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Introduction To Statistical Quality Control, 5th edition:

Introduction To Statistical Quality Control, 5 th edition Douglas C. Montgomery Arizona State University

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Chapter 1 3 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

Learning Objectives:

Chapter 1 4 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Learning Objectives

1-1 Definitions and Meaning of Quality:

Chapter 1 5 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 1-1 Definitions and Meaning of Quality 1-1.1 The Eight Dimensions of Quality Performance Reliability Durability Serviceability Aesthetics Features Perceived Quality Conformance to Standards

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Chapter 1 6 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. This is a traditional definition Quality of design Quality of conformance

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Chapter 1 7 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. This is a modern definition of quality

The Transmission Example:

Chapter 1 8 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. The Transmission Example

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Chapter 1 9 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. The transmission example illustrates the utility of this definition An equivalent definition is that quality improvement is the elimination of waste . This is useful in service or transactional businesses.

1-1.2 Terminology:

Chapter 1 10 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 1-1.2 Terminology

Terminology cont’d:

Chapter 1 11 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Terminology cont’d Specifications Lower specification limit Upper specification limit Target or nominal values Defective or nonconforming product Defect or nonconformity Not all products containing a defect are necessarily defective

1-2. History of Quality Improvement:

Chapter 1 12 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 1-2. History of Quality Improvement

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Chapter 1 13 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 14 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 15 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 16 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

Statistical Methods:

Chapter 1 17 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Statistical Methods Statistical process control (SPC) Control charts, plus other problem-solving tools Useful in monitoring processes, reducing variability through elimination of assignable causes On-line technique Designed experiments (DOX) Discovering the key factors that influence process performance Process optimization Off-line technique Acceptance Sampling

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Chapter 1 18 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Walter A. Shewart (1891-1967) Trained in engineering and physics Long career at Bell Labs Developed the first control chart about 1924

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Chapter 1 19 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. A factorial experiment with three factors

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Chapter 1 20 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 21 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Effective management of quality requires the execution of three activities: Quality Planning Quality Assurance Quality Control and Improvement

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Chapter 1 22 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 23 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 24 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

1-4.1 Quality Philosophies and Management Strategies:

Chapter 1 25 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 1-4.1 Quality Philosophies and Management Strategies W. Edwards Deming Taught engineering, physics in the 1920s, finished PhD in 1928 Met Walter Shewhart at Western Electric Long career in government statistics, USDA, Bureau of the Census During WWII, he worked with US defense contractors, deploying statistical methods Sent to Japan after WWII to work on the census

Deming:

Chapter 1 26 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Deming Deming was asked by JUSE to lecture on statistical quality control to management Japanese adopted many aspects of Deming’s management philosophy Deming stressed “continual never-ending improvement” Deming lectured widely in North America during the 1980s; he died 24 December 1993

Deming’s 14 Points:

Chapter 1 27 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Deming’s 14 Points 1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age 3. Cease reliance on mass inspection to improve quality 4. End the practice of awarding business on the basis of price alone 5. Improve constantly and forever the system of production and service 6. Institute training 7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job 8. Drive out fear 9. Break down barriers between departments

14 Points cont’d:

Chapter 1 28 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 14 Points cont’d 10. Eliminate slogans and targets for the workforce such as zero defects 11. Eliminate work standards 12. Remove barriers that rob workers of the right to pride in the quality of their work 13. Institute a vigorous program of education and self-improvement 14. Put everyone to work to accomplish the transformation Note that the 14 points are about change

Deming’s Deadly Diseases:

Chapter 1 29 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Deming’s Deadly Diseases Lack of constancy of purpose Emphasis on short-term profits Performance evaluation, merit rating, annual reviews Mobility of management Running a company on visible figures alone Excessive medical costs for employee health care Excessive costs of warrantees

Joseph M. Juran:

Chapter 1 30 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Joseph M. Juran Born in Romania (1904), immigrated to the US Worked at Western Electric, influenced by Walter Shewhart Emphasizes a more strategic and planning oriented approach to quality than does Deming Juran Institute is still an active organization promoting the Juran philosophy and quality improvement practices

The Juran Trilogy:

Chapter 1 31 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. The Juran Trilogy Planning Control Improvement These three processes are interrelated Control versus breakthrough Project-by-project improvement

Some of the Other “Gurus”:

Chapter 1 32 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Some of the Other “Gurus” Kaoru Ishikawa Son of the founder of JUSE, promoted widespread use of basic tools Armand Feigenbaum Author of Total Quality Control, promoted overall organizational involvement in quality, Three-step approach emphasized quality leadership, quality technology, and organizational commitment Lesser gods, false prophets

Total Quality Management (TQM):

Chapter 1 33 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Total Quality Management (TQM) Started in the early 1980s, Deming/Juran philosophy as the focal point Emphasis on widespread training, quality awareness Training often turned over to HR function Not enough emphasis on quality control and improvement tools, poor follow-through, no project-by-project implementation strategy TQM was largely unsuccessful

Total Quality Management (TQM):

Chapter 1 34 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Total Quality Management (TQM) TQM is “just another program” Value engineering Zero defects “Quality is free” Recipe for Ineffectiveness and maybe Disaster

Quality Systems and Standards:

Chapter 1 35 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Quality Systems and Standards

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Chapter 1 36 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. The ISO certification process focuses heavily on quality assurance, without sufficient weight given to quality planning and quality control and improvement

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Chapter 1 37 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

The Malcolm Baldrige National Quality Award:

Chapter 1 38 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. The MBNQA process is a valuable assessment tool See Table 1-3 for Performance Excellence Criteria and point values The Malcolm Baldrige National Quality Award

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Chapter 1 39 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 40 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

Six Sigma:

Chapter 1 41 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Six Sigma Use of statistics & other analytical tools has grown steadily for over 80 years Statistical quality control (origins in 1920, explosive growth during WW II, 1950s) Operations research (1940s) FDA, EPA in the 1970’s TQM (Total Quality Management) movement in the 1980’s Reengineering of business processes (late 1980’s) Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)

Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact:

Chapter 1 42 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact A process is an organized sequence of activities that produces an output that adds value to the organization All work is performed in (interconnected) processes Easy to see in some situations (manufacturing) Harder in others Any process can be improved An organized approach to improvement is necessary The process focus is essential to Six Sigma

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Chapter 1 43 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

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Chapter 1 44 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Why “Quality Improvement” is Important: A Simple Example A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink. This product has 10 components - is 99% good okay?

Six Sigma Focus:

Chapter 1 45 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Six Sigma Focus Initially in manufacturing Commercial applications Banking Finance Public sector Services DFSS – Design for Six Sigma Only so much improvement can be wrung out of an existing system New process design New product design (engineering)

Some Commercial Applications:

Chapter 1 46 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Some Commercial Applications Reducing average and variation of days outstanding on accounts receivable Managing costs of consultants (public accountants, lawyers) Skip tracing Credit scoring Closing the books (faster, less variation) Audit accuracy, account reconciliation Forecasting Inventory management Tax filing Payroll accuracy

Six Sigma:

Chapter 1 47 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Six Sigma A disciplined and analytical approach to process and product improvement Specialized roles for people; Champions, Master Black belts, Black Belts, Green Belts Top-down driven (Champions from each business) BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) Involves a five-step process (DMAIC) : Define Measure Analyze Improve Control

What Makes it Work?:

Chapter 1 48 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. What Makes it Work? Successful implementations characterized by: Committed leadership Use of top talent Supporting infrastructure Formal project selection process Formal project review process Dedicated resources Financial system integration Project-by-project improvement strategy (borrowed from Juran)

The Process Improvement Triad: DFSS, Lean, and DMAIC:

Chapter 1 49 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. OVERALL PROGRAMS LEAN Variation Reduction Predictability Feasibility Efficiency Capability Accuracy Flow Mapping Waste Elimination Cycle Time WIP Reduction Operations and Design Lean Lead-time Capable DMAIC ELIMINATE WASTE, IMPROVE CYCLE TIME DESIGN PREDICTIVE QUALITY INTO PRODUCTS ELIMINATE DEFECTS, REDUCE VARIABILITY DFSS Robust Requirements allocation Capability assessment Robust Design Predictable Product Quality Design for Six Sigma The “I” in DMAIC may become DFSS The Process Improvement Triad: DFSS, Lean, and DMAIC

DFSS Matches Customer Needs with Capability:

Chapter 1 50 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. DFSS Matches Customer Needs with Capability Mean and variability affects product performance and cost Designers can predict costs and yields in the design phase Consider mean and variability in the design phase Establish top level mean, variability and failure rate targets for a design Rationally allocate mean, variability, and failure rate targets to subsystem and component levels Match requirements against process capability and identify gaps Close gaps to optimize a producible design Identify variability drivers and optimize designs or make designs robust to variability Process capability impact design decisions DFSS enhances product design methods.

Lean Focuses on Waste Elimination:

Chapter 1 51 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Lean Focuses on Waste Elimination Definition A set of methods and tools used to eliminate waste in a process Lean helps identify anything not absolutely required to deliver a quality product on time. Benefits of using Lean Lean methods help reduce inventory, lead time, and cost Lean methods increase productivity, quality, on time delivery, capacity, and sales

DMAIC Solves Problems by Using Six Sigma Tools :

Chapter 1 52 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. 11 DMAIC Solves Problems by Using Six Sigma Tools DMAIC is a problem solving methodology Use this method to solve problems: Define problems in processes Measure performance Analyze causes of problems Improve processes  remove variations and nonvalue-added activities Control processes so problems do not recur

Six Sigma:

Chapter 1 53 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Six Sigma DMAIC is closely related to the Shewhart cycle (variously called the Deming cycle, or the PDCA cycle)

Quality Costs:

Chapter 1 54 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Quality Costs

Legal Aspects of Quality:

Chapter 1 55 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Legal Aspects of Quality Product liability exposure Concept of strict liability Responsibility of both manufacturer and seller/distributor Advertising must be supported by valid data

Implementing Quality Improvement:

Chapter 1 56 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. A strategic management process, focused along the eight dimension of quality Suppliers and supply chain management must be involved Must focus on all three components: Quality Planning, Quality Assurance, and Quality Control and Improvement Implementing Quality Improvement

PowerPoint Presentation:

Chapter 1 57 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc.

Learning Objectives:

Chapter 1 58 Introduction to Statistical Quality Control, 5th Edition by Douglas C. Montgomery. Copyright (c) 2005  John Wiley & Sons, Inc. Learning Objectives

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