SK Notes Om2019 l07-08

L07-08: Managing Quality OM2019, IIM Lucknow
Sushil, PhD
IIM Lucknow
Defining Quality
The totality of features and

characteristics of a product or
service that bears on its ability
to satisfy stated or implied
needs
American Society for Quality
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Quality Revolution in the 1980’s

Salient features
• Alternative ideas about what constitutes good quality
• Newer methods to build quality in products and services
• New tools to assess performance of an organisation with
respect to quality
• Changed roles of middle managers and supervisors from one
of control to facilitation of the process of building quality into
the products and services
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Quality Management
Changing Perceptions…
Yesterday…
It is often uneconomical to make
quality improvements since it brings down
productivity, increases cost and investment.
Today…
Productivity goes up and cost comes
down as quality goes up. This fact is
Known, but only to a selected few.
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Quality Management
The transition…
Problem Solvers Management

As Enabler
Management
As Filter
Workers as
Problem Solvers
Workers
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Quality Management Tools

A classification
Purpose f or which the tool
Quality Control Tools Management tools
is used
Highlighting problems (a) Control Charts
Identifying specific (b) Histograms
improvement (c) Check Sheets
opportunities (d) Pareto Diagrams
(e) Scatter Diagrams
(f) Graphs
Analysing problems & (g) Cause and Effect (i) Affinity Diagram
their root causes
es (Fish bone) Diagram (j) Relationship
(h) CEDAC Diagram
Operational planning for (k) Tree Diagram
building quality into (l) Matrix Diagram
products/services (m)Matrix Data
Analysis
(n) Process Decision
Program Chart
(PDPC)
(o) Arrow Diagram
(p) Poka Yoke
Strategic Planning (q) Quality Function
Deployment (QFD)
(r) Quality Costing
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Quality Costing
Categories of Quality Costs
Quality Costs
Control Costs Failure Costs
Prevention Appraisal Internal External
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Total Quality Management (TQM)
Customers will Improved quality that

seek out the exceeds customer
highest quality expectations will
product. generate more revenues
that exceed the cost of
quality.
Therefore,
quality is
“free”. Phillip B. Crosby
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Total Quality Management (TQM)
W. Edwards Deming
Quality can be and
proposed that improving
should be improved
quality reduces cost and
continuously.
improves profitability.
Revenues
Max
Profit
Cost
Max Quality
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Traditional Cost of Poor Quality

(4-5% of Sales)
When quality costs are initially determined, the categories
included are the visible ones as depicted in the iceberg
below.
Waste Customer Returns
Rejects
Testing Costs Inspection Costs
Rework Recalls
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Cost of Poor Quality

As an organization gains a broader definition of poor quality,
the hidden portion of the iceberg becomes apparent.
Waste Customer Returns
Rejects
Testing Costs Inspection Costs
Rework Recalls
Excessive Overtime
Pricing or Late Paperwork High Costs
Billing Errors
Excessive Field Incorrectly Completed
Services Expenses Lack of Follow-up Sales Order
on Current Programs
Excessive
Employee Turnover Planning Delays Excess Inventory
Customer Allowances
Unused Capacity
Complaint
Handling
Premium Freight Costs Time with
Dissatisfied Customer
Excessive
Overdue Receivables System Costs
Hidden COPQ: The

COPQ ranges Development Cost of Failed Product
costs incurred to
from 15-25%
deal with these
of Sales
chronic problems
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Costs of Quality
 Prevention costs - reducing the potential

for defects
 Appraisal costs - evaluating products,
parts, and services
 Internal failure - producing defective
parts or service before delivery
 External costs - defects discovered after
delivery
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Costs of Quality
Total Total Cost

Cost
External Failure
Internal Failure
Prevention
Appraisal
Quality Improvement
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TQM
Encompasses entire organization, from supplier to
customer
Stresses a commitment by management to have a
continuing, companywide drive toward excellence in
all aspects of products and services that are important
to the customer
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Seven Concepts of TQM
1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools
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Continuous Improvement
 Represents continual
improvement of all processes
 Involves all operations and work
centers including suppliers and
customers
 People, Equipment, Materials,
Procedures
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Shewhart’s PDCA Model
4. Act 1.Plan
Implement Identify the
the plan pattern and
document make a plan
3. Check 2. Do
Is the plan Test the
working? plan
Figure 6.3
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PDCA: Creating a problem solving workforce
• PDCA and scientific problem solving, is also known as a

system for developing critical thinking.
• At Toyota this is also known as "Building people before
building cars.“*
• Toyota and other Lean companies propose that an engaged,
problem solving workforce, using PDCA, is better able to
innovate and stay ahead of the competition through rigorous
problem solving and the subsequent innovations.
• This also creates a culture of problem solvers using PDCA and
creating a culture of critical thinkers.
*Liker, Jeffrey (2004). The Toyota Way. Chapter 1: McGraw-Hill.

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Employee Empowerment
 Getting employees involved in product and process
improvements
 85% of quality problems are due
to process and material
 Techniques
 Build communication networks
that include employees
 Develop open, supportive supervisors
 Move responsibility to employees
 Build a high-morale organization
 Create formal team structures
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Quality Circles
 Group of employees who meet regularly to

solve problems
 Trained in planning, problem solving, and
statistical methods
 Often led by a facilitator
 Very effective when done properly
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Benchmarking
Selecting best practices to use as a
standard for performance
1. Determine what to
benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking
information
5. Take action to match or exceed the
benchmark
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Best Practices for Resolving

Customer Complaints
Best Practice Justification
Make it easy for clients to It is free market research

complain
Respond quickly to complaints It adds customers and loyalty
Resolve complaints on first It reduces cost

contact
Use computers to manage Discover trends, share them, and align your services
complaints
Recruit the best for customer It should be part of formal training and career
service jobs advancement
Table 6.3
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Just-in-Time (JIT)
Relationship to quality:
 JIT cuts the cost of quality

 JIT improves quality
 Better quality means less
inventory and better, easier-to-
employ JIT system
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Just-In-Time (JIT) Example
Reducing inventory reveals

problems so they can be solved
Unreliable Capacity
Vendors Scrap
Imbalances
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Taguchi Concepts
 Engineering and experimental

design methods to improve product
and process design
 Identify key component and process
variables affecting product variation
 Taguchi Concepts
 Quality robustness
 Quality loss function
 Target-oriented quality
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Quality Robustness
 Ability to produce products

uniformly in adverse manufacturing
and environmental conditions
 Remove the effects of adverse
conditions
 Small variations in materials and
process do not destroy product
quality
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Quality Loss Function
 Shows that costs increase as the

product moves away from what
the customer wants
 Costs include customer
dissatisfaction, warranty
and service, internal
scrap and repair, and costs to
society
 Traditional conformance
specifications are too simplistic
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Quality Loss Function

High loss L = D2C
Unacceptable where
Loss (to L = loss to society
producing Poor
organization, D = distance from
customer, Fair target value
and society) Good C = cost of deviation
Best
Low loss Target-oriented quality
yields more product in
the “best” category
Target-oriented quality
brings product toward
Frequency the target value
Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower Target Upper
Specification Figure 6.5
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Tools of TQM
 Tools for Generating Ideas
 Check sheets
 Scatter diagrams
 Cause-and-effect diagrams
 Tools to Organize the Data
 Pareto charts
 Flowcharts
 Tools for Identifying Problems

 Histogram
 Statistical process control chart
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Seven Tools of TQM
(a) Check Sheet: An organized method of

recording data
Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / / // ///
C / // // ////
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Seven Tools of TQM
(b) Scatter Diagram: A graph of the value

of one variable vs. another variable
Productivity
Absenteeism
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Seven Tools of TQM
(c) Cause-and-Effect Diagram: A tool that

identifies process elements (causes) that
might effect an outcome
Cause
Materials Methods
Effect
Manpower Machinery
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Seven Tools of TQM
(d) Pareto Chart: A graph to identify and plot

problems or defects in descending order of
frequency Frequency
Percent
A B C D E
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Seven Tools of TQM
(e) Flowchart (Process Diagram): A chart that

describes the steps in a process
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Seven Tools of TQM
(f) Histogram: A distribution showing the

frequency of occurrences of a variable
Frequency Distribution
Repair time (minutes)
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Seven Tools of TQM
(g) Statistical Process Control Chart: A chart with

time on the horizontal axis to plot values of a
statistic
Upper control limit
Target value
Lower control limit
Time
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Cause-and-Effect Diagrams
Material Method
(ball) (shooting process)
Grain/Feel Aiming point
(grip)
Size of ball
Air pressure Bend knees
Hand position
Balance
Lopsidedness
Follow-through
Missed
Training
free-throws
Rim size
Conditioning Motivation Rim height
Consistency Rim alignment Backboard

stability
Concentration
Machine
Manpower
(hoop &
(shooter)
backboard)
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Pareto Charts
The Hard Rock Hotel in Bali has just collected the data from 75 complaint calls to
the general manager during the month of October. The manager wants to prepare an
analysis of the complaints. The data provided are room service, 54; check-in delays,
12; hours the pooi is open, 4; minibar prices, 3; and miscellaneous, 2.
Data for October
– 100
70 – – 93
– 88
60 –
54
Frequency (number)
Cumulative percent
– 72
50 –
40 –
Number of
30 –
occurrences
20 –
12
10 –
4 3 2
0 –
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
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Causes and percent of the total
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Flow Charts
MRI Flowchart
1. Physician schedules MRI 7. If unsatisfactory, repeat
2. Patient taken to MRI 8. Patient taken back to room
3. Patient signs in 9. MRI read by radiologist
4. Patient is prepped 10. MRI report transferred to
5. Technician carries out MRI physician
6. Technician inspects film 11. Patient and physician discuss
8
80%
1 2 3 4 5 6 7 11
9 10
20%
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Statistical Process Control (SPC)
 Uses statistics and control charts to

tell when to take corrective action
 Drives process improvement
 Four key steps
 Measure the process
 When a change is indicated, find the
assignable cause
 Eliminate or incorporate the cause
 Restart the revised process
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December 5, 2019
Statistical Process Control
The objective of a process control

system is to provide a statistical
signal when assignable causes of
variation are present
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Statistical Process Control (SPC)
 Variability is inherent
in every process
 Natural or common
causes
 Special or assignable causes
 Provides a statistical signal when assignable causes are
present
 Detect and eliminate assignable causes of variation
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Natural Variations
 Also called common causes
 Affect virtually all production processes
 Expected amount of variation
 Output measures follow a probability
distribution
 For any distribution there is a measure
of central tendency and dispersion
 If the distribution of outputs falls within
acceptable limits, the process is said to
be “in control”
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Assignable Variations
 Also called special causes of variation

 Generally this is some change in the process
 Variations that can be traced to a specific
reason
 The objective is to discover when
assignable causes are present
 Eliminate the bad causes
 Incorporate the good causes
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Samples
To measure the process, we take samples

and analyze the sample statistics following
these steps
Each of these
(a) Samples of the represents one
product, say five sample of five
boxes of cereal boxes of cereal
taken off the filling
Frequency
# #
machine line, vary
# # #
from each other in
# # # #
weight
# # # # # # #
# # # # # # # # # #
Figure S6.1 Weight

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Samples

these steps
The solid line
represents the
(b) After enough distribution
samples are
taken from a
Frequency
stable process,
they form a
pattern called a
distribution
Weight
Figure S6.1
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Samples

these steps
(c) There are many types of distributions, including
the normal (bell-shaped) distribution, but
distributions do differ in terms of central
tendency (mean), standard deviation or
variance, and shape
Figure S6.1
Frequency
Central tendency Variation Shape
Weight Weight Weight
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Samples

these steps
(d) If only natural
causes of
variation are
Frequency
present, the Prediction
output of a
process forms a
distribution that
is stable over Weight
time and is
predictable Figure S6.1
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Samples

these steps
?
?? ??
(e) If assignable ?
? ?
?
causes are ?
?
? ?
?
??
?? ?
present, the
Frequency
process output is Prediction

not stable over
time and is not
predicable
Weight
Figure S6.1
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Shewhart Charts
• Dr. Shewhart prepared a little memorandum only about a
page in length. About a third of that page was given over
to a simple diagram which we would all recognize today
as a schematic control chart.
• That diagram, and the short text which preceded and
followed it, set forth all of the essential principles and
considerations which are involved in what we know today
as process quality control.
– George D. Edwards, (Dr. Shewhart's Boss)
• Shewhart's work pointed out the importance of reducing

variation in a manufacturing process and the
understanding that continual process-adjustment in
reaction to non-conformance actually increased variation
and degraded quality.
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Control Charts
Constructed from historical data, the

purpose of control charts is to help
distinguish between natural variations
and variations due to assignable
causes
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Process Control
(a) In statistical
control and capable
of producing within
Frequency control limits
Lower control limit Upper control limit

(b) In statistical
control but not
capable of producing
within control limits
(c) Out of control
Size
(weight, length, speed, etc.) Figure S6.2
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Types of Data
Variables Attributes
 Characteristics that can take  Defect-related
any real value characteristics
 May be in whole or in  Classify products
fractional numbers
as either good or
 Continuous random bad or count
variables defects
 Categorical or
discrete random
variables
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Central Limit Theorem
Regardless of the distribution of the

population, the distribution of sample means
drawn from the population will tend to follow
a normal curve
1. The mean of the sampling
distribution (x) will be the same x=µ
as the population mean µ
2. The standard deviation of the
sampling distribution (σ
σx) will σ
equal the population standard σx =
deviation (σ
σ) divided by the n
square root of the sample size, n
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Population and Sampling

Distributions
Three population Distribution of
distributions sample means
Mean of sample means = x
Beta
Standard
deviation of σ
Normal the sample = σx = n
means
Uniform
| | | | | | |
-3σ
σx -2σ
σx -1σ
σx x +1σ
σx +2σ
σx +3σ
σx
95.45% fall within ±
2σ
σx
±
99.73% of all x
fall within 3σ
σx Figure S6.3
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Sampling Distribution
Sampling
distribution
of means
Process
distribution
of means
x=µ
(mean)
Figure S6.4
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Control Charts for Variables
 For variables that have continuous

dimensions
 Weight, speed, length,
strength, etc.
 x-charts are to control
the central tendency of the process
 R-charts are to control the dispersion of
the process
 These two charts must be used together
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Setting Chart Limits

For x-Charts when we know σ
Upper control limit (UCL) = x + zσ
σx
Lower control limit (LCL) = x - zσ
σx
where x = mean of the sample means or a target
value set for the process
z = number of normal standard deviations
σx = standard deviation of the sample means
= σ/ n
σ = population standard deviation
n = sample size
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Setting Control Limits

Hour 1 Hour Mean Hour Mean
Sample Weight of 1 16.1 7 15.2
Number Oat Flakes 2 16.8 8 16.4
1 17 3 15.5 9 16.3
2 13 4 16.5 10 14.8
3 16 5 16.5 11 14.2
4 18 6 16.4 12 17.3
n=9 5 17
6 16 For 99.73% control limits, z = 3
7 15
8 17 UCLx = x + zσ
σx = 16 + 3(1/3) = 17 ozs
9 16
Mean 16.1 LCLx = x - zσ
σx = 16 - 3(1/3) = 15 ozs
σ= 1
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Control Chart
for sample of Variation due
Out of to assignable
9 boxes control causes
17 = UCL
Variation due to
16 = Mean natural causes
15 = LCL
Variation due
| | | | | | | | | | | |
to assignable
1 2 3 4 5 6 7 8 9 10 11 12 Out of causes
Sample number control
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For x-Charts when we don’t know σ
Upper control limit (UCL) = x + A2R

Lower control limit (LCL) = x - A2R
where R = average range of the samples

A2 = control chart factor found in Table S5.1
x = mean of the sample means
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Control Chart Factors
Sample Size Mean Factor Upper Range Lower Range

n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284
Table S6.1
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Process average x = 12 ounces

Average range R = .25
Sample size n = 5
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Sample size n = 5
UCLx = x + A2R
= 12 + (.577)(.25)
= 12 + .144
= 12.144 ounces
From
Table S6.1
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Sample size n = 5
UCLx = x + A2R UCL = 12.144

= 12 + (.577)(.25)
= 12 + .144 Mean = 12
= 12.144 ounces
LCLx = x - A2R LCL = 11.857

= 12 - .144
= 11.857 ounces
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R – Chart
 Type of variables control chart

 Shows sample ranges over time
 Difference between smallest and
largest values in sample
 Monitors process variability
 Independent from process mean
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For R-Charts
Upper control limit (UCLR) = D4R

Lower control limit (LCLR) = D3R
where
R = average range of the samples
D3 and D4 = control chart factors from Table S5.1
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Average range R = 5.3 pounds

Sample size n = 5
From Table S6.1 D4 = 2.115, D3 = 0
UCLR = D4R UCL = 11.2

= (2.115)(5.3)
= 11.2 pounds Mean = 5.3
LCLR = D3R LCL = 0

= (0)(5.3)
= 0 pounds
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Mean and Range Charts
(a)
These (Sampling mean is
sampling shifting upward but
distributions range is consistent)
result in the
charts below
UCL
(x-chart detects
x-chart shift in central
tendency)
LCL
UCL
(R-chart does not
R-chart detect change in
mean)
LCL
Figure S6.5
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Mean and Range Charts
(b)
These
sampling (Sampling mean
distributions is constant but
result in the dispersion is
charts below increasing)
UCL
(x-chart does not
x-chart detect the increase
in dispersion)
LCL
UCL
(R-chart detects
R-chart increase in
dispersion)
LCL
Figure S6.5
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Steps In Creating Control Charts
1. Take samples from the population and

compute the appropriate sample statistic
2. Use the sample statistic to calculate control
limits and draw the control chart
3. Plot sample results on the control chart and
determine the state of the process (in or out of
control)
4. Investigate possible assignable causes and
take any indicated actions
5. Continue sampling from the process and reset
the control limits when necessary
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Control Charts for Attributes

 For variables that are categorical
 Good/bad, yes/no,
acceptable/unacceptable
 Measurement is typically counting
defectives
 Charts may measure
 Percent defective (p-chart)
 Number of defects (c-chart)
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Control Limits for p-Charts

Population will be a binomial distribution,
but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics
UCLp = p + zσ
σp^ p(1 - p)
σp^ =
n
LCLp = p - zσ
σp^
where p = mean fraction defective in the sample
z = number of standard deviations
σp^ = standard deviation of the sampling distribution
n = sample size
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p-Chart for Data Entry

Sample Number Fraction Sample Number Fraction
Number of Errors Defective Number of Errors Defective
1 6 .06 11 6 .06
2 5 .05 12 1 .01
3 0 .00 13 8 .08
4 1 .01 14 7 .07
5 4 .04 15 5 .05
6 2 .02 16 4 .04
7 5 .05 17 11 .11
8 3 .03 18 3 .03
9 3 .03 19 0 .00
10 2 .02 20 4 .04
Total = 80
80 (.04)(1 - .04)
p = (100)(20) = .04 σp^ = = .02
100
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UCLp = p + zσ
σp^ = .04 + 3(.02) = .10
LCLp = p - zσ
σp^ = .04 - 3(.02) = 0
.11 –
.10 – UCLp = 0.10
Fraction defective
.09 –
.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
| | | | | | | | | |
.00 –
2 4 6 8 10 12 14 16 18 20
Sample number
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UCLp = p + zσ
σp^ = .04 + 3(.02) = .10
Possible
LCLp = p - zσ
σp^ = .04 - 3(.02) = 0
assignable
causes present
.11 –
.10 – UCLp = 0.10
Fraction defective
.09 –
.08 –
.07 –
.06 –
.05 –
.04 – p = 0.04
.03 –
.02 –
.01 – LCLp = 0.00
| | | | | | | | | |
.00 –
2 4 6 8 10 12 14 16 18 20
Sample number
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Control Limits for c-Charts
Population will be a Poisson distribution,

but applying the Central Limit Theorem
allows us to assume a normal distribution
for the sample statistics
UCLc = c + 3 c LCLc = c - 3 c
where c = mean number defective in the sample
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c-Chart for Cab Company
c = 54 complaints/9 days = 6 complaints/day
UCLc = c + 3 c 14 – UCLc = 13.35
Number defective
=6+3 6 12 –
= 13.35 10 –
8 –
6 – c= 6
LCLc = c - 3 c 4 –
=6-3 6 2 – LCLc = 0
0 – | | | | | | | | |
=0 1 2 3 4 5 6 7 8 9
Day
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SPC Applied To Services
• Nature of defect is different in services
• Service defect is a failure to meet customer

requirements
• Monitor times, customer satisfaction
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Service SPC Examples

• Hospitals
– Timeliness, responsiveness, accuracy
• Grocery Stores
– Check-out time, stocking, cleanliness
• Airlines
– Luggage handling, waiting times,
courtesy
• Fast food restaurants
– Waiting times, food quality, cleanliness
• Banks
– Daily balance errors, # of customers
served, transactions completed, courtesy
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Managerial Issues and

Control Charts
Three major management decisions:
 Select points in the processes that need SPC

 Determine the appropriate charting technique
 Set clear policies and procedures
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Which Control Chart to Use

• Refer to the Table S6.3 in the book.
Patterns in Control Charts

• Refer to the Figure S6.7 in the book.
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Process Capability
 The natural variation of a process
should be small enough to produce
products that meet the standards
required
 A process in statistical control does not
necessarily meet the design
specifications
 Process capability is a measure of the
relationship between the natural
variation of the process and the design
specifications
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Dr Sushil 42
Process Capability Ratio

Upper Specification - Lower Specification
Cp =
6σ
σ
 A capable process must have a Cp of at

least 1.0
 Does not look at how well the process
is centered in the specification range
 Often a target value of Cp = 1.33 is used
to allow for off-center processes
 Six Sigma quality requires a Cp = 2.0
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Insurance claims process
Process mean x = 210.0 minutes

Process standard deviation σ = .516 minutes
Design specification = 210 ± 3 minutes

Cp =
6σσ
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Dr Sushil 43


Cp =
6σσ
213 - 207
= = 1.938
6(.516)
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Cp =
6σσ
213 - 207
= = 1.938 Process is
6(.516)
capable
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Dr Sushil 44
Process Capability Index
Upper Lower
Cpk = minimum of Specification - x , x - Specification
Limit Limit
3σ 3σ
 A capable process must have a Cpk of at

least 1.0
 A capable process is not necessarily in the
center of the specification, but it falls within
the specification limit at both extremes
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New Cutting Machine

New process mean x = .250 inches
Process standard deviation σ = .0005 inches
Upper Specification Limit = .251 inches
Lower Specification Limit = .249 inches
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New Cutting Machine

(.251) - .250
Cpk = minimum of ,
(3).0005
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New Cutting Machine

(.251) - .250 .250 - (.249)
Cpk = minimum of ,
(3).0005 (3).0005
Both calculations result in

New machine is
.001
Cpk = = 0.67 NOT capable
.0015
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Interpreting Cpk
Cpk = negative number
Cpk = zero
Cpk = between 0 and 1
Cpk = 1
Cpk > 1
Figure S6.8
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Dr Sushil 47

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L07-08: Managing Quality OM2019, IIM Lucknow

The totality of features and

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Quality Revolution in the 1980’s

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Problem Solvers Management

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Quality Management Tools

Control Costs Failure Costs

Prevention Appraisal Internal External

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Total Quality Management (TQM)

Customers will Improved quality that

Total Quality Management (TQM)

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Traditional Cost of Poor Quality

SK/OM2019/L07-08/10 December 5, 2019

Cost of Poor Quality

Hidden COPQ: The

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 Prevention costs - reducing the potential

SK/OM2019/L07-08/12 December 5, 2019

Total Total Cost

SK/OM2019/L07-08/14 December 5, 2019

Seven Concepts of TQM

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SK/OM2019/L07-08/16 December 5, 2019

Shewhart’s PDCA Model

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PDCA: Creating a problem solving workforce

• PDCA and scientific problem solving, is also known as a

*Liker, Jeffrey (2004). The Toyota Way. Chapter 1: McGraw-Hill.

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 Group of employees who meet regularly to

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Best Practices for Resolving

Make it easy for clients to It is free market research

Respond quickly to complaints It adds customers and loyalty

Resolve complaints on first It reduces cost

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 JIT cuts the cost of quality

SK/OM2019/L07-08/23 December 5, 2019

Just-In-Time (JIT) Example

Reducing inventory reveals

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 Engineering and experimental

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 Ability to produce products

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Quality Loss Function

 Shows that costs increase as the

Quality Loss Function

 Tools for Identifying Problems

Seven Tools of TQM

(a) Check Sheet: An organized method of

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Seven Tools of TQM

(b) Scatter Diagram: A graph of the value

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Seven Tools of TQM

(c) Cause-and-Effect Diagram: A tool that

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Seven Tools of TQM