1. Chapter 1 Introduction

2. Introduction Using statistical methods to improve quality –Identifying trouble spots and their causes –Predicting major problems Quality : Fitness for use –Meeting the needs of the marketplace –Dynamic nature Quality: Variability –To reduce variability –To hit the target

3. 1.1 Quality and Productivity Misconception: inverse relationship between productivity and quality Reduction in non-conformities Reduction in rework Eliminating complexity in the workplace (late delivery…)

4. 1.2 Quality Costs Cost of Achieving Good Quality –Prevention costs Quality planning costs Product design costs Process costs Training costs Information costs –Appraisal costs Inspection and testing Test equipment costs Operator costs Cost of Poor Quality –Internal failure costs Scrap costs Rework costs Process failure costs (Diagnostic) Process downtime costs Price-downgrading costs –External failure costs Customer complaint costs Product return costs Warranty claims costs Product liability costs Lost sales costs

5. Break-even charts Increasing Quality $ Failure Cost Appraisal Cost Total Quality Cost Quality Improvement and Quality Cost Prevention Cost

6. 1.2 Quality Costs Other considerations: –Sales –Customers’ perceptions –Market competition

7. 1.3 Need for Statistical Methods Statistical techniques are needed: –To determine if abnormal variation has occurred –To determine changes in the values of process parameters –To identify factors that are influencing process characteristics

8. 1.4 Early Use of Statistical Methods for Improving Quality Contribution to WWII American Society for Quality Control (ASQC), 1946 –American Society for Quality (ASQ), 1997 Industrial Quality Control, first issue in July 1944 –Journal of Quality Technology –Quality Progress

9. 1.5 Influential Quality Experts Walter A. Shewhart (1891~1967) –Shewhart charts W. Edwards Deming (1900~1993) –Japanese progress –14 points for management –PDCA (Plan-Do-Check-Act) cycle PDSA (Plan-Do-Study-Act) cycle

10. 1.5 Influential Quality Experts Walter A. Shewhart (1891~1967) –Shewhart charts W. Edwards Deming (1900~1993) –Japanese progress –14 points for management –PDCA (Plan-Do-Check-Act) cycle PDSA (Plan-Do-Study-Act) cycle

11. Deming's 14 points for Management 1.Create a constancy of purpose toward product improvement to achieve long-term organizational goals. 2.Adopt a new philosophy of preventing poor-quality products instead of acceptable levels of poor quality as necessary to compete internationally. 3.Cease dependence on inspection by relying instead on statistical quality control to improve product and process design. 4.Work constantly to improve the system.

12. Deming's 14 points for Management 5.Break down barriers between departments, and promote cooperation and a team approach for working together. 6.Do not award business to suppliers solely the basis of price. 7.Drive out fear. 8.Eliminate numerical goals, targets, and slogans. 9.Eliminate work standards and substitute leadership. 10.Institute a program of training and education for all employees.

13. Deming's 14 points for Management 11.Institute modern training methods of quality improvement throughout the organization, from top management down, so that continuous improvement can occur. 12.Remove the barriers that make it difficult for employees to do their jobs. 13.Institute and practice modern methods of supervision. 14.Create a management climate that will facilitate the attainment of these objectives.

14. 1.5 Influential Quality Experts Joseph M. Juran (1904~2008) –Quality management –Juran’s Quality Control Handbook Eugene L. Grant (1897~1996) –Teaching of SQC –Statistical Quality Control, 1946 Harold F. Dodge (1893~1976) –Acceptance sampling –Consultant to the Secretary of War (WWII) George E.P. Box (1919~ ) –Control charts and process control in tandem

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