Module 2

Tools and Quality Measurement

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 Statistical Quality Control (SQC)
• Statistical Quality Control: Application of
statistical techniques to accept or reject products
already produced or to control the process while it
is being carried out.
• Statistical Process Control (SPC): Statistical
evaluation of the output of a process during
production.

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 Acceptance Sampling
• Acceptance Sampling: A statistical technique
used to take a decision regarding acceptance or
rejection of a lot without having to examine the
entire lot.

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 Acceptance Sampling Technique
• Acceptance sampling inspection can be either sampling
by attributes or sampling by variables.
Accepting sample inspection can be either sampling
attributes or sampling by variables.
• Acceptance sampling plans have two important concepts
as background when the characteristic being measured are
attributes. They are.
A.Average outgoing quality curves
B. operating characteristic curves. Which are described
below.
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An Average Outgoing Quality (AOQ)
Curve

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Operating Characteristic (OC) Curve
• An operating characteristics curve shows how
well an acceptance sampling plan discriminates
between good and bad lots.
Operating Characteristic Curve

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 The seven Tools of SPC
1. Check Sheet
2. Histogram
3. Pareto Chart
4. Cause and effect diagram
5. Scatter diagram
6. Graph
7. Control Chart

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

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 Histograms
• A chart that shows the
frequency distribution of
observed values of a
variable like service
time
at a bank drive-up
window

• Displays whether the

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 Pareto Analysis
• Technique that displays the
degree of importance for each
element
• Named after the 19th century
Italian economist
• Often called the 80-20 Rule
• Principle is that quality
problems are the result of only
a few problems e.g. 80% of the
problems caused by 20% of
causes

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 Cause-and-Effect Diagrams
• Called Fishbone
Diagram
• Focused on solving
identified quality
problem

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 Scatter Diagrams
• A graph that shows
how two variables
are related to one
another
• Data can be used in
a regression
analysis to establish
equation for the
relationship

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 Flowcharts
• Used to document the
detailed steps in a
process
• Often the first step in
Process Re-
Engineering

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 Control Charts
• Important tool used in
Statistical Process
Control
• The UCL and LCL are
calculated limits used
to show when
process is in or out of
control

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 Types of Control Charts

• Control charts for variables.

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 Types of Control Charts
• Control Chart: A graphic comparison of process
performance and data with control limits drawn as
limit lines on a chart. Helps to determine whether
the on-going process is under statistical control or
not

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 Flowcharts
• Used to document the
detailed steps in a
process
• Often the first step in
Process Re-
Engineering

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 Types of Acceptance Sampling Plans

Three types of acceptance sampling plans are:

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 Quality Function Deployment
• Critical to ensure product design meets
customer expectations
• Useful tool for translating customer
specifications into technical requirements is
Quality Function Deployment (QFD)
• QFD encompasses
– Customer requirements
– Competitive evaluation
– Product characteristics
– Relationship matrix
– Trade-off matrix
– Setting Targets
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 Quality Function Deployment
(QFD) Details
• Process used to ensure that the product meets customer
specifications

Voice of the
engineer

Voice Customer-based
of the benchmarks
customer

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 QFD - House of Quality

• Adding trade-offs, targets & developing product

Technical
Targets Benchmarks
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 Benefits of QFD
• QFD addresses major issues and complaints
expressed by customers during the early stages
of product definition. (Reduces complaints later
on)
• Provides excellent framework for cross-
functional deployment of quality, cost and
delivery
• Helps in understanding the market where
customer needs are not being met.
• Since QFD happens at the earlier stage of new
product development lifecycle, it minimizes the
engineering changes
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 Benefits of QFD
• Customer needs are evaluated with respect to
competitive product and services. This allows
identification of the internal processes that need
improvement to stay competitive
• Team members develop a deeper understanding
of customer needs and have the customer’s
voice as a basis for making trade offs, resulting
in superior decisions for the organization

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 Benchmarking
• Benchmarking is a method of improving
business performance by learning from other
companies how to do things better in order to be
the ‘best in the class’.
• Rank Xerox defines benchmarking as “ A
continuous systematic process of evaluating
companies recognized as industry leaders, to
determine business and work processes that
represents best practice and establish rational
performance goals.
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 Benchmarking
• Rank Xerox defines benchmarking as “ A
continuous systematic process of
evaluating companies recognized as
industry leaders, to determine business
and work processes that represents best
practice and establish rational
performance goals.

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 Definitions
 The ongoing and objective measurement of
relative performance against relevant
organizations in key process areas
 A change programme, which enables the
achievement of the ‘best practice’
 At IBM benchmarking is the continuous process
of analyzing the best practice in the world for the
process goals and objectives leading to world
class levels of achievement

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 Benchmarking
• To set objectives and define the scope of
your efforts
• To gain support from your organization
• To select a benchmarking approach
• To identify benchmarking partners
• To gather information (research, surveys,
benchmarking visits)

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 Benchmarking
• To distill the learning
• To select ideas to implement
• To pilot
• To implement

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 Process of benchmarking
1. Defining and planning the project
2. Understanding where you are
3. Understanding where you can be
4. Identifying lesson learned
5. Applying the lessons learned

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 Types of Benchmarking
1. Competitive Benchmarking
2. Strategic Benchmarking
3. Process Benchmarking
4. Product Benchmarking
5. Benchmarking Customer Service
6. Internal Benchmarking

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 Advantages of Benchmarking
• Provides direction and impetus for
improvement
• Indicates early warning of competitive
disadvantage
• Promotes competitive awareness
• Becomes the stepping-stone to
breakthrough thinking
• Identifies the best practice
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 Advantages of Benchmarking
• Provides an objective attainment standard
for key areas of business operations
• Links operational tactics to corporate
vision and strategy
• Exposes performance gaps
• Triggers major step changes in business
performance

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 Advantages of Benchmarking
• Helps companies to redefine their
objectives
• Challenges the status quo
• Allows realistic stretch goals

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 Benefits of Benchmarking
Information
• Quantifies the performance gaps
• Promotes external awareness
• Uncovers best in class practice
Concentration
• High pay-off areas
• Focused action

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 Benefits of Benchmarking
Innovation
• Discovers new ways
• Challenges status quo
• Foster quantum leaps
Motivation
• Realistic stretch targets
• Stimulus of external measurable basic for
change
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 Limitations of benchmarking
• Benchmarking will not improve
performance overnight. It cannot replace
TQM practices in the Organisation
• The best-in-class performance is a
dynamic concept which constantly
changing. New technology adoption and
process improvement can create manifold
improvement in performance.

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 Benchmarking Process (Steps)
1. Identify what has to be benchmarked
2. Identity comparative companies
3. Determine data collection method and collect data
4. Determine current performance levels
5. Project future performance levels
6. Communicate benchmarking finds and gain
acceptance
7. Establish functional goals
8. Develop action plan
9. Implement specific actions and monitor progress
10. Recalibrate benchmarks
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 Benchmarking Process (Steps)
• Phase 1-Planning- Steps1,2
• Phase2- Analysis- Steps3, 4
• Phase 3- Integration- Steps 5, 6
• Phase 4- Action-steps7,8,9, & 10

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 Linking benchmarking with other
management practices
• Strategic plan for success
• Total quality management
• Employee involvement and empowerment

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