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ENGM 720 - Lecture 02

ENGM 720 - Lecture 02. Introduction to Statistical Process Control. Assignment:. Reading: Chapter 1 Cursory reading Chapter 2 & 3 Start reading Assignment 1: Review / obtain access to MS Excel Verify access to the Data Analysis Add-In Make sure you can access the class website

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ENGM 720 - Lecture 02

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  1. ENGM 720 - Lecture 02 Introduction to Statistical Process Control ENGM 720: Statistical Process Control

  2. Assignment: • Reading: • Chapter 1 • Cursory reading • Chapter 2 & 3 • Start reading • Assignment 1: • Review / obtain access to MS Excel • Verify access to the Data Analysis Add-In • Make sure you can access the class website • Make a trial download of the Red Bead data spreadsheet ENGM 720: Statistical Process Control

  3. Meaning of Quality and Quality Improvement • Quality – one of most important consumer decision factors in selecting products and services • Understanding / improving quality is key factor for success, growth, and competitive position • Substantial return on investment comes from: • Improved quality • Successful implementation of quality techniques as overall business strategy ENGM 720: Statistical Process Control

  4. Dimensions of Quality • Performance – Will the product do the intended job? • Reliability – How often does the product fail? • Durability - How long does the product last? • Serviceability – How easy is it to repair the product? • Aesthetics – What does the product look like? • Features – What does the product do? • Perceived quality – What is the reputation of the company or product? • Conformance to standards – Is the product made exactly as the designer intended? ENGM 720: Statistical Process Control

  5. Quality is a multifaceted entity. • Traditional (OLD) definition of Quality: • Fitness of use(i.e., products must meet requirements of those who use them.) ENGM 720: Statistical Process Control

  6. Two Aspects of “Fitness for use” • Quality of design – • all products intentionally made in various grades of quality. (e.g., Autos differ with respect to size, options, speed, etc.) • Quality of conformance – • how well the product conforms to specifications. (e.g., If diameter of a drilled hole is within specifications then it has good quality.) ENGM 720: Statistical Process Control

  7. What's Wrong with "Fitness for Use" Definition of Quality? • Unfortunately, quality as “Fitness for Use” has become associated with the "conformance to specifications" regardless of whether or not the product is fit for use by customer. • Misconception: • Quality can be dealt with solely in manufacturing - that is, by "gold plating" the product ENGM 720: Statistical Process Control

  8. Modern Definition of Quality:Quality is inversely proportional to variability • If variability of product decreases  quality of product increases • Quality Improvement – • Reduction of variability in processes and products • Quality Engineering – • Set of operational, managerial, and engineering activities that a company uses to ensure that quality characteristics of a product are at nominal levels ENGM 720: Statistical Process Control

  9. Statistical Methods for Quality Improvement • Relative Savings from a $1 investment in: • Acceptance Sampling ($1) • On-Line Process Control ($10) • Off-Line Process Improvement ($100) ENGM 720: Statistical Process Control

  10. Acceptance Sampling • Reduces bad product sent to consumer • Dodge & Romig 1930s • Sample from lot to determine acceptance • More effective than 100% inspection • No feedback, prevention or improvement ENGM 720: Statistical Process Control

  11. On-Line Process Control • Monitoring of manufacturing process with control charts • Shewhart 1920s • Sample & stop process if necessary • No improvement, but maintains current process quality level ENGM 720: Statistical Process Control

  12. Off-Line Improvement • Designed experiments • Taguchi & Classical Statistics 1980s • If it's not broke, improve it! • Continuous improvement of product designs and manufacturing processes ENGM 720: Statistical Process Control

  13. Total Cost Failure Cost $ Quality Cost Defect Rate Quality Myth:Higher Quality  Higher Cost ENGM 720: Statistical Process Control

  14. Manufacturing Process $20 / part 100 parts 75% Conform (75 good parts) 25% Non-conforming: (10 scrap parts) Very Often:Higher Quality  Lower Cost • Textbook ex: Manufacture of Copier Part (25 parts) Re-work Process $4 / part (15 good parts) ENGM 720: Statistical Process Control

  15. Study finds excessive process variability responsible for high nonconformity rate • New SQC procedure implemented • NOW: manufacturing non-conformities = 5% • SAVINGS: $22.89 – $20.53 = $2.36 / good part • PRODUCTIVITY: 9% improvement ENGM 720: Statistical Process Control

  16. Tactical less inspection less scrap and rework more capacity easier scheduling & shorter lead time less inventory less warranty cost Strategic more flexibility to make new products customer satisfaction easier to spot and solve problems employee involvement in continuous improvement How Quality Engineering Makes a Company More Competitive ENGM 720: Statistical Process Control

  17. Taguchi (1980) and Robust Design • New Goal: consistently good performance in a variety of operating conditions • Minimize variation in processes and products • Use Designed Experiments to achieve robustness ENGM 720: Statistical Process Control

  18. Prod Y Taguchi's Example:Elasticity of Caramel • Product X conforms to elasticity spec at 72o • Product Y performs well in a wider variety of operating conditions – more robust! Elasticity Prod X Spec 72o Temp ENGM 720: Statistical Process Control

  19. Total Quality Management – TQM • Although statistical techniques are critical for quality improvement: • the management system must direct quality improvement philosophy and ensure its implementation in all aspects of business • TQM must be implemented within a management system that is scientifically quality driven ENGM 720: Statistical Process Control

  20. International Standards Organization ISO 9000 (1990s) • An ISO 9000 certified company • examined by a registered official • has an effective management system, capable of consistent performance • Examples: • System in place to correctly identify customer needs • Staff have correct versions of documentation • Preferred suppliers selected; consistent communication system • System to document and correct errors ENGM 720: Statistical Process Control

  21. Six Sigma - Motorola • Six Sigma = 3.4 defects per million opportunities! • Every employee must show bottom line results of quality project – finance, mail room, manufacturing, etc. • identify problem; • develop measurement; • set goal; • close gap • Long term process – 5 years to fully implement ENGM 720: Statistical Process Control

  22. Malcolm Baldridge National Quality Award • Established by congress in 1987, for excellence in organizations • Applicant receives intense investigation • NIST (National Institute of Standards and Technology) study shows Baldrige Award recipients outperformed the Standard & Poor’s 500 by nearly 2.5 to 1. ENGM 720: Statistical Process Control

  23. The Baldridge Award examines quality of organization in seven categories • Leadership • Information and Analysis • Strategic Planning • Human Resource Development and Management • Process Management • Business Results • Customer Focus and Satisfaction ENGM 720: Statistical Process Control

  24. Questions & Issues • On-Campus Students • Please turn in card info • Distance students: • E-mail instructor with card info, including proctor contact information • Name • E-mail Address • Mailing Address ENGM 720: Statistical Process Control

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