Reliability and Quality Control

ESE 405 / 505 Professor Paul S. Min

Chapter 1. Quality Improvement in the Modern Business Environment

Eight Dimensions of Quality

1. 2. 3. 4. 5. 6. 7. 8. Performance Reliability Durability Serviceability Aesthetics Features Perceived Quality Conformance to Standards

 Quality: traditionally, fitness for use - Quality of design

- Quality of conformance
-Inversely proportional to variability (modern concept) Quality Improvement: Reduction of variability in processes and products (or elimination of waste)

Critical-to-Quality Characteristics (CTQ)

Physical: length, weight, voltage, viscosity

Sensory: taste, appearance, color

Time Orientation: reliability, durability, Serviceability

 Specifications
Lower specification limit Upper specification limit Target or nominal values

Defect versus nonconformity: not all products containing a defect are necessarily defective

History of Quality Improvement

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

Walter A. Shewart (1891-1967)

Trained in engineering and physics
Long career at Bell Labs Developed the first control chart

about 1924

A factorial experiment with three factors

Effective management of quality requires the execution of three activities: 1. Quality Planning 2. Quality Assurance 3. Quality Control and Improvement

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
Deming was asked by JUSE to lecture on statistical quality control to management Japanese adopted many aspects of Demings management philosophy Deming stressed continual never-ending improvement Deming lectured widely in North America during the 1980s; he died 24 December 1993

Demings 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 continued
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 selfimprovement 14. Put everyone to work to accomplish the transformation

Note that the 14 points are about change

Demings Deadly Diseases

1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Performance evaluation, merit rating, annual reviews 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs for employee health care 7. Excessive costs of warrantees

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

1. Planning 2. Control 3. Improvement These three processes are interrelated Control versus breakthrough Project-by-project improvement

 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

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

Quality Systems and Standards

International Standard Organization (ISO) in 1987
ISO 9000:2000 Quality Management System Fundamentals and Vocabulary ISO 9001:2000 Quality Management System Requirements ISO 9004:2000 Quality Management System Guidelines for Performance Improvement A company can be certified by selecting a registrar and receiving a certification audit. Once certified, the company also receives periodic surveillance audits.

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 1970s TQM (Total Quality Management) movement in the 1980s Reengineering of business processes (late 1980s) 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
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

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?
P{Single meal good} (0.99)10 0.9044 Family of four, once a month: P{All meals good} (0.9044) 4 0.6690 P{All visits during the year good} (0.6690)12 0.0080

P{single meal good} (0.999)10 0.9900, P{Monthly visit good} (0.99)4 0.9607 P{All visits in the year good} (0.9607)12 0.6186

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

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
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?

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)

Process Improvement Triad

DFSS
DESIGN PREDICTIVE QUALITY INTO PRODUCTS

Lean
ELIMINATE WASTE, IMPROVE CYCLE TIME LEAN
Flow Mapping Waste Elimination Cycle Time WIP Reduction Operations and Design

DMAIC
ELIMINATE DEFECTS, REDUCE VARIABILITY Variation Reduction
Predictability Feasibility Efficiency Capability Accuracy

Design for Six Sigma

Requirements allocation Capability assessment Robust Design Predictable Product Quality

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

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

DMAIC is a problem solving methodology Use this method to solve problems:
Define problems in processes Measure performance Analyze causes of problems Improve processesremove variations and nonvalue-added activities Control processes so problems do not recur

Six Sigma
DMAIC is closely related to the Shewhart cycle

Quality Costs

Legal Aspects of Quality

Product liability exposure Concept of strict liability
1. Responsibility of both manufacturer and seller/distributor 2. Advertising must be supported by valid data

Implementing Quality Improvement

A strategic management process, focused along the eight dimensions 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