Variability Reduction Programol

Variability Reduction Program Business Excellence

 Outline

Section 1: Understanding the Impact of

Variation

Section 2: Process Control Systems

Section 3: Measurement Capability

Analysis
Variability Reduction Program Business Excellence
 What is Variation?

Loss Function
What is the target for a given process?

? ?

Target

How far away from the target is still OK?

Variability Reduction Program Business Excellence
 What is Variation?

Loss Function

Loss
in
Quality

target Measurement
A curve representing loss in quality as a
function of a measured value
Variability Reduction Program Business Excellence
 What is Variation?
Traditional “Loss Function”

Loss
in
Quality

Lower Upper
Spec Spec
Limit Limit

Spec limits define acceptable and

unacceptable quality
Variability Reduction Program Business Excellence
 What is Variation?
Modern “Loss Function”
Loss in Quality
Loss Increases as
in Variation from
Quality Target Increases

Target

Target: Desired Value or Outcome

Variability Reduction Program Business Excellence
 What is Variation?
How the Loss Function Affects Product
LSL USL LSL USL

Both are within spec

Which is more desirable?
Variability Reduction Program Business Excellence
 What is Variation?
Loss Function for Defects

Loss
in
Quality

Number of Defects
Target
Variability Reduction Program Business Excellence
 What is Variation?

Less Variation
=
Higher Quality

Variability Reduction Program Business Excellence

 Examining Variation
Definition

A Stable Process has the same

normal distribution at all times.
A stable process is In Control

A stable process still has variation

Variability Reduction Program Business Excellence 1
 Examining Variation
Stable Process

Prediction

Time

Normal distribution at all times

Variability Reduction Program Business Excellence 1
 Examining Variation

Common Causes

The cause of variations in a stable

process is called a Common Cause.

A common cause is a natural cause of

variation in the system.

Variability Reduction Program Business Excellence 1

 Examining Variation
Common Cause Examples

✓ Machine vibration
✓ Temperature fluctuations
✓ Slight variation in raw materials
✓ Human variation in setting control dials

Variability Reduction Program Business Excellence 1

 Examining Variation
Tools for Examining Stability
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Trend Chart: A plot showing the

behavior
Variability Reduction Program of a Business
process over time.
Excellence 1
 Examining Variation
Tools for Examining Stability
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Percentage

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Histogram: A barchart showing the

distributionBusiness
Variability Reduction Program of the process.
Excellence 1
 Examining Variation
Activity: Comparing stable processes
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A Sequence B Sequence

Which process has better quality?

Variability Reduction Program Business Excellence 1
 Examining Variation
Activity: Comparing stable processes
(cont’d)
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A Sequence B Sequence

Which process has

Variability Reduction Program
better quality?
Business Excellence 1
 Examining Variation
Unstable Process

? ?

Prediction

Time

Any process that is not stable is called an

Program or out-of-control
unstable
Variability Reduction Business Excellence process. 1
 Examining Variation
Kinds of Instability: Excursions
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Variability Reduction Program Business Excellence 1

 Examining Variation
Kinds of Instability: Shifts
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Variability Reduction Program Business Excellence 2

 Examining Variation
Kinds of Instability: Drifts
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Variability Reduction Program Business Excellence 2

 Examining Variation
Kinds of Instability: Cycles
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Variability Reduction Program Business Excellence 2

 Examining Variation
Kinds of Instability: Chaos
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Variability Reduction Program Business Excellence 2

 Examining Variation

Special Causes

Anything that causes variations that are

not part of the stable process is called a
special cause, assignable cause, or
unnatural cause.

Variability Reduction Program Business Excellence 2

 Examining Variation
Examples of Special Causes

✓ Batch of defective raw material

✓ Faulty set-up
✓ Human error
✓ Incorrect recipe
✓ Blown gasket
✓ Earthquake
Variability Reduction Program Business Excellence 2
 Reducing Variation
Improving a Stable Process
Two strategies for improving a stable process

✓ Centering at Target
✓ Reducing Common Cause Variation

Variability Reduction Program Business Excellence 2

 Reducing Variation
Centering at Target

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Variability Reduction Program Business Excellence 2

 Reducing Variation
Reducing Common Cause Variation

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Variability Reduction Program Business Excellence 2

 Reducing Variation
Reducing Variation in a Stable Process
Make Permanent Changes
Changes are based on the scientific
approach
✓ Structured problem solving
✓ Planned experiments

Examples: new equipment, equipment upgrade, new

procedure, new machine settings, better raw material
Variability Reduction Program Business Excellence 2
 Reducing Variation
Reducing Variation in an
Unstable Process
✓ Do not ignore special causes.
✓ Do quickly detect special cause
variations.
✓ Do stop production until the process is
fixed. (Reactive)
✓ Do identify and permanently eliminate
special causes. (Preventive)
Variability Reduction Program Business Excellence 3
 Reducing Variation
Improving an Unstable Process
Four Step Process
✓ Detect the special cause variation.
✓ Identify the special cause.
✓ Fix the process
• Remove the special cause, or
• Compensate for the special cause.
✓ Prevent the special cause from
occurring again
Variability Reduction Program Business Excellence 3
 Reducing Variation
Improving an Unstable Process
Reactive
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Variability Reduction Program Business Excellence 3
 Reducing Variation
Improving an Unstable Process
Preventive
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Unstable Stable

Time
Variability Reduction Program Business Excellence 3
 Detecting Variation

How can we decide if variation is

the result of common or special
cause?

Variability Reduction Program Business Excellence 3

 Detecting Variation
Tool: Control Chart
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Benefit: Prevents tampering or ignoring
Variability Reduction Program Business Excellence 3
 Detecting Variation
Control Chart for Detecting Variation
Observe
Variation
Common Detect
Cause Control Special Cause

Don’t Chart Identify

Tamper
Fix
Reduce Overall
Variation Prevent
Variability Reduction Program Business Excellence 3
 Detecting Variation
Control Chart for Detecting Variation

Control Chart

Trend Chart + Center Line + Control Limits

Upper Control Limit

Center Line

Lower Control Limit

Variability Reduction Program Business Excellence 3

 Detecting Variation
Control Limits
Control limits tell us where the measurements
in a stable process should fall
Lower Upper
Control Control
Limit Limit

Variability Reduction Program Business Excellence 3

 Detecting Variation
Control Limits
-3σ +3σ

Highly Highly
Unlikely Unlikely
1.5 out of 1.5 out of
1000 1000

Calculated statistically, based on:

– Historical Data
– Characteristics of the stable process
Also called 6 sigma limits
Variability Reduction Program Business Excellence 3
 Detecting Variation
Creating a Control Chart
Upper Control Limit

Center Line

Lower Control Limit

Turn the distribution on its side

Variability Reduction Program Business Excellence 4
 Detecting Variation

Can we use spec limits as control

limits?

Can we compute control limits for an

unstable process?

Variability Reduction Program Business Excellence 4

 Detecting Variation

Creating a Control Chart

What is the Center Line?

Process mean, based on historical data
or
Process Target

Variability Reduction Program Business Excellence 4

 Detecting Variation
Creating a Control Chart
Selecting the Center Line

The center line should be the target,

Measurements: unless we are unable or unwilling to
control the process to target.

Defects: Since the target is zero defects, the

center line is the process mean.

Variability Reduction Program Business Excellence 4

 Detecting Variation
Control Limits vs. Spec Limits
Control Limits Spec Limits
✓ Based on ✓ Based on
performance of performance of
the process. the product.
✓ Tell us when to ✓ Tell us when to
take action on the disposition the
process. product.
Variability Reduction Program Business Excellence 4
 Detecting Variation
Control Limits vs. Spec Limits
Focus On

Control Limits Spec Limits

Improve Process Improve Product

Quality Quality
Variability Reduction Program Business Excellence 4
 Detecting Variation

Uses of a Control Chart

✓ On-Line: Assess the present stability of

a process, as part of a process control
system (PCS)
✓ Off-Line: Assess the historical stability
of a process

Variability Reduction Program Business Excellence 4

 What is a PCS?
A PCS is a subset of the Reduction in
Variation flow
Observe
Variation Detect
Common Special Cause
Cause
Control
Identify
Don’t Chart
Tamper Fix

Reduce Overall Prevent

Variation
Variability Reduction Program Business Excellence 4