MM ZG522 Total Quality

Management
Rajiv Gupta
BITS Pilani
Live Lecture 6
 Recitation 6
• Module 1
– Personal Quality Checklist
• Module 2
– Topics Covered in Taped Lecture 9
• Module 3
– Discussion on Taped Lecture 9
• Module 4
– Brief Summary of Taped Lecture 10
• Module 5
– Brief Summary of Taped Lecture 11
• Module 6
– Example Based on Taped Lecture 11
• Module 7
– Discussion Questions for next week

2
 Recitation 6
• Begin Module 1
– Personal Quality Checklist

3
 Variation of Weights
66.5

66

65.5

UCL
65

64.5

Series1
64
Ave
63.5

63

62.5
LCL
62
0 5 10 15 20 25 30
 Variation of Weights
66.5

66

UCL
65.5

65

64.5
Series1
Ave
64

63.5

63

LCL
62.5
0 5 10 15 20 25

After removing last 8 points

 Variation of Weights
65.5
UCL
65

64.5

Ave
64
Series1

63.5

63

LCL
62.5
0 2 4 6 8 10 12 14 16 18 20

After removing out of control point

Analysis of Weight Variation
Diff bet input
Day Wt and output
1 64.3 1427
2 64 1552
3 63.4 1340
4 63.6 1173
5 64 1413
6 64.9 1850
7 63.5 1445
8 62.9 1769
9 64 1482
10 64.4 1309
11 64.5 1897
12 65.2 1361
13 66 1299
14 64.4 1172
15 64.4 1327
16 64.6 1114
17 64 1717
18 64.5 1722
19 64.2 1507
20 64.5 1513
Understanding Variation in Weight
Bones Fat Food and Water

Weight

Muscle
Water Exercise and Metabolism
Mass

Fishbone Diagram
Basic Facts About the Human Body
• How many calories account for one pound of
body fat?
• How many calories do we burn just by going
through our daily routine?
• How many calories do we burn with one hour of
brisk walking?
• How many calories do we consume per day on
average?
• What does the human body consist of?
Basic Facts About the Human Body
• It takes 3500 calories to gain or lose one pound of
body fat
• We typically burn 1500 calories just by going
through our daily routine
• One hour of brisk walking burns about 250-300
calories
• Our typical diet is about 1800-2000 calories per
day
• The human body weight consists of about 60%
water, 15% bones, and 25% fat and muscles
 Recitation 6
• End of module 1

11
 Recitation 6
• Begin Module 2
– Topics Covered in Taped Lecture 9

12
 Taped Lecture 9
• Taped lecture 9 deals with Quality Tools.
• There are 7 traditional tools and 7 new tools that are
used to solve quality problems.
• The traditional tools are more quantitative in nature
and are used in a reactive mode on the shop floor.
• They help visualize quality problems.
• The traditional tools include Histograms, Pareto
Analysis, Stratification and Control Charts.

13
 Taped Lecture 9
• The seven new tools are more qualitative in nature.
• They are used in a proactive mode and used by
management for the purposes of planning and
improving systems.
• Some of the new tools include the Affinity Diagram,
Arrow Chart, Relations Diagram, Tree Diagram, etc.
• In addition to the 7 traditional and the 7 new tools
there are tools such as Benchmarking, QFD, FMEA,
etc. which are used for process and product
development.

14
 Recitation 6
• End of module 2

15
 Recitation 6
• Begin Module 3
– Discussion Questions on taped lecture 9

16
 Recitation
• Discussion questions
– How would you describe the approach to problems in
your organization? i.e., what is the first reaction when
someone says there is a problem?
– How does your organization approach problem
solving? How long does it take to solve a typical
problem?
– Do solved problems resurface or remain solved
forever?
– At what level of management do problems get solved?
 Recitation
• Discussion questions
– What tools are most commonly used for problem
solving in your organization? Is data used?
– What training do people receive in problem
solving tools?
– Is problem solving a team effort in your
organization?
– What steps would you recommend be used to
improve problem solving in your organization?
 Recitation 6
• End of Module 3

19
 Recitation 6
• Begin Module 4
– Brief Summary of Taped Lecture 10

20
 Brief Summary of Lecture 10
• Taped lectures 10 and 11 deal with Statistical Process
Control, SPC.
• Lecture 10 begins with an introduction to variation,
including the measures of central tendency such as the
mean, median and the mode, as well as measures of
variation such as range and standard deviation.
• Then the lecture delves into the difference between
common cause and special cause variation, as suggested
by Deming.
• Common cause variations are inherent in the process by
virtue of reasons that cannot be controlled at the
operating level.

21
 Brief Summary of Lecture 10
• Variations due to special, or assignable causes, are
not inherent in the process and are often
attributable to a specific, or assignable, reason.
• Any attempt to intervene in common cause variation,
at the operation level, can make the variation worse.
Such variation can only be reduced by management.
• By charting variations over a period of time,
organizations can detect variations due to common
causes and those due to special causes.

22
 Brief Summary of Lecture 10
• Statistical Process Control (SPC) charts can be of two
types, Variables Control Charts, and Attribute Control
Charts.
• Lecture 10 focuses on Variables Control Charts.
Variables Control Charts are used to track the
variability in specific measures such as dimensions,
weights, etc.
• There are three common Variables Control Charts;
Xbar and R charts, Xbar and S charts and X and
moving R charts.

23
 Brief Summary of Lecture 10
• Xbar and R charts record the average (Xbar) and
Range (R) of a sample. So a typical Xbar and R chart
will show Xbar and R values of samples takes several
times a day, over several days.
• If the variation in Xbar and R values is random and
within limits, the variation is assumed to be due to
common causes and no action is warranted.
• However, if the variation is outside the acceptable
limits, we should investigate the reason for the
unusual variation, and take corrective action.

24
 Recitation 6
• End of Module 4

25
 Recitation 6
• Begin Module 5
– Brief Summary of Taped Lecture 11

26
 Brief Summary of Lecture 11
• Taped lecture 11 begins with Xbar and S charts, and
the X and Moving R charts.
• Xbar and S charts record the average (Xbar) and
Standard Deviation (S) of a sample. It is similar to the
Xbar and R chart but requires more calculations.
• X and Moving R charts are used when the sample
size is one.
• The second topic covered in lecture 11 is the
Attribute Control Chart which is used to record the
number of defectives in a sample.

27
 Brief Summary of Lecture 11
• The two types of Attribute Control Charts discussed
are the P chart and the NP chart.
• P charts record the percentage defectives, while the
NP charts record the total number of defectives
produced.
• As in the case of Variable Control Charts, the
Attribute Control Charts are used to detect when an
assignable cause has occurred and requires specific
action.

28
 Brief Summary of Lecture 11
• We also discuss the topic of how the two types of control
charts should be used, i.e., how to detect when an
assignable cause of variation has occurred. Rules for such
detection are discussed.
• Next the topic of process capability is discussed. Process
capability deals with the variability of the process in
comparison to the design tolerance.
• If the process is centered correctly and the variability in
the process is less than the width of the design tolerance,
we call the process capable. Otherwise the process is
incapable.

29
 Brief Summary of Lecture 11
• There are two common measures of process
capability, Cp and Cpk. Cp only considers the process
variability and does not consider the centering of the
process, while Cpk considers both, the process
variability as well as the centering of the process.

30
 Recitation 6
• End of module 5

31
 Recitation 6
• Begin Module 6
– Example on Taped Lecture 11

32
 Example on X MR Chart

July Act Monthly % % Diff YTD YTD % Comp

Value Ave Diff From last Act Plan Diff to last
Year year

On Time 91 91.3 -0.3 -0.9 90.8 91.3 -0.6 -0.3

Shipment %

In process 28 19.7 +42.0 -12.0 21.6 19.7 +9.6 +5.9

Inventory
(100 lbs)

Which of the above parameters should concern the management?

 Example on Lecture 11

Without charting the data, the typical reaction of management is to be concerned

about the sharp increase in the work in process inventory. The on-time shipments
seem to be relatively in line with expectations.
The difficulty with this approach is that we are making a comparison with an
arbitrary comparison with a monthly average or with the same time last year.
This presupposes that last year was somehow representative or normal.
Drawing a Control Chart reveals a lot about the two items of interest as will be shown.
 In Process Inventory Data
Yr 1 Yr 2 Yr 3 Yr 1 Yr 2 Yr 3
Jan 19 20 20 Jan 3 3
Feb 27 22 15 Feb 8 2 5
Mar 20 19 27 Mar 7 3 12
Apr 16 16 25 Apr 4 3 2
May 18 22 17 May 2 6 8
Jun 25 19 19 Jun 7 3 2
Jul 22 25 28 Jul 3 6 9
Aug 24 22 Aug 2 3
Sep 17 18 Sep 7 4
Oct 25 20 Oct 8 2
Nov 15 16 Nov 10 4
Dec 17 17 Dec 2 1

Inventory Values Moving Ranges

From MR Plot, we first calculate UCL and LCL for the Moving Ranges
Average MR = 4.35
UCL MR = 3.27*Ave MR = 3.27*4.35 = 14.2
LCL MR = 0

Next we can calculate the UCL and LCL for the X Chart
Average X = 20.04
UCL X = Ave X + 3*Ave MR/1.128 = 20.04+2.66*4.35 = 31.6
LCL X = Ave X – 3*Ave MR/1.128 = 20.04-2.66*4.35 = 8.5
 In Process Inventory Plot UCL = 31.6
30

25

20 Ave = 20.04

15
Series1

10

LCL = 8.5
5

0
0 5 10 15 20 25 30 35
 In Process Inv MR Plot
UCL = 14.2
14

12

10

6
Ave = 4.35
4

0
0 5 10 15 20 25 30 35
 On Time Shipments (%) Data
Yr 1 Yr 2 Yr 3 Yr 1 Yr 2 Yr 3
Jan 92.1 91.2 91.7 Jan 0 0.3
Feb 91.6 91.1 91.1 Feb 0.5 0.1 0.6
Mar 91.8 90.4 90.9 Mar 0.2 0.7 0.2
Apr 91.5 90.7 90.2 Apr 0.3 0.3 0.7
May 91.1 90.7 89.7 May 0.4 0 0.5
Jun 91.1 91.3 90.8 Jun 0 0.6 1.1
Jul 90.1 91.8 91.0 Jul 1 0.5 0.2
Aug 89.2 92.0 Aug 0.9 0.2
Sep 89.9 91.5 Sep 0.7 0.5
Oct 90.8 91.9 Oct 0.9 0.4
Nov 91.2 91.6 Nov 0.4 0.3
Dec 91.2 91.4 Dec 0 0.2

Inventory Values Moving Ranges

From the MR Plot, we first calculate UCL and LCL for the Moving Ranges
Average MR = 0.42
UCL MR = 3.27*Ave MR = 3.27*0.42 = 1.38
LCL MR = 0

Next we can calculate the UCL and LCL for the X Chart
Average X = 91.05
UCL X = Ave X + 3*Ave MR/1.128 = 91.05+2.66*0.42 = 92.18
LCL X = Ave X – 3*Ave MR/1.128 = 91.05-2.66*0.42 = 89.93
 On Time Shipment % Data Plot
92.5

UCL 92.18
92

91.5

Ave 91.05
91

Series1
90.5

90

LCL 89.92
89.5

89
0 5 10 15 20 25 30 35
On Time Shipment % MR Plot
UCL 1.38
1.2

0.8

0.6

Ave 0.42
0.4

0.2

0
0 5 10 15 20 25 30 35
 Recitation 6
• End of module 6

43
 Recitation 6
• Begin Module 7
– Discussion Questions for next week
– Based on Taped Lectures 10 and 11

44
 Recitation Next Week
• Discussion questions
– Does your organization use SPC? In what areas?
– What do you think is the biggest advantage of
SPC?
– Does your management seek explanation for each
performance change, up or down, irrespective of
whether it is a part of routine variation, or
something unusual?
– What do you think is the consequence of reacting
to every change in performance?
 Recitation Next Week
– What kind of training do people in your organization
receive in SPC? Who conducts the training?
– Who is responsible for filling out SPC charts in your
organization?
– Do you use Cp and Cpk measures for process
capability? How well understood are these measures?
– How honestly do you think people in the organization
fill out the data in the SPC charts?
– What do you see as the major benefits of SPC?
Questions?