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Meaning of Quality § Webster’s Dictionary § degree of excellence of a thing § Meaning of Quality § Webster’s Dictionary § degree of excellence of a thing § American Society for Quality § totality of features and characteristics that satisfy needs § Consumer’s and producer’s perspective Copyright 2006 John Wiley & Sons, Inc. 1

History (Cont. . ) http: //www. deming. org/deminghtml/wedi. html w 1950’s: Deming and Juran’s History (Cont. . ) http: //www. deming. org/deminghtml/wedi. html w 1950’s: Deming and Juran’s introduction to Japan of Statistical Quality Control Techniques http: //www. juran. com/drjuran. html Copyright 2006 John Wiley & Sons, Inc. 2

More quality gurus Philip Crosby Quality is free - the optimum is zero defects. More quality gurus Philip Crosby Quality is free - the optimum is zero defects. W. Edwards Deming’s 14 points. How to use statistics. Armand Feigenbaum Total quality control. Kaoru Ishikawa Quality circles and cause and effect diagrams. Joseph Juran Quality as fitness for use, rather than conformance to specification. Genichi Taguchi Loss function. Minimize variation. Copyright 2006 John Wiley & Sons, Inc. 3

Historie řízení jakosti a ISO 9000 1900 Výrobková normalizace, vojenský průmysl 1920 Organizovaná kontrola, Historie řízení jakosti a ISO 9000 1900 Výrobková normalizace, vojenský průmysl 1920 Organizovaná kontrola, členění kontroly na vstupní, mezioperační a výstupní 1930 Shewart vytváří principy řízení kvality, regulace procesů pomocí SPC 1940 Kontrola pomocí zkušebních nástrojů, kontrola výrobních prostředků, plánování kontroly, určování příčin a následků 1950 Japonský průmysl se snaží v kvalitě výrobků dostihnout USA pomocí nových metod řízení kvality procesů 1970 Integrované zabezpečování kvality, zabezpečování kvality nejen ve výrobě ale i ve vývoji a přípravě výroby, analýza plánů konstrukce, testů, nedostatků, reklamací, certifikace výrobků 1979 Vydání normy BS 5750 (vzorem byly vojenské normy AQAP-1, 4 a 9) - 3. části (1. specifikace systému kvality 2. -3. specifikace kontrolního systému) 1987 Organizace ISO vydává poprvé normy ISO řady 9000 1994 První revize norem řady ISO 9000 2000 Druhá „velká“ revize Copyright 2006 John Wiley & Sons, Inc. norem řady ISO 9000 4

Quality Gurus w Walter Shewart n n In 1920 s, developed control charts Introduced Quality Gurus w Walter Shewart n n In 1920 s, developed control charts Introduced term “quality assurance” w W. Edwards Deming n n Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers After war, began teaching statistical quality control to Japanese companies w Joseph M. Juran n n Followed Deming to Japan in 1954 Focused on strategic quality planning Copyright 2006 John Wiley & Sons, Inc. 5

Quality Gurus (cont. ) § Armand V. Feigenbaum § In 1951, introduced concepts of Quality Gurus (cont. ) § Armand V. Feigenbaum § In 1951, introduced concepts of total quality control and continuous quality improvement § Philip Crosby § § In 1979, emphasized that costs of poor quality far outweigh cost of preventing poor quality In 1984, defined absolutes of quality management— conformance to requirements, prevention, and “zero defects” § Kaoru Ishikawa § § § Promoted use of quality circles Developed “fishbone” diagram Emphasized importance of internal customer Copyright 2006 John Wiley & Sons, Inc. 6

 Deming Wheel: PDCA Cycle 4. Act Institutionalize improvement; continue cycle. 1. Plan Identify Deming Wheel: PDCA Cycle 4. Act Institutionalize improvement; continue cycle. 1. Plan Identify problem and develop plan for improvement. 3. Study/Check 2. Do Assess plan; is it working? Implement plan on a test basis. Copyright 2006 John Wiley & Sons, Inc. 7

Jestliže jsou požadavky kapitoly „Odpovědnost managementu“ realizovány v praxi, dochází k plánování zdrojů a Jestliže jsou požadavky kapitoly „Odpovědnost managementu“ realizovány v praxi, dochází k plánování zdrojů a prostředků organizace (Plan). Odpovědnost vedení Splnění požadavků z kapitoly „Řízení zdrojů“ zajišťuje, že „realizace produktu a/nebo služby“ může proběhnout efektivně a účinně (Do). Měření, analýza a Řízení zdrojů zlepšování Výsledkem realizace produktu jsou produkty a služby. Výkon procesů a kvalita produktu jsou při tom průběžně měřeny (Check). Řízení procesu Požadavky kapitoly „Měření, analýza a zlepšení“ se cyklus k „Odpovědnosti managementu“ opět uzavírá (Act). Copyright 2006 John Wiley & Sons, Inc. 8

Meaning of Quality Producer’s Perspective Quality of Conformance Production • Conformance to specifications • Meaning of Quality Producer’s Perspective Quality of Conformance Production • Conformance to specifications • Cost Consumer’s Perspective Quality of Design • Quality characteristics • Price Marketing Fitness for Consumer Use Copyright 2006 John Wiley & Sons, Inc. 9

Total Quality Management w Commitment to quality throughout organization w Principles of TQM n Total Quality Management w Commitment to quality throughout organization w Principles of TQM n n n n Customer-oriented Leadership Strategic planning Employee responsibility Continuous improvement Cooperation Statistical methods Training and education Copyright 2006 John Wiley & Sons, Inc. 10

 Basic Economic Quality Level Model Cost Total Quality Costs = Sum of Losses Basic Economic Quality Level Model Cost Total Quality Costs = Sum of Losses and Gains Losses due to poor quality Costs of Improving Quality Copyright 2006 John Wiley & Sons, Inc. 11

Princip 1 – Orientace na zákazníka Organizace závisí na svých zákaznících, a proto mají Princip 1 – Orientace na zákazníka Organizace závisí na svých zákaznících, a proto mají porozumět současných i budoucím potřebám zákazníků, splňovat jejich požadavky a snažit se překonat jejich očekávání. Princip 2 – Vedení Vedoucí pracovníci vytvářejí shodu účelu a zaměření organizace. Mají vytvářet a zachovávat interní prostředí, v kterém se lidé mohou zcela zasazovat za dosažení cílů organizace. Copyright 2006 John Wiley & Sons, Inc. 12

Princip 3 – Zapojení osob Na všech úrovních určují lidé charakter organizace a jejich Princip 3 – Zapojení osob Na všech úrovních určují lidé charakter organizace a jejich úplné zapojení umožňuje nasadit své schopnosti k užitku organizace. Princip 4 – Procesně orientovaný koncept Požadovaného výsledku lze dosáhnout efektivněji tehdy, když jsou činnosti a příslušné zdroje vedeny a řízeny jako proces. Princip 5 – Systémově orientovaný koncept řízení Identifikace, pochopení, vedení a řízení procesů, které jsou vzájemně propojeny jako systém, přispívá k účinnosti a efektivitě organizace při dosahování svých cílů. Copyright 2006 John Wiley & Sons, Inc. 13

Princip 6 – Neustálé zlepšování celkového výkonu organizace představuje trvalý cíl organizace. Princip 7 Princip 6 – Neustálé zlepšování celkového výkonu organizace představuje trvalý cíl organizace. Princip 7 – Věcný koncept pro rozhodování Účinná rozhodnutí se zakládají na analýze dat a informací. Princip 8 – Dodavatelské vztahy k vzájemnému užitku Organizace a její dodavatelé jsou na sobě závislí. Vztahy sloužící k vzájemnému užitku zvyšují schopnost tvorby hodnot obou stran. Copyright 2006 John Wiley & Sons, Inc. 14

Neustálé zlepšování systému managementu jakosti Zákazníci (a jiné zainteresované strany) Povinnost managementu Management zdrojů Neustálé zlepšování systému managementu jakosti Zákazníci (a jiné zainteresované strany) Povinnost managementu Management zdrojů Požadavky Vstup Zákazníci (a jiné zainteresované strany) Měření, analýza a zlepšování Realizace produktu Spokojenost Produkt Výstup Legenda: Činnost přidávající hodnotu Informační tok POZNÁMKA: Text v závorkách neplatí pro ISO 9001 Model procesně orientovaného systému managementu jakosti Copyright 2006 John Wiley & Sons, Inc. 15

PODMÍNKY VEDENÍ VÝSLEDKY PRACOVNÍCI PROCESY VÝSLEDKY PRACOVNÍKŮ POLITIKA & STRATEGIE VÝSLEDKY ZÁKAZNÍKŮ PARTNERSKÉ VZTAHY PODMÍNKY VEDENÍ VÝSLEDKY PRACOVNÍCI PROCESY VÝSLEDKY PRACOVNÍKŮ POLITIKA & STRATEGIE VÝSLEDKY ZÁKAZNÍKŮ PARTNERSKÉ VZTAHY & ZDROJE KLÍČOVÉ VÝSLEDKY ZÁVĚRY SPOLEČNOSTI INOVACE A UČENÍ Model excelence EFQM Copyright 2006 John Wiley & Sons, Inc. 16

TQM and… w … Partnering n a relationship between a company and its supplier TQM and… w … Partnering n a relationship between a company and its supplier based on mutual quality standards w … Customers n system must measure customer satisfaction w … Information Technology n infrastructure of hardware, networks, and software necessary to support a quality program Copyright 2006 John Wiley & Sons, Inc. 17

Quality Improvement and Role of Employees w Participative problem solving n n employees involved Quality Improvement and Role of Employees w Participative problem solving n n employees involved in quality management every employee has undergone extensive training to provide quality service to Disney’s guests Copyright 2006 John Wiley & Sons, Inc. 18

Quality Circle Organization 8 -10 members Same area Supervisor/moderator Training Presentation Implementation Monitoring Group Quality Circle Organization 8 -10 members Same area Supervisor/moderator Training Presentation Implementation Monitoring Group processes Data collection Problem analysis Solution Problem Identification Problem results Problem Analysis List alternatives Consensus Brainstorming Cause and effect Data collection and analysis Copyright 2006 John Wiley & Sons, Inc. 19

TQM in Service Companies w Principles of TQM apply equally well to services and TQM in Service Companies w Principles of TQM apply equally well to services and manufacturing w Services and manufacturing companies have similar inputs but different processes and outputs w Services tend to be labor intensive w Service defects are not always easy to measure because service output is not usually a tangible item Copyright 2006 John Wiley & Sons, Inc. 20

Cost of Quality w Cost of Achieving Good Quality n Prevention costs l n Cost of Quality w Cost of Achieving Good Quality n Prevention costs l n costs incurred during product design Appraisal costs of measuring, testing, and analyzing w Cost of Poor Quality n Internal failure costs l n include scrap, rework, process failure, downtime, and price reductions External failure costs l include complaints, returns, warranty claims, liability, and lost sales Copyright 2006 John Wiley & Sons, Inc. 21

Juran, J. M. , “Planning for Quality” Minimal Cost 0 f Quality Curve Total Juran, J. M. , “Planning for Quality” Minimal Cost 0 f Quality Curve Total quality Costs per good unit of Product Failure Costs Internal + External Minimal Cost of Quality Prevention & Appraisal Costs 100% Defective Defect Rate 100% Good Optimal Conformance Level Copyright 2006 John Wiley & Sons, Inc. 22

Prevention Costs w Quality planning costs n costs of developing and implementing quality management Prevention Costs w Quality planning costs n costs of developing and implementing quality management program w Training costs n w Product-design costs of designing products with quality characteristics w Process costs n costs expended to make sure productive process conforms to quality specifications Copyright 2006 John Wiley & Sons, Inc. costs of developing and putting on quality training programs for employees and management w Information costs of acquiring and maintaining data related to quality, and development of reports on quality performance 23

Appraisal Costs w Inspection and testing n costs of testing and inspecting materials, parts, Appraisal Costs w Inspection and testing n costs of testing and inspecting materials, parts, and product at various stages and at end of process w Test equipment costs n costs of maintaining equipment used in testing quality characteristics of products w Operator costs n costs of time spent by operators to gar data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality Copyright 2006 John Wiley & Sons, Inc. 24

Internal Failure Costs w Scrap costs n costs of poor-quality products that must be Internal Failure Costs w Scrap costs n costs of poor-quality products that must be discarded, including labor, material, and indirect costs w Rework costs n costs of fixing defective products to conform to quality specifications w Process failure costs n costs of determining why production process is producing poor-quality products Copyright 2006 John Wiley & Sons, Inc. w Process downtime costs n costs of shutting down productive process to fix problem w Price-downgrading costs n costs of discounting poorquality products—that is, selling products as “seconds” 25

External Failure Costs w Customer complaint costs n costs of investigating and satisfactorily responding External Failure Costs w Customer complaint costs n costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product w Product return costs of handling and replacing poor-quality products returned by customer w Warranty claims costs n costs of complying with product warranties Copyright 2006 John Wiley & Sons, Inc. w Product liability costs n litigation costs resulting from product liability and customer injury w Lost sales costs n costs incurred because customers are dissatisfied with poor quality products and do not make additional purchases 26

Measuring and Reporting Quality Costs w Index numbers n n ratios that measure quality Measuring and Reporting Quality Costs w Index numbers n n ratios that measure quality costs against a base value labor index l n cost index l n ratio of quality cost to manufacturing cost sales index l n ratio of quality cost to labor hours ratio of quality cost to sales production index l ratio of quality cost to units of final product Copyright 2006 John Wiley & Sons, Inc. 27

Copyright 2006 John Wiley & Sons, Inc. 28 Copyright 2006 John Wiley & Sons, Inc. 28

Možné struktury nákladů v modelu PAF Copyright 2006 John Wiley & Sons, Inc. 29 Možné struktury nákladů v modelu PAF Copyright 2006 John Wiley & Sons, Inc. 29

Trendy v modelu PAF Copyright 2006 John Wiley & Sons, Inc. 30 Trendy v modelu PAF Copyright 2006 John Wiley & Sons, Inc. 30

Grafické znázornění monitorování nákladů na proces Copyright 2006 John Wiley & Sons, Inc. 31 Grafické znázornění monitorování nákladů na proces Copyright 2006 John Wiley & Sons, Inc. 31

Seven Quality Control Tools w w Pareto Analysis Flow Chart Check Sheet Histogram Copyright Seven Quality Control Tools w w Pareto Analysis Flow Chart Check Sheet Histogram Copyright 2006 John Wiley & Sons, Inc. w Scatter Diagram w SPC Chart w Cause-and-Effect Diagram 32

Pareto Analysis CAUSE NUMBER OF DEFECTS Poor design Wrong part dimensions Defective parts Incorrect Pareto Analysis CAUSE NUMBER OF DEFECTS Poor design Wrong part dimensions Defective parts Incorrect machine calibration Operator errors Defective material Surface abrasions PERCENTAGE 64 % 13 10 6 3 2 2 125 Copyright 2006 John Wiley & Sons, Inc. 80 16 12 7 4 3 3 100 % 33

Po or De si gn di m en De si fe on ct s Po or De si gn di m en De si fe on ct s iv e M pa ac rts hi ne ca O pe libr at ra io to ns re rr De or fe s ct iv e Su m at rfa er ce ia ls ab ra si on s W ro ng Percent from each cause 70 (64) 60 20 10 Pareto Chart 50 40 30 (13) (10) Copyright 2006 John Wiley & Sons, Inc. (6) (3) (2) 0 Causes of poor quality 34

Flow Chart Start/ Finish Operation Decision Operation Decision Copyright 2006 John Wiley & Sons, Flow Chart Start/ Finish Operation Decision Operation Decision Copyright 2006 John Wiley & Sons, Inc. Operation Start/ Finish 35

Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits Capacitors Resistors Transformers Commands CRT Copyright 2006 John Wiley & Sons, Inc. |||| |||| |||| | 36

Histogram 20 15 10 5 0 1 2 6 13 10 16 19 17 Histogram 20 15 10 5 0 1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1 Copyright 2006 John Wiley & Sons, Inc. 37

Scatter Diagram Y X Copyright 2006 John Wiley & Sons, Inc. 38 Scatter Diagram Y X Copyright 2006 John Wiley & Sons, Inc. 38

Control Chart 24 UCL = 23. 35 Number of defects 21 c = 12. Control Chart 24 UCL = 23. 35 Number of defects 21 c = 12. 67 18 15 12 9 6 LCL = 1. 99 3 2 4 6 8 10 12 14 16 Sample number Copyright 2006 John Wiley & Sons, Inc. 39

Cause-and-Effect Diagram Measurement Faulty testing equipment Inadequate training Environment Old / worn Quality Problem Cause-and-Effect Diagram Measurement Faulty testing equipment Inadequate training Environment Old / worn Quality Problem Defective from vendor Not to specifications Dust and Dirt Tooling problems Lack of concentration Improper methods Machines Out of adjustment Poor supervision Incorrect specifications Inaccurate temperature control Human Materialhandling problems Materials Copyright 2006 John Wiley & Sons, Inc. Poor process design Ineffective quality management Deficiencies in product design Process 40

 Baldrige Award w Created in 1987 to stimulate growth of quality management in Baldrige Award w Created in 1987 to stimulate growth of quality management in United States w Categories n n n n Leadership Information and analysis Strategic planning Human resource Focus Process management Business results Customer and market focus Copyright 2006 John Wiley & Sons, Inc. 41

Other Awards for Quality w National individual awards n n n Armand V. Feigenbaum Other Awards for Quality w National individual awards n n n Armand V. Feigenbaum Medal Deming Medal E. Jack Lancaster Medal Edwards Medal Shewart Medal Ishikawa Medal Copyright 2006 John Wiley & Sons, Inc. w International awards n n European Quality Award Canadian Quality Award Australian Business Excellence Award Deming Prize from Japans 42

American Customer Satisfaction Index (ACSI) w Measures customer satisfaction w Established in 1994 w American Customer Satisfaction Index (ACSI) w Measures customer satisfaction w Established in 1994 w Web site: www. acsi. org n Examples (in 2003) Amazon. com scored 88 (highest in service) l Dell scored of 78 (highest in computer industry) l Cadillac scored 87 (highest in car industry) l Copyright 2006 John Wiley & Sons, Inc. 43

ISO 9000 w A set of procedures and policies for international quality certification of ISO 9000 w A set of procedures and policies for international quality certification of suppliers w Standards n ISO 9000: 2000 l l Quality Management Systems—Fundamentals and Vocabulary defines fundamental terms and definitions used in ISO 9000 family Copyright 2006 John Wiley & Sons, Inc. w ISO 9001: 2000 n n Quality Management Systems —Requirements standard to assess ability to achieve customer satisfaction w ISO 9004: 2000 n n Quality Management Systems —Guidelines for Performance Improvements guidance to a company for continual improvement of its quality-management system 44

Implications of ISO 9000 for U. S. Companies w Many overseas companies will not Implications of ISO 9000 for U. S. Companies w Many overseas companies will not do business with a supplier unless it has ISO 9000 certification w ISO 9000 accreditation w ISO registrars w A total commitment to quality is required throughout an organization Copyright 2006 John Wiley & Sons, Inc. 45

Chapter 4 Statistical Process Control Operations Management - 5 th Edition Roberta Russell & Chapter 4 Statistical Process Control Operations Management - 5 th Edition Roberta Russell & Bernard W. Taylor, III Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga

Basics of Statistical Process Control w Statistical Process Control (SPC) n monitoring production process Basics of Statistical Process Control w Statistical Process Control (SPC) n monitoring production process to detect and prevent poor quality UCL w Sample n subset of items produced to use for inspection LCL w Control Charts n process is within statistical control limits Copyright 2006 John Wiley & Sons, Inc. 47

Variability w Random n n n common causes inherent in a process can be Variability w Random n n n common causes inherent in a process can be eliminated only through improvements in the system Copyright 2006 John Wiley & Sons, Inc. w Non-Random n n n special causes due to identifiable factors can be modified through operator or management action 48

SPC in TQM w SPC n n tool for identifying problems and make improvements SPC in TQM w SPC n n tool for identifying problems and make improvements contributes to the TQM goal of continuous improvements Copyright 2006 John Wiley & Sons, Inc. 49

Quality Measures w Attribute n n a product characteristic that can be evaluated with Quality Measures w Attribute n n a product characteristic that can be evaluated with a discrete response good – bad; yes - no w Variable n n a product characteristic that is continuous and can be measured weight - length Copyright 2006 John Wiley & Sons, Inc. 50

Applying SPC to Service w Nature of defect is different in services w Service Applying SPC to Service w Nature of defect is different in services w Service defect is a failure to meet customer requirements w Monitor times, customer satisfaction Copyright 2006 John Wiley & Sons, Inc. 51

Applying SPC to Service (cont. ) w Hospitals n timeliness and quickness of care, Applying SPC to Service (cont. ) w Hospitals n timeliness and quickness of care, staff responses to requests, accuracy of lab tests, cleanliness, courtesy, accuracy of paperwork, speed of admittance and checkouts w Grocery stores n waiting time to check out, frequency of out-of-stock items, quality of food items, cleanliness, customer complaints, checkout register errors w Airlines n flight delays, lost luggage and luggage handling, waiting time at ticket counters and check-in, agent and flight attendant courtesy, accurate flight information, passenger cabin cleanliness and maintenance Copyright 2006 John Wiley & Sons, Inc. 52

Applying SPC to Service (cont. ) w Fast-food restaurants n waiting time for service, Applying SPC to Service (cont. ) w Fast-food restaurants n waiting time for service, customer complaints, cleanliness, food quality, order accuracy, employee courtesy w Catalogue-order companies n order accuracy, operator knowledge and courtesy, packaging, delivery time, phone order waiting time w Insurance companies n billing accuracy, timeliness of claims processing, agent availability and response time Copyright 2006 John Wiley & Sons, Inc. 53

Where to Use Control Charts w Process has a tendency to go out of Where to Use Control Charts w Process has a tendency to go out of control w Process is particularly harmful and costly if it goes out of control w Examples n n at the beginning of a process because it is a waste of time and money to begin production process with bad supplies before a costly or irreversible point, after which product is difficult to rework or correct before and after assembly or painting operations that might cover defects before the outgoing final product or service is delivered Copyright 2006 John Wiley & Sons, Inc. 54

Control Charts w A graph that establishes control limits of a process w Control Control Charts w A graph that establishes control limits of a process w Control limits n w Types of charts n Attributes p-chart l c-chart l upper and lower bands of a control chart n Variables range (R-chart) l mean (x bar – chart) l Copyright 2006 John Wiley & Sons, Inc. 55

Process Control Chart Out of control Upper control limit Process average Lower control limit Process Control Chart Out of control Upper control limit Process average Lower control limit 1 2 3 4 5 6 7 8 9 10 Sample number Copyright 2006 John Wiley & Sons, Inc. 56

Normal Distribution 95% 99. 74% -3 -2 -1 Copyright 2006 John Wiley & Sons, Normal Distribution 95% 99. 74% -3 -2 -1 Copyright 2006 John Wiley & Sons, Inc. =0 1 2 3 57

A Process Is in Control If … 1. … no sample points outside limits A Process Is in Control If … 1. … no sample points outside limits 2. … most points near process average 3. … about equal number of points above and below centerline 4. … points appear randomly distributed Copyright 2006 John Wiley & Sons, Inc. 58

Control Charts for Attributes § p-charts § uses portion defective in a sample § Control Charts for Attributes § p-charts § uses portion defective in a sample § c-charts § uses number of defects in an item Copyright 2006 John Wiley & Sons, Inc. 59

p-Chart UCL = p + z p LCL = p - z p z p-Chart UCL = p + z p LCL = p - z p z = number of standard deviations from process average p = sample proportion defective; an estimate of process average p = standard deviation of sample proportion p = Copyright 2006 John Wiley & Sons, Inc. p(1 - p) n 60

p-Chart Example SAMPLE 1 2 3 : : 20 NUMBER OF DEFECTIVES PROPORTION DEFECTIVE p-Chart Example SAMPLE 1 2 3 : : 20 NUMBER OF DEFECTIVES PROPORTION DEFECTIVE 6 0 4 : : 18 200 . 06. 00. 04 : : . 18 20 samples of 100 pairs of jeans Copyright 2006 John Wiley & Sons, Inc. 61

p-Chart Example (cont. ) p = total defectives = 200 / 20(100) = 0. p-Chart Example (cont. ) p = total defectives = 200 / 20(100) = 0. 10 total sample observations UCL = p + z p(1 - p) = 0. 10 + 3 n 0. 10(1 - 0. 10) 100 UCL = 0. 190 LCL = p - z p(1 - p) = 0. 10 - 3 n 0. 10(1 - 0. 10) 100 LCL = 0. 010 Copyright 2006 John Wiley & Sons, Inc. 62

0. 20 UCL = 0. 190 0. 18 p-Chart Example (cont. ) Proportion defective 0. 20 UCL = 0. 190 0. 18 p-Chart Example (cont. ) Proportion defective 0. 16 0. 14 0. 12 0. 10 p = 0. 10 0. 08 0. 06 0. 04 0. 02 LCL = 0. 010 2 Copyright 2006 John Wiley & Sons, Inc. 4 6 8 10 12 14 Sample number 16 18 20 63

c-Chart UCL = c + z c LCL = c - z c c c-Chart UCL = c + z c LCL = c - z c c = c where c = number of defects per sample Copyright 2006 John Wiley & Sons, Inc. 64

c-Chart (cont. ) Number of defects in 15 sample rooms SAMPLE NUMBER OF DEFECTS c-Chart (cont. ) Number of defects in 15 sample rooms SAMPLE NUMBER OF DEFECTS 1 2 3 12 8 16 : : 15 15 190 Copyright 2006 John Wiley & Sons, Inc. 190 c= = 12. 67 15 UCL = c + z c = 12. 67 + 3 = 23. 35 12. 67 LCL = c + z c = 12. 67 - 3 = 1. 99 12. 67 65

24 UCL = 23. 35 c-Chart (cont. ) Number of defects 21 18 c 24 UCL = 23. 35 c-Chart (cont. ) Number of defects 21 18 c = 12. 67 15 12 9 6 LCL = 1. 99 3 2 4 6 8 10 12 14 16 Sample number Copyright 2006 John Wiley & Sons, Inc. 66

Control Charts for Variables § Mean chart ( x -Chart ) § uses average Control Charts for Variables § Mean chart ( x -Chart ) § uses average of a sample § Range chart ( R-Chart ) § uses amount of dispersion in a sample Copyright 2006 John Wiley & Sons, Inc. 67

x-bar Chart = = x 1 + x 2 +. . . xk x x-bar Chart = = x 1 + x 2 +. . . xk x k = UCL = x + A 2 R = LCL = x - A 2 R where = x = average of sample means Copyright 2006 John Wiley & Sons, Inc. 68

x-bar Chart Example OBSERVATIONS (SLIP- RING DIAMETER, CM) SAMPLE k 1 2 3 4 x-bar Chart Example OBSERVATIONS (SLIP- RING DIAMETER, CM) SAMPLE k 1 2 3 4 5 x R 1 2 3 4 5 6 7 8 9 10 5. 02 5. 01 4. 99 5. 03 4. 95 4. 97 5. 05 5. 09 5. 14 5. 01 5. 03 5. 00 4. 91 4. 92 5. 06 5. 01 5. 10 4. 98 4. 94 5. 07 4. 93 5. 01 5. 03 5. 06 5. 10 5. 00 4. 99 5. 08 4. 99 4. 95 4. 92 4. 98 5. 05 4. 96 4. 99 5. 08 5. 07 4. 96 4. 99 4. 89 5. 01 5. 03 4. 99 5. 08 5. 09 4. 98 5. 00 4. 97 4. 96 4. 99 5. 01 5. 02 5. 05 5. 08 5. 03 0. 08 0. 12 0. 08 0. 14 0. 13 0. 10 0. 14 0. 11 0. 15 0. 10 50. 09 1. 15 Example 15. 4 Copyright 2006 John Wiley & Sons, Inc. 69

x- bar Chart Example (cont. ) 50. 09 = åx x= = = 5. x- bar Chart Example (cont. ) 50. 09 = åx x= = = 5. 01 cm 10 k = UCL = x + A 2 R = 5. 01 + (0. 58)(0. 115) = 5. 08 = LCL = x - A 2 R = 5. 01 - (0. 58)(0. 115) = 4. 94 Retrieve Factor Value A 2 Copyright 2006 John Wiley & Sons, Inc. 70

5. 10 – 5. 08 – UCL = 5. 08 5. 06 – Mean 5. 10 – 5. 08 – UCL = 5. 08 5. 06 – Mean 5. 04 – x- bar Chart Example (cont. ) 5. 02 – = x = 5. 01 5. 00 – 4. 98 – 4. 96 – LCL = 4. 94 – 4. 92 – | 1 Copyright 2006 John Wiley & Sons, Inc. | 2 | 3 | | 4 5 6 7 Sample number | 8 | 9 | 10 71

R- Chart UCL = D 4 R LCL = D 3 R åR R= R- Chart UCL = D 4 R LCL = D 3 R åR R= k where R = range of each sample k = number of samples Copyright 2006 John Wiley & Sons, Inc. 72

R-Chart Example OBSERVATIONS (SLIP-RING DIAMETER, CM) SAMPLE k 1 2 3 4 5 x R-Chart Example OBSERVATIONS (SLIP-RING DIAMETER, CM) SAMPLE k 1 2 3 4 5 x R 1 2 3 4 5 6 7 8 9 10 5. 02 5. 01 4. 99 5. 03 4. 95 4. 97 5. 05 5. 09 5. 14 5. 01 5. 03 5. 00 4. 91 4. 92 5. 06 5. 01 5. 10 4. 98 4. 94 5. 07 4. 93 5. 01 5. 03 5. 06 5. 10 5. 00 4. 99 5. 08 4. 99 4. 95 4. 92 4. 98 5. 05 4. 96 4. 99 5. 08 5. 07 4. 96 4. 99 4. 89 5. 01 5. 03 4. 99 5. 08 5. 09 4. 98 5. 00 4. 97 4. 96 4. 99 5. 01 5. 02 5. 05 5. 08 5. 03 0. 08 0. 12 0. 08 0. 14 0. 13 0. 10 0. 14 0. 11 0. 15 0. 10 50. 09 1. 15 Example 15. 3 Copyright 2006 John Wiley & Sons, Inc. 73

R-Chart Example (cont. ) åR 1. 15 R= = = 0. 115 k 10 R-Chart Example (cont. ) åR 1. 15 R= = = 0. 115 k 10 UCL = D 4 R = 2. 11(0. 115) = 0. 243 LCL = D 3 R = 0(0. 115) = 0 Retrieve Factor Values D 3 and D 4 Example 15. 3 Copyright 2006 John Wiley & Sons, Inc. 74

R-Chart Example (cont. ) 0. 28 – 0. 24 – UCL = 0. 243 R-Chart Example (cont. ) 0. 28 – 0. 24 – UCL = 0. 243 Range 0. 20 – 0. 16 – R = 0. 115 0. 12 – 0. 08 – 0. 04 – 0– LCL = 0 | | | 1 2 3 Copyright 2006 John Wiley & Sons, Inc. | | 4 5 6 7 Sample number | 8 | 9 | 10 75

Using x- bar and R-Charts Together § Process average and process variability must be Using x- bar and R-Charts Together § Process average and process variability must be in control § It is possible for samples to have very narrow ranges, but their averages is beyond control limits § It is possible for sample averages to be in control, but ranges might be very large Copyright 2006 John Wiley & Sons, Inc. 76

Control Chart Patterns UCL LCL Sample observations consistently below the center line LCL Sample Control Chart Patterns UCL LCL Sample observations consistently below the center line LCL Sample observations consistently above the center line Copyright 2006 John Wiley & Sons, Inc. 77

Control Chart Patterns (cont. ) UCL LCL Sample observations consistently increasing LCL Sample observations Control Chart Patterns (cont. ) UCL LCL Sample observations consistently increasing LCL Sample observations consistently decreasing Copyright 2006 John Wiley & Sons, Inc. 78

Sample Size § Attribute charts require larger sample sizes § 50 to 100 parts Sample Size § Attribute charts require larger sample sizes § 50 to 100 parts in a sample § Variable charts require smaller samples § 2 to 10 parts in a sample Copyright 2006 John Wiley & Sons, Inc. 79

SPC with Excel UCL=0. 19 LCL=0. 01 Copyright 2006 John Wiley & Sons, Inc. SPC with Excel UCL=0. 19 LCL=0. 01 Copyright 2006 John Wiley & Sons, Inc. 80

SPC with Excel: Formulas Copyright 2006 John Wiley & Sons, Inc. 81 SPC with Excel: Formulas Copyright 2006 John Wiley & Sons, Inc. 81

Process Capability w Tolerances n design specifications reflecting product requirements w Process capability n Process Capability w Tolerances n design specifications reflecting product requirements w Process capability n range of natural variability in a process what we measure with control charts Copyright 2006 John Wiley & Sons, Inc. 82

Process Capability Design Specifications (a) Natural variation exceeds design specifications; process is not capable Process Capability Design Specifications (a) Natural variation exceeds design specifications; process is not capable of meeting specifications all the time. Process Design Specifications (b) Design specifications and natural variation the same; process is capable of meeting specifications most of the time. Process Copyright 2006 John Wiley & Sons, Inc. 83

Process Capability (cont. ) Design Specifications (c) Design specifications greater than natural variation; process Process Capability (cont. ) Design Specifications (c) Design specifications greater than natural variation; process is capable of always conforming to specifications. Process Design Specifications (d) Specifications greater than natural variation, but process off center; capable but some output will not meet upper specification. Process Copyright 2006 John Wiley & Sons, Inc. 84

Process Capability Measures Process Capability Ratio tolerance range process range Cp = = upper Process Capability Measures Process Capability Ratio tolerance range process range Cp = = upper specification limit lower specification limit Copyright 2006 John Wiley & Sons, Inc. 6 85

Computing Cp Net weight specification = 9. 0 oz 0. 5 oz Process mean Computing Cp Net weight specification = 9. 0 oz 0. 5 oz Process mean = 8. 80 oz Process standard deviation = 0. 12 oz Cp = upper specification limit lower specification limit 6 9. 5 - 8. 5 = = 1. 39 6(0. 12) Copyright 2006 John Wiley & Sons, Inc. 86

Process Capability Measures Process Capability Index Cpk = minimum = x - lower specification Process Capability Measures Process Capability Index Cpk = minimum = x - lower specification limit , 3 = upper specification limit - x 3 Copyright 2006 John Wiley & Sons, Inc. 87

Computing Cpk Net weight specification = 9. 0 oz 0. 5 oz Process mean Computing Cpk Net weight specification = 9. 0 oz 0. 5 oz Process mean = 8. 80 oz Process standard deviation = 0. 12 oz Cpk = minimum = x - lower specification limit , 3 = upper specification limit - x 3 8. 80 - 8. 50 9. 50 - 8. 80 , = 0. 83 3(0. 12) Copyright 2006 John Wiley & Sons, Inc. 88

Appendix: Determining Control Limits for x-bar and R-Charts SAMPLE SIZE n FACTOR FOR x-CHART Appendix: Determining Control Limits for x-bar and R-Charts SAMPLE SIZE n FACTOR FOR x-CHART A 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1. 88 1. 02 0. 73 0. 58 0. 42 0. 37 0. 44 0. 11 0. 99 0. 77 0. 55 0. 44 0. 22 0. 11 0. 00 0. 99 0. 88 Fact ors Copyright 2006 John Wiley & Sons, Inc. Return FACTORS FOR R-CHART D 3 D 4 0. 00 0. 08 0. 14 0. 18 0. 22 0. 26 0. 28 0. 31 0. 33 0. 35 0. 36 0. 38 0. 39 0. 40 0. 41 3. 27 2. 57 2. 28 2. 11 2. 00 1. 92 1. 86 1. 82 1. 78 1. 74 1. 72 1. 69 1. 67 1. 65 1. 64 1. 62 1. 61 1. 59 89

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