8. Quality mgt Flashcards by Priscilla Temidayo

Effects of poor quality

Higher transformation costs (rework, scrap, etc.)
Higher warranty costs (returns, repairs, etc.
Loss of sales (short term)
Loss of reputation (long term)
Lawsuits

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Quality Mgt Process

Alarm bell - investigate - prevent
Checksheets - Root Cause Analysis, Fishbone Diagrams - Process Failsafes Checklists
Pareto Analysis
Scatter Diagrams
Control Charts

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chart of quality cost

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How can quality be improved

Quality can be improved if money can be moved out of “failure” costs and into “control” costs (no “new money” needed).

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Control cost

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what control cost is a traditional view

increase appraisal= quality ^ cost ^
Deming view increase process quality= quality ^ cost v

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Prevention failsafes 5 measures from Honda clip

-Doors taken off at start of assembly process
-Plastic “film” placed on car exterior at start of assembly process
-Materials used in design of product
-Magnetic “Label” template for location / level
-Ring & watch guards

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Failsafing

Creating a control condition where the
customer or employee can only take the correct action while performing the process

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Checklists

Checklists are effective and efficient
 Formalize previous lessons learned
 Shares Best Practices
 Improvement is typically immediate and significant

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Quality Mgt Philosophies

-Six Sigma
-PDCA Cycle

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Six sigma

Goal: to reduce process variation (errors) to the point where only 3.4 defects per million are produced by a process that involves a
high volume of manufactured units or service transactions
- Framework to evaluate bus. processes and reduce waste

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What happens where is high process variation

defects occurs regulary.

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DMAIC

Define, Measure, Analyze, Improve, Control

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Six Sigma Black belt certification allows

Lead process improvement project and team

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PDCA Cycle

Developed by Walter Shewart (1891-1967)
Plan - the improvement (obj/specifics)
Do- implement the improv. plant
Check- Act results vs planned results
Act- adjust so actual meets planned results

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Quality Certification

-ISO 9000
-ISO 14000
-ISO 26000

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ISO

International Organization for Standardization

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ISO 9000

-series of international generic mgt systems standard
-Purpose: to facilitate international trade by providing a single set of standards that everyone recognizes.
-They are process standard - quality view
-Requires thorough documentation of processes- can be expensive & time cons.

ISO 14000

-Primarily concerned with environmental mgt regarding what the org. does to minimize harmful effects on env. and achieve continual improvement.
Advantages
-Positive public image and reduced exposure to liability
-Good systematic approach to pollution prevention through the
minimization of ecological impact of products and activities
-Compliance with regulatory requirements and opportunities for competitive advantage

ISO 26000

-Guidance on social & environ. responsibilities
-Not a certification but a voluntary guidance to move org to good intention to good action
deals
1. Organizational Governance
2. Human Rights
3. Labour Practices
4. The Environment
5. Fair Operating Practices
6. Consumer Issues
7. Community Involvement and Development

Which certification has over 500,000 org in 180 countries

ISO 14000 WHILE ISO 9000 has over 1.1 million organizations in over 170 countries worldwide

Quality Control Graphical Tools

A. Pareto Analysis
B. Scatter Diagrams
C. Cause-and-Effect Diagrams (Fishbone)

Florence Nightingale

Founder of nursing & pie charts

Pareto Analysis

Distinguishes the vital few (80/20 rule)
Gather data on freq. of various events
Ranked in decreasing order of importance
Graph displays histogram(bar chart) of freq.
line graph of cumulative freq.

Scatter Diagrams

Plot data points and visually interpret the results

Root cause Analysis - Fish bone Diagram

AKA Cause-and-Effect Diagram and Ishikawa Diagram  Keep asking ‘why?’ to determine the root cause of a problem

Statistical Quality Control(SQC)

into acceptance sampling & statistical process control (SPC) Acceptance sampling -A form of appraisal -acceptance or rejection of goods which already exist  Process Control - A form of prevention -sets standards to indicate when adjustments should be made while the service or good is being produced.

Statistics & measures for quality control

Study of numerical data to better understand the characteristics of a population or process.  Measures of “Central Tendency”  Measures of “Dispersion” Central Limit Theorem

Measures of Central Tendency

Sample mean xbar = sum x/n m rep samples n rep observation , timres Grand mean Xdouble bar = sum of X bar / m

Measure of Dispersion

Sample Range = largest X - smallest X Sample sd = s= sqrt(x-x bar)^2/n-1

CLT

If we calculate sample means, x bar ’s, rather than just individual observations, then for large n the distribution of the xbar 's will tend to normality.

Sample Errors

Type 1 error Type 2 error

What error is type 1

Producer risk

Operations Strategy & Sampling Errors

Want to avoid Type 2 error - high quality making control tight = type 1 error avoid type 1 error - reduce costs making control loose= type 2 error

Control Charts

to make inferences about the state (in control versus out of control) of the process on the basis of one or more statistics of samples drawn from the on-going process

Diff in in a state of control vs out of control

In control Out of control The variations are only by random fluctuations (common causes) usual - The variation is not purely random - assignable (or special) causes for the variability are present

Out of control means production is bad

No, it merely indicates that the process is not behaving in the way it is expected, given what is known about the process.

uder SPC diff in attributes & variable

Attribute- data that counts - pchart Variables - data that measures - x chart (central tendency) & r(variability)

Additional reasons to stop & investgate

-Trends in either direction -Consecutive points near UCL /LCL -five consecutive points above /below central line -Erratic behavior

How Often to Sample? Depends on:

 Cost of sampling  Variability of process  Cost of quality faults (ex. pencils vs. pacemakers) -Where to Monitor (Control) in a Multistage Process:  Before “costly” stages in the process  At the end, to ensure customer satisfaction  At historically unreliable stages  Near beginning to isolate supplier problems  Why not monitor at almost every stage of the process? Too expensive, too slow

Process Capability

measures whether or not the output will routinely (i.e., when the process is in control) meet the design specifications

Specification limits

The upper (USL) and lower (LSL) specification limits are externally set and are not affected by improving the process or sampling.  Measured by the relationship of the variation of individual values of the process with the USL and LSL.  Each individual product must meet the specification