Product Lifecycle Management

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Product Lifecycle Management

• Cost of Quality
• Pasi Kaipainen, Mika Huhta

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Cost of Quality Management

• is an approach to reducing the Cost of
  Quality (COQ), the sum of all costs incurred
  throughout the product lifecycle due to poor
  quality

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Cost of Quality Management

• COQ is made up of 4 types of quality costs
• internal failure costs
• external failure costs
• appraisal costs
• prevention costs

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Internal failure costs

• Failures such as rework, scrap and poor design
  that customer does not see

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External failure costs

• Failures which occur after the product has been
  delivered to the customer. Includes warranty
  claims, product liability claims and field returns

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Appraisal costs

• Costs coming from measuring quality and
  maintaining conformance by such activities as
  inspection, testing, process monitoring and
  equipment calibration

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Prevention costs

• Costs coming from reducing the failure and
  appraisal costs and to achieve first-time
  quality. E.g. education, training and supplier
  certification

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Six Sigma

• Six Sigma is a set of practices originally
  developed by Motorola to systematically improve
  processes by eliminating defects
• Six Sigma has two key methodologies
• DMAIC (Define-Measure-Analyze-Improve-Control)
• DMADV (Define-Measure-Analyze-Design-Verify)
• DMAIC is used to improve an existing business
  process, and DMADV is used to create new product
  or process designs for predictable, defect-free
  performance.

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Six Sigma

• DMADV has several variations (DMEDI, DMADOV and
  so on )

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Six Sigma-DMAIC

• Define the process improvement goals that are
  consistent with customer demands and enterprise
  strategy.
• Measure the current process and collect relevant
  data for future comparison.
• Analyze to verify relationship and causality of
  factors. Determine what the relationship is, and
  attempt to ensure that all factors have been
  considered.
• Improve or optimize the process based upon the
  analysis using techniques like Design of
  Experiments.
• Control to ensure that any variances are
  corrected before they result in defects. Set up
  pilot runs to establish process capability,
  transition to production and thereafter
  continuously measure the process and institute
  control mechanisms.

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Six Sigma-DMADV

• Define the goals of the design activity that are
  consistent with customer demands and enterprise
  strategy.
• Measure and identify CTQs (critical to
  qualities), product capabilities, production
  process capability, and risk assessments.
• Analyze to develop and design alternatives,
  create high-level design and evaluate design
  capability to select the best design.
• Design details, optimize the design, and plan for
  design verification. This phase may require
  simulations.
• Verify the design, set up pilot runs, implement
  production process and handover to process
  owners.

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DMAIC cycle

• http//quality.dlsu.edu.ph/tools/DMAIC_cycle.pdf

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Sigma
LSL
USL
s1
The value of the process standard deviation for a
given characteristic. Sigma is used to quantify
the spread (around a mean) of some process or
product characteristic.
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Sigma
6s
99.9999998 of the data falls within ? 6 sigmas
from the mean.
68.26
99.73
99.9999998
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DFSS

• DFSSDesign For Six Sigma
• Six sigma tools were initially deployed for the
  improvement of existing manufacturing or service
  processes.
• When new designs were introduced similar Six
  Sigma solutions were found to be deployed to
  similar problems again and again.
• ?six sigma problem-solving techniques needed to
  be incorporated into the design process.

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DFSS
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DFSS-Definition
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Initiate

• Define and quantify customer requirements.
• Examine the project fit with business operating
  and strategic plan.
• Perform a business and technical risk assessment.
• Perform a marketing and competitive assessment.
• Perform a financial assessment sensitivity
  analysis.
• Create a cross-functional team.
• Determine the timeline.

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Design

• Develop transfer functions.
• Perform a tolerance analysis.
• Design for manufacturability/ reliability.
• Pilot and prototype.
• Perform an intellectual property review.
• Perform a risk analysis.
• Perform a cost/investment review.
• Review the timeline.
• Develop a part/raw material procurement plan.

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Execute

• Procure needed equipment and software.
• Set up manufacturing for production.
• Execute a commercialization plan.
• Start up production.
• Initiate a control plan.
• Demonstrate short-term manufacturing capability.
• Verify the short-term risk

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Sustain

• Maintain the control plan.
• Implement the quality management system.
• Review actual vs. estimated results.
• Use MAIC projects as needed to close gaps.
• Demonstrate long-term performance capability.
• Close the project.

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Process Control

• Cp (and Cpk) is the short-term capability index
• It is the potential, inherent process capability,
  or the best the process could ever hope to
  perform in short-term
• Pp (and Ppk ) is the long-term performance index
• It is also called Process Performance
• It is the actual, long-term performance of the
  process in real life

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Process Control
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Process Capability example

• PPAP (Production Part Approval Process,
  Automotive Industry Action Group (AIAG), 1995
  states

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PLM and Six Sigma

• Combine PLM and Six Sigma initiatives together
  could help to reach targets more effectively
  since business investments are quite similar for
  both PLM and Six Sigma.

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PLM and Six Sigma