IE 368 - Quality Planning & Control

with a Lean Six Sigma Perspective

Week 1

Prof. Dr. Serhan Duran

Importance of Quality
Quality has become one of the most important consumer decision factors in the
selection among competing products and services.
Consequently, understanding and improving quality are key factors leading to
business success,
growth, and
enhanced competitiveness.

There is a substantial return on investment from improved quality and from

successfully employing quality as an integral part of overall business strategy.
Quality can be defined in many ways
Most people have a conceptual understanding of quality as relating to one or
more desirable characteristics that a product or service should possess.
Although this conceptual understanding is certainly a useful starting point, we will
give a more precise and useful operational definitions of quality.
Dimensions of Quality
Quality of a product
can be described and
evaluated in several
ways or dimensions
It is important to
differentiate these
different dimensions
of quality.
Garvin introduced the
eight components or
dimensions of
quality.
Dimensions of Quality
1. Performance: Will the product do the intended job?
Potential customers evaluate a product to determine if it will perform certain specific
functions and determine how well it performs them.
For example: you could evaluate spreadsheet software packages for a PC and discover
that one outperforms another with respect to the execution speed.
2. Reliability: How often does the product fail?
Complex products, such as many appliances, automobiles, or airplanes, usually require
some repair over their service life but when they requires frequent repair, we say that it
is unreliable
There are many industries in which the customer’s view of quality is greatly impacted by
the reliability dimension of quality.
3. Durability: How long does the product last?
This is the effective service life of the product.
The automobile and major appliance industries are examples where durability dimension
of quality is very important to customers.
Dimensions of Quality
4. Serviceability: How easy is it to repair the product?
Customer’s view of quality is directly influenced by how quickly and economically a
repair or routine maintenance activity can be accomplished.
5. Aesthetics: What does the product look like?
This is the visual appeal of the product, often taking into account factors such as style,
color, shape, packaging and other sensory features
6. Features: What does the product do?
Customers associate high quality with products that have added features; those that
have features beyond the basic performance of the competition.
7. Perceived Quality: What is the reputation of the company or its product
Customers rely on the past reputation of the company concerning quality of its products.
8. Conformance to Standard: Is the product made exactly as the designer intended?
We usually think of a high-quality product as one that exactly meets the requirements
placed on it.
Definitions of Quality
We discussed different dimensions of quality. Indeed quality is a multifaceted
entity.
Consequently, a simple answer to questions such as “What is quality?” is not easy.
The traditional definition of quality is based on the viewpoint that products and
services must meet the requirements of those who use them.

Definition by Dr. Joseph M. Juran

One of the fathers of modern day Quality Management
Known for incorporating the human aspect of quality management
Stated that, quality means fitness for use; a more precise definition is fitness for
use and meeting or exceeding customer expectations
Definitions of Quality
Definition by Dr. Joseph M. Juran
There are two general aspects of fitness for use:
1. Quality of Design: All goods and services are produced in various grades or levels of
quality. When these variations in grades or levels of quality are intentional it is called the
quality of design.
2. Quality of Conformance: is how well the product conforms to the specifications
required by the design. It is influenced by a number of factors:
choice of manufacturing processes,
training and supervision of the workforce,
types of process controls, tests, and inspection activities employed,
extent to which these procedures are followed and
motivation of the workforce.

Unfortunately, this definition has become associated more with the conformance
aspect of quality than with design and leads to much less focus on the customer.
Definitions of Quality
Another Definition by Dr. A Blanton Godfrey
A modern day quality guru
Stated that, quality is relative; the customer focus is simply on value, seeing it as a
ratio of quality over price and only when we offer more value than our
competitor, we do really succeed.
This definition, goes beyond the idea that quality is simply being fit for customers’
use, it includes
Customer satisfaction,
Efficiency in production and
Price competitiveness.

It conveys the idea that, not only is it enough for customers to make the products
with the right characteristics but, the business needs to make a profit. It needs to
be successful as an enterprise, in order to truly have quality.
Definitions of Quality
Modern and Technical Definition of Quality
Quality is inversely proportional to variability.
When the variability in the important characteristics of a product decreases, the
quality of the product increases.
Example: An automobile company in USA performed a comparative study of
transmissions that was manufactured in US plant and by a Japanese supplier.
Definitions of Quality
Modern and Technical Definition of Quality

Company selected random samples of transmissions from each plant,

disassembled them, and measured several critical quality characteristics.
Note that both distributions of critical dimensions are centered at the desired or
target value.
Less variability in the critical quality characteristics of the Japanese-built ones
Definitions of Quality Improvement
Important finding: Customers don’t see the mean of your process, they only see
the variability around that target you have not removed.
In almost all cases, this variability has significant customer impact
Japanese-built transmissions shifted gears more smoothly, ran more quietly, and
were generally perceived by the customer as superior to those built in USA.
Thus, quality truly is inversely proportional to variability
How did the Japanese do this? The answer lies in the systematic and effective use
of the methods we will cover in this course.
It also leads to the following definition of quality improvement.
Quality improvement is the reduction of variability in processes and products.
This definition leads us to the Six Sigma Methodology and the role of the DMAIC
(Define, Measure, Analyze, Improve and Control) process improvement cycle.
Definitions of Quality Improvement
Excessive variability in process performance often results in waste.
For example the wasted money, time, and effort that is associated with the repairs
Therefore, an alternate and frequently very useful definition is that quality
improvement is the reduction of waste.
This definition leads us to Lean Production
Lean Production is a customer-centric methodology that improves processes by
eliminating waste and focusing on value-added tasks.
Lean and Six Sigma - Two Sides of a Coin
While we mentioned two important management systems
Six Sigma Methodology and
Lean Production
to reduce costs and increase the customer satisfaction by improving the
creation of products and services.
It will be appropriate to compare them before we start to deep dive into them.
Lean and Six Sigma - Two Sides of a Coin
History of Quality Control & Improvement
Quality always was an integral part of all products and services.
However, our awareness of its importance and the introduction of formal methods
such as Lean and Six Sigma have been an evolutionary development.
Let’s review some of the important milestones in this evolutionary process
History of Quality Control & Improvement
History of Quality Control & Improvement
History of Quality Control & Improvement
History of Quality Control & Improvement
In a Nutshell
The adoption and use of statistical methods played a central role in the
re-emergence of U.S. industry
Various management systems have also emerged as frameworks in which to
implement quality improvement
Total Quality Management (TQM)
Six Sigma
Lean

First, we briefly go over the statistical methods that are the central focus of this
course
Then an overview of some quality management systems
Statistical Methods - Quality Improvement
We will focus on
Statistical Process Control
Design of Experiments
Acceptance Sampling
Statistical Methods - Quality Improvement
Statistical Process Control (SPC) - Control Charts
One of the primary on-line process monitoring techniques of SPC
Ex: Chart plots the averages of measurements of a quality characteristic. When
unusual variability are present, sample averages fall outside control limits
Statistical Methods - Quality Improvement
Design of Experiments
A designed experiment helps discovering the key variables influencing the
quality characteristics of interest in the process
Systematically varying the controllable input factors in the process and
determining the effect these factors have on the output product parameters
Reduces the variability in the quality characteristics and in determines the levels of
the controllable variables that optimize process performance
Designed experiments are a major off-line quality-control tool. They are often
used during development activities and the early stages of manufacturing
Statistical Methods - Quality Improvement
Design of Experiments - Factorial Design
One major type of designed experiment in which factors are varied together such
that all possible combinations of factor levels are tested.
Figure shows two possible factorial designs for a process for the cases of p = 2 and
p = 3 controllable factors
Statistical Methods - Quality Improvement
Acceptance Sampling
The inspection and classification (accepted lot or rejected lot) of a sample of units
selected at random from a larger batch or lot
Statistical Methods - Quality Improvement
The primary objective of quality engineering efforts is the systematic reduction of
variability in the key quality characteristics of the product
In the early stages acceptance sampling is used to find products that do not
conform to the specifications
Introduction of SPC will stabilize the process and reduce the variability
Further reduction of variability needs statistically designed experiments
Management of Quality Improvement
Statistical techniques, including SPC and Designed Experiments along with other
problem-solving tools are the technical basis for quality control & improvement
To be used effectively these statistical techniques must be implemented within a
management system
The management system must direct the overall quality improvement philosophy
and ensure its deployment in all aspects of the business
An effective management of quality involves three activities:
Quality Planning: Involves identifying customers and their needs (VOC)
Quality Assurance: Ensuring the quality levels of products are maintained
Quality Control and Improvement

Quality control and improvement involve the set of activities used to ensure that
the products and services meet requirements and are improved on a continuous
basis. Often done on a project-by-project basis.
Management of Quality Improvement
Quality Philosophy - W. Edwards Deming
influenced greatly by Walter A. Shewhart, the developer of the control charts
Following the World War II, became a consultant to Japanese industries and
convinced their top management of the power of statistical methods and the
importance of quality as a competitive weapon
He firmly believed that the responsibility for quality rests with management and
very few opportunities lie at the workforce or operator level.
The Deming philosophy is an important framework for implementing quality and
productivity improvement
His philosophy is summarized in 14 points for management
As a total quality management philosophy, Dr. Deming’s work is foundational to
TQM
Management of Quality Improvement
Management of Quality Improvement
W. Edwards Deming - Shewhart Cycle
Deming recommended the Shewhart Cycle as a model to guide improvement
The four steps, Plan-Do-Check-Act, are often called the PDCA cycle
PDCA is iterative and may require several cycles for complex problems
Management of Quality Improvement
Quality Philosophy - Joseph M. Juran
The Juran quality management philosophy focuses on Juran Trilogy: planning,
control, and improvement
SPC is one of the primary tools of control
Juran emphasizes that improvement must be on a project-by-project basis which
are typically identified at the planning stage of the trilogy

Quality Philosophy - Armand V. Feigenbaum

He proposed a three-step approach to improving quality: quality leadership,
quality technology, and organizational commitment.
By quality technology, Feigenbaum means statistical methods and other technical
and engineering methods,
He suggested that technical capability be concentrated in a specialized department
Management of Quality Improvement
Total Quality Management (TQM)
A strategy for implementing and managing quality improvement activities on an
organization-wide basis
TQM began in the early 1980s with the philosophies of Deming and Juran
Organizations that implemented a TQM approach to quality improvement have
Quality Councils or high-level teams that deal with strategic quality initiatives
Workforce-level teams that focus on routine production or business activities
and Cross-functional teams that address specific quality improvement issues
TQM has only had moderate success for a variety of reasons:
there is insufficient effort devoted to widespread utilization of the technical tools of
variability reduction.
TQM efforts engaged in widespread training of the workforce in the philosophy of quality
improvement and but only a few basic methods
Management of Quality Improvement
Quality Standards
The International Standards Organization (ISO) developed a series of standards
for quality systems
The first standards were issued in 1987 and the current version of the standard is
known as the ISO 9000 series
Many organizations have required their suppliers to be certified under ISO 9000
Much of the focus of ISO 9000 (and of the industry-specific standards) is on formal
documentation of the quality system; that is on quality assurance activities.
Organizations usually must make extensive efforts to bring their documentation
into line with the requirements of the standards
Thus, ISO 9000 certification alone is no guarantee that good quality products are
being designed, manufactured, and delivered to the customer. Relying on ISO
certification is a strategic management mistake
Management of Quality Improvement
Six Sigma
Products with many components typically have many opportunities for failure or
defects to occur.
As a response, Motorola developed the Six-Sigma program in the late 1980s
The focus is reducing variability in key product quality characteristics to the
level at which failure or defects are extremely unlikely.
Consider a normal probability distribution as a model for a quality characteristic
with specification limits at three standard deviations on either side of the mean
Probability of producing a product within these specifications is 0.9973, which
corresponds to 2700 parts per million (ppm) defective. Sounds good?
This is referred to as three-sigma quality performance
If we have a product that consists of an assembly of 100 independent parts and all
100 of these parts must be non-defective for the product to function satisfactorily
Management of Quality Improvement
Six Sigma
Probability of any specific unit of product is non-defective is (0.9973)100 = 0.7631
About 23.7% of the products produced under three-sigma quality will be defective.
Management of Quality Improvement
Six Sigma
The Motorola Six Sigma concept is to reduce the variability in the process so that
the specification limits are at least six standard deviations from the mean
There will only be about 2 parts per billion defective
Under six-sigma quality, probability of any specific unit of product (composed of
100 parts) is non-defective is (0.999999998)100 = 0.9999998, corresponds to
0.002 parts per million (ppm) defective
When the six-sigma concept was initially developed, an assumption was made that
when the process reached the six-sigma quality level, the process mean was still
subject to disturbances that could cause it to shift by as much as 1.5 standard
deviations off target
Under this scenario, a six-sigma process would produce about 3.4 ppm defective.
Management of Quality Improvement
Six Sigma
Hint: Φ(4.5) = 0.99999660
Management of Quality Improvement
Six Sigma
Six Sigma become a program for improving corporate business performance by
both improving quality and paying attention to reducing costs
Companies involved in a Six Sigma effort utilize specially trained individuals called
Green Belts,
Black Belts, and
Master Black Belts

The “belts” have specialized training and education on statistical methods and the
quality and process improvement tools
Typical Six Sigma projects are four to six months in duration are selected for their
potential impact in the business
Six Sigma uses a specific five-step problem-solving approach: Define, Measure,
Analyze, Improve, and Control (DMAIC)
Management of Quality Improvement
Six Sigma
Between 1987 and 1993, Motorola reduced defectivity on its products by
approximately 1300%. This success led to many organizations adopting the
approach
There have been three generations of Six Sigma implementations (General Electric)
Generation I Six Sigma focused on defect elimination and basic variability reduction
(Motorola)
Generation II Six Sigma added a strong effort through cost reduction
Generation III Six Sigma has the additional focus of creating value throughout the
organization and for its stakeholders

In recent years, two other tool sets; Lean Systems and Design for Six Sigma (DFSS)
have become identified with Six Sigma and many organizations regularly use one
or both of these approaches as an integral part of their Six Sigma implementation
Management of Quality Improvement
Design for Six Sigma
Takes the variability reduction and process improvement philosophy of Six Sigma
upstream from manufacturing or production into the design process
Customer input through Voice Of the Customer (VOC) activities to determine
what the customer really wants
the priorities based on actual customer wants
if the business can meet those needs at a competitive price and make a profit

Traditionally, Six Sigma is used to achieve operational excellence, while DFSS is

focused on improving business results by increasing the sales revenue from new
products and services
DFSS usually the reduces the development lead time; the cycle time to
commercialize new technology and get the resulting new products to market.
DFSS focuses on customer requirements while keeping process capability in mind
Management of Quality Improvement
Lean Systems
are designed to eliminate waste:
unnecessarily long cycle times
waiting times between value-added work activities
rework or scrap

Rework and scarp are often the result of excess variability, so there is an obvious
connection between Six Sigma and Lean

Six Sigma - DFSS - Lean Systems

are used simultaneously and harmoniously in an organization to achieve high
levels of process performance and significant business improvement
Six Sigma (often combined with DFSS and Lean) has been much more successful
than its predecessors, notably TQM.