL p = p + z p LCL p = p z p p = p (1 p )/ n Example 5.3
Slide 42 Type of attributes control chart Discrete quantitative
data Shows number of nonconformities (defects) in a unit Unit may
be chair, steel sheet, car etc. Size of unit must be constant
Example: Count # defects (scratches, chips etc.) in each chair of a
sample of 100 chairs; Plot c Chart Slide 43 c Chart Control Limits
# Defects in Unit i # Units Sampled Use 3 for 99.7% limits Slide 44
Six Sigma Improvement Model Define the current process using
characteristics critical to customer satisfaction and determine
gapsDefine the current process using characteristics critical to
customer satisfaction and determine gaps Measure the work processes
that affect the gapMeasure the work processes that affect the gap
Analyze the data focusing on process analysisAnalyze the data
focusing on process analysis Improve the processImprove the process
Control the revised process to maintain new performance
levelsControl the revised process to maintain new performance
levels Slide 45 2 3 4 5 6 308,537 66,807 6,210 Defects per Million
opportunities 233 3.4. Process Capability Process Capability Sigma
is a statistical unit of measure which Reflects process capability.
Six Sigma as a Goal Slide 46 99.99966% Good (6 Sigma) 20,000 lost
articles of mail per hour Unsafe drinking water for almost 15
minutes each day 5,000 incorrect surgical operations per week Two
short or long landings at most major airports each day 200,000
wrong drug prescriptions each year No electricity for almost seven
hours each month Seven articles lost per hour One unsafe minute
every seven months 1.7 incorrect operations per week One short or
long landing every five years 68 wrong prescriptions per year One
hour without electricity every 34 years 99% Good (3.8 Sigma) Six
Sigma -- Practical Meaning Slide 47 Six Sigma Implementation Top
Down CommitmentTop Down Commitment Measurement Systems to Track
ProgressMeasurement Systems to Track Progress Tough Goal
SettingTough Goal Setting EducationEducation
CommunicationCommunication Customer PrioritiesCustomer Priorities
ASQ 6 Sigma Forum Slide 48 ISO9000 ISO14000 International Quality
Documentation and Environmental Management System Slide 49 What is
ISO 9000 Certification International quality standards Consists of
series ISO 9001-9004 Certified companies are listed in the
directory Compliance with ISO 9000 standards indicate that quality
claims can be verified. Slide 50 What is ISO 14000 An environmental
management system standard covering: Environmental management
system Environmental performance evaluation Environmental leveling
Life-cycle assessment Slide 51 Quality Awards Malcolm Baldrige USA
Deming --Japan Slide 52 Malcolm Baldrige national Quality Award
Established in 1987 Named for Secretary of Commerce Malcolm
Baldrige Focus then was to improve quality to reduce trade deficit
Idea is to learn strengths and weaknesses and find ways to improve
Seven major criteria Slide 53 Category 1Leadership 120 points
Category 2Strategic Planning 85 points Category 3Customer and
Market Focus 85 points Category 4Information and Analysis 90 points
Category 5Human Resource Focus 85 points Category 6Process
Management 85 points Category 7Business Results 450 points Criteria
for Performance Excellence Slide 54 Leadership Leadership system,
values, expectations, and public responsibilities Strategic
Planning The effectiveness of strategic and business planning and
deployment of plans, focusing on performance requirements Customer
and Market Focus How the company determines customer and market
requirements and achieves customers satisfaction Information and
Analysis The effectiveness of information systems to support
customer driven performance excellence and marketplace success
Human Resource Focus The success of efforts to realize the full
potential of the work force to create a high-performance
organization Process Management The effectiveness of systems and
processes for assuring the quality of products and services
Business Results Performance results and competitive benchmarking
in customer satisfaction, financials, human resources, suppliers,
and operations
