What Does Todays Business Look Like - SPC


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What Does Todays Business Look Like - SPC

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What Does Todays Business Look Like - SPC

  1. 1. What Does Today’s Business Environment Look Like? <ul><li>Global marketplace </li></ul><ul><ul><li>foreign competition </li></ul></ul><ul><ul><li>foreign customers </li></ul></ul><ul><li>Global quality standards </li></ul><ul><ul><li>that are continually being upgraded </li></ul></ul><ul><li>Volatile economy </li></ul><ul><ul><li>good prospects for the “winner’s” </li></ul></ul><ul><li>Rapid turnover of technologies and products </li></ul><ul><li>Employees are highly skilled </li></ul>
  2. 2. Quality - What’s the Big Deal? <ul><li>The Eternal Battle : Q uantity vs. Q uality </li></ul><ul><li>Quantity goes directly to the bottom line: </li></ul><ul><ul><li>more product out ==> more $$$ </li></ul></ul><ul><li>But what are the costs associated with Quality? </li></ul>
  3. 3. What is Quality? <ul><li>Fitness for Use </li></ul><ul><li>Conformance to Specifications </li></ul><ul><li>Producing the Very Best Products </li></ul><ul><li>Excellence in Products and Services </li></ul><ul><li>Total Customer Satisfaction </li></ul><ul><li>Exceeding Customer Expectations </li></ul><ul><li>Quality improvement starts with reducing Product VARIABILITY. </li></ul>
  4. 4. Quality - What’s the Big Deal? <ul><li>Direct Costs of Poor Quality: </li></ul><ul><ul><li>Lost Revenue: scrap, rework, repair </li></ul></ul><ul><ul><li>Lost Productivity: materials, machines, and personnel </li></ul></ul><ul><ul><li>Inspection Costs: inspectors, testing machines </li></ul></ul><ul><ul><li>External Costs: warranty claims, price adjustments, late charges </li></ul></ul><ul><li>Indirect Costs of Poor Quality - Upset Customers: </li></ul><ul><ul><li>It is 5-7X harder to attract a new customer than to retain a current one </li></ul></ul><ul><ul><li>Dissatisfied customers tell 8-20 people about their dissatisfaction. </li></ul></ul><ul><ul><li>Satisfied customers only tell 3-5 people. </li></ul></ul>
  5. 5. Statistical Process Control <ul><li>How do we reduce Product Variability? </li></ul><ul><li>We use Statistical Process Control ! (SPC) </li></ul><ul><li>Statistical Process Control : The application of statistical techniques to the control and improvement of processes. </li></ul>
  6. 6. What are the sources of variation in a process? <ul><ul><li>Machine variation </li></ul></ul><ul><ul><li>Raw Material variation </li></ul></ul><ul><ul><li>Different methods used </li></ul></ul><ul><ul><li>Measurement variation </li></ul></ul><ul><ul><li>Operator variation </li></ul></ul><ul><ul><li>Environmental factors </li></ul></ul>
  7. 7. Causes of Variation <ul><li>Random, chance, constant, common, unknown causes </li></ul><ul><ul><li>the “rhythm” of the process </li></ul></ul><ul><li>Assignable, special causes </li></ul><ul><ul><li>something has changed </li></ul></ul>
  8. 8. Random, chance variation: <ul><li>“ 4M’s and OE” </li></ul><ul><ul><li>Machine </li></ul></ul><ul><ul><li>Material </li></ul></ul><ul><ul><li>Method </li></ul></ul><ul><ul><li>Measurement </li></ul></ul><ul><ul><li>Operator </li></ul></ul><ul><ul><li>Environment </li></ul></ul>
  9. 9. Assignable Causes of Variation: The Backbone of SPC <ul><li>Examples of things that may be assignable causes of variation: </li></ul><ul><ul><li>machine troubles (damaged saw teeth, plugged blowpipe, etc.) </li></ul></ul><ul><ul><li>faulty measuring device </li></ul></ul><ul><ul><li>operator overcontrol </li></ul></ul><ul><ul><li>worker fatigue </li></ul></ul><ul><ul><li>drastic changes in raw material </li></ul></ul>
  10. 10. Prevention vs. Detection <ul><li>Detection Model: </li></ul><ul><ul><li>$$$ lost to: </li></ul></ul><ul><ul><ul><li>making defective parts </li></ul></ul></ul><ul><ul><ul><li>finding defective parts </li></ul></ul></ul><ul><ul><ul><li>repairing or scrapping defective parts </li></ul></ul></ul><ul><ul><li>if/when detection fails, additional $$$ lost to: </li></ul></ul><ul><ul><ul><li>warranties </li></ul></ul></ul><ul><ul><ul><li>cancelled orders </li></ul></ul></ul>
  11. 11. Detection Example <ul><li>Count the number of f’s in this paragraph: </li></ul><ul><li>The study of SPC can be both fun and rewarding for everyone. When you find out that the fundamental ideas of statistics are fairly easy to learn, you will discover that your efforts result in a great deal of satisfaction. If you treat a production problem as a puzzle, the application of SPC provides clues for its solution, and when the puzzle is finally solved, the feeling of satisfaction is very fulfilling. Puzzles can be frustrating, but their final solution is fun. </li></ul>
  12. 12. Prevention vs. Detection <ul><li>Prevention Model: </li></ul><ul><ul><li>minimal increased cost due to adding prevention measures in the process </li></ul></ul><ul><ul><li>utilizes SPC to reduce product variability at the source </li></ul></ul><ul><ul><li>no waste! </li></ul></ul><ul><ul><li>?? Which model does the </li></ul></ul><ul><ul><li>semiconductor industry use?? </li></ul></ul>
  13. 13. If SPC is the answer, What is the question? <ul><li>What is the distribution of process output? </li></ul><ul><ul><li>centering, range or “spread”, likelihood of an extreme value </li></ul></ul><ul><li>Is the process capable of meeting customer expectations? </li></ul><ul><ul><li>or, is the supplier’s product meeting specs.? </li></ul></ul><ul><li>What is causing the variability? </li></ul><ul><ul><li>When is it reasonable to “get tough” with employees? </li></ul></ul>
  14. 14. <ul><li>Can we afford to minimize the variability? </li></ul><ul><li>Over time, how can we be sure the process hasn’t changed? </li></ul><ul><li>When should we “tinker” with the process and when should we leave it alone? </li></ul>If SPC is the answer, What is the question?
  15. 15. <ul><li>SPC is a tool to supplement not replace the existing knowledge your people have of your process. </li></ul><ul><li>Adoption of SPC principles often leads to </li></ul><ul><ul><li>increased profits </li></ul></ul><ul><ul><li>increased productivity </li></ul></ul><ul><ul><li>increased employee involvement in the process </li></ul></ul><ul><ul><li>increased morale </li></ul></ul>New technology requires change. Change  fear, resistance,...
  16. 16. <ul><li>Quality Control </li></ul><ul><ul><li>Activities undertaken to regulate quality of a product </li></ul></ul><ul><li>Product Quality Control </li></ul><ul><ul><li>Activities to evaluate and regulate quality following production (“inspect and reject”) </li></ul></ul><ul><li>Process Quality Control </li></ul><ul><ul><li>Activities to ensure a quality product is produced during manufacturing </li></ul></ul>Some definitions-
  17. 17. <ul><li>Statistical Quality Control (SQC) </li></ul><ul><ul><li>The application of statistical techniques to the control of quality (SPC, Acceptance Sampling, etc.) </li></ul></ul><ul><li>Statistical Process Control (SPC) </li></ul><ul><ul><li>The application of statistical techniques to the control of processes (sometimes considered a subset of SQC) </li></ul></ul><ul><li>Total Quality Management (TQM) </li></ul><ul><ul><li>An all-encompassing approach to quality consistent with Deming’s “14 points” </li></ul></ul>Some definitions- Definitions from Quality Systems Terminology , American Society for Quality Control, ANSI/ASQC A3-1987
  18. 18. Who needs to understand and commit to SPC? <ul><li>Everyone in the plant </li></ul><ul><ul><li>management </li></ul></ul><ul><ul><li>production </li></ul></ul><ul><ul><li>engineering and design </li></ul></ul><ul><ul><li>sales </li></ul></ul>Giving one person all of the responsibility for SPC will not work
  19. 19. 10 Steps of Implementing SPC <ul><li>1. Analyze the process </li></ul><ul><li>2. Decrease obvious variability </li></ul><ul><li>3. Gauge capability study </li></ul><ul><li>4. Sampling plan </li></ul><ul><li>5. Implement CONTROL CHARTS </li></ul><ul><li>6. Put the operator in charge </li></ul><ul><li>7. Process capability study </li></ul><ul><li>8. Improve the process </li></ul><ul><li>9. Reduce sampling </li></ul><ul><li>10. Return to step 1 </li></ul>
  20. 20. TQM- Deming’s 14 Points: <ul><li>Create constancy of purpose for improvement of product and service </li></ul><ul><li>Adopt the new philosophy </li></ul><ul><li>Cease dependence on mass inspection </li></ul><ul><li>End the practice of awarding business on price tag alone </li></ul><ul><li>Improve constantly and forever the system of production and service </li></ul><ul><li>Institute training </li></ul><ul><li>Institute leadership </li></ul><ul><li>Drive out fear </li></ul><ul><li>Break down barriers between staff areas </li></ul><ul><li>Eliminate slogans, exhortations, and targets for the workforce </li></ul><ul><li>Eliminate numerical quotas </li></ul><ul><li>Remove barriers to pride of workmanship </li></ul><ul><li>Institute a vigorous program of education and retraining </li></ul><ul><li>Take action to accomplish the transformation </li></ul>
  21. 21. TQM- Deming’s 7 Deadly Diseases: <ul><li>Lack of constancy of purpose, failure to plan ahead </li></ul><ul><li>Emphasis on short-term profits </li></ul><ul><li>Evaluation of performance, merit rating, annual review </li></ul><ul><li>Mobility of management </li></ul><ul><li>Running a company with visible figures alone </li></ul><ul><li>Excessive medical costs </li></ul><ul><li>Excessive legal costs </li></ul>
  22. 22. TQM- Crosby’s 14 Steps: <ul><li>Management commitment </li></ul><ul><li>The quality improvement team </li></ul><ul><li>Measurement </li></ul><ul><li>The cost of quality </li></ul><ul><li>Quality awareness </li></ul><ul><li>Corrective action </li></ul><ul><li>Zero defects planning </li></ul><ul><li>Employee education </li></ul><ul><li>ZD day </li></ul><ul><li>Goal setting </li></ul><ul><li>Error-cause removal </li></ul><ul><li>Recognition of good work in the quality process </li></ul><ul><li>Quality councils </li></ul><ul><li>Repetition </li></ul>
  23. 23. Deming vs. Crosby <ul><li>Where do they agree? </li></ul><ul><ul><li>Management commitment </li></ul></ul><ul><ul><li>Employee training </li></ul></ul><ul><ul><li>Never ending process </li></ul></ul><ul><ul><li>Remove barriers, create teams </li></ul></ul><ul><li>Where do they disagree? </li></ul><ul><ul><li>The use of numerical quotas </li></ul></ul><ul><ul><li>Zero defects </li></ul></ul><ul><ul><li>Slogans and posters </li></ul></ul>
  24. 24. Quality Initiatives <ul><li>Malcolm Baldridge National Quality Award </li></ul><ul><ul><li>recognizes world-class quality management </li></ul></ul><ul><ul><li>establishes a set of standards </li></ul></ul><ul><li>ISO9000 </li></ul><ul><ul><li>globally accepted quality standard </li></ul></ul><ul><ul><li>assures customers of a certain level of quality </li></ul></ul><ul><ul><li>requires regular re-certification </li></ul></ul>