ch01 - quality improvement

Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.

Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.

Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.1.1 Definitions Meaning of Quality and Quality Improvement1.1.1 The Eight Dimensions of Quality

Performance (Will the product do the intended job?)Reliability (How often does the product fail?)Durability (How long does the product last?)Serviceability (How easy is it to repair the product?)Aesthetics (What does the product look like?)Features (What does the product do?)Perceived Quality (What is the reputation of the company or its product?)Conformance to Standards (Is the product made exactly as the designer intended?)


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Kesesuaian dengan penggunaanThis is a traditional definitionQuality of designQuality of conformance


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Kualitas berbanding terbalik dengan variabilitasThis is a modern definition of quality


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc. The transmission 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, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Terminology contdSpecificationsLower specification limitUpper specification limitTarget or nominal valuesDefective or nonconforming product(fail to meet one or more of its specification)Defect or nonconformity(a specific type of of failure)Not all products containing a defect are necessarily defective


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.1.3 Statistical Methods for Quality Control and ImprovementEx: Environmental factorsProcess variables


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Statistical MethodsStatistical process control (SPC)Control charts, plus other problem-solving toolsUseful in monitoring processes, reducing variability through elimination of assignable causesOn-line techniqueDesigned experiments (DOX)Discovering the key factors that influence process performanceProcess optimizationOff-line techniqueAcceptance Sampling


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Effective management of quality requires the execution of three activities:Quality PlanningQuality AssuranceQuality Control and Improvement1.4 Management Aspects of Quality Improvement


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.W. Edwards Deming

Taught engineering, physics in the 1920s, finished PhD in 1928Met Walter Shewhart at Western ElectricLong career in government statistics, USDA, Bureau of the CensusDuring WWII, he worked with US defense contractors, deploying statistical methodsSent to Japan after WWII to work on the census1.4.1 Quality Philosophy and Management Strategy


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.DemingDeming was asked by JUSE to lecture on statistical quality control to managementJapanese adopted many aspects of Demings management philosophyDeming stressed continual never-ending improvementDeming lectured widely in North America during the 1980s; he died 24 December 1993


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Demings 14 Points1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age3. Cease reliance on mass inspection to improve quality4. End the practice of awarding business on the basis of price alone5. Improve constantly and forever the system of production and service6. Institute training7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job8. Drive out fear9. Break down barriers between departments


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.14 Points contd10. Eliminate slogans and targets for the workforce such as zero defects11. Eliminate work standards that un-concerned to quality12. Remove the barriers that discourage employees from doing their jobs. Management must listen to employee.13. Institute a vigorous program of education and self-improvement14. Put everyone to work to accomplish the transformationNote that the 14 points are about change


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Demings Deadly DiseasesLack of constancy of purposeEmphasis on short-term profitsPerformance evaluation, merit rating, annual reviews -> discourage teamworkMobility of management, management think only about their career and not improving current jobRunning a company on visible figures alone (number of defects, customer complaints, quarterly profit)Excessive medical costs for employee health careExcessive costs of warrantees


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Joseph M. JuranBorn in Romania (1904-2008), immigrated to the USWorked at Western Electric, influenced by Walter ShewhartEmphasizes a more strategic and planning oriented approach to quality than does DemingJuran Institute is still an active organization promoting the Juran philosophy and quality improvement practices


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.The Juran TrilogyPlanningControlImprovement

These three processes are interrelatedControl versus breakthroughProject-by-project improvement


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Some of the Other GurusKaoru IshikawaSon of the founder of JUSE, promoted widespread use of basic toolsArmand FeigenbaumAuthor of Total Quality Control, promoted overall organizational involvement in quality,Three-step approach emphasized quality leadership, quality technology, and organizational commitment Lesser gods, false prophets


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Total Quality Management (TQM)Started in the early 1980s, Deming/Juran philosophy as the focal pointEmphasis on widespread training, quality awarenessTraining often turned over to HR functionNot enough emphasis on quality control and improvement tools, poor follow-through, no project-by-project implementation strategyTQM was largely unsuccessful


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Total Quality Management (TQM)TQM is just another program Value engineeringZero defectsQuality is free

Recipe for Ineffectiveness and maybe Disaster


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc. The ISO certification process focuses heavily on quality assurance, without sufficient weight given to quality planning and quality control and improvement


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc. The MBNQA process is a valuable assessment tool See Table 1-3 for Performance Excellence Criteria and point valuesThe Malcolm Baldrige National Quality Award


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Six SigmaUse of statistics & other analytical tools has grown steadily for over 80 years Statistical quality control (origins in 1920, explosive growth during WW II, 1950s)Operations research (1940s)FDA, EPA in the 1970sTQM (Total Quality Management) movement in the 1980sReengineering of business processes (late 1980s)Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business ImpactA process is an organized sequence of activities that produces an output that adds value to the organizationAll work is performed in (interconnected) processesEasy to see in some situations (manufacturing)Harder in othersAny process can be improvedAn organized approach to improvement is necessaryThe process focus is essential to Six Sigma


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.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?


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Six Sigma FocusInitially in manufacturing Commercial applicationsBankingFinancePublic sector ServicesDFSS Design for Six SigmaOnly so much improvement can be wrung out of an existing systemNew process designNew product design (engineering)


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Some Commercial ApplicationsReducing average and variation of days outstanding on accounts receivableManaging costs of consultants (public accountants, lawyers)Skip tracingCredit scoringClosing the books (faster, less variation)Audit accuracy, account reconciliation ForecastingInventory managementTax filingPayroll accuracy


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Six SigmaA disciplined and analytical approach to process and product improvementSpecialized roles for people; Champions, Master Black belts, Black Belts, Green BeltsTop-down driven (Champions from each business)BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation)Involves a five-step process (DMAIC) : Define MeasureAnalyzeImproveControl


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.What Makes it Work?Successful implementations characterized by:Committed leadershipUse of top talentSupporting infrastructureFormal project selection processFormal project review processDedicated resourcesFinancial system integrationProject-by-project improvement strategy (borrowed from Juran)


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Design for Six Sigma (DFSS)Taking variability reduction upstream from manufacturing (or operational six sigma) into product design and developmentEvery design decision is a business decision


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.DFSS Matches Customer Needswith CapabilityMean and variability affects product performance and costDesigners can predict costs and yields in the design phaseConsider mean and variability in the design phaseEstablish top level mean, variability and failure rate targets for a designRationally allocate mean, variability, and failure rate targets to subsystem and component levelsMatch requirements against process capability and identify gaps Close gaps to optimize a producible designIdentify variability drivers and optimize designs or make designs robust to variabilityProcess capability impact design decisionsDFSS enhances product design methods.


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.11DMAIC Solves Problems by UsingSix Sigma Tools DMAIC is a problem solving methodologyClosely related to the Shewhart CycleUse this method to solve problems:Define problems in processesMeasure performanceAnalyze causes of problemsImprove processes remove variations and non-value-added activitiesControl processes so problems do not recur


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Lean SystemsFocuses on elimination of wasteLong cycle timesLong queues in-process inventoryInadequate throughputReworkNon-value-added work activitiesMakes use of many of the tools of operations research and industrial engineering


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Lean Focuses on Waste EliminationDefinitionA set of methods and tools used to eliminate waste in a processLean helps identify anything not absolutely required to deliver a quality product on time.

Benefits of using LeanLean methods help reduce inventory, lead time, and costLean methods increase productivity, quality, on time delivery, capacity, and sales


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Legal Aspects of QualityProduct liability exposure

Concept of strict liabilityResponsibility of both manufacturer and seller/distributorAdvertising must be supported by valid data


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.A strategic management process, focused along the eight dimension of qualitySuppliers and supply chain management must be involvedMust focus on all three components: Quality Planning, Quality Assurance, and Quality Control and ImprovementImplementing Quality Improvement


Chapter 1*Introduction to Statistical Quality Control, 6th Edition by Douglas C. Montgomery.Copyright (c) 2009 John Wiley & Sons, Inc.Learning Objectives


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ch01 - quality improvement

Documents

statistical quality

copyright c

john wiley sons

quality improvement1

perceived quality

modern quality management

product fail

product look like