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Assist. Prof. Dr. Benhür SATIR 02/12/2014 Outline Variation Dimensions of Quality Definition of Quality Descriptive Statistics Statistical Methods for Quality Improvement: Acceptance Sampling Designed Experiments Statistical Process Control & Magnificient Seven Total Quality Management Quality Related Costs Benefits 14.12.2012 2 Variation… Which has higher variation? İmam Çağdaş McDonalds What do you understand from this question? # of different meals the same taste for a specific meal Something else? 14.12.2012 3 Variation… Which one you like more? İmam Çağdaş McDonalds 14.12.2012 4 Variation… Which one you like more as an IE? İmam Çağdaş McDonalds 14.12.2012 5 Variation… Variation is an enemy for an IE… We hate variation! Ford T Model: Henry Ford said "You can have any colour as long as it's black." If it is unavoidable, try to cope with it… Only black color for a Mercedes in 2015? 14.12.2012 6 Dimensions of Quality 1. Garvin (1987) Performance: Will the product/service do the intended job? 2. Reliability: How often does the product/service fail? 3. Durability: How long does the product/service last? 4. Serviceability: How easy to repair the product / to solve the problems in service? 14.12.2012 7 Dimensions of Quality 5. Aesthetics: What does the product/service look/smell/sound/feel like? 6. Features: What does the product do/ service give? 7. Perceived Quality: What is the reputation of the company or its products/services? 8. Conformance to Standards: Is the product/service made exactly as the designer/standard intended? 9. What else? What do YOU think? 14.12.2012 8 Quality in Different Areas of Society Area Examples Airlines On-time, comfortable, low-cost service Food Services Good product, fast delivery, good environment Postal Services fast delivery, correct delivery, cost containment Consumer Products Properly made, defect-free, cost effective Insurance Payoff on time, reasonable cost Automotive Defect-free Communications Clearer, faster, cheaper service 14.12.2012 9 Definition of Quality No two products are identical; i.e. There is always a certain amount of variability. Modern Defn : Quality is inversely proportional to variability. Quality Improvement : reduction of variability in processes and products. 14.12.2012 10 Quality Engineering Terminology Quality characteristics : parameters that jointly describe the quality from customers’ view point. Physical : length, weight, viscocity. Sensory : taste, color, appearance. Time orientation : reliability, durability, serviceability. Nominal (Target) Value : Desired value for a quality characteristic. Upper Specification Limit (USL) : largest allowable value for a quality characteristic that will not influence the funciton or performance of theproduct. Lower Specification Limit (LSL) : Similar to USL, it is the smallest allowable value. 14.12.2012 11 Quality Engineering Terminology Nonconformity : Specific type of failure. Failure : Fail to meet the specification. Defect : Nonconformities that are serious enough to significantly affect the safe or effective use of the product. Defective: A product is defective if it has one or more defects. 14.12.2012 12 Quality Engineering Terminology Quality Engineering : Set of operational, managerial and engineering applications to ensure that the quality characteristics are at their corresponding nominal values or required levels. Remember : There is always variability and quality is inversely proportional to it. Only way of describing variability : Statistics. Use of statistical methods are crucial in quality improvements. 14.12.2012 13 Some Important Statistical Definitions Population Sample Use statistics to summarize features Use parameters to summarize features Inference on the population from the sample 14.12.2012 14 Some Important Statistical Definitions A Population (Universe) is the whole collection of things under consideration. A Sample is a portion of the population selected for analysis. A Parameter is a summary measure computed to describe a characteristic of the population. A Statistic is a summary measure computed to describe a characteristic of the sample. 14.12.2012 15 Summary Measures Mean Central Tendency Summary Measures Median Mode Quartile Range Variation Variance Standard Devation 14.12.2012 16 Mean Population Mean: µ (parameter) For a finite population with N measurements, the population mean is N x i 1 i N A reasonable estimate of the population mean is the sample mean. Sample Mean: x (statistic) If the n observations in a sample are denoted by x1, x2, …, xn, n the sample mean is 14.12.2012 x x i 1 n i 17 Mean Example: Suppose that an engineer is developing a rubber compound for use in O-rings. The O-rings are to be employed as seals in plasma etching tools used in the semiconductor industry, so their resistance to acids and other corrosive substances is an important characteristic. The data from the modified rubber compound are: 1037 1047 1066 1048 1059 1073 1070 1040. The sample mean strength (psi) for the eight observations on strength is 14.12.2012 18 Mean Sample mean is affected by the extreme values and/or outliers. 0 1 2 3 4 5 6 7 8 9 10 14.12.2012 0 1 2 3 4 5 6 7 8 9 10 12 14 19 Median Robust measure of central tendency Not affected by extreme values In an ordered array, the median is the ‘middle’ number If n or N is odd, the median is the middle number If n or N is even, the median is the average of the 2 middle numbers 0 1 2 3 4 5 6 7 8 9 10 14.12.2012 0 1 2 3 4 5 6 7 8 9 10 12 14 20 Median Example : Consider the O-rings example. 1037 1047 1066 1048 1059 1073 1070 1040. To find the median, 14.12.2012 21 Mode A Measure of central tendency Value that occurs most often Not affected by extreme values There may not be a mode There may be several modes Used for either numerical or categorical data 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14.12.2012 22 Summary Measures Data A Mean = 15.5 11 12 13 14 15 16 17 18 19 20 21 Data B Mean = 15.5 11 12 13 14 15 16 17 18 19 20 21 Data C 11 12 13 14 15 16 17 14.12.2012 18 19 20 21 Mean = 15.5 23 Range Measure of variation Difference between the largest and the smallest observations: Range X Largest X Smallest Ignores how data are distributed 7 14.12.2012 8 9 10 11 12 7 8 9 10 11 12 24 Sample Variance & Standard Deviation Most important measure of variation Shows variation about the mean 14.12.2012 25 Sample Variance & Standard Deviation If the n observations in a sample are denoted by x1, x2,…, xn, then the sample variance is n s2 x x 2 i i 1 n 1 The sample standard deviation, s, is the positive square root of the sample variance. s2 s 14.12.2012 26 Sample Variance & Standard Deviation Example : Consider the O-rings example. 1037 1047 1066 1048 1059 1073 1070 1040. i xi 1 2 3 4 5 6 7 8 1037 1047 1066 1048 1059 1073 1070 1040 x 1055 8440 14.12.2012 27 Sample Variance & Standard Deviation Data A Mean = 15.5 11 12 13 14 15 16 17 18 19 20 21 s = 3.338 Data B Mean = 15.5 11 12 13 14 15 16 17 18 19 20 21 s = .9258 Data C Mean = 15.5 11 12 13 14 15 16 17 14.12.2012 18 19 20 21 s = 4.57 28 Histogram The most commonly used graph to show frequency distributions, i.e. how often each different value in a set of data occurs . Used to visualize the distribution. Birthdate example 14.12.2012 29 Pareto Chart Organizes and displays information to show the relative importance of various problems or causes of problems. A special form of a vertical bar chart that puts items in order (from the highest to the lowest) relative to some measurable effect of interest: frequency, cost, time. Are arranged with longest bars on the left and the shortest to the right. Helps teams to focus efforts where they can have the greatest potential impact. 14.12.2012 30 Example Pareto Chart 14.12.2012 31 Cause & Effect Diagram Also called Ishikawa diagram, fishbone diagram. Understand the root causes of a problem BEFORE you put a “solution” into place. Identify and display many different possible causes for a problem. See the relationships between the many causes. Helps determine which data to collect. 14.12.2012 32 Cause & Effect Diagram • Clearly define the focused problem. Root cause • Use brainstorming to identify Root cause possible causes. • Sort causes into reasonable clusters (no less than 3, not more than 6). Focused problem • Label the clusters (consider people, policies, procedures, materials if you have not already identified labels). • Develop and arrange bones in Root cause Root cause each cluster. • Check the logical validity of each causal chain. 14.12.2012 33 Cause & Effect Diagram • Bones should not include solutions. • Bones should not include lists of process steps. • Bones include the possible causes. Materials Lack of office space Policies Restrictive budget Escorting clients to appointments and having to wait Procedures 14.12.2012 Minimal benefits Location No policy on staff screening “Back-biting” environment Paperwork Burnout overwhelming Turnover in staff Lack of supervision Inadequate training People 34 Statistical Methods for Quality Improvement 3 major areas: Acceptance Sampling Statistical Process Control (SPC) Design of Experiments 14.12.2012 35 Acceptance Sampling Inspection and testing of Raw materials Semifinished products Finished products Based on inspection Accept or Reject the product Type of inspection procedure is called acceptance sampling. Can do either 100% inspection, or inspect a sample of a few items taken from the lot. 14.12.2012 36 Statistical Process Control SPC is a statistics-based methodology for achieving process stability and improving capability by reducing variability. All processes have variation in output: Some of the variation is caused by factors that can be identified and managed (assignable causes). Ex: improperly adjusted machines, operator errors, defective raw materials etc. Some of the variation is inherent in the process (background noise) : cumulative effect of many small, unavoidable causes. Also named as chance causes of variation. A process is said to be in statistical control, if only chance causes of variation is present and it is out of control, if there are assignable causes of variation. SPC is aimed at discovering variation resulting from assignable causes so that adjustments can be made and “bad” output is not produced. 14.12.2012 37 Control Chart A control chart is a presentation of data in which the control values are plotted against time. Used to study how a process changes over time and to determine if variation is chance or assignable cause. Immediate visualisation of problems. Control charts have a central line, upper and lower warning limits, and upper and lower action limits. 14.12.2012 38 Control chart - Illustration of construction Central line X-chart Copper Action limit Warning limit 1.3 1.2 1.1 1.0 0.9 0.8 0 10 20 30 40 50 60 70 80 90 100 Control value 14.12.2012 39 Design of Experiments Helpful in discovering the key variables influencing the quality characteristics of interest. Systematically change the controllable factors in the process and determine the effect of them on the output product parameters. Statistically designed experiments are useful to reduce the variability in the quality characteristics and to determine the levels of controllable factors that optimize process performance. 14.12.2012 40 TQM Consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. W. Edwards Deming 14.12.2012 41 Deming’s 14 Points for the Transformation of Management 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership (see Point 12 and Ch. 8). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3). 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3). 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 14.12.2012 42 Deming’s 7 Deadly Diseases 1. Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs. 2. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends. 3. Evaluation of performance, merit rating, or annual review. 4. Mobility of management; job hopping. 5. Management by use only of visible figures, with little or no consideration of figures that are unknown or unknowable. 6. Excessive medical costs. 7. Excessive costs of liability, swelled by lawyers that work on contingency fees. 14.12.2012 43 Deming’s Circle PDSA: plan–do–study–act OPDCA: observation-PDSA PDCA: plan–do–check–act or plan–do–check–adjust Iterative four-step management method used in business for the control and continuous improvement of processes and products. 14.12.2012 44 Quality-Related Costs Prevention costs Appraisal costs Correction costs: Internal Failure Costs External Failure Costs 14.12.2012 Costs of Conformance i.e. : The cost of doing things right the first time Costs of Non-Conformance i.e. : The cost incurred as a result of things not being done right the first time 45 Benefits Internal Benefits Reduces costs Increases dependability Increases speed Boosts morale Increases customer retention Increases profit External Benefits Customer gets correct product or service Correct specifications Appropriate intangibles Customer satisfaction Customer retention 14.12.2012 46