Quality Management
& Control
Seung-Kuk Paik, Ph.D.
Systems and Operations Management
CSU, Northridge
What is Quality?
"Quality" can be defined in many ways.
1.Quality is defined as “FITNESS FOR USE”: How well a service or product performs its intended purpose.
2.Quality is also defined as “CONFORMANCE TO REQUIREMENTS”: How a service or product conforms to performance specifications.
What is Quality?
3.In a wider sense, "QUALITY" is often considered the degree of excellence whereby products and services may be ranked against each other on a relative basis for selected features and characteristics.
American Society of Quality (ASQ) has accepted the following definition:
QUALITY: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
What is Quality?
DIMENSIONS OF QUALITY
1.Performance - A product´s primary operating characteristics.
2.Features - Supplements to a product´s basic functioning characteristics
3.Reliability – Consistency of performance
What is Quality?
DIMENSIONS OF QUALITY
4.Durability - A measure of product life.
Serviceability - The speed and ease of repair
6.Aesthetics - Appearance of a product
7.Safety - Will the product perform its function without unnecessarily endangering the user?
Quality and Productivity
Historically, quality was viewed by some as a controlling activity which took place somewhere near the end of a production process, an after-the-fact measurement of production performance.
Efforts to obtain quality products increased the costs associated with making that product.
Thus, quality and productivity were viewed as conflicting; one was increased at the expense of the other.
Costs of Poor
Process Performance
Defects: Any instance when a process fails to satisfy its customer.
Prevention costs are associated with preventing defects before they happen.
Appraisal costs are incurred when the firm assesses the performance level of its processes.
Internal failure costs result from defects that are discovered during production of services or products.
External failure costs arise when a defect is discovered after the customer receives the service or product.
7
Deming’s Chain Reaction
Quality and Costs
Costs decrease because of less rework, fewer mistakes, fewer delays, and better use of time and materials
Improve quality
Productivity improves
Stay in Business
Provides jobs and more jobs
Capture the market
Quality Improvement
DEMING´S 14 POINTS
1.Create constancy of purpose toward improvement of products
2.Adopt a quality philosophy
3.Cease dependence on mass inspection
4.End the practice of selecting suppliers on the basis of price alone
5.Improve constantly
6.Institute training on the job
7.Institute leadership
8.Drive out fear
DEMING´S 14 POINTS
9.Break down barriers between departments
10. Eliminate slogans and targets
11. Eliminate work standards that prescribe numerical quotas
12. Remove bar ...
1. Quality Management
& Control
Seung-Kuk Paik, Ph.D.
Systems and Operations Management
CSU, Northridge
What is Quality?
"Quality" can be defined in many ways.
1.Quality is defined as “FITNESS FOR USE”: How well a
service or product performs its intended purpose.
2.Quality is also defined as “CONFORMANCE TO
REQUIREMENTS”: How a service or product conforms to
performance specifications.
What is Quality?
3.In a wider sense, "QUALITY" is often considered the degree
of excellence whereby products and services may be ranked
against each other on a relative basis for selected features and
characteristics.
American Society of Quality (ASQ) has accepted the following
definition:
QUALITY: The totality of features and characteristics of a
product or service that bear on its ability to satisfy stated or
implied needs.
What is Quality?
2. DIMENSIONS OF QUALITY
1.Performance - A product´s primary operating characteristics.
2.Features - Supplements to a product´s basic functioning
characteristics
3.Reliability – Consistency of performance
What is Quality?
DIMENSIONS OF QUALITY
4.Durability - A measure of product life.
Serviceability - The speed and ease of repair
6.Aesthetics - Appearance of a product
7.Safety - Will the product perform its function without
unnecessarily endangering the user?
Quality and Productivity
Historically, quality was viewed by some as a controlling
activity which took place somewhere near the end of a
production process, an after-the-fact measurement of production
performance.
Efforts to obtain quality products increased the costs associated
with making that product.
Thus, quality and productivity were viewed as conflicting; one
was increased at the expense of the other.
3. Costs of Poor
Process Performance
Defects: Any instance when a process fails to satisfy its
customer.
Prevention costs are associated with preventing defects before
they happen.
Appraisal costs are incurred when the firm assesses the
performance level of its processes.
Internal failure costs result from defects that are discovered
during production of services or products.
External failure costs arise when a defect is discovered after the
customer receives the service or product.
7
Deming’s Chain Reaction
Quality and Costs
Costs decrease because of less rework, fewer mistakes, fewer
delays, and better use of time and materials
Improve quality
Productivity improves
Stay in Business
Provides jobs and more jobs
Capture the market
4. Quality Improvement
DEMING´S 14 POINTS
1.Create constancy of purpose toward improvement of products
2.Adopt a quality philosophy
3.Cease dependence on mass inspection
4.End the practice of selecting suppliers on the basis of price
alone
5.Improve constantly
6.Institute training on the job
7.Institute leadership
8.Drive out fear
DEMING´S 14 POINTS
9.Break down barriers between departments
10. Eliminate slogans and targets
11. Eliminate work standards that prescribe numerical quotas
12. Remove barriers that rob workers and managers of pride in
workmanship
13. Institute a vigorous program of education and self-
improvement
14. Put everybody in the organization to work to accomplish the
transformation
Quality Improvement
Deming’s Process
Improvement Cycle
Establish Expectations
Formalize improvements
6. 1. It aids in developing methods for measuring and evaluating
capabilities of a process.
2. SPC enables us to monitor a process and indicate when the
process is in control and when corrective action is needed.
3. It increases efficiency by eliminating redundant or
unnecessary activities.
Statistical Process Control
Statistical process control (SPC) is a system or a set of specific
techniques for controlling and improving production and service
processes.
Some Useful Characteristics:
12
Statistical Process Control
One of the most important tools of statistical process control is
the process control chart.
Process Control Chart:
A time ordered plot of sample statistics obtained from an on
going process used to distinguish between random and
nonrandom variability
Purpose: to monitor process output to see if it is random
The essence of process control chart is to assure that the output
of a process is random so that future output will be random
Upper and lower control limits define the range of acceptable
variation
Causes of Variation
Two basic categories of variation in output include common
causes and assignable causes.
7. Common causes are the purely random, unidentifiable sources
of variation that are unavoidable with the current process.
Assignable causes of variation are any variation-causing factors
that can be identified and eliminated, such as a machine needing
repair.
14
Control Chart
9. LCL
Sample number
Mean
Out of
control
Normal variation
due to chance
Abnormal variation
due to assignable sources
Abnormal variation
due to assignable sources
Control Charts
A control chart is a graph of the performance of a process over
time. For example, a chart might show the temperatures of
successive meals during one night.
Superimposed on each graph are lines called upper and lower
control limits (UCL and LCL) for the process.
The control limits are so drawn that if the process ever performs
outside the control limits, something unusual (assignable cause)
has almost certainly happened.
A centerline (usually the mean of the process parameter) is also
drawn on the graph.
Thus, a control chart gives a visual answer to the question:
Is this process behaving the way it usually does or something
has changed?
10. Appropriate Use of SPC
Use SPC if process is
Measurable
Repetitive
Prone to occasional drift or dramatic shift
Has quantitative output
Steps In Creating Control Charts
Take samples from the population and compute the appropriate
sample statistic
Use the sample statistic to calculate control limits and draw the
control chart
Plot sample results on the control chart and determine the state
of the process (in or out of control)
Investigate possible assignable causes and take any indicated
actions
Continue sampling from the process and reset the control limits
when necessary
Control Chart for Attributes
Example: Consider a data entry operation that makes numerous
entries daily. On each of 24 consecutive days, subgroups of 200
entries are inspected. The resulting raw data follows:
Day Number of Entries Insp Number Defective
FD
12006.030
22006.030
32006.030
42005.025
52000.000
62006.030
720014.070
12. P-Chart
Day
Control Charts for Variables
Two common types of control charts
The X-bar( )control chart measures the mean of each sample
reveals any tendency for the process mean to drift or jump
around over time
The R (range) chart measures the range of each sample
reveals any tendency of the process to behave more randomly or
less randomly over time.
22
Constructing Control Charts
The followings steps are needed:
First, choose the sampling plan and sample size (n). Collect
several samples (usually more than 20).
Calculate the range (R) and mean ( ) of each sample
Find the average of the means
Calculate average range ( ) of all the sample
Calculate upper and lower control limits for X-bar chart as
below:
13. Calculate upper and lower control limits for R-bar
Factors for Computing
Control Charts
Sample Size, nMean Factor, A2Upper Range, D4Lower Range,
D3
21.8803.2680
31.0232.5740
4 .7292.2820
5 .5772.1140
6 .4832.0040
7 .4191.9240.076
8 .3731.8640.136
9 .3371.8160.184
10 .3081.7770.223
Source: Special Technical Publication 15-C, American Society
for Testing
Materials, “Quality Control of Materials,” pp. 63 and 72, 1951
Example for X-bar & R Charts
14. A restaurant manager is concerned about the temperature of a
food
item being served. The manager never wanted the dish to be
cooler
than 140 degrees F or warmer than 160 degrees F when it left
the
kitchen to be served. The manager decided to do a capability
study
over 10 days. Each day, she randomly picked three servings and
tested the temperature just as the dish was being served. The
following are the data that she collected.
Day Reading, 0FRange, 0F , 0F
1150160155 10155.0
214015015515148.3 =8.50F
3145150150 5148.3
4150150155 5151.6 =151.50F
513015515025145.0
6140 140145 5141.6
7150150150 0150.0
8155155160 5156.7
9160160160 0160.0
1015016016515158.3
Example of Initial Capability
R chart Limits:
15. Center Control Line = = 8.5 0F
chart Limits:
Center Control Line =
Initial Capability Study
UCL (160.2)
LCL (142.8)
Process not stable,
not in control
141.6
CL (151.5)
Initial Capability
16. UCL(21.8)
LCL(0)
25
Process not stable,
not in control
CL (8.5)
Capability Study of
Improved Process
DayReading, 0FRange,0F , 0F
111511471504149.3
121511501474149.3
131501521512151.0
141501561516152.3
151501481524150.0
161481511557151.3
171521571498152.6
181471511504149.3
191501501566152.0
201501551515152.0
= 5.0 = 150.9
R chart limits: LCL = 0, UCL = 12.9
chart limits: LCL = 145.8, UCL = 156.0
17. Improved Process
Process stable, and
in control
UCL(156)
LCL(145.8)
CL(150.9)
Improved Process
Process stable, and
in control
UCL(12.9)
LCL(0)
CL(5.0)
Process Capability
Process capability is the ability of the process to meet the
design specifications for a service or product.
Nominal value is a target for design specifications.
Tolerance is an allowance above or below the nominal value.
18. A process in statistical control does not necessarily meet the
design specification.
Just because a process is in control does not necessarily mean
that it is within tolerances.
32
Process Capability
Lower
Specification
Upper
Specification
Process variability matches specifications
Lower
Specification
Upper
Specification
Process variability well within specifications
Lower Specification
19. Upper
Specification
Process variability exceeds specifications
Range of Possible
Solution
s
Redesign the process so that it can achieve the desired output
Use an alternative process that can achieve the desired output
Retain the current process but attempt to eliminate unacceptable
output using 100% inspection
Examine the specifications to see whether they really necessary
or could be relaxed without adversely affecting customer
satisfaction
Capability analysis is the determination of whether the inherent
variability of the process output falls within the acceptable
range of variability allowed by the specifications for the process
output
Process Capability Analysis
20. Process Capability Ratio
Process capability ratio, Cp =
specification width
process width
Upper specification – lower specification
Cp =
1. For a process to be capable, it must have a ratio of at least
1.0
2. A ratio of 1.0 means that 99.73% of the output of a process
can be expected to be within the specifications.
3. The greater the ratio, the greater the probability that the
output
of a machine or process will fall within design specifications.
Cp =
Upper Specification - Lower Specification
6s
Insurance claims process
Process mean x = 210.0 minutes
21. Process standard deviation s = .516 minutes
Design specification = 210 ± 3 minutes
= = 1.938
213 - 207
6(.516)
Process Capability Ratio Example
UCL
p
=
p
+
3
p
(
1
-
p
)
/
n
LCL
p