IN2004: Statistical Quality Control Aug-Dec 2020

Lecture 5: Quality philosophy and management strategies

Lecturer: Ritwik Bhattacharya Department of Industrial Engineering
Contact: [email protected] Tecnológico de Monterrey, Querétaro, México

1.1 Joseph Moses Juran

J. M. Juran was born in 1904. He is

one of the founding fathers of the quality-
control and improvement field. He worked for
Walter A. Shewhart at AT&T Bell Laborato-
ries. Juran became the chief industrial engi-
neer at Western Electric (part of the Bell Sys-
tem). He became the head of the Depart-
ment of Administrative Engineering at New York
University. He was the co-author (with Frank
M. Gryna) of the Quality Control Hand-
book, a standard reference for quality methods
and improvement since its initial publication in
1957.

The Juran quality management philosophy focuses Figure 1.1: J. M. Juran

on three components: (1) Planning, (2) Control,
and (3) Improvement. These are known as the
Juran Trilogy.

• Planning involves identifying external customers and determining their needs. Then products or
services that meet these customer needs are designed and/or developed.

• Control is employed by the operating forces of the business to ensure that the product or service
meets the requirements. SPC is one of the primary tools of control.

• Improvement aims to achieve performance and quality levels that are higher than current levels.

0 This note is based on the book: Introduction to Statistical Quality Control, D. C. Montgomery, 6th Edition, John Wiley

& Sons Inc., 2009

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1.2 Armand Vallin Feigenbaum

A. V. Feigenbaum was an American quality con-

trol expert and businessman. He received his mas-
ter’s degree from the MIT Sloan School of Manage-
ment, and his Ph.D. in Economics from MIT. He
was Director of Manufacturing Operations at Gen-
eral Electric, and was later the President and CEO
of General Systems Company. He first introduced
the concept of companywide quality control in his
historic book Total Quality Control (first pub-
lished in 1951). This book influenced much of the
early philosophy of quality management in Japan in
the early 1950s.

Figure 1.2: A. V. Feigenbaum

1.3 Total Quality Management

(TQM)

• Total quality management (TQM) is a strategy for implementing and managing quality improve-
ment activities on an organizationwide basis.

• Total = Quality involves everyone and all activities in the company.

• Quality = Conformance to Requirements (Meeting Customer Requirements).

• Management = Quality can and must be managed.

• TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual
improvement in everything we do

TQM is the foundation for activities which include

• Meeting Customer Requirements

• Reducing Development Cycle Times

• Just In Time/Demand Flow Manufacturing

• Improvement Teams

• Reducing Product and Service Costs

• Improving Administrative Systems Training

• http://www.flowhelp.com/tqm/tqm.html
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1.4 The DMAIC Process

• DMAIC is a structured problem-solving procedure widely used in quality and process improvement

• DMAIC refers to a data-driven improvement cycle used for improving, optimizing and stabilizing
business processes and designs.

• It is often associated with six-sigma activities, and almost all implementations of six-sigma use the
DMAIC process for project management and completion.

• However, DMAIC is not exclusive to Six Sigma and can be used as the framework for other improvement
applications.

• The letters DMAIC form an acronym for the five steps: Define, Measure, Analyze, Improve, and
Control.

1.4.1 The Define Step

• The objective of the define step of DMAIC is to identify the project opportunity and to verify or
validate that it represents legitimate breakthrough potential.

• A project must be important to customers (voice of the customer) and important to the business.

• One of the first items that must be completed in the define step is a project charter. This is a
short document that contains a description of the project and its scope, the start and the anticipated
completion dates, an initial description of both primary and secondary goals.

• Figure 2.2 shows a project charter for a customer product return process.
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1.4.2 The Measure Step

• The purpose of the measure step is to evaluate and understand the current state of the process.

• This involves collecting data on measures of quality, cost, and throughput/cycle time.

• It is important to develop a list of all of the key process input variables (KPIV) and the key
process output variables (KPOV).

• The KPIV and KPOV may have been identified at least tentatively during the define step, but they
must be completely defined and measured during the measure step.

• In this steps, the following questions must be addressed completely.

1. Explain where that data came from?

2. How did you decide what data to collect?
3. How valid is your measurement system?
4. Did you collect enough data to provide a reasonable picture of process performance?

1.4.3 The Analyze Step

• In the analyze step, the objective is to use the data from the measure step to begin to determine the
cause-and-effect relationships in the process and to understand the different sources of variability.
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• It is important to separate the sources of variability into common causes and assignable causes.

• There are many tools that are potentially useful in the Analyze Step. Among these are control charts,
which are useful in separating common cause variability from assignable cause variability.

• Statistical hypothesis testing and confidence interval estimation can be used to determine if different
conditions of operation produce statistically significantly different results and to provide information
about the accuracy with which parameters of interest have been estimated

• Regression analysis allows models relating outcome variables of interest to independent input variables
to be built.

1.4.4 The Improve Step

• In the measure and analyze steps, the team focused on deciding which KPIVs and KPOVs to study,
what data to collect, how to analyze and display the data, identified potential sources of variability,
and determined how to interpret the data they obtained.

• In the improve step, they turn to creative thinking about the specific changes that can be made in the
process and other things that can be done to have the desired impact on process performance.

• The objectives of the improve step are to develop a solution to the problem and to pilot test the
solution. The pilot test is a form of confirmation experiment: it evaluates and documents the
solution and confirms the solution attains the project goals.

• In this steps, the following must be incorporated during study.

1. Adequate documentation of how the problem solution was obtained.

2. Documentation on alternative solutions that were considered.
3. Complete results of the pilot test, including data displays, analysis, experiments, and simulation
analyses.
4. Analysis of any risks of implementing the solution, and appropriate risk-management plans.

1.4.5 The Control Step

• The objectives of the control step are to complete all remaining work on the project and to hand off
the improved process to the process owner along with a process control plan.

• Control charts are an important statistical tool used in the control step of DMAIC.

• The review for the control step typically includes the following issues:

1. Data illustrating that the before and after results are in line with the project charter should be
available. (Were the original objectives accomplished?)
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2. Is the process control plan complete? Are procedures to monitor the process, such as control
charts, in place?
3. Is all essential documentation for the process owner complete?
4. A summary of lessons learned from the project should be available.
5. A list of opportunities to use the results of the project in other parts of the business should be
prepared.