2Advanced Organizer Managing Engineering and Technology Decision Making PlanningOrganizingLeadingControllingManagement FunctionsResearchDesignProductionQualityMarketingProject ManagementManaging TechnologyTime ManagementEthicsCareerPersonal TechnologyManaging Engineering and Technology
3Chapter ObjectivesExplain and be able to use the statistics of qualityDescribe the quality revolutionRecognize the methods of work measurement
4What Is Quality?“The degree of excellence of a thing” (Webster’s Dictionary)“The totality of features and characteristics that satisfy needs” ( ASQC)Fitness for use
5Definitions of Quality Fitness for use, or customer satisfactionQuality of designQuality of conformance ( or Quality of production)
6The Meaning of Quality The Meaning of Quality Producer’s Perspective Consumer’sPerspectiveQuality of Conformance•Conformance to Spec.CostQuality of Design•Quality Char.PriceProductionMarketingFitness for ConsumerUse
7Quality Of Conformance Ensuring product or service produced according to designDepends ondesign of production processperformance of machinerymaterialstraining
8Dimensions of Product Quality 1. Performance -- basic operating characteristics2. Features --“extra” items added to basic features3. Reliability -- probability product will operate over time4. Conformance --meeting pre-established standards5. Durability -- life span before replacement6. Serviceability -- ease of getting repairs, speed & competence of repairs7. Aesthetics -- look, feel, sound, smell or taste8. Safety --freedom from injury or harm9. Other perceptions--subjective perceptions based on brand name, advertising, etc
9Service Quality1. Time & Timeliness -- customer waiting time, completed on time2. Completeness -- customer gets all they asked for3. Courtesy -- treatment by employees4. Consistency -- same level of service for all customers5. Accessibility & Convenience -- ease of obtaining service6. Accuracy -- performed right every time7. Responsiveness -- reactions to unusual situations
10The Cost of Quality Cost of Poor Quality Cost of Achieving Good QualityPrevention costsQuality planning costsProduct design costsProcess costsTraining costsInformation costsAppraisal costsInspection and testingTest equipment costsOperator costsCost of Poor QualityInternal failure costsScrap costsRework costsProcess failure costs (Diagnostic)Process downtime costsPrice-downgrading costsExternal failure costsCustomer complaint costsProduct return costsWarranty claims costsProduct liability costsLost sales costs
11Quality Improvement and Quality Cost Total Quality Cost$Failure CostAppraisal CostPrevention CostIncreasing Quality
12Quality Control Approaches Statistical process control (SPC)Monitors production process to prevent poor qualityAcceptance samplingInspects random sample of product to determine if a lot is acceptable
13Statistical Process Control Take periodic samples from processPlot sample points on control chartDetermine if process is within limitsPrevent quality problems
14Variation Common Causes Special Causes Variation inherent in a process Can be eliminated only through improvements in the systemSpecial CausesVariation due to identifiable factorsCan be modified through operator or management action
15Probability Distribution Central tendencyMean, Mode, MedianDispersionStd. deviation, VarianceFrequency functionNormal, Binomial, Poisson
16Types Of Data Attribute data Variable data Product characteristic evaluated with a discrete choiceGood/bad, yes/noVariable dataProduct characteristic that can be measuredLength, size, weight, height, time, velocity
17SPC Applied To Services Nature of defect is different in servicesService defect is a failure to meet customer requirementsMonitor times, customer satisfaction
19Control Charts Commonly based on 3 Sample mean: x-bar-charts Sample range: R-chartsSample std. deviation: s-chartsFraction defective: p-chartsNumber of defects: c-charts
20The Normal Distribution 95%99.73%-3-2-1=0123
21Z Values in Control Charts Smaller Z values make more sensitive charts (Type I error)Z = 3.00 is standardCompromise between sensitivity and Type II errors
22Process Control Chart Upper control limit Central Line Lower control 12345678910Sample number
23Interpretation of Control Charts No evidence of out-of-control, ifNo sample points outside limitsMost points near process averageAbout equal number of points above & below centerlinePoints appear randomly distributed
24Development of Control Charts Based on in-control dataIf non-random causes present, discard dataCorrect control chart limits
25Control Charts For Attributes p ChartsCalculate percent defectives in samplec ChartsCount number of defects in item
42Using X-bar and R-Charts Together Each measures process differentlyProcess average and variability must be in control
43Indications of “Process out of Control” Sample data fall outside control limitsTheory of runs2 out of 3 beyond the warning limits4 out of 5 beyond the 1 limits8 consecutive on one sidePatterns
44Zones For Pattern Tests UCLLCLCLZone AZone BZone C
45Control Chart Patterns 8 consecutive points on one side of the center line.8 consecutive points up or down across zones.14 points alternating up or down.2 out of 3 consecutive points in zone A but still inside the control limits.4 out of 5 consecutive points in zone A or B.
58Double Sampling Plans Take small initial sample If # defective < lower limit, acceptIf # defective > upper limit, rejectIf # defective between limits, take second sampleAccept or reject based on 2 samplesLess costly than single-sampling plans
59Multiple (Sequential) Sampling Uses smaller sample sizesTake initial sampleIf # defective < lower limit, acceptIf # defective > upper limit, rejectIf # defective between limits, resampleContinue sampling until accept or reject lot based on all sample data
60Choosing a Sampling Plan An economic decisionSingle sampling planshigh sampling costs, low administrationDouble/Multiple sampling planslow sampling costs, high administration
61Taguchi Methods LSL USL m LSL USL m LSL USL m LSL USL m LSL USL m LSL
62Taguchi Methods Deviation from ideal value => “loss of society” L = k (y – T)2Use ANOVA to identify the sources of variationLossUSLLSLTy
63Total Quality Management Evolution of Total Quality ManagementW. Edwards DemingJoseph M. JuranPhilip CrosbyArmand V. FeigenbaumTQM and Continuous Process ImprovementPrinciples of Total Quality ManagementTQM Throughout the Organization
64Deming's 14 pointsCreate a constancy of purpose toward product improvement to achieve long-term organizational goals.Adopt a philosophy of preventing poor-quality products instead of acceptable levels of poor quality as necessary to compete internationally.Eliminate the need for inspection to achieve quality by relying instead on statistical quality control to improve product and process design.Select a few suppliers or vendors based on quality commitment rather than competitive prices.
65Deming's 14 pointsConstantly improve the production process by focusing on the two primary sources of quality problems, the system and workers, thus increasing productivity and reducing costs.Institute worker training that focuses on the prevention of quality problems and the use of statistical quality control techniques.Instill leadership among supervisors to help workers perform better.Encourage employee involvement by eliminating the fear of reprisal for asking questions or identifying quality problems.
66Deming's 14 pointsEliminate barriers between departments, and promote cooperation and a team approach for working together.Eliminate slogans and numerical targets that urge workers to achieve higher performance levels without first showing them how to do it.Eliminate numerical quotas that employees attempt to meet at any cost without regard for quality.
67Deming's 14 pointsEnhance worker pride, artisanry and self-esteem by improving supervision and the production process so that workers can perform to their capabilities.Institute vigorous education and training programs in methods of quality improvement throughout the organization, from top management down, so that continuous improvement can occur.Develop a commitment from top management to implement the previous thirteen points.
68Deming Wheel (PDCA Cycle) PlanIdentify the problem & develop the plan for improvement4. ActInstitute the improvement: continue the cycle3. Check/StudyAssess the plan: Is it working?2. DoImplement the plan on a test basis
69Total Quality Management 1. Customer defined quality2. Top management leadership3. Quality as a strategic issue4. All employees responsible for quality5. Continuous improvement6. Shared problem solving7. Statistical quality control8. Training & education for all employees
70TQM Throughout The Organization Marketing, sales, R&DEngineeringPurchasingPersonnelManagementPacking, storing, shippingCustomer service15
71Strategic Implications Of TQM Quality is key to effective strategyClear strategic goal, vision, missionHigh quality goalsOperational plans & policiesFeedback mechanismStrong leadership
72TQM In Service Companies Inputs similar to manufacturingProcesses & outputs are differentServices tend to be labor intensiveQuality measurement is harderTimeliness is important measureTQM principles apply to services
73Quality And Productivity = Output produced per unit of resources= output / inputFewer defects increase outputQuality improvement reduces inputs
74Manufacturing Productivity Rapid spread of manuf. capabilities => intense competition on a global scale.Advanced manuf. Tech. => changes both products & processesChanges in traditional management & labor practices, organizational structures, & decision making criteria.
75Work Measurement “Fair day’s work” concept Time Standard The amount of work that can be produced by a qualified operator working at a normal pace and effectively using his/her time when the work is not restricted by process limitations.Time StandardThe time required for a qualified employee working at a normal pace under capable supervision experiencing normal fatigue and delay to do a defined amount of work of specified quality when following the prescribed method.
76Uses of Time Standards Estimating costs Estimating equipment needs SchedulingLine BalancingCapacity AnalysisEvaluating automation costsPlanning staffing levelMethods comparisonPricingRevealing production problemsEvaluating employeesSetting piece ratesCompliance with contractual requirements
77Work Measurement Informal Time Standards Estimates and educated guessesHistorical DataTime of one whole cycleWork SamplingObserve an operation to determine frequencies of work componentsMeasure actual outputDetermine performance standard
78Work Measurement Engineered Time Standards Basic Time-Study Method Define work cycleTake time measurementsApply rating & allowanceMethods-time Measurement (MTM)
79Work Measurement Criticism: Direct labor only Productivity, not quality
80Maintenance Types of Maintenance Corrective maintenance Preventive maintenancePredictive maintenancepreventive maintenance that use sensitive instruments to predict trouble
81Total Productive Maintenance (TPM) 1. Promotes the overall effectiveness and efficiency of equipment in the factory.2. Establishes a complete preventive maintenance program for factory equipment based on life-cycle criteria.3. ”Team" basis involving various departments to include engineering, production operations, and maintenance.4. Involves every employee in the company, from the top management to the workers on the shop floor. Even equipment operators are responsible for maintenance of the equipment they operate.5. Based on the promotion of preventive maintenance through "motivational management"
84Purchasing Engineer Recognition of need Description of requirement Selection of possible source of supplyDetermination of price & availabilityPlacement of the orderFollow-up and expediting of the orderVerification of the invoiceProcessing of discrepancies & rejectionsClosing of completed ordersMaintenance of records & files
85Packaging Engineering Material & formSpecificationMachineryMethods of unitizing secondary tertiary packagingDelivery system
86Materials Management Purchasing Inventory Control Traffic & TransportationReceivingWarehousingProduction control