1. IENG 486: Statistical Quality & Process Control
4/19/2019
IENG Lecture 03
Introduction to Statistical Process Control
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

2. IENG 486: Statistical Quality & Process Control
4/19/2019
Assignment:
Print off Review Data from link on Materials pg.
Bring the data and your exam calculator to next class
Reading:
Chapter 1: (1.1, 1.3 – 1.4.5)
Cursory – get Fig , p.34; Deming Management,1.4.4 Liability
Chapter 2: (2.2 – 2.7)
Cursory – Define, Measure, Analyze, Improve, Control
Chapter 3: (3.1, 3.3.1, 3.4.1)
HW 1: Chapter 3 Exercises:
1, 3, 4 – using exam calculator
10 (use Normal Plots spreadsheet from Materials page)
43, 46, 47 (use Exam Tables from Materials page – Normal Dist.)
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

3. Meaning of Quality and Quality Improvement
IENG 486: Statistical Quality & Process Control
4/19/2019
Meaning of Quality and Quality Improvement
Quality – one of most important consumer decision factors in selecting products and services
Understanding / improving quality is key factor for success, growth, and competitive position
Substantial return on investment comes from:
Improved quality
Successful implementation of quality techniques as overall business strategy
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

4. Review the Red Bead Experiment
Managemement Actions:
Training: (operationally required)
Goal Setting: Zero Defects! (visible, group)
Marketing Slogan : Quality is Job #1 (all on message)
Employee of the Week Parking Spot: (Single Reward / Equity Theory)
Incentive Pay: (Herzberg Motivator/Demotivator)
Personal Stretch Goals: X Defects or Less! / Expectancy Thry
Firing the Weakest Links: (Negative Reinforcement)
Outside Consultant: (Benchmarking / Best Practices)
Self-Managed Teams: (two weeks – not true self-mgt)
MBA-style Productivity Improvement: (Fire ½, 2X shifts / 50% improvement)
Move Offshore: (Portable MBA / golden parachute)
Why didn’t these work?
Science of Quality (systems) was not addressed!
4/19/2019
IENG 486: Statistical Quality & Process Control

5. IENG 486: Statistical Quality & Process Control
4/19/2019
Dimensions of Quality
Performance – Will the product do the intended job?
Reliability – How often does the product fail?
Durability - How long does the product last?
Serviceability – How easy is it to repair the product?
Aesthetics – What does the product look like?
Features – What does the product do?
Perceived quality – What is the reputation of the company or product?
Conformance to standards – Is the product made exactly as the designer intended?
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

6. Quality is a multifaceted entity.
IENG 486: Statistical Quality & Process Control
4/19/2019
Quality is a multifaceted entity.
Traditional (OLD) definition of Quality:
Fitness of use (i.e., products must meet requirements of those who use them.)
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

7. Two Aspects of “Fitness for Use”
IENG 486: Statistical Quality & Process Control
4/19/2019
Two Aspects of “Fitness for Use”
Quality of design –
all products intentionally made in various grades of quality. (e.g., Autos differ with respect to size, options, speed, etc.)
Quality of conformance –
how well the product conforms to specifications. (e.g., If diameter of a drilled hole is within specifications then it has good quality.)
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

8. What's Wrong with "Fitness for Use" Definition of Quality?
IENG 486: Statistical Quality & Process Control
4/19/2019
What's Wrong with "Fitness for Use" Definition of Quality?
Unfortunately, quality as “Fitness for Use” has become associated with the "conformance to specifications" regardless if product is "fit for use" by customer.
Misconception:
Quality can be dealt with solely in manufacturing - that is, by "gold plating" the product
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

9. IENG 486: Statistical Quality & Process Control
4/19/2019
Modern Definition of Quality: Quality is inversely proportional to variability
If variability of product decreases  quality of product increases
Quality Improvement –
Reduction of variability in processes and products
Quality Engineering –
Set of operational, managerial, and engineering activities that a company uses to ensure that quality characteristics of a product are at nominal levels
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

10. Statistical Methods for Quality Improvement
IENG 486: Statistical Quality & Process Control
4/19/2019
Statistical Methods for Quality Improvement
Relative Savings from $1 invested in:
Acceptance Sampling ($1)
On-Line Process Control ($10)
Off-Line Process Improvement ($100)
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

11. IENG 486: Statistical Quality & Process Control
4/19/2019
Acceptance Sampling
Reduces bad product sent to consumer
Dodge & Romig 1930s
Sample from lot to determine acceptance
More effective than 100% inspection
No feedback, prevention or improvement
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

12. On-Line Process Control
IENG 486: Statistical Quality & Process Control
4/19/2019
On-Line Process Control
Monitoring of manufacturing process with control charts
Shewhart 1920s
Sample & stop process if necessary
No improvement, but maintains current process quality level
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

13. IENG 486: Statistical Quality & Process Control
4/19/2019
Off-Line Improvement
7 Tools of Ishikawa
DMAIC process
Designed experiments
Taguchi & Classical Statistics 1980s
If it's not broke, improve it!
Continuous improvement of product designs and manufacturing processes
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

14. Quality Myth: Higher Quality  Higher Cost
IENG 486: Statistical Quality & Process Control
4/19/2019
Quality Myth: Higher Quality  Higher Cost $
Defect Rate
Quality Cost
Total Cost
Failure
Cost
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

15. Very Often: Higher Quality  Lower Cost
IENG 486: Statistical Quality & Process Control
4/19/2019
Very Often: Higher Quality  Lower Cost
Textbook ex: Manufacture of Copier Part
Manufacturing Process
$20 / part
75% Conform
100 parts
(75 good parts)
25% Non-conforming:
(25 parts)
(40% Scrap, 60% Re-workable)
(10 scrap parts)
Re-work Process
$4 / part
(15 good parts)
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

16. IENG 486: Statistical Quality & Process Control
4/19/2019
Study finds excessive process variability responsible for high nonconformity rate
New SQC procedure implemented
NOW: manufacturing non-conformity = 5%
SAVINGS: $22.89 – $20.53 = $2.36 / good part
PRODUCTIVITY: 9% improvement
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

17. How Quality Engineering Makes a Company More Competitive
IENG 486: Statistical Quality & Process Control
4/19/2019
How Quality Engineering Makes a Company More Competitive
Tactical
less inspection
less scrap and rework
more capacity
easier scheduling & shorter lead time
less inventory
less warranty cost
Strategic
more flexibility to make new products
customer satisfaction
easier to spot and solve problems
employee involvement in continuous improvement
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

18. Taguchi (1980) and Robust Design
IENG 486: Statistical Quality & Process Control
4/19/2019
Taguchi (1980) and Robust Design
New Goal: consistently good performance in a variety of operating conditions
Minimize variation in processes and products
Use Designed Experiments to achieve robustness
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

19. Taguchi's Example: Elasticity of Caramel
IENG 486: Statistical Quality & Process Control
4/19/2019
Taguchi's Example: Elasticity of Caramel
Product X conforms to elasticity spec at 72o
Product Y performs well in a wide variety of operating conditions
Prod X
Elasticity
Prod Y
Spec
72o
Temp
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

20. Total Quality Management – TQM
IENG 486: Statistical Quality & Process Control
4/19/2019
Total Quality Management – TQM
Although statistical techniques are critical for quality improvement:
the management system must direct quality improvement philosophy and ensure its implementation in all aspects of business
TQM must be implemented within a management system that is scientifically quality driven
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

21. International Standards Organization ISO 9000 (1990s)
IENG 486: Statistical Quality & Process Control
4/19/2019
International Standards Organization ISO 9000 (1990s)
An ISO 9000 certified company
examined by a registered official
has an effective management system, capable of consistent performance
Examples:
System in place to correctly identify customer needs
Staff have correct versions of documentation
Preferred suppliers selected; consistent communication system
System to document and correct errors
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

22. IENG 486: Statistical Quality & Process Control
4/19/2019
Six Sigma - Motorola
Six Sigma = 2 defects per billion opportunities!
Motorola 6 sigma*: 3.4 defects per billion, with 1.5 σ shift*
Every employee must show bottom line results of quality project – finance, mail room, manufacturing, etc.
identify problem;
develop measurement;
set goal;
close gap
Long term process – 5 years to fully implement
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

23. Malcolm Baldridge National Quality Award
IENG 486: Statistical Quality & Process Control
4/19/2019
Malcolm Baldridge National Quality Award
Established by congress in 1987, for excellence in organizations
Applicant receives intense investigation
NIST (National Institute of Standards and Technology) study shows Baldrige Award recipients outperformed the Standard & Poor’s 500 by nearly 2.5 to 1.
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

24. IENG 486: Statistical Quality & Process Control
4/19/2019
The Baldridge Award examines quality of organization in seven categories
Leadership
Information and Analysis
Strategic Planning
Human Resource Development and Management
Process Management
Business Results
Customer Focus and Satisfaction
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl

25. IENG 486: Statistical Quality & Process Control
4/19/2019
DMAIC Process
Define – Performance of System
Project Charter / Suppliers, Inputs, Process, Outputs, Customers (SIPOC)
Measure – Critical-to-Quality variables (CTQs)
KPIV / KPOV – and measurement system’s capability
Analyze – Data-driven vs Attribution Theory
Tools from this course – and track the project, too!
Identify Common Causes and Assignable Causes of variation
Improve – Documented (Engineering) Solution
Pilot / Confirmation testing
Control – Incorporate the good / eliminate the bad
Sustain the improvement – track this!
Project-Basis – Management Control
Value Opportunity
Dashboard Variables
4/19/2019
IENG 486: Statistical Quality & Process Control
(c) D.H. Jensen & R.C. Wurl