Hapter 17 Uality Planning and Control: Source: Archie Miles

Chapter 17
Quality planning and control
Source: Archie Miles
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Quality planning and control
Quality planning and Operations

control strategy
The market requires …
consistent quality of products
and services Operations
Design management Improvement
The operation supplies …
the consistent delivery of
products and services at
specification or above Planning and
control
The various definitions of quality
The transcendent approach views quality as synonymous with

innate excellence.
The manufacturing-based approach assumes quality is all about

making or providing error-free products or services.
The user-based approach assumes quality is all about providing

products or services that are fit for their purpose.
The product-based approach views quality as a precise and

measurable set of characteristics.
The value-based approach defines quality in terms of ‘value’.
High quality puts costs down and revenue up
Quality
Qualityup
up
Processing
Processing
Rework
Reworkand
and time
timedown
down
Image
Imageup
up scrap costs
scrap costs
down
down
Service
Service
costs Inventory
Inventory
costsdown
down Inspection
Inspectionand
and down
test costs down
test costs
down
down
Sales Capital
Sales
volume Complaint
Complaintand Capitalcosts
costs
volumeup
up warranty
and
costs down
down
warranty costs
down
down
Price
Price
competition
competition
down Scale
Scale
down economies Productivity
economiesup
up Productivity
up
up
Revenue
Revenue Operation
Operationcosts
costs
up
up down
down
Profits
Profitsup
up
Perceived quality is governed by the gap between customers’
expectations and their perceptions of the product or service
Gap Gap
Customers’ Customers’
expectations perceptions
for the Customers’ Customers’
Customers’ expectations perceptions Customers’ of the
product or perceptions of the expectations product or
service for the
of the product or product or for the service
product or service service product or
service service
Expectations > Expectations = Expectations <

perceptions perceptions perceptions
Perceived quality is Perceived quality is Perceived quality is

poor acceptable good
A ‘gap’ model of quality
Previous Word-of-mouth Image of product

experience communications or service
Customer’s Customer’s
expectations Gap ? perceptions
The customer’s concerning a concerning the
domain product or service product or service
Customer’s own Gap 4

specification of
quality
The actual product
Gap 1 or service
Management’s Organization’s
concept of the specification of
product or service quality
Gap 3
Gap 2
The operation’s domain
The perception–expectation gap
Action required to ensure high Main organizational

perceived quality responsibility
Ensure consistency between Marketing, operations,

Gap 1 internal quality specification and product/service
the expectations of customers development
Ensure internal specification meets Marketing, operations,

Gap 2 product/service
its intended concept of design
development
Ensure actual product or service
Gap 3 conforms to internally specified Operations
quality level
Ensure that promises made to
Gap 4 customers concerning the product or Marketing
service can really be delivered
Quality characteristics of goods and services
Functionality – how well the product or service does the

job for which it was intended
Appearance – the aesthetic appeal, look, feel, sound
and smell of the product or service
Reliability – the consistency of performance of the
product or service over time
Durability – the total useful life of the product or service
Recovery – the ease with which problems with

the product or service can be rectified or resolved
Contact – the nature of the person-to-person contacts
that take place
Attribute and variable measures of quality
Attributes Variables
Measured on a continuous
Defective or not defective?
scale
Light bulb works or does not
work Diameter of bulb
Number of defects in a
turbine blade Length of bar
Quality
Quality Reliability
fitness for purpose ability to continue
working at accepted
quality level
Quality of design Quality of conformance

degree to which faithfulness with which the
design achieves purpose operation agrees with design
Variables Attributes
things you can measure things you can assess
and accept or reject
Process control charting
Some aspect of the performance of a process is often
measured over time
Question:
“Why do we do this?”
operations performance
Some measure of
Time
Some aspect of the performance of a process is often
measured over time
Question:
“How do we know if the variation in process performance is
‘natural’ in terms of being a result of random causes, or is
indicative of some ‘assignable’ causes in the process?”
operations performance
Some measure of
Time
The last point plotted on this chart seems to be unusually low.

How do we know if this is just random variation or the result
of some change in the process which we should investigate?
Some kind of ‘guidelines’ or ‘control limits’ would be useful.

Elapsed time of call
Time
0.8 2.2 3.6 0.8 2.2 3.6

After the first After the second
sample sample
0.8 2.2 3.6

Fitting a normal
distribution to the
histogram of sampled
call times
0.8 2.2 3.6 0.8 2.2 3.6

By the end of the By the end of the
first day second day
99.7% of points
–3 standard +3 standard
deviations deviations
95.4% of points
deviations deviations
Frequency
deviation deviation
68% of points
A standard
deviation
=
sigma
40 100 160
Elapsed time of call (seconds)
The chances of measurement points deviating from the average

are predictable in a normal distribution
If we understand the normal distribution, which describes random variation
when the process is operating normally, then we can use the distribution
to draw the control limits.
In this case the final point is very likely to be caused by an ‘assignable’ cause,
i.e. the process is likely to be out of control.
Elapsed time of call
Time
Process variability
X
AP AX
P
On/off target – accuracy: A

Scatter – precision: P
XX
AP AP
In addition to points falling outside the control limits, other unlikely sequences
of points should be investigated.
UCL
C/L
LCL
Alternating and erratic behaviour – investigate!
UCL
C/L
LCL
Suspiciously average behaviour – investigate!
UCL
C/L
LCL
Two points near control limit – investigate!
UCL
C/L
LCL
Five points on one side of centre line – investigate!
UCL
C/L
LCL
Apparent trend in one direction – investigate!
UCL
C/L
LCL
Sudden change in level – investigate!
Low process variation allows changes in process
performance to be readily detected
Process Process Process Process

distribution A distribution B distribution A distribution B
A A
B B
Time Time
Process variation and its effect on process defects per
million opportunities (DPMO)
Process Process Process Process

variation variation variation variation
LSL USL LSL USL LSL USL LSL USL
3 sigma process 4 sigma process 5 sigma process 6 sigma process

variation variation variation variation
= 66800 defects per = 6200 defects per = 230 defects per = 3.4 defects per
million opportunities million opportunities million opportunities million opportunities
Ideal and real operating characteristics
In this ideal operating characteristic,

Producer’s risk (0.05) the probability of accepting the batch
1.0 if it contains more than 0.04% defective
items is zero, and the probability of
Probability of accepting the batch
0.9 accepting the batch if it contains

0.8 less than 0.04% defective items is 1
0.7
In this real operating characteristic
0.6 (where n = 250 and c = 1), both
0.5
type 1 and type 2 errors will occur
0.4
Type 1 error
0.3
Type 2 error
0.2
0.1
AQL LTPD Consumer’s risk (1.0)
0
0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08
Percentage actual defective in the batch
Key Terms Test
Quality
Consistent conformance to customers’ expectations.
Quality characteristics
The various elements within the concept of quality, such as
functionality, appearance, reliability, durability, recovery,
etc.
Quality sampling
The practice of inspecting only a sample of products or
services produced rather than every single one.
Key Terms Test
Statistical process control (SPC)
A technique that monitors processes as they produce products or
services and attempts to distinguish between normal or natural
variation in process performance and unusual or ‘assignable’
causes of variation.
Acceptance sampling
A technique of quality sampling that is used to decide whether to
accept a whole batch of products (and occasionally services) on the
basis of a sample; it is based on the operation’s willingness to risk
rejecting a ‘good’ batch and accepting a ‘bad’ batch.
Control charts
The charts used within statistical process control to record process
performance.
Key Terms Test
Process capability
An arithmetic measure of the acceptability of the variation of a
process.
Control limits
The lines on a control chart used in statistical process control to
indicate the extent of natural or common-cause variations;
any points lying outside these control limits are deemed to
indicate that the process is likely to be out of control.
Quality loss function (QLF)

A mathematical function devised by Genichi Taguchi that
includes all the costs of deviating from a target performance.
Key Terms Test
Six Sigma
An approach to improvement and quality management that
originated in the Motorola Company but was widely
popularized by its adoption in the GE Company in
America. Although based on traditional statistical
process control, it is now a far broader ‘philosophy of
improvement’ that recommends a particular approach to
measuring, improving and managing quality and
operations performance generally.
Zero defect
The idea that quality management should strive for
perfection as its ultimate objective, even though in
practice this will never be reached.

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Hapter 17 Uality Planning and Control: Source: Archie Miles

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Chapter 17

Quality planning and control

Source: Archie Miles

Quality planning and Operations

The transcendent approach views quality as synonymous with

The manufacturing-based approach assumes quality is all about

The user-based approach assumes quality is all about providing

The product-based approach views quality as a precise and

The value-based approach defines quality in terms of ‘value’.

Expectations > Expectations = Expectations <

Perceived quality is Perceived quality is Perceived quality is

Previous Word-of-mouth Image of product

Customer’s own Gap 4

Action required to ensure high Main organizational

Ensure consistency between Marketing, operations,

Ensure internal specification meets Marketing, operations,

Functionality – how well the product or service does the

Recovery – the ease with which problems with

Quality of design Quality of conformance

The last point plotted on this chart seems to be unusually low.

Some kind of ‘guidelines’ or ‘control limits’ would be useful.

0.8 2.2 3.6 0.8 2.2 3.6

0.8 2.2 3.6

0.8 2.2 3.6 0.8 2.2 3.6

The chances of measurement points deviating from the average

On/off target – accuracy: A

Alternating and erratic behaviour – investigate!

Suspiciously average behaviour – investigate!

Two points near control limit – investigate!

Five points on one side of centre line – investigate!

Apparent trend in one direction – investigate!

Sudden change in level – investigate!

Process Process Process Process

Process Process Process Process

LSL USL LSL USL LSL USL LSL USL

3 sigma process 4 sigma process 5 sigma process 6 sigma process

In this ideal operating characteristic,

0.9 accepting the batch if it contains

Quality loss function (QLF)

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