D30 Quality

S.
Chopra/Operations/Quality 1
Operations Management:
Process Quality & Improvement Module
Quality & the Voice of the Customer
What is Quality?
Quality Programs in practice
Voice of the Customer
Process Capability and Improvement
Process Capability
Checking for Improvement (Quality Wireless)
Control Charts & Voice of the Process
Statistical Process Control (SPC)
Quality Wireless (B)
Why 6-Sigma?
Flyrock Tires
S. Chopra/Operations/Quality 2
8 Dimensions of Quality
Performance
Features
Serviceability
Aesthetics
Perceived Quality
Reliability
Conformance
Durability
Q of design
Q of process conformance
to design = process capability
Elements of TQM
Management by fact
Cross-functional (process) approach
Culture and leadership
Customer focus
Employee focus
High performance focus
Continuous improvement
Benchmarking
External alliances - the value chain

Source: Eitan Zemel
1 Leadership 110
2 Strategic Planning 80
Strategy Development Process
3 Customer and Market Focus 80
4 Information and Analysis 80
5 Human Resource Development and Management 100
6 Process Management 100
Product and Service Processes
Support Processes
Supplier and Partnering Processes
7 Business Results 450
TOTAL POINTS 1000
Malcolm Baldridge National Quality Award
Malcolm Baldridge Award Winners
Ames Rubber Corporation (1993)
Armstrong World Industries Building Products
Operations (1995)
AT&T Consumer Communications Services
(1994)
AT&T Network Systems Group (1992)
AT&T Universal Card Services (1992)
Cadillac Motor Car Company (1990)
Chugach School District (2001)
Clarke American Checks (2001)
Corning Telecommunications Products Division
(1995)
Dana Corporation (2000)
Eastman Chemical Company (1993)
Federal Express Corporation (1990)
Globe Metallurgical Inc. (1988)
Granite Rock Company (1992)
GTE Directories Corporation (1994)
IBM Rochester (1990)

Karlee Company, Inc. (2000)
Los Alamos National Bank (2000)
Marlow Industries (1991)
Milliken & Company (1989)
Motorola Inc. (1988)
Operations Management International (2000)
Pals Sudden Service (2001)
Pearl River School District (2001)
The Ritz-Carlton Hotel Company (1992)
Solectron Corporation (1991)
Texas Instruments Incorporated - Defense
Systems & Electronics Group (1992)
University of Wisconsin-Stout (2001)
Wainwright Industries, Inc. (1994)
Wallace Co., Inc. (1990)
Westinghouse Electric Corporation -
Commerical Nuclear Fuel Division (1988)
Xerox Corporation - Business Products &
Systems (1989)
Zytec Corporation (1991) Last Updated: May 28, 2002
ISO 9000
Series of standards agreed upon by the International Organization for
Standardization (ISO)
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000: document what you do and then do as you documented.
Source: Adapted from Chase & Aquilano
Design Procurement Production Final test Installation Servicing
ISO 9003
ISO 9002
ISO 9001
Costs of Quality
Cost of Conformance
Cost of Appraisal
Cost of Prevention
Cost of Non-Conformance
Cost of Internal Failure
Cost of External Failure
100:1
10:1
1:1
Product
Design
Process
Design
Production
Improve
Product
Quality Lever
Benefits of Building Q in Early
Low Visibility
Reward
High Visibility
Reward
Time
Components of Quality
Voice of the customer
Customer Needs
Quality of Design
Voice of the process
Quality of Conformance
Process Capability
Process Control and Improvement
Voice of the Customer: Linking
Customer Needs to Business Processes
Business Process Customer Need Internal Metric
Overall Quality
Product (30%)
Sales (30%)
Installation (10%)
Repair (15%)
Billing (15%)
Reliability (40 %) % Repair Call
Easy to Use (20%) % Calls for Help
Features/Functions (40%) Function Performance Test
Knowledge (30%) Supervisor Observations
Response (25%) % Proposals Mad on Time
Follow-Up (10%) % Follow-Up Made
Delivery Interval (30%) Average Order Interval
Does Not Break (25%) % Repair Reports
Installed When Promised % Installed on Due Date
No Repeat Trouble (30%) % Repeat Reports
Fixed Fast (25%) Average Speed of Repair
Kept Informed (10%) % Customers Informed
Accuracy, No Surprise (45%) % Billing Inquiries
Response on First Call (35%) % Respolved First Call
Easy to Understand (10%) % Billing Inquiries
Source: Kordupleski et al., CMR 93.
Voice of the Customer:
Quality Function Deployment
What do customers want?
Are all preferences equally important?
Will delivering perceived needs deliver a competitive
advantage?
How can we change the product?
How do engineering characteristics influence customer
perceived quality?
How does one engineering attribute affect another?
What are the appropriate targets for the engineering
characteristics?
House of Quality
Source: Hauser and Clausing 1988
Customer
Requirements
Easy to close
Stays open on a hill
Easy to open
Doesnt leak in rain
No road noise
Importance weighting
Engineering
Characteristics
E
n
e
r
g
y

n
e
e
d
e
d

t
o

c
l
o
s
e

d
o
o
r

C
h
e
c
k

f
o
r
c
e

o
n

l
e
v
e
l

g
r
o
u
n
d

E
n
e
r
g
y

n
e
e
d
e
d

t
o

o
p
e
n

d
o
o
r

W
a
t
e
r

r
e
s
i
s
t
a
n
c
e

10 6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation:
Strong positive
Positive
Negative
Strong negative
X
*
Competitive evaluation
X = Ours
A = Comp. A
B = Comp. B
(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1
Target values
R
e
d
u
c
e

e
n
e
r
g
y

l
e
v
e
l

t
o

7
.
5

f
t
/
l
b

R
e
d
u
c
e

f
o
r
c
e

t
o

9

l
b
.

R
e
d
u
c
e

e
n
e
r
g
y

t
o

7
.
5

f
t
/
l
b
.

M
a
i
n
t
a
i
n

c
u
r
r
e
n
t

l
e
v
e
l

Technical evaluation
(5 is best)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXA
BA
X
D
o
o
r

s
e
a
l

r
e
s
i
s
t
a
n
c
e

A
c
c
o
u
s
t
.

T
r
a
n
s
.

W
i
n
d
o
w

M
a
i
n
t
a
i
n

c
u
r
r
e
n
t

l
e
v
e
l

M
a
i
n
t
a
i
n

c
u
r
r
e
n
t

l
e
v
e
l

X
-
+
- - +
+
Linked Houses From Customer To
Manufacturing
Engineering
Characteristics
Parts
Characteristics
Key Process
Characteristics
Production
Characteristics
House of
Quality
Parts
Deployment
Process
Planning
Production
Planning
I II III IV
E
n
g
i
n
e
e
r
i
n
g

C
h
a
r
a
c
t
e
r
i
s
t
i
c
s

P
a
r
t
s

C
h
a
r
a
c
t
e
r
i
s
t
i
c
s

K
e
y

P
r
o
c
e
s
s

C
h
a
r
a
c
t
e
r
i
s
t
i
c
s

C
u
s
t
o
m
e
r

A
t
t
r
i
b
u
t
e
s

Benefits of QFD
Startup and Preproduction costs
at Toyota Auto Body
Japanese automaker with QFD made fewer
changes than US company without QFD
time
20 - 24
months
90% of total Japanese
changes complete
Job # 1
Japan
US
Design
Changes
14 - 17
months
1 - 3
months
1 - 3
months
Before QFD
After QFD
(39% of preQFD costs)
t
Job # 1
Source: Hauser and Clausing 1988
More New Product Development Tools
Value analysis / Value engineering
Design for manufacturability
Robust design
Value Analysis/Value Engineering
Achieve equivalent or better performance at a lower
cost while maintaining all functional requirements
defined by the customer
Does the item have any design features that are not
necessary?
Can two or more parts be combined into one?
How can we cut down the weight?
Are there nonstandard parts that can be eliminated?
Robust Quality: Taguchis View of Cost
of Variability
Traditional View Taguchis View
Non-conformance to
design cost
$$$
0
Lower
Tolerance
Design
Spec
Upper
Tolerance
Actual
value

Lower
Tolerance
Design
Spec
Upper
Tolerance
Quality & the Voice of the Customer:
Key Learning Objectives
Elements of TQM / Baldridge / ISO 9000
Costs of Quality
Components of Quality
Linking business processes to customer needs
Product Design Methodologies:
Convert customer needs to product and process specifications: QFD
Value Engineering
What is Quality?
Process Capability
Why 6-Sigma?
Flyrock Tires
Process Capability
Percent defective
Proportion of output that does not meet customer
specifications
Sigma-capability
Number of standard deviations from the mean of the
process output to the closest specification limit.

Quality Wireless (A): Capability
Distribution of Average Daily Hold Time for 2003-04
0
2
4
6
8
10
12
14
16
18
20
3
9
4
3
4
7
5
1
5
5
5
9
6
3
6
7
7
1
7
5
7
9
8
3
8
7
9
1
9
5
9
9
1
0
3
1
0
7
1
1
1
1
1
5
1
1
9
1
2
3
1
2
7
1
3
1
1
3
5
1
3
9
1
4
3
1
4
7
1
5
1
1
5
5
1
5
9
1
6
3
Average Daily Hold Time
N
u
m
b
e
r

o
f

D
a
y
s
Out of Specs Within Specs
Quality Wireless (A): Capability
Proportion of days within specification in 2003-04 =
491/731 = 0.672
The call center had a mean hold time of 99.67 with a
standard deviation of 24.24. With a specification of 110
seconds or less,
-capability of call center = (110 99.67)/24.24
= 0.426
The call center is a 0.426-sigma process. Expected fraction
of days within specifications from a 0.426-sigma process
= NORMSDIST(0.426) = 0.665
What is Process Improvement?
Continuous Improvement:
PDCA Cycle (Deming Wheel)
Institutionalize the change or
abandon or do it again.
Execute the change. Study the results;
did it work?
1. Plan
2. Do 3. Check
4. Act
Plan a change aimed
at improvement.
Quality Wireless (A): Checking for Improvement
Performance in April 2005: Mean = 79.50, Standard
deviation = 16.86
What is the probability of observing such a sample if
performance has not improved relative to 2003-04?
Mean hold in 2003-04 = 99.67
Standard deviation = 24.24
Given that April 2005 had 30 days, we need to consider
distribution of samples of size 30. The standard deviation of
sample means = 24.24/30 = 4.43
Probability of observing a sample of size 30 with mean 79.50 or
less = NORMDIST(79.50, 99.67, 4.43, 1) = 2.64E-06

What is Quality?
Process Capability
Why 6-Sigma?
Flyrock Tires
Has Process Performance Changed? Quality
Wireless (B)
Average hold time from September 1-10 =86.6
seconds
Ray yells at supervisors
Performance improves from September 11-20 to an
average hold of 74.4 seconds
What do you think of Rays management style?
Performance of Inventory Manager
J F M A M J J A S O N
WIP
Award Given
Manager repents and kicks...
J F M A M J J A S O N D J F
WIP
J F M A M J J A S O N D J F M A M J
WIP
.. and concludes that kick ... mgt works !?
month
month
month
Statistical Process Control:
Source of Variability
Inherent (common cause)
External (assignable cause)

Objective: Identify inherent variability and eliminate external
variability. A process is in control if it has only inherent
variability.
To improve the system, attack common causes (methods,
people, material, machines). This is the role of management.

Various Patterns in Control Charts
Pattern Description Possible Causes
Normal Random Variation
Lack of Stability Assignable (or special) causes (e.g. tool,
material, operator, overcontrol
Cumulative trend Tool Wear
Cyclical Different work shifts, voltage
fluctuations, seasonal effects
SPC Quality Wireless (B)
After the improvements, daily hold time has an
average of 79.50 and a standard deviation of 16.86.
Since we are considering samples of size 10 (10
days), we need to consider the distribution of sample
means. Sample means have an average of 79.50 and a
standard deviation of 16.86/10 = 5.33.
Probability of observing 86.6 or higher even if
process is in control = 1-NORMDIST(86.6, 79.50,
5.33, 1) = 0.0915
SPC Quality Wireless (B)
Probability of observing 74.4 or lower even if process
is in control = NORMDIST(74.4, 79.50, 5.33, 1) =
0.1693
What we need is a hypothesis test each time we
observe a sample Does the sample belong to the in-
control population or not?
SPC Setting Control Limits
Upper Control Limit = UCL = Mean + 3
Xbar
Lower Control Limit = LCL = Mean - 3
Xbar
In the case of Quality Wireless
UCL = 79.50 + 35.33 = 95.49
LCL = 79.50 - 35.33 = 63.51
The process was in control when samples with means
of 86.6 and 74.4 were observed.
Control Charts & Voice of the Process:
Key Learning Objectives
The role of variability in evaluating performance
A process
in control has only inherent (from common cause) variation
out of control has variation from an assignable cause
SPC framework for process control and improvement
What is Quality?
Process Capability
Why 6-Sigma?
Flyrock Tires
Why 6-Sigma?
2 sigma:
69.146% of products and/or services meet customer requirements
with 308,538 defects per million opportunities.

4 sigma:
99.379% of products and/or services meet customer requirements ...
but there are still 6,210 defects per million opportunities.

6 sigma:
99.99966% As close to flaw-free as a business can get, with just
3.4 failures per million opportunities (e.g. products, services or
transactions).

Why 6-Sigma?
Impact of # of parts/stages in a process

Probability that process/product meets specs
3 -sigma 4 - sigma 5 - sigma 6 - sigma
# of steps/parts
1 93.3% 99.4% 100.0% 100.0%
10 50.1% 94.0% 99.8% 100.0%
50 3.2% 73.2% 98.8% 100.0%
100 0.1% 53.6% 97.7% 100.0%
144 0.00% 40.8% 96.7% 100.0%
369 10.0% 91.8% 99.9%
740 1.0% 84.2% 99.7%
1044 0.1% 78.4% 99.6%
1590 0.00% 69.1% 99.5%
19581 1.0% 93.6%
42559 0.00% 86.5%
100000 71.2%
1000000 3.3%
0.0%
0.0%
0.1%
1.0%
10.0%
100.0%
1 10 100 1000 10000 100000 1000000
# steps/components
Probability that process/product
meets specs
3 -sigma
4 - sigma
5 - sigma
6 - sigma
Why 6-Sigma? Robustness to Mean Shifts
100 130 160
LSL USL
s = 10
100 143 160
LSL USL
s = 10
LSL USL
s = 5
100 130 160
LSL USL
s = 5
100 143 160
99.9 %
99.9 %
Why 6-Sigma? 6-Sigma Quality at Flyrock
At the extruder, the rubber for the AX-527 tires had
thickness specifications of 400 10. Susan and her
staff had analyzed many samples of output from the
extruder and determined that if the extruder settings
were accurate, the output produced by the extruder
had a thickness that was normally distributed with a
mean of 400 and a standard deviation of 4.

If the setting is accurate, what proportion of the rubber
extruded will be within specifications?

Process Capability: Sigma Capability
Sigma capability is the number of standard deviations
from the mean to the closest specification limit.
Sigma capability of extrusion process =

Susan has asked operators to take a sample of 10 sheets
of rubber each hour from the extruder and measure the
thickness of each sheet. Based on the average
thickness of this sample, operators will decide whether
the extrusion process is in control or not. Given that
Susan plans 3-sigma control limits, what upper and
lower control limits should she specify to the
operators?

Impact of Mean Shift
If a bearing is worn out, the extruder produces a mean
thickness of 403 when the setting is 400. Under this
condition, what proportion of defective sheet will the
extruder produce? Assuming the control limits in (2),
what is the probability that a sample taken from the
extruder with the worn bearings will be out of control?
On average, how many hours are likely to go by before
the worn bearing is detected.

Why 6-Sigma? Rapid Detection
What if extrusion is to become a 6-Sigma process?
Target mean =
Target standard deviation =
Process improvement has resulted in the extrusion
process having a mean of 400 and a standard
deviation of 1.667. What should the new control
limits be? What is the proportion of defectives
produced?
Improving Process Capability
Return to the case of the worn bearing in (3) where
extrusion produces a mean thickness of 403 when the
setting is 400. Under this condition, what proportion
of defective sheets will the extruder produce (for the
6-sigma process)? Assuming the control limits in (5),
what is the probability that a sample taken from the
extruder with the worn bearings will be out of
control? On average, how many hours are likely to go
by before the worn bearing is detected.

Key Learning Objectives: SPC
Specification limits: Voice of the customer
Process capability is a measure of the quality delivered
(external): links VoP with VoC
Improving capability may require variability reduction
and/or mean shift
Control limits used to verify if process is in control
(internal), i.e., is maintaining capability: Voice of the
process
Higher process capability reduces defectives and
speeds up detection of assignable cause

D30 Quality

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

D30 Quality

Uploaded by

Copyright:

Available Formats

S.

You might also like