Alicia, Nicole & Jason
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
Review
The Basics
 Terms & Concepts
 Statistical Measure
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Example
Homework
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Total Quality Management: An
organization-wide effort directed towards
the continuous improvement of quality

Quality as…
 “Excellence”
 “Conformance to Specifications”
 “Fitness for Use”
 “Value for the Price”
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Quality-Related Product Characteristics:
 Reliability, Durability, Serviceability
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Quality-Related Service Characteristics:
 Reliability, Tangibles, Responsiveness, Assurance,
Empathy
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
Design Quality: Inherent value of a product
in the marketplace
Conformance Quality: Degree to which the
product or service design specifications are
met
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Costs of Quality:
 External Failure Costs: Result from defects found after
products reach customers
 Internal Failure Costs: Result from defects found prior to
shipment to customers
 Appraisal Costs: Result from inspections to assess quality
levels
 Prevention Costs: Result from efforts to prevent product
defects
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Characteristics of OPI Systems:
 Vision/mission/purpose for quality
 Focus on supplier/customer linkages
 Passionate commitment to continuous improvement
Product Quality: A product’s fitness for consumption
in terms of meeting customers’ needs and desires.
Design Quality: A measure of how well a product’s
designed features match up to the requirements of
a given customer group
Conformance Quality: A measure of whether or not a
delivered product meets its design specifications
Quality Management: A management approach that
establishes an organization-wide focus on quality,
merging the development of a quality-oriented
corporate culture with intensive use of
managerial/statistical tools
Process-Oriented Focus
on Prevention &
Problem Solving
Viewing Quality
Management as a
Never Ending Quest
Building an
Organizational Culture
Around Quality
When managing quality
control, management
should focus on the
process as a whole as
opposed to each
individual entity
Because products and
processes are
continually changing,
quality management
must be continued
(even if only small
improvements are
being made)
Create a culture within
the organization that
supports quality
improvement initiatives
(Ongoing Process
Improvement)
Traditional
Organizational
Structure
Direction of
Support
TQM
Organizational
View
Employees
Top
Management
Middle Management
Lower Level Management &
Front Line Supervisors
Employees
Lower Level Management &
Front Line Supervisors
Middle Management
Top
Management
Act
Plan
Check
Do
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Definition: A management program that
seeks to improve the quality of process
outputs by identifying and removing the
causes of defects and variation in the
various processes
Sigma (σ): Represents the standard
deviation of values for the output of a
process
“Six”: +/- 3 standard deviations
1. Define
Customers & their priorities
2. Measure
Process & its performance
3. Analyze
Causes of defects
4. Improve
Remove causes of defects
5. Control
Maintain quality
A set of internationally accepted standards for
business quality management systems
 Developed by the International Organization for
Standardization (ISO) to facilitate international trade
 Original: 1987
 Newest Version: ISO 9000:2008
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
Malcolm Baldrige National Quality Award: A
national quality award bestowed by the NIST in
recognition of superior quality and performance
excellence
 Given by the US President to strengthen American
competitiveness

X-bar/R Charts are useful when you want to
monitor averages over time but still keep track of
the variation between individual results

Note:
 X-bar Charts: Subgroup Average
▪ Shows how much variation there is over time in your average
 R Charts: Range
▪ Shows how much variation there is within each subgroup

“Statistical Control”: The subgroup average is
consistent over time and the variation between a
subgroup is consistent over time
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X-bar –
 Subgroup Average
 Determines whether a
process has shifted to the
point that it is no longer “in
control”
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R–
 Range
 = Maximum – Minimum
 Evaluates the gap between
the largest & smallest
observations in each sample
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Ex. Bowling
1.
2.
3.
4.
5.
Select subgroup size (n)
Select the frequency with which the data
will be collected
Select the number of subgroups (k) to be
collected before control limits are
calculated
For each subgroup, calculate the
subgroup average (Xbar = SX/n)
For each subgroup, calculate the group
range (R = Xmax – Xmin)
1.
2.
3.
Select the scales for the x and y axes for
both the X & R charts
Plot the subgroup ranges on the R chart
and connect consecutive points
Plot the subgroup averages on the X
chart and connect consecutive points
Calculate the average range (Rbar = SR/k); Plot it on range
chart
Calculate the overall process average (Xdbar = SXbar/k);
Plot it on X-bar chart
Calculate control limits for R chart; Plot on R chart
1.
2.
3.
4.
1.
2.
3.
1.
2.
3.
(Upper) UCLr = D4Rbar
(Lower) LCLr = D3Rbar
D3/D4 are control chart constants that depend on group size
Calculate control limits for X-bar chart; Plot on X-bar chart
(Upper) UCLx = Xdbar + A2(Rbar)
(Lower) LCLx = Xdbar – A2Rbar
A2 is a control chart constant that depends on subgroup size
1.
Consider variation 1st
1. If R chart is out of control, the control limits
on the X-bar chart are not valid
2.
All tests for statistical control apply to
the X-bar chart
1. Points beyond the limits, number of runs &
length of runs tests apply to the R chart
1.
If the R chart is in statistical control, the
process standard deviation (s) is:
1. s = Rbar/d2
1. d2 is a control chart constant that depends on
subgroup size
Control chart constants 
A “Run Test”: Checks
for patterns in a
sequence of
observations
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
Helps an analyst detect
abnormalities and
provides insight into
correcting an out-ofcontrol process
Other indications:
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


Runs
Hugging
Cycles are similar to
Periodocity
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Example 23: A Quality Control Station
 Go through together
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Example 24: A Machine with Breakdowns
 Homework for Thursday
 For “Sheets” buffer, use…
▪ Capacity = 200
▪ Initial # objects = 200

Resources: Resources that this Work
Station needs in order to work
 To find: Main Menu  Other Features 
Resources
 Useful in modeling situations where:
▪ 1 person is operating several machines
▪ A machine has several setup configurations
▪ Several other situations
 Assigned to Work Stations in the
corresponding tables

QC @ McDonald’s
 http://www.youtube.com/watch?v=kPv2iiJA
-ok&feature=related

Ikea QC Commercial
 http://www.youtube.com/watch?v=kP9PZYj
VwUo&feature=related

Toyota QC after recalls
 http://www.youtube.com/watch?v=2C-
w6ogwr5U