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Chapter 5 – Part 3 The TQM Philosophy
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Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Dec 29, 2015

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Page 1: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Chapter 5 – Part 3

The TQM Philosophy

Page 2: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Mini Case: Quality Improvement

LSLLSL USLUSL

X = Amount of Toner Toner

Operation: Adding Toner to CartridgeCurrent Process

Target

Mean

20% Defective

Target Toner

Page 3: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

What’s wrong with this operation?

How should it be corrected?

Why is this fix feasible?

Mini Case: Quality Improvement

Page 4: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

LSLLSL USLUSL

Amount of Toner

New Process – Mean Shifted to left and centered on target

Target

Mini Case: Quality Improvement

Page 5: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Mini Case: Quality Improvement

Benefits?

Next step?

Page 6: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Amount of Toner

Suppose the current process looked like this. Will adjusting the mean to the target improve the process?

Mini Case: Quality Improvement

LSLLSL USLUSL

Target

20% Defective

Mean

Page 7: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Amount of Toner

Mean adjusted to target

Mini Case: Quality Improvement

10% Defective

LSLLSL USLUSL

Mean =Target

10% Defective

Page 8: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Seven Tools of Quality Control

Cause-and-Effect Diagrams Flowcharts Checklists Control Charts Scatter Diagrams Pareto Analysis Histograms

Page 9: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Cause-and-Effect Diagram(Fishbone Diagram)

Machines

Cause

Effect-problem

MaterialsMethods

Manpower

Environment

Cause

Cause

CauseCause

CauseCause

Cause

CauseCause

Cause

Cause

4M + E

Page 10: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Flowcharts

Page 11: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Checklist

Simple data check-off sheet designed to identify type of quality problems at each work station; per shift, per machine, per operator

Page 12: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Control Charts (Chapter 6)

Control charts are tools for predicting the future performance of a process.

If we can predicting performance, we can take corrective action before too many nonconforming units are produced.

Page 13: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Control Charts (Chapter 6)

Suppose we construct a control chart for the thickness of the gold plating of an electrical connector.

We take samples of connectors over time and compute the mean of each sample.

After several time period, we use the sample means to estimate the mean thickness.

Page 14: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Control Charts (Chapter 6)

We then construct two control limits:

an upper control limit (UCL) and a lower control limit (LCL)

• We do this by adding subtracting 3 standard deviations to the estimated mean:

LCL = Estimated Mean – 3(Standard Deviation)

UCL =Estimated Mean + 3(Standard Deviation)

Page 15: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

We plot the estimated mean and the control limits on the control chart.

The result is called a control chart for the process mean.

Control Charts (Chapter 6)

Time

mean

Mea

n th

ickn

ess

Page 16: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Control Charts (Chapter 6)

If the sample means fall randomly within the control limits, the process mean is in control.

“In control” means that the process mean is stable and hence predictable.

If at least one sample mean fall outside of the control limits, we say the process mean is “out of control.”

In this case, the process mean is unstable and not predictable.

The goal is to find out why and remove the causes of instability from the process.

Page 17: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Speed vs. Yield

0

5

10

15

20

25

30

0 10 20 30 40

Speed

Yie

ld

Scatter DiagramsA graph that shows how two variables are related to one another

Optimal Speed

Page 18: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Pareto Diagram

Pareto Principle:

80% of the problems may be

attributed to 20% of the

causes.

Pareto Principle:

80% of the problems may be

attributed to 20% of the

causes.

Missing

Per

cen

t of

def

ects

Bubbles CracksUneven

Runs

80%

Page 19: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Histogram for Diameter

0

5

10

15

20

25

30

35

40

45

<=0.077 .077-.277

.277-.477

.477-.677

.677-.877

.877-1.077

1.077-1.277

1.277-1.477

1.477-1.677

1.677-1.877

1.877-2.077

>2.077

Diameter

USLLSL

Histograms

Page 20: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Reliability

Reliability is the probability that the product, service or part will function as expected.

Reliability is a probability function dependent on sub-parts or components.

Page 21: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Reliability

Reliability of a system is the product of component reliabilities:

RS = (R1) (R2) (R3) . . . (Rn)

RS = reliability of the product or system

R1 = reliability of the first component

R2 = reliability of the second component. ..

Rn = reliability of the nth component

Page 22: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Example 1: Components in Series

A radio has three transistors. All transistors must work in order for the radio

to work properly. Probability that the first transistor will work =.80 Probability that the first transistor will work =.90 Probability that the first transistor will work =.85

What is the reliability of the radio?

Page 23: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Solution

RS = (R1) (R2) (R3)

RS = (.80) (.90) (.85) =.51

R1 = .80 R3 = .85R2 = .90

Page 24: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Example 2: Backup Components

Backup component takes over when a component fails.

Suppose only one transistor is needed for the radio to work.

In case the one transistor fails, a backup transistor has been installed.

Probability that the original transistor will work =.92

Probability that the backup transistor will work =.87

Page 25: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Example 2: Backup Components

The backup transistor is in parallel to the original transistor.

RBU = .87

R1 = .92

Page 26: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Example 2: Backup Components

Parallel components allow system to operate if one or the other fails

Increase reliability by placing components in parallel For system with one component and a BU

component:

RS = R1 + [(RBU) x (1 - R1)]

1 - R1 = Probability of needing BU component

= Probability that 1st component fails

Page 27: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Solution

RS = R1 + [(RBU) x (1 - R1)]

RS = .92 + [(.87) x (1 - .92)]

= .92 + [(.87) x (.08)]

= .9896

RBU = .87

R1 = .92

Page 28: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

R1 = .80

RBU = .75

R2 = .88

Example 3: Series with Backup Components

Page 29: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Example 3: Series with Backup Components

• BU is in parallel to first component.• Convert to system in series.• To this by first finding reliability (probability) of

components.

A = Probability that first component or its BU works

B = Probability that second component works = R2

RS = A x B

Page 30: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Solution

A = R1 + [(RBU) x (1 - R1)]

= .80 + [(.75) x (1 - .80)]

= .95

B = R2 =.88

RS = A x B = .95 x .88 = .836

.95 .88

Part 1 Part 2

Page 31: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Reliability Over Time - Bathtub Curve

t0 Time

Fai

lure

Rat

e

Maturity

Constant Failure

Infant Mortality

t2t1

Page 32: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Quality Awards and Standards

Malcolm Baldrige National Quality

Award (MBNQA)

The Deming Prize

ISO 9000 Certification

Page 33: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

MBNQA- What Is It? Award named after the former Secretary of

Commerce – Regan Administration Intended to reward and stimulate quality

initiatives Given to no more that two companies in each

of three categories; manufacturing, service, and small business

Past winners: Motorola Corp., Xerox, FedEx, 3M, IBM, Ritz-

Carlton

Page 34: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

Baldrige Criteria

Leadership (125 points)

Strategic Planning (85 points)

Customer and Market Focus (85 points)

Information and Analysis (85 points)

Human Resource Focus (85 points)

Process Management (85 points)

Business Results (450 points)

Page 35: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

The Deming Prize

Given by the Union of Japanese Scientists and

Engineers since 1951

Named after W. Edwards Deming who worked to

improve Japanese quality after WW II

Not open to foreign companies until 1984

Florida P & L was first US company winner

Based on how well a company applies Deming’s 14

points

Page 36: Chapter 5 – Part 3 The TQM Philosophy. Mini Case: Quality Improvement LSL USL X = Amount of Toner Toner Operation: Adding Toner to Cartridge Current Process.

ISO 9000

Set of international standards on quality

management and quality assurance, critical to

international business Data based approach to decision making Supplier relationships Continuous improvement Customer focus Leadership Employee training Process (operations) management