Quality Management

Dr. Jinil Persis

Assistant Professor
IIM Kozhikode

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 Quincunx simulation

System

Outcome

Natural variations
Statistical thinking Y=f(x)
𝜎
• Statistically, any CTQ X is considered as a normal random
variable.
• 𝑋~𝑁(𝜇, 𝜎)
where 𝜇 = 𝑝𝑟𝑜𝑐𝑒𝑠𝑠 𝑚𝑒𝑎𝑛, 𝜎 = 𝑝𝑟𝑜𝑐𝑒𝑠𝑠 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
𝜇 x
• Process is designed in such a way that it makes items with a
CTQ between specification limits (USL,LSL) and having a mean
at target (target = (USL+LSL)/2) given an inherent 𝜎.
• When X falls between specification limits, X conforms to specification
• When X does not fall between specification limits, X becomes defective
• Values of CTQ exhibited by individual items is normally
distributed with mean, μ=target and standard deviation, σ. USL LSL
• Probability of having X falling within specification = Area under
the curve
• 𝑃 𝐿𝑆𝐿 ≤ 𝑋 ≤ 𝑈𝑆𝐿 = 𝐴𝑟𝑒𝑎 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑐𝑢𝑟𝑣𝑒
• Where does LSL and USL fall given process standard deviation, 𝜇
σ?
 LSL=10 mm USL=12 mm

Say, thickness of a ring is a CTQ with spec 11±1 mm

Assume, this dimension in individual units follows
normal distribution. The process SD is 0.33.
K=(2/2)/0.33=3.03

Now say process mean has shifted to 11.5 mm.

𝑠𝑝𝑟𝑒𝑎𝑑 𝜇 = 11
𝑘𝜎 = Probability that an individual ring has thickness
2
within spec = NORM.DIST(12,11.5,0.33,TRUE)-
NORM.DIST(10,11.5,0.33,TRUE) = 0.93513
Probability that an individual ring becomes
defective = 1-0.93513 = 0.06487 (64870 ppm
defective)

USL LSL
When the process average is set on target, 11 mm, the USL and
LSL at ±3σ yields 99.76% conformance and 0.2443% defective
(2443 ppm defectives)
=NORM.DIST(12,11,0.33,TRUE)-NORM.DIST(10,11,0.33,TRUE)=0.9976
𝜇 = 11.5
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When the process average is off the target, 11-1.5σ When the process average is off the target, 11+1.5σ
mm, the USL and LSL at ±3σ yields 93.7 % conformance mm, the USL and LSL at ±3σ yields 93.7 % conformance
and 6.3% defective (62974 ppm defectives.) and 6.3% defective (62974 ppm defectives.)
LSL=10 mm USL=12 mm LSL=10 mm USL=12 mm

𝜇 = 10.505 𝜇 = 11.495
Six sigma Quality
• The focus of six-sigma is reducing variability in key product quality
characteristics to the level at which failure or defects are extremely
unlikely
• Suppose we have a product that consists of an assembly of 100
independent components or parts and all 100 of these parts must be
nondefective for the product to function satisfactorily.
• Under ±3𝜎 𝑙𝑒𝑣𝑒𝑙, a component will be non-defective with a
probability of 0.9973
• The probability that any specific unit of product is nondefective is
0.9973×0.9973× . . . × 0.9973 = (0.9973)100 = 0.7631
• Specification of thickness of a ring was 11±1 mm
• For its process SD= 0.33, the process fell at 3.03σ level
• At 3.03σ level,
• At process mean = 11, the process achieved 2443 ppm defectives
• At process mean shift between 11±1.5σ, the process achieved 62974 ppm
defectives
• Specification at 6σ level becomes, 11±1.98 mm given process
SD=0.33
• At 6σ level,
• At process mean = 11, the process achieves 0.002 ppm defectives
• At process mean shift between 11±1.5σ, the process achieved 3.4 ppm
defectives
 Statistical Thinking

Concept of six sigma Sigma level Conformance

Mean at zero
Defectives ppm defectives
Mean displacement max. upto +/-1.5
Sigma level Conformance Defectives ppm defectives
Sigma 1 0.683 0.317 317310.508 Sigma 1 0.3023 0.6977 697672.1266
Sigma 2 0.954 0.046 45500.264 Sigma 2 0.6912 0.3088 308770.1678
Sigma 3 0.997 0.003 2699.796 Sigma 3 0.9332 0.0668 66810.5989
Sigma 4 1.000 0.000 63.342 Sigma 4 0.9938 0.0062 6209.6843
Sigma 5 1.000 0.000 0.573 Sigma 5 0.9998 0.0002 232.6291
Sigma 6 1.000 0.000 0.002 Sigma 6 1.0000 0.0000 3.3977

Under six-sigma quality, the probability that any

specific unit of the hypothetical product above is
nondefective is 0.9999998, or 0.002 ppm

If the mean is drifting around, and ends up as Say, thickness of a ring is a CTQ with spec 11±1 mm
Assume, this dimension in individual units follows normal distribution. The process SD is 0.33.
much as 1.5 standard deviations off target, then it Method 1 𝐴𝑟𝑒𝑎 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑐𝑢𝑟𝑣𝑒 𝑒𝑡 𝑒𝑒𝑛 𝑈𝑆𝐿 𝑎𝑛𝑑 𝐿𝑆𝐿 𝑖𝑣𝑒𝑠 𝑟𝑎𝑐𝑡𝑖𝑜𝑛 𝑐𝑜𝑛 𝑜𝑟𝑚𝑖𝑛 𝑎𝑛𝑑 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑙𝑒𝑚𝑒𝑛𝑡 𝑖𝑠 𝑟𝑎𝑐𝑡𝑖𝑜𝑛 𝑑𝑒 𝑒𝑐𝑡𝑖𝑣𝑒

ends up producing 3.4 ppm defectives

Total area under the curve 1
P(X<=10) 0.001221542

P(X>12) 0.001221542 Sigma level 3.03030303 ± 3.03

Area between USL and LSL 0.997556915 Fraction conforming
𝑘𝜎 = 𝑠𝑝𝑟𝑒𝑎𝑑 2
Method 2
Area between USL and LSL 0.997556915 Fraction defectives 0.002443
𝑋 𝜇 Defectives in ppm 2443.085
Method 3 =
𝜎
Mean(µ) 11
X 10 Z -3.03030303
X 12 Z 3.03030303
Area between USL and LSL 0.997556915

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 Why Process mean shifts? Process variations

Sources of Variation in Production Processes

Measurement
Operators Methods
Materials Instruments

INPUTS PROCESS OUTPUTS

Tools Human
Machines Environment Inspection
Performance

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Problems Created by Variation
• Variation increases unpredictability.
• Variation reduces capacity utilization.
• Variation contributes to a “bullwhip” effect.
• Variation makes it difficult to find root causes.
• Variation makes it difficult to detect potential problems early.

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Types of Variation
• Uncontrollable variation (common causes) are a natural part
of a process
• Special (assignable) causes of variation can be recognized
and controlled
• Failure to understand these differences can increase
variation in a system

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Design for six sigma (DFSS)
• Design for Six Sigma (DFSS) represents a structured approach to product development and a set
of tools and methodologies for ensuring that goods and services will meet customer needs and
achieve performance objectives, and that the processes used to make and deliver them achieve
high levels of quality.
• These activities are often incorporated into a variation of the DMAIC process, known as DMADV,
which stands for Define, Measure, Analyze, Design, and Verify.

Concept development Detailed design Design optimization Design verification

Quality function deployment (QFD)
• Planning process to guide the design, manufacturing, and marketing of
goods by integrating the voice of the customer throughout the
organization.
• Systematic method to help identify customers’ needs for designing a
product (or service) in a way that it considers the customers’ needs first
time
• Understanding the customer needs is summarized in a product planning
matrix or “house of quality”.
• Method to transform qualitative user demands into quantitative
parameters, to deploy the functions forming quality, and to deploy
methods for achieving the design quality into subsystems and component
parts, and ultimately to specific elements of the manufacturing process.
4 linked houses of Quality
House of Quality

Interrelationships Customer
requirement
priorities
Technical requirements

Voice of
Relationship
the
matrix
customer

Technical requirement
Competitive
priorities
evaluation
 Target and tolerance design
L M U

• Nominal refers to the ideal dimension or the target value, M, that manufacturing seeks
to meet.
• Tolerance is the permissible variation, recognizing the difficulty of meeting a target
consistently.
• Taguchi measured quality as the variation from the target value of a design specification,
and then translated that variation into an economic “loss function” that expresses the
cost of variation in monetary terms.
• Taguchi assumes that losses can be approximated by a quadratic function so that larger
deviations from target correspond to increasingly larger losses.
• L(y)=k(y-m)2
𝐿(𝑦) 𝐴0
•𝑘= =
(𝑦−𝑚)2 ∆20
y- Value of quality characteristic, L- loss per product in Rs. due to the deviation in
y, m-Target value, Δ- Deviation, k- proportionality constant (cost coefficient),
Δ0 - Consumer tolerance, A0 - Consumer loss at specification
Taguchi’s Loss - Example
Voltage of a compressor in a refrigerator has specifications
• m=230V
• Δ0 = ±20
• A0 = Rs 3000
𝐿(𝑦) 𝐴0 3000
•𝑘= = = = 7.5
(𝑦−𝑚)2 ∆20 202
• Loss for 220V, L(220)=7.5(220-230)2=Rs. 750
Taguchi’s Loss
• A measure of variation that is independent of specification limits,
showing the average loss over the distribution of output
Expected loss = k(2 + D2)
where 2 is the process variation and D is the deviation from the target.