1. Operations Management Unit Two Toney Ferguson M.B.A.,M.P.M

2. Seminar Objectives Understand the basics of statistical process control Comprehend control charts for attributes, variables, and patterns. Discussed the importance of Six Sigma

3. Statistical process control (SPC) is the application of statistical techniques to determine whether the output of a process conforms to the product or service design. In SPC, tools called control charts are used primarily to detect production of defective products or services or to indicate that the production process has changed and that products or services will deviate from their design specifications unless something is done to correct the situation.

4. Sources of Variation Nothing can be done to eliminate variation in process output completely, but management can investigate the causes of variation to minimize it.

5. The Inspection Process Many companies use quality inspection improperly, merely trying—often unsuccessfully—to weed out the defectives before they reach the customer. This approach is doomed to fail because of internal and external failure costs.

6. Sampling A well-conceived sampling plan can approach the same degree of protection as complete inspection. A sampling plan specifies a sample size, which is a quantity of randomly selected observations of process outputs;

7. Control Charts

8. Is SPC worth the effort?

9. Six Sigma Defined Quality management program developed by Motorola in the 1980’s. Management philosophy focused on business process improvements to: Eliminate waste, rework, and mistakes Increase customer satisfaction Increase profitability and competitiveness ***GOAL: Reach Six Sigma Quality

10. The Statistical Tools of Six Sigma Another way to look at it: Count the number of defects that occur Determine the yield—percentage of items without defects.

11. Sigma Conversion Table If your yield is Your DPMO Your Sigma is 30.9 690,000 1.0 62.9 308,000 2.0 93.9 66,800 3.0 99.4 6,210 4.0 99.97 320 5.0 99.9997 3.4 6.0

12. Any Questions Thank you for your attendance