Chapter 11 – Part I

Total Quality Management

COB 300
Busing
Problems Hidden by Inventory
 Simplifying the Process

• Plant layout
• Group technology
• U-shaped layout
• Reducing setup time
• Total preventive
maintenance
 Strategy and JIT

• Quality and reliability • Dependability

• Flexibility • Asset utilization
– product • People utilization
– volume • Cost minimization
 Internally Oriented
Definitions of Quality

 Quality is the degree to which a specific product

conforms to a design or specification
 Differences in quality amount to differences in the
quantity of some desired ingredient or attribute
 Externally Oriented
Definitions of Quality

• Quality is fitness for use

• Quality consists of the capacity to satisfy wants
 A Definition of Quality Used by
Many Companies

Quality is consistently
meeting or exceeding the
customer’s needs and
expectations.
 Dimensions of Service Quality

• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
 Dimensions of Quality for Goods
• Performance • Durability
• Features • Serviceability
• Reliability • Aesthetics
• Conformance • Perceived Quality
 Costs of Quality
• Prevention • Failure
– Planning – Internal
• Scrap and rework
– Procedures
• Retests
– Training
• Down time
• Appraisal – External
– Testing • Returns
– Inspection • Warranty work
• Goodwill lost
– Audits
• Lost sales
 The Background of TQM
• W. Edwards Deming • Philip Crosby
– System causes most – Quality is free, zero
defects defects
• Joseph M. Juran • Genichi Taguchi
– Quality planning, – Taguchi methods,
quality control, quality robust design
improvement
 Components of TQM
• Focus on the customer
• Everyone responsible for
quality
• Team problem solving
• Employee training
• Fact-based management
• Philosophy of continuous
improvement
 Components of
Continuous Improvement

• Standardize and document procedures

• Assign teams to identify areas for
improvement
• Use methods analysis and problem-solving
tools
• Use the Plan-Do-Check-Act cycle
• Document improved procedures
The Plan-Do-Check-Act Cycle
 Baldridge Award

• Baldridge Award Criteria for 00

 ISO 9000 Standards
9000-1: Guidelines
9001: Design through installation and
testing
9002: Production through installation
and testing
9003: Distributors
9004-1: Model of quality management
system
 Comparing Baldrige,
ISO 9000 and TQM
• Baldrige
– U.S. Quality Award
– Focus on outcomes
• ISO 9000
– International standards
– Focus on documentation of processes
• TQM
– Organizational quality philosophy
– Foundation of Baldrige criteria
 Chapter 11 – Part II
Quality Control

COB 300 C - The Operations Dimension

Busing
 Causes of Variation
• Random Causes
– difficult or expensive
to control
– e.g., outside humidity,
line voltage
• Assignable Causes
– easier to correct
– e.g., employee error,
new materials
Comparing Process Variation to
Tolerance Limits
 High Process Capability After
Technological Process Change
 Control Charts
• Variables - concentrates on mean for some
measurable characteristic.
– diameter
– length
• Attribute - data is based on counts or the number
of times we observe a particular event.
– proportion defective/non-defective
– go/no go
– proportion pass/fail
Control Limits - Variables Charts
X-Bar Chart U C L x    3 x
X  A2 R
LCLx    3 x
 X  A2 R
R Chart
UCLR  D4 R
LCLR  D3 R
Variables Control Chart Examples: Compute the 3 control charts for X and R from 15 samples of
size n=3. Plot the control limits and the X and R values and comment about the underlying process.

Sample OBSERVED DIMENSIONS (cm)

1 4.843 4.863 4.859
2 4.925 4.882 4.891
3 4.866 4.914 4.873
4 4.852 4.883 4.88
5 4.92 4.884 4.821
6 4.915 4.902 4.898
7 4.887 4.892 4.858
8 4.868 4.888 4.842
9 4.904 4.863 4.866
10 4.921 4.92 4.894
11 4.914 4.884 4.899
12 4.892 4.896 4.887
13 4.866 4.829 4.88
14 4.85 4.875 4.872
15 4.867 4.9 4.885
Variables Control Chart Examples: Compute the 3 control charts X
for and R from 15 samples of size n=3. Plot the control limits and the
X and R values and comment about the underlying process.

S a m p le O B S E R V E D D IM E N S IO N S (c m ) m ean ra n g e
1 4.843 4.863 4.859 4.855 0.020
2 4.925 4.882 4.891 4.899 0.043
3 4.866 4.914 4.873 4.884 0.048
4 4.852 4.883 4.88 4.872 0.031
5 4.92 4.884 4.821 4.875 0.099
6 4.915 4.902 4.898 4.905 0.017
7 4.887 4.892 4.858 4.879 0.034
8 4.868 4.888 4.842 4.866 0.046
9 4.904 4.863 4.866 4.878 0.041
10 4.921 4.92 4.894 4.912 0.027
11 4.914 4.884 4.899 4.899 0.030
12 4.892 4.896 4.887 4.892 0.009
13 4.866 4.829 4.88 4.858 0.051
14 4.85 4.875 4.872 4.866 0.025
15 4.867 4.9 4.885 4.884 0.033
4.882 0.037
 Factors for Control Limits
(Slide 1 of 2)
Sample of Size
n A2 D3 D4
2 1.880 0 3.268
3 1.023 0 2.574
4 0.729 0 2.282
5 0.577 0 2.114
6 0.483 0 2.004
7 0.419 0.076 1.924
8 0.373 0.136 1.864
9 0.337 0.184 1.816
10 0.308 0.223 1.777
 x-bar Chart Example (cont’d)

UCLx  4.882  1.023(.037)  4.920

LCLx  4.882  1.023(.037)  4.844

 S ix S i g m a C o n tro l C ha rt ( x -b a r)

4 .9 3 0

4 .9 2 0

4 .9 1 0

4 .9 0 0

S a m p le M e a n
4 .8 9 0
U p p e r C o n tro l L im it
cm

L o w e r C o n tro l L im it

4 .8 8 0 C e n te r L i n e

4 .8 7 0

4 .8 6 0

4 .8 5 0

4 .8 4 0
0 2 4 6 8 10 12 14 16

O b s e r v a tio n
 Range Chart

D4 R  2.57  .037  .0951

D3 R  0  .037  0
 Range Example

0.12

0.1

0.08

Upper Control Lim

Center Line
0.06
Lower Control Lim
Sample Range

0.04

0.02

0
0 2 4 6 8 10 12 14 16
 Warning Conditions

• Two successive points

near limit
• Run of five above or
below mean
• Trend
• Erratic behavior
 Process Control for Attributes
p( 1  p )
Proportion defective: p
n
UCL p  p  3 p
LCL p  p  3 p
Number of defects per unit:
c  c
UCLc  c  3 c
LCLc  c  3 c
 P-Chart observation proportion defective
lower control limit
center line
0.14
upper control limit

0.12

0.1
proportion defective

0.08

0.06

0.04

0.02

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
observation
 Homework

• Chapter 11 – 4, 8, 9