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    1

    Set -6et -6

    POM-2POM-2

    Quality ManagementQuality Management(SPC & SQC)(SPC & SQC)

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    2

    - Total Quality Management Defined

    - Quality Specifications and Costs

    - Six Sigma Quality and Tools

    - External Benchmarking

    - ISO 9000

    - Service Quality Measurement

    OBJECTIVES

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    3

    Total Quality Management (TQM)

    - Total quality management isdefined as managing the entireorganization so that it excels onall dimensions of products andservices that are important to thecustomer

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    4

    Quality Specifications

    - Design quality: Inherent value of theproduct in the marketplace Dimensions include: Performance,

    Features, Reliability/Durability,Serviceability, Aesthetics, andPerceived Quality.

    - Conformance quality: Degree to whichthe product or service designspecifications are met

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    5

    Costs of Quality

    External FailureCosts

    Appraisal Costs

    Prevention Costs

    Internal FailureCosts

    Costs ofQuality

    Costs of failure ofControl

    Costs of Control

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    6

    Six Sigma Quality

    - A philosophy and set of

    methods companies use

    to eliminate defects in

    their products and

    processes

    - Seeks to reduce variation inthe processes that lead

    to product defects

    - The name, six sigma

    refers to the variationthat exists within plus or

    minus three standard

    deviations of the process

    outputs

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    7

    Six Sigma Quality (Continued)

    - Six Sigma allows managers to readily describe

    process performance using a commonmetric: Defects Per Million Opportunities(DPMO)

    1,000,000x

    unitsofNo.xunit

    pererrorforiesopportunitofNumber

    defectsofNumber

    =DPMO

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    8

    Six Sigma Quality (Continued)Example of Defects Per Million

    Opportunities (DPMO) calculation.Suppose we observe 200 lettersdelivered incorrectly to the wrongaddresses in a small city during asingle day when a total of 200,000letters were delivered. What is the

    DPMO in this situation?

    [ ]

    000,1== 1,000,000x

    200,000x1

    200DPMO

    So, for every onemillion lettersdelivered thiscitys postalmanagers canexpect to have1,000 lettersincorrectly sent

    to the wrongaddress.

    So, for every onemillion letters

    delivered thiscitys postalmanagers canexpect to have1,000 lettersincorrectly sent

    to the wrongaddress.

    Cost of Quality: What might that DPMO mean in termsof over-time employment to correct the errors?

    Cost of Quality: What might that DPMO mean in termsof over-time employment to correct the errors?

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    9

    Six Sigma Quality: DMAIC Cycle

    - Define, Measure, Analyze, Improve, and Control

    (DMAIC)

    - Developed by General Electric as a means of

    focusing effort on quality using a

    methodological approach- Overall focus of the methodology is to understand

    and achieve what the customer wants

    - A 6-sigma program seeks to reduce the variation

    in the processes that lead to these defects

    - DMAIC consists of five steps.

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    Six Sigma Quality: DMAIC Cycle

    (Continued)

    1. Define (D)

    2. Measure (M)

    3. Analyze (A)

    4. Improve (I)

    5. Control (C)

    Customers and their priorities

    Process and its performance

    Causes of defects

    Remove causes of defects

    Maintain quality

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    11

    Example to illustrate theprocess

    - We are the maker of this cereal.

    Consumer reports has justpublished an article that shows that

    we frequently have less than 15

    ounces of cereal in a box.- What should we do?

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    Step 1 - Define

    - What is the critical-to-qualitycharacteristic?

    -

    The CTQ (critical-to-quality)characteristic in this case is theweight of the cereal in the box.

    13

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    2 - Measure

    - How would we measure to evaluatethe extent of the problem?

    -

    - What are acceptable limits on thismeasure?

    14

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    2 Measure (continued)

    - Lets assume that the governmentsays that we must be within 5

    percent of the weight advertised onthe box.- Upper Tolerance Limit = 16 + .05(16)

    = 16.8 ounces

    - Lower Tolerance Limit = 16 .05(16)= 15.2 ounces

    15

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    2. Measure (continued)

    - We go out and buy 1,000 boxes ofcereal and find that they weight an

    average of 15.875 ounces with astandard deviation of .529 ounces.

    - What percentage of boxes are

    outside the tolerance limits?

    16

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    Upper Tolerance= 16.8

    Lower Tolerance

    = 15.2

    ProcessMean = 15.875

    Std. Dev. = .529

    What percentage of boxes are defective (i.e. less than 15.2 oz)?

    Z = (x Mean)/Std. Dev. = (15.2 15.875)/.529 = -1.276

    NORMSDIST(Z) = NORMSDIST(-1.276) = .100978

    Approximately, 10 percent of the boxes have less than 15.2Ounces of cereal in them!

    17

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    Step 3 - Analyze - How can weimprove the capability of our cereal

    box filling process?

    Decrease Variation

    Center Process

    IncreaseSpecifications

    18

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    Step 4 Improve How good is good enough?Step 4 Improve How good is good enough?Motorolas Six SigmaMotorolas Six Sigma

    6 minimum from processcenter to nearest spec

    1 23 1 02 3

    12

    6

    19

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    Motorolas Six SigmaMotorolas Six Sigma

    - Implies 2 ppB bad with no process shift

    - With 1.5 shift in either direction from

    center (process will move), implies 3.4ppm bad.

    1 23 1 02 3

    12

    20

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    Step 5 ControlStep 5 Control

    -Statistical Process Control (SPC) Use data from the actual

    process

    Estimate distributions Look at capability - is good

    quality possible

    Statistically monitor the processover time-

    21

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    Analytical Tools for Six Sigma and Continuous

    Improvement: Flow ChartNo,ContinueMaterialReceived

    fromSupplier

    InspectMaterial for

    DefectsDefectsfound?

    Return toSupplierfor Credit

    Yes

    Can be used tofind qualityproblems

    Can be used tofind qualityproblems

    22

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    Analytical Tools for Six Sigma and ContinuousImprovement: Run Chart

    Can be used to identifywhen equipment orprocesses are notbehaving according tospecifications

    Can be used to identifywhen equipment orprocesses are notbehaving according tospecifications

    0.440.460.48

    0.50.520.540.560.58

    1 2 3 4 5 6 7 8 9 10 11 12Time (Hours)

    Dia

    me

    ter

    23

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    Analytical Tools for Six Sigma and ContinuousImprovement: Pareto Analysis

    Can be usedto find when80% of the

    problemsmay beattributed to20% of the

    causes

    Can be usedto find when80% of the

    problemsmay beattributed to20% of thecauses

    Assy.Instruct.

    Frequ

    ency

    Design Purch. Training

    80%

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    Analytical Tools for Six Sigma andContinuous Improvement: Histogram

    Num

    be

    ro

    fLots

    Data RangesDefects

    in lot

    0 1 2 3 4

    Can be used to identify the frequency of qualitydefect occurrence and display qualityperformance

    Can be used to identify the frequency of qualitydefect occurrence and display qualityperformance

    26

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    Analytical Tools for Six Sigma andContinuous Improvement: Cause & Effect

    Diagram

    Effect

    ManMachine

    MaterialMethod

    Environment

    Possible causes:Possible causes: The resultsor effect

    The resultsor effect

    Can be used to systematically track backwards tofind a possible cause of a quality problem (oreffect)

    Can be used to systematically track backwards tofind a possible cause of a quality problem (oreffect)

    27

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    Analytical Tools for Six Sigma and ContinuousImprovement: Control Charts

    Can be used to monitor ongoing production processquality and quality conformance to stated standards ofquality

    Can be used to monitor ongoing production processquality and quality conformance to stated standards ofquality

    970

    980

    990

    1000

    1010

    1020

    0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

    LCL

    UCL

    28

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    Other Six Sigma Tools

    - Failure Mode and Effect Analysis (DMEA)is a structured approach to identify,

    estimate, prioritize, and evaluate risk of

    possible failures at each stage in the

    process

    - Design of Experiments (DOE) a statistical

    test to determine cause-and-effect

    relationships between process variables

    and output

    29

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    Six Sigma Roles andResponsibilities

    1.Executive leaders must championthe process of improvement

    2.Corporation-wide training in SixSigma concepts and tools

    3.Setting stretch objectives forimprovement

    4.Continuous reinforcement andrewards

    -

    30

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    The Shingo System: Fail-Safe Design

    - Shingos argument: SQC methods do not prevent defects Defects arise when people make errors

    Defects can be prevented by providingworkers with feedback on errors

    - Poka-Yoke includes: Checklists

    Special tooling that prevents workersfrom making errors

    31

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    ISO 9000

    -

    Series of standards agreed upon by theInternational Organization forStandardization (ISO)

    - Adopted in 1987-

    More than 100 countries- A prerequisite for global competition?- ISO 9000 directs you to "document

    what you do and then do as you

    documented"

    32

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    Three Forms of ISO Certification

    1. First party: A firm audits itself againstISO 9000 standards

    2. Second party: A customer audits itssupplier

    3. Third party: A "qualified" national orinternational standards or certifying

    agency serves as auditor

    33

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    External Benchmarking Steps

    1. Identify those processes needingimprovement

    2. Identify a firm that is the world leader

    in performing the process3. Contact the managers of that company

    and make a personal visit to interviewmanagers and workers

    4. Analyze data

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    Service Quality Measurement:Servqual

    - A perceived service qualityquestionnaire survey methodology

    - Examines Dimensions of ServiceQuality including: Reliability,

    Responsiveness, Assurance,

    Empathy, and Tangibles (e.g.,appearance of physical facilities,

    equipment, etc.)

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    Service Quality Measurement:Servqual (Continued)

    - New version of this methodology is called e-

    Service Quality dealing service on the Internet

    - Dimensions of Service Quality on the e-Service

    methodology include: Reliability,

    Responsiveness, Access, Flexibility, Ease of

    Navigation, Efficiency, Assurance/Trust,

    Security/Privacy, Price Knowledge, Site

    Aesthetics, and Customization/Personalization

    36

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    Question Bowl

    Which of the following areDimensions of Design Quality?

    a.Performance

    b.Durabilityc.Aesthetics

    d.All of the above

    e.None of the aboveAnswer: d. All of the above

    37

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    Question Bowl

    Approximately what percentage ofevery sales dollar is allocated tothe cost of quality?

    a.Less than 5%b.About 10%

    c.Between 15 and 20 %

    d.More than 30%e.None of the aboveAnswer: c. Between 15 and 20 % (for cost ofreworking, scrapping, repeated service, etc.)

    38

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    Question Bowl

    Which of the following areclassifications of the cost ofquality?

    a.Appraisal costsb.Prevention costs

    c.Internal failure costs

    d.External failure costse.All of the above

    Answer: e. All of the above

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    Question Bowl

    Which of the following is a CriticalCustomer Requirement (CCR) in thecontext of a Six Sigma program?

    a.DMAICb.DPMOc.PCDAd.DOEe.None of the above

    Answer: e. None of theabove (The CCR is thecriteria that is used todefine desired quality.

    Processing a loan in 10days is an example of aCCR.)

    41

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    Question Bowl

    The DMAIC cycle of Six Sigma issimilar to which of the followingquality management topics?

    a.Continuous improvementb.Servqual

    c.ISO 9000

    d.External benchmarking

    e.None of the aboveAnswer: a. Continuous improvement

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    Question Bowl

    Which of the following analyticaltools depict trends in quality dataover time?

    a.Flowcharts

    b.Run charts

    c.Pareto charts

    d.Checksheets

    e.Cause and effect diagramsAnswer: b. Run charts

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    Technical Note 8

    Process Capability and

    Statistical Quality Control

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    -

    Process Variation- Process Capability

    - Process Control Procedures

    Variable data

    Attribute data

    - Acceptance Sampling

    Operating Characteristic Curve

    OBJECTIVES

    ONLY

    IF TIMEPERMITS

    47

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    Basic Forms of VariationAssignable variation

    is caused byfactors that can beclearly identifiedand possibly

    managed

    Common variationisinherent in theproduction process

    Example: A poorly trainedemployee that creates variationin finished product output.

    Example: A poorly trainedemployee that creates variationin finished product output.

    Example: A molding processthat always leaves burrs orflaws on a molded item.

    Example: A molding processthat always leaves burrs orflaws on a molded item.

    48

    Taguchis View of Variation

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    Taguchis View of Variation

    IncrementalCost ofVariability

    High

    Zero

    LowerSpec

    TargetSpec

    UpperSpec

    Traditional View

    IncrementalCost ofVariability

    High

    Zero

    LowerSpec

    TargetSpec

    UpperSpec

    Taguchis View

    ExhibitsTN8.1 &TN8.2

    ExhibitsTN8.1 &TN8.2

    Traditional view is that quality within the LS and US is good and that thecost of quality outside this range is constant, where Taguchi views costs as

    increasing as variability increases, so seek to achieve zero defects and thatwill truly minimize quality costs.

    Traditional view is that quality within the LS and US is good and that thecost of quality outside this range is constant, where Taguchi views costs asincreasing as variability increases, so seek to achieve zero defects and that

    will truly minimize quality costs.

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    Process Capability Index, Cpk

    3X-UTLor

    3LTLXmin=Cpk

    Shifts in Process Mean

    Capability Index shows how

    well parts being produced fitinto design limit specifications.

    Capability Index shows how

    well parts being produced fitinto design limit specifications.

    As a production processproduces items smallshifts in equipment orsystems can cause

    differences inproductionperformance fromdiffering samples.

    As a production processproduces items smallshifts in equipment orsystems can causedifferences inproductionperformance fromdiffering samples.

    51

    C S f

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    A simple ratio:

    Specification Width _________________________________________________________

    Actual Process Width

    Generally, the bigger the better.

    Process Capability A Standard Measure ofProcess Capability A Standard Measure ofHow Good a Process Is.How Good a Process Is.

    52

    P C bilit

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    Process CapabilityProcess Capability

    This is a one-sided Capability IndexConcentration on the side which is closest to

    the specification - closest to being bad

    =

    3;

    3

    XUTLLTLXMinCpk

    53

    Th C l B E l

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    The Cereal Box Example

    - We are the maker of this cereal. Consumer reports

    has just published an article that shows that wefrequently have less than 15 ounces of cereal in a

    box.

    - Lets assume that the government says that we

    must be within 5 percent of the weightadvertised on the box.

    - Upper Tolerance Limit = 16 + .05(16) = 16.8 ounces

    - Lower Tolerance Limit = 16 .05(16) = 15.2 ounces

    - We go out and buy 1,000 boxes of cereal and find

    that they weight an average of 15.875 ounces with

    a standard deviation of .529 ounces.

    -

    54

    C l B P C bilitC l B P C bilit

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    Cereal Box Process CapabilityCereal Box Process Capability

    - Specification orTolerance Limits

    Upper Spec = 16.8 oz

    Lower Spec = 15.2 oz

    -

    Observed Weight Mean = 15.875 oz Std Dev = .529 oz

    = 3

    ;3

    XUTLLTLXMinCpk

    =)529(.3

    875.158.16;

    )529(.3

    2.15875.15MinCpk

    { }5829.;4253.MinCpk =

    4253.=pkC

    55

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    What does a Cpk of .4253 mean?

    - An index that shows how well the unitsbeing produced fit within the

    specification limits.- This is a process that will produce a

    relatively high number of defects.

    -

    Many companies look for a Cpk of 1.3 orbetter 6-Sigma company wants 2.0!

    -

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    Statistical UCL

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    ProcessControl

    (SPC) Charts LCLSamplesover time

    1 2 3 4 5 6

    UCL

    LCL

    Samplesover time

    1 2 3 4 5 6

    UCL

    LCL

    Samples

    over time

    1 2 3 4 5 6

    Normal BehaviorNormal Behavior

    Possible problem, investigatePossible problem, investigate

    Possible problem, investigatePossible problem, investigate

    58

    Control Limits are based on the

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    Control Limits are based on theNormal Curve

    x

    0 1 2 3-3 -2 -1z

    Standarddeviation unitsor z units.

    Standard

    deviation unitsor z units.

    59

    C t l Li it

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    Control Limits

    We establish the Upper Control Limits (UCL) and

    the Lower Control Limits (LCL) with plus or minus3 standard deviations from some x-bar or mean

    value. Based on this we can expect 99.7% of our

    sample observations to fall within these limits.

    xLCL UCL

    99.7%

    60

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    Example of Constructing ap-Chart:Required Data

    1 100 4

    2 100 2

    3 100 5

    4 100 3

    5 100 6

    6 100 4

    7 100 3

    8 100 7

    9 100 1

    10 100 2

    11 100 3

    12 100 2

    13 100 2

    14 100 8

    15 100 3

    Sample

    No.

    No. of

    Samples

    Number ofdefects foundin each sample

    61

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    Statistical Process Control Formulas:Attribute Measurements (p-Chart)

    p =Total Numb er of Defe ctives

    Total Numb er of Obse rvations

    n

    s

    )p-(1p=

    p

    p

    p

    z-p=LCL

    z+p=UCL

    s

    s

    Given:

    Compute control limits:

    62

    Example of Constructing a p chart:

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    1. Calculate thesample proportions,p (these are whatcan be plotted onthep-chart) for eachsample

    1. Calculate thesample proportions,p (these are whatcan be plotted on

    thep-chart) for eachsample

    Sample n Defectives p1 100 4 0.04

    2 100 2 0.02

    3 100 5 0.05

    4 100 3 0.03

    5 100 6 0.06

    6 100 4 0.04

    7 100 3 0.03

    8 100 7 0.07

    9 100 1 0.01

    10 100 2 0.02

    11 100 3 0.03

    12 100 2 0.02

    13 100 2 0.02

    14 100 8 0.08

    15 100 3 0.03

    Example of Constructing ap-chart:Step 1

    63

    Example of Constructing a p chart:

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    2. Calculate the average of the sample proportions2. Calculate the average of the sample proportions

    0.036=1500

    55=p

    3. Calculate the standard deviation of the

    sample proportion

    3. Calculate the standard deviation of the

    sample proportion

    .0188=100

    .036)-.036(1=

    )p-(1p=p

    ns

    Example of Constructing ap-chart:Steps 2&3

    64

    Example of Constructing a p chart:

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    4. Calculate the control limits4. Calculate the control limits

    3(.0188).036

    UCL = 0.0924LCL = -0.0204 (or 0)UCL = 0.0924LCL = -0.0204 (or 0)

    p

    p

    z-p=LCL

    z+p=UCL

    s

    s

    Example of Constructing ap-chart:Step 4

    65

    f C C S

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    Example of Constructing ap-Chart: Step 5

    0

    0.02

    0.04

    0.06

    0.08

    0.1

    0.12

    0.14

    0.16

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

    p

    Observation

    UCL

    LCL

    5. Plot the individual sample proportions, the averageof the proportions, and the control limits

    5. Plot the individual sample proportions, the averageof the proportions, and the control limits

    66

    E l f b d R Ch t

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    Example of x-bar and R Charts:Required Data

    Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5

    1 10.68 10.689 10.776 10.798 10.714

    2 10.79 10.86 10.601 10.746 10.779

    3 10.78 10.667 10.838 10.785 10.723

    4 10.59 10.727 10.812 10.775 10.73

    5 10.69 10.708 10.79 10.758 10.6716 10.75 10.714 10.738 10.719 10.606

    7 10.79 10.713 10.689 10.877 10.603

    8 10.74 10.779 10.11 10.737 10.75

    9 10.77 10.773 10.641 10.644 10.725

    10 10.72 10.671 10.708 10.85 10.712

    11 10.79 10.821 10.764 10.658 10.708

    12 10.62 10.802 10.818 10.872 10.727

    13 10.66 10.822 10.893 10.544 10.75

    14 10.81 10.749 10.859 10.801 10.701

    15 10.66 10.681 10.644 10.747 10.728

    67

    E l f b d R h t St 1 C l l t

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    Example of x-bar and R charts: Step 1. Calculatesample means, sample ranges, mean of means,

    and mean of ranges.

    Sample Obs 1 Obs 2 Obs 3 Obs 4 Obs 5 Avg Range

    1 10.68 10.689 10.776 10.798 10.714 10.732 0.116

    2 10.79 10.86 10.601 10.746 10.779 10.755 0.259

    3 10.78 10.667 10.838 10.785 10.723 10.759 0.171

    4 10.59 10.727 10.812 10.775 10.73 10.727 0.221

    5 10.69 10.708 10.79 10.758 10.671 10.724 0.1196 10.75 10.714 10.738 10.719 10.606 10.705 0.143

    7 10.79 10.713 10.689 10.877 10.603 10.735 0.274

    8 10.74 10.779 10.11 10.737 10.75 10.624 0.669

    9 10.77 10.773 10.641 10.644 10.725 10.710 0.132

    10 10.72 10.671 10.708 10.85 10.712 10.732 0.179

    11 10.79 10.821 10.764 10.658 10.708 10.748 0.16312 10.62 10.802 10.818 10.872 10.727 10.768 0.250

    13 10.66 10.822 10.893 10.544 10.75 10.733 0.349

    14 10.81 10.749 10.859 10.801 10.701 10.783 0.158

    15 10.66 10.681 10.644 10.747 10.728 10.692 0.103

    Averages 10.728 0.220400

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    Example of x-bar and R charts: Step 2. Determine ControlLimit Formulas and Necessary Tabled Values

    x Chart Control Limits

    UCL = x + A R

    LCL = x - A R

    2

    2

    R Chart Control Limits

    UCL = D R

    LCL = D R

    4

    3

    From Exhibit TN8.7From Exhibit TN8.7

    n A2 D3 D4

    2 1.88 0 3.27

    3 1.02 0 2.574 0.73 0 2.28

    5 0.58 0 2.11

    6 0.48 0 2.00

    7 0.42 0.08 1.92

    8 0.37 0.14 1.869 0.34 0.18 1.82

    10 0.31 0.22 1.78

    11 0.29 0.26 1.74

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    Example of x-bar and R charts: Steps 3&4 Calculate

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    Example of x bar and R charts: Steps 3&4. Calculatex-bar Chart and Plot Values

    10.601

    10.856

    =).58(0.2204-10.728RA-x=LCL=).58(0.2204-10.728RA+x=UCL

    2

    2

    ==

    10.550

    10.600

    10.650

    10.700

    10.750

    10.800

    10.850

    10.900

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

    Sample

    Means

    UCL

    LCL

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    Example of x-bar and R charts: Steps 5&6. Calculate

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    p pR-chart and Plot Values

    0

    0.46504

    ==

    ==

    )2204.0)(0(RD=LCL

    )2204.0)(11.2(RD=UCL

    3

    4

    0.000

    0.100

    0.200

    0.300

    0.400

    0.500

    0.600

    0.700

    0.800

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

    Sample

    R

    UCL

    LCL

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    Basic Forms of Statistical Sampling forQuality Control

    - Acceptance Sampling is samplingto accept or reject the immediate

    lot ofproductat hand- Statistical Process Control is

    sampling to determine if the

    process is within acceptablelimits

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    A t S li

    ONLY

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    Acceptance Sampling

    - Purposes Determine quality level Ensure quality is within predetermined

    level

    - Advantages Economy Less handling damage Fewer inspectors Upgrading of the inspection job

    Applicability to destructive testing Entire lot rejection (motivation for

    improvement)

    IF TIMEPERMITS

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    Acceptance Sampling (Continued)

    - Disadvantages Risks of accepting bad lots and

    rejecting good lots Added planning and documentation

    Sample provides less informationthan 100-percent inspection

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    Acceptance Sampling:Single Sampling Plan

    A simple goal

    Determine (1) how many units, n,to sample from a lot, and (2) themaximum number of defectiveitems, c, that can be found in the

    sample before the lot is rejected

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    Risk

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    Risk

    - Acceptable Quality Level (AQL)

    Max. acceptable percentage of defectivesdefined by producer

    - The (Producers risk) The probability of rejecting a good lot

    - Lot Tolerance Percent Defective (LTPD) Percentage of defectives that defines

    consumers rejection point

    - The (Consumers risk) The probability of accepting a bad lot

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    Operating Characteristic Curve

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    p g

    n = 99c = 4

    AQL LTPD

    00.1

    0.2

    0.3

    0.4

    0.5

    0.6

    0.7

    0.8

    0.91

    1 2 3 4 5 6 7 8 9 10 11 12

    Percent defective

    P

    robability

    of

    accept

    ance

    =.10(consumers risk)

    = .05 (producers risk)

    The OCC brings the concepts of producers risk, consumers risk, samplesize, and maximum defects allowed together

    The OCC brings the concepts of producers risk, consumers risk, samplesize, and maximum defects allowed together

    The shape orslope of thecurve isdependent on aparticular

    combination ofthe fourparameters

    The shape orslope of thecurve isdependent on a

    particular

    combination ofthe fourparameters

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    Example: Acceptance Sampling Problem

    Zypercom, a manufacturer of video interfaces,purchases printed wiring boards from an outsidevender, Procard. Procard has set an acceptablequality level of 1% and accepts a 5% risk of rejectinglots at or below this level. Zypercom considers lotswith 3% defectives to be unacceptable and will assumea 10% risk of accepting a defective lot.

    Develop a sampling plan for Zypercom and determine

    a rule to be followed by the receiving inspectionpersonnel.

    Zypercom, a manufacturer of video interfaces,

    purchases printed wiring boards from an outsidevender, Procard. Procard has set an acceptablequality level of 1% and accepts a 5% risk of rejectinglots at or below this level. Zypercom considers lots

    with 3% defectives to be unacceptable and will assumea 10% risk of accepting a defective lot.

    Develop a sampling plan for Zypercom and determine

    a rule to be followed by the receiving inspectionpersonnel.

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    Example:

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    Example:

    Step 1. What is given and what is not?

    In this problem, AQL is given to be 0.01 and LTDPis given to be 0.03. We are also given an alpha of0.05 and a beta of 0.10.

    In this problem, AQL is given to be 0.01 and LTDPis given to be 0.03. We are also given an alpha of0.05 and a beta of 0.10.

    What you need to determine is your samplingplan is c and n.

    What you need to determine is your samplingplan is c and n.

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    Example: Step 2 Determine c

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    Example: Step 2. Determine c

    First divide LTPD by AQL.First divide LTPD by AQL.

    LTPD

    AQL

    =.03

    .01

    = 3

    Then find the value for c by selecting the value in theTN7.10 n(AQL)column that is equal to or just greater thanthe ratio above.

    Then find the value for c by selecting the value in theTN7.10 n(AQL)column that is equal to or just greater thanthe ratio above.

    Exhibit TN 8.10Exhibit TN 8.10

    c LTPD/AQL n AQL c LTPD/AQL n AQL

    0 44.890 0.052 5 3.549 2.6131 10.946 0.355 6 3.206 3.286

    2 6.509 0.818 7 2.957 3.981

    3 4.890 1.366 8 2.768 4.695

    4 4.057 1.970 9 2.618 5.426

    So, c = 6.So, c = 6.

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    Example: Step 3 Determine Sample Size

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    Example: Step 3. Determine Sample Size

    c = 6, from Tablen (AQL) = 3.286, from Table

    AQL = .01, given in problem

    c = 6, from Tablen (AQL) = 3.286, from Table

    AQL = .01, given in problem

    Sampling Plan:Take a random sample of 329 units from a lot.Reject the lot ifmore than 6 units are defective.

    Sampling Plan:Take a random sample of 329 units from a lot.Reject the lot ifmore than 6 units are defective.

    Now given the information below, compute the sample size in

    units to generate your sampling plan

    Now given the information below, compute the sample size inunits to generate your sampling plan

    n(AQL/AQL) = 3.286/.01 = 328.6, or 329 (always round up)n(AQL/AQL) = 3.286/.01 = 328.6, or 329 (always round up)

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    Question Bowl

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    Question BowlA methodology that is used to show how well parts

    being produced fit into a range specified by

    design limits is which of the following?

    a. Capability index

    b. Producers risk

    c. Consumers risk

    d. AQL

    e. None of the above

    Answer: a. Capability index

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    On a quality control chart if one of the values plotted falls outside

    a boundary it should signal to the production manager to do

    which of the following?

    a. System is out of control, should be stopped and fixed

    b. System is out of control, but can still be operated without any

    concern

    c. System is only out of control if the number of observationsfalling outside the boundary exceeds statistical

    expectations

    d. System is OK as is

    e. None of the aboveAnswer: c. System is only out ofcontrol if the number of observationsfalling outside the boundary exceedsstatistical expectations

    (We expect with Six Sigma that 3 out of 1,000 observations will fall outsidethe boundaries normally and those deviations should not lead managers to

    conclude the system is out of control.)

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    Question BowlYou want to prepare apchart and you

    observe 200 samples with 10 in each,and find 5 defective units. What is the

    resulting fraction defective?

    a.25

    b.2.5

    c.0.0025

    d.0.00025

    e.Can not be computed on data above

    Answer: c. 0.0025 (5/(2000x10)=0.0025)

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    Question Bowl

    You want to prepare an x-bar chart. If the number of

    observations in a subgroup is 10, what is theappropriate factor used in the computation of

    the UCL and LCL?

    a. 1.88

    b. 0.31c. 0.22

    d. 1.78

    e. None of the above

    Answer: b. 0.31 (from Exhibit TN8.7)

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    Question BowlYou want to prepare an Rchart. If the number of

    observations in a subgroup is 5, what is theappropriate factor used in the computation

    of the LCL?

    a. 0

    b. 0.88c. 1.88

    d. 2.11

    e. None of the above

    Answer: a. 0 (from Exhibit TN8.7)

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    Question Bowl

    You want to prepare an Rchart. If the

    number of observations in a subgroupis 3, what is the appropriate factor

    used in the computation of the UCL?

    a.0.87

    b.1.00c.1.88

    d.2.11

    e.None of the above

    Answer: e. None of the above (from ExhibitTN8.7 the correct value is 2.57)

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    Question Bowl

    The maximum number of defectives that can be

    found in a sample before the lot is rejected isdenoted in acceptance sampling as which of

    the following?

    a. Alpha

    b. Betac. AQL

    d. c

    e. None of the above

    Answer: d. c