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Intro to Statistical Quality Control

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    Introduction to Statistical QualityControl, 5th edition

    Douglas C. Montgomery

    Arizona State University

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    Chapter 1 3Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 4Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Learning Objectives

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    Chapter 1 5Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    1-1 Definitions and Meaning of Quality

    1-1.1 The Eight Dimensions of Quality

    1. Performance

    2. Reliability

    3. Durability

    4. Serviceability

    5. Aesthetics

    6. Features

    7. Perceived Quality

    8. Conformance to Standards

    Chapter 1 6Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    This is a traditional definition

    Quality of designQuality of conformance

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    Chapter 1 7Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    This is a modern definition of quality

    Chapter 1 8Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    The Transmission Example

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    Chapter 1 9Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 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 10Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    1-1.2 Terminology

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    Chapter 1 11Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Terminology contd

    Specifications

    Lower specification limit Upper specification limit

    Target or nominal values

    Defective or nonconforming product

    Defect or nonconformity

    Not all products containing a defect are

    necessarily defective

    Chapter 1 12Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    1-2. History of Quality Improvement

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    Chapter 1 13Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 14Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 15Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 16Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 17Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Statistical Methods

    Statistical process control (SPC)

    Control charts, plus other problem-solving tools

    Useful in monitoring processes, reducing variabilitythrough elimination of assignable causes

    On-line technique

    Designed experiments (DOX)

    Discovering the key factors that influence processperformance

    Process optimization

    Off-line technique

    Acceptance Sampling

    Chapter 1 18Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Walter A. Shewart (1891-1967)

    Trained in engineering and physics

    Long career at Bell Labs

    Developed the first control chart

    about 1924

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    Chapter 1 19Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    A factorial experiment with three factors

    Chapter 1 20Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 21Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Effective management of quality requires the

    execution of three activities:1. Quality Planning

    2. Quality Assurance

    3. Quality Control and Improvement

    Chapter 1 22Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 23Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 24Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 25Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    1-4.1 Quality Philosophies and

    Management Strategies

    W. Edwards Deming

    Taught engineering, physics in the1920s, finished PhD in 1928

    Met Walter Shewhart at WesternElectric

    Long career in governmentstatistics, USDA, Bureau of theCensus

    During WWII, he worked withUS defense contractors, deployingstatistical methods

    Sent to Japan after WWII to workon the census

    Chapter 1 26Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Deming

    Deming was asked by JUSE to lecture onstatistical quality control to management

    Japanese adopted many aspects of Demingsmanagement philosophy

    Deming stressed continual never-endingimprovement

    Deming lectured widely in North Americaduring the 1980s; he died 24 December 1993

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    Chapter 1 27Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Demings 14 Points

    1. Create constancy of purpose toward improvement

    2. Adopt a new philosophy, recognize that we are in a time ofchange, a new economic age

    3. Cease reliance on mass inspection to improve quality

    4. End the practice of awarding business on the basis of pricealone

    5. Improve constantly and forever the system of production andservice

    6. Institute training

    7. Improve leadership, recognize that the aim of supervision ishelp people and equipment to do a better job

    8. Drive out fear

    9. Break down barriers between departments

    Chapter 1 28Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    14 Points contd

    10. Eliminate slogans and targets for the workforce such as zerodefects

    11. Eliminate work standards

    12. Remove barriers that rob workers of the right to pride in the

    quality of their work13. Institute a vigorous program of education and self-

    improvement

    14. Put everyone to work to accomplish the transformation

    Note that the 14 points are about change

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    Chapter 1 29Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Demings Deadly Diseases

    1. Lack of constancy of purpose

    2. Emphasis on short-term profits

    3. Performance evaluation, merit rating, annual

    reviews

    4. Mobility of management

    5. Running a company on visible figures alone

    6. Excessive medical costs for employee health care

    7. Excessive costs of warrantees

    Chapter 1 30Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Joseph M. Juran

    Born in Romania (1904),immigrated to the US

    Worked at Western Electric,influenced by WalterShewhart

    Emphasizes a more strategicand planning orientedapproach to quality thandoes Deming

    Juran Institute is still anactive organization

    promoting the Juranphilosophy and qualityimprovement practices

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    Chapter 1 33Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Total Quality Management (TQM)

    Started in the early 1980s, Deming/Juran

    philosophy as the focal point Emphasis on widespread training, quality

    awareness

    Training often turned over to HR function

    Not enough emphasis on quality control andimprovement tools, poor follow-through, noproject-by-project implementation strategy

    TQM was largely unsuccessful

    Chapter 1 34Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Total Quality Management (TQM)

    TQM is just another program

    Value engineering

    Zero defects Quality is free

    Recipe for Ineffectiveness and maybe Disaster

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    Chapter 1 35Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Quality Systems and Standards

    Chapter 1 36Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 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

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    Chapter 1 37Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 38Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    The MBNQA process is a valuable assessment tool

    See Table 1-3 for Performance Excellence Criteria and point

    values

    The Malcolm Baldrige National

    Quality Award

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    Chapter 1 39Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 40Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

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    Chapter 1 41Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Six Sigma

    Use 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 1970s

    TQM (Total Quality Management) movement in the 1980s

    Reengineering of business processes (late 1980s)

    Six-Sigma (origins at Motorola in 1987, expanded impact

    during 1990s to present)

    Chapter 1 42Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Focus of Six Sigma is on Process Improvement

    with an Emphasis on Achieving Significant

    Business Impact

    A process is an organized sequence of activities that

    produces an output that adds value to the organization

    All work is performed in (interconnected) processes

    Easy to see in some situations (manufacturing)

    Harder in others

    Any process can be improved

    An organized approach to improvement is necessary

    The process focus is essential to Six Sigma

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    Chapter 1 43Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Chapter 1 44Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 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?

    10

    4

    12

    {Single meal good} (0.99) 0.9044

    Family of four, once a month: {All meals good} (0.9044) 0.6690

    {All visits during the year good} (0.6690) 0.0080

    P

    P

    P

    = =

    = =

    = =

    10 4

    12

    {single meal good} (0.999) 0.9900, {Monthly visit good} (0.99) 0.9607

    {All visits in the year good} (0.9607) 0.6186

    P P

    P

    = = = =

    = =

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    Chapter 1 45Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Six Sigma Focus

    Initially in manufacturing

    Commercial applications Banking

    Finance

    Public sector

    Services

    DFSS Design for Six Sigma Only so much improvement can be wrung out of an

    existing system

    New process design

    New product design (engineering)

    Chapter 1 46Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Some Commercial Applications

    Reducing average and variation of days outstanding onaccounts receivable

    Managing costs of consultants (public accountants, lawyers)

    Skip tracing

    Credit scoring Closing the books (faster, less variation)

    Audit accuracy, account reconciliation

    Forecasting

    Inventory management

    Tax filing

    Payroll accuracy

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    Chapter 1 47Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Six Sigma

    A disciplined and analytical approach to process and productimprovement

    Specialized roles for people; Champions, Master Black belts,Black Belts, Green Belts

    Top-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

    Measure

    Analyze

    Improve

    Control

    Chapter 1 48Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    What Makes it Work?

    Successful implementations characterized by:

    Committed leadership

    Use of top talent

    Supporting infrastructure Formal project selection process

    Formal project review process

    Dedicated resources

    Financial system integration

    Project-by-project improvement strategy(borrowed from Juran)

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    Chapter 1 49Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    OVERALL PROGRAMS

    LEAN Variation Reduction

    Predictability

    Feasibility

    Efficiency

    Capability

    Accuracy

    Flow Mapping

    Waste Elimination

    Cycle Time

    WIP Reduction

    Operations and

    Design

    Lean

    Lead-time Capable

    DMAICELIMINATE

    WASTE,

    IMPROVECYCLE TIME

    DESIGN

    PREDICTIVE

    QUALITY INTOPRODUCTS

    ELIMINATE

    DEFECTS,

    REDUCEVARIABILITY

    DFSS

    Robust

    Requirements allocation

    Capability assessment

    Robust Design

    Predictable Product Quality

    Design for Six Sigma

    The I in DMAIC may become DFSSThe I in DMAIC may become DFSS

    The Process Improvement Triad: DFSS, Lean, and DMAIC

    Chapter 1 50Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    DFSS Matches Customer Needs

    with Capability Mean and variability affects product performance and cost

    Designers can predict costs and yields in the design phase

    Consider mean and variability in the design phase Establish top level mean, variability and failure rate targets for

    a design Rationally allocate mean, variability, and failure rate targets to

    subsystem and component levels

    Match requirements against process capability and identify gaps

    Close gaps to optimize a producible design

    Identify variability drivers and optimize designs or make designs robustto variability

    Process capability impact design decisions

    DFSS enhances product design methods.DFSS enhances product design methods.

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    Chapter 1 51Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Lean Focuses on Waste Elimination

    Definition

    A set of methods and tools used to eliminate waste ina process

    Lean helps identify anything not absolutely requiredto deliver a quality product on time.

    Benefits of using Lean

    Lean methods help reduce inventory, lead time, andcost

    Lean methods increase productivity, quality, on time

    delivery, capacity, and sales

    Chapter 1 52Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc. 11

    DMAIC Solves Problems by Using

    Six Sigma Tools

    DMAIC is a problem solving methodology

    Use this method to solve problems:

    Define problems in processes

    Measure performance

    Analyze causes of problems

    Improve processesremove variations andnonvalue-added activities

    Control processes so problems do not recur

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    Chapter 1 53Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Six Sigma

    DMAIC is closely related to the Shewhart

    cycle (variously called the Deming cycle, orthe PDCA cycle)

    Chapter 1 54Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    Quality Costs

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    Chapter 1 55Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Legal Aspects of Quality

    Product liability exposure

    Concept of strict liability

    1. Responsibility of both manufacturer and

    seller/distributor

    2. Advertising must be supported by valid data

    Chapter 1 56Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.Copyright (c) 2005 John Wiley & Sons, Inc.

    A strategic management process, focused along the

    eight dimension of quality

    Suppliers and supply chain management must be

    involved

    Must focus on all three components: Quality Planning,

    Quality Assurance, and Quality Control and Improvement

    Implementing Quality Improvement

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    Chapter 1 57Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery.

    Copyright (c) 2005 John Wiley & Sons, Inc.

    Learning Objectives


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