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Cost of quality
1. Prevention costs
2. Appraisal costs
3. Internal failure costs
4. External failure costs
5. Opportunity costs
Quality is
uniformity and
dependability
Focus on SPC
and statistical
tools
14 Points for
management
1986
PDCA method
1900-1993
1904 - 2008
Cultural
Alignment
Customer
Technical
Tools
(Process
Analysis, SPC,
QFD)
Input
Design
Design quality
Process
Output
Dimensions of quality
Conformance quality
Define
Customers, Value, Problem Statement
Scope, Timeline, Team
Celebrate
Project $
Measure
Control
Validate
Project $
Validate
Project $
Validate
Project $
Improve
Validate
Project $
Quality
Quality Improvement
uo
n
i
t
n
Co
nt
e
m
e
r ov
p
m
I
us
Traditional
Time
Do
Act
Check
1. Process flowchart
2. Run Chart
Performance
Time
Time
Machine
Man
Environment
Method
Material
5. Check sheet
Item
-------------------
Frequency
50
40
50%
30
20
10
25%
0%
A
Percentage
Frequency
60
Summary of Tools
1. Process flow chart
2. Run diagram
3. Control charts
4. Fishbone
5. Check sheet
6. Histogram
7. Pareto analysis
Custome
rA
Custome
rB
Operator
Receiving
Party
Working system of
operators
Absent
Out of office
Not at desk
Not giving receiving
partys coordinates
Complaining
Absent
Lengthy talk
Does not know
organization well
Leaving a
message
Customer
Does not
understand
customer
Makes
customer
wait
Operator
Total
number
14.3
172
6.1
73
5.1
61
1.6
19
1.3
16
Other reasons
0.8
10
29.2
351
Percentage
300
87.1%
250
71.2%
200
49%
150
100
0%
A
Before
Percentage
Frequency
Percentage
Frequency
100%
87.1%
300
300
71.2%
200
49%
100
Improvement
200
100
100%
0%
A
0%
B
By observing
variation in
output measures!
1
X
N
x
i 1
2
(
x
X
)
i
i 1
Average:
Standard Deviation:
Number of pepperonis per pizza: 25, 22, 28, 30, 27, 20, 25, 23
Average:
Standard Deviation:
Incremental
Cost of
Variability
Zero
Lower Target
Tolerance Spec
Upper
Tolerance
Traditional View
The Goalpost Mentality
Taguchis View
Quality Loss Function
(QLF)
Zero
Lower
Spec
Target
Spec
Upper
Spec
X k UTL and
UTL X
1
k
and
X k LTL
X LTL
1
k
C pk
X LTL UTL X
min
,
k
k
X is close to
X = 10 and = 0.5
LTL = 9
UTL = 11
LTL
UTL
11 10
10 9
C pk min
or
0.667
3 0.5
3 0.5
LTL
UTL
LTL
UTL
Example
Consider the capability of a process that puts
pressurized grease in an aerosol can. The design
specs call for an average of 60 pounds per square
inch (psi) of pressure in each can with an upper
tolerance limit of 65psi and a lower tolerance limit
of 55psi. A sample is taken from production and it
is found that the cans average 61psi with a standard
deviation of 2psi.
1. Is the process capable at the 3 level?
2. What is the probability of producing a defect?
Solution
LTL = 55 UTL = 65 X 61
C pk
C pk
=2
X LTL UTL X
min(
,
)
3
3
61 55 65 61
min(
,
) min(1,0.6667) 0.6667
6
6
Solution
P(defect) = P(X<55) + P(X>65)
=P(X<55) + 1 P(X<65)
=P(Z<(55-61)/2) + 1 P(Z<(65-61)/2)
=P(Z<-3) + 1 P(Z<2)
=G(-3)+1-G(2)
=0.00135 + 1 0.97725 (from standard normal table)
= 0.0241
2.4% of the cans are defective.
Example (contd)
Suppose another process has a sample mean of 60.5 and
a standard deviation of 3.
Which process is more accurate? This one.
Which process is more consistent? The other one.
Control Charts
X/R Chart
This is a plot of averages and ranges over time
(used for performance measures that are variables)
p Chart
This is a plot of proportions over time (used for
performance measures that are yes/no attributes)
Items
Defective
Percentage
200
10
0.050
200
0.040
200
0.045
200
13
0.065
200
15
0.075
200
25
0.125
200
16
0.080
sp
p (1 p )
n
UCL p zs p
LCL p zs p
UCL = 0.117
p = 0.066
LCL = 0.015
1 n
X xi
n i 1
X is the mean for each sample
R max{xi } min{xi }
R is the range between the highest and the lowest for each sample
1 t
R Rj
t j 1
R is the average of the ranges
UCLX X A2 R
LCLX X A2 R
UCLR D4 R
LCLR D3 R
Sample
Observation (xi)
Average
11.90
11.92
12.09
11.91
12.01
12.03
12.03
11.92
11.97
12.07
11.92
12.02
11.93
12.01
12.07
11.96
12.06
12.00
11.91
11.98
11.95
12.10
12.03
12.07
12.00
11.99
11.98
11.94
12.06
12.06
12.00
12.04
11.92
12.00
12.07
12.02
12.06
11.94
12.07
12.00
12.01
12.06
11.94
11.91
11.94
10
11.92
12.05
11.92
12.09
12.07
Range (R)
Observation (xi)
Average
Range (R)
11.90
11.92
12.09
11.91
12.01
11.97
0.19
12.03
12.03
11.92
11.97
12.07
12.00
0.15
11.92
12.02
11.93
12.01
12.07
11.99
0.15
11.96
12.06
12.00
11.91
11.98
11.98
0.15
11.95
12.10
12.03
12.07
12.00
12.03
0.15
11.99
11.98
11.94
12.06
12.06
12.01
0.12
12.00
12.04
11.92
12.00
12.07
12.01
0.15
12.02
12.06
11.94
12.07
12.00
12.02
0.13
12.01
12.06
11.94
11.91
11.94
11.97
0.15
10
11.92
12.05
11.92
12.09
12.07
12.01
0.17
Then
X 12.00
is the average of the averages
R 0.15
is the average of the ranges
Finally
Calculate the upper and lower control limits
The X Chart
UCL = 12.10
X = 12.00
LCL = 11.90
The R Chart
UCL = 0.32
R = 0.15
LCL = 0.00
LCL
UCL
LCL