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Title: Quality Improvement


1
Quality Improvement
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
2
Definitions
  • Quality product or service A product or
    service that meets or exceeds the
    expectations of the customer.
  • Process Any combination of people, machinery,
    material, and methods that is intended to
    produce a product or service.
  • Quality Characteristics Features of a product
    that describe its fitness for use .

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
3
Definitions
  • Statistical Process Control (SPC) The
    application of statistical quality-control
    methods to measure and analyze the variation
    found in a process.
  • Control Chart A statistical chart used to
    monitor various aspects of a process and to
    determine if the process is in control or out of
    control.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
4
Malcolm Baldrige National Quality Award Criteria
  • Leadership System
  • Strategic Planning
  • Customer and Market Focus
  • Information and Analysis
  • Human Resource Focus
  • Process Management
  • Business Results

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
5
Quality Improvement Tools
  • Flowcharts
  • Cause-and-Effect Diagrams

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
6
Flowchart
Figure 12.2
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
7
Cause-and-Effect Diagram
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.3
8
Process Variation and Control Charts Sources of
Variation
  • Machinery
  • People
  • Materials
  • Production Methods
  • The Environment

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
9
Deming Funnel Experiment Strategies
  • Strategy 1 Do not react to this random
    variation and do not move the funnel.
  • Strategy 2 Measure the distance from the
    marbles resting place to the bulls-eye.
    Move the funnel and equal distance, but in the
    opposite direction.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
10
Deming Funnel Experiment Strategies
  • Strategy 3 Measure the distance from the
    marbles resting place to the bulls-eye.
    Move the funnel this distance, in the opposite
    direction, starting at the bulls- eye.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
11
Deming Funnel Experiment
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.5
12
Control Charts
  • A process is in control if the observed variation
    is due to inherent or natural variation. This
    variability is the cumulative effect of many
    small, essentially uncontrollable, causes.
  • A process in out of control if a relatively large
    variation is introduced that can be traced to an
    assignable cause.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
13
General Form of a Control Chart
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.6
14
Control Chart
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.7
15
X and R Charts
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
16
X and R Charts
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
17
X and R ChartsProcess for Estimating ?
  • Determine the average of the m values of R.
  • Select the values of d2 from Table 12.3 using the
    corresponding sample size, n.
  • Estimate ? using

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
18
X and R ChartsControl Limits
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
19
X and R ChartsControl Limits
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.9
20
R Chart
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
21
R Chart
By defining
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
22
Steps for Making X and R Charts
  • Collect m samples of data, each of size n.
  • Compute the average of each subgroup.
  • Compute the range for each subgroup.
  • Find the overall mean.
  • Find the average range.
  • Estimate ?.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
23
Steps for Making X and R Charts
  • Compute the 3-sigma control limits for X.
  • Compute the 3-sigma control limits for R
  • Construct the control charts by plotting X and R
    points for each subgroup on the same vertical
    line.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
24
Pattern Analysis for X
Figure 12.12
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
25
Minitab X Chart
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.13
26
Control Chart for the Proportion Nonconforming
The p chart
  • Reasons for Using a p Chart
  • Quality measurements are not possible.
  • Quality measurements are not practical.
  • Many characteristics on each part are being
    judged during inspection
  • The main question of interest is will the
    process be able to produce conforming products
    over time?

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
27
Steps for Making p Charts
  • Collect m samples of data, each of size, n.
  • Determine the proportion nonconforming for each
    sample.
  • Find p, the overall proportion nonconforming.
  • Compute the 3-sigma control limits
  • Draw the control lines and plot the values of pi.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
28
p Chart Equations
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
29
p Chart for Ex. 12.3
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.17
30
The c Chart Construction
  • Collect m samples of data, each of size, n.
  • Determine the number of nonconformities for the
    ith unit. Call this value ci.
  • Find the average number of nonconformities per
    unit, c.
  • Compute the 3-sigma control limits.
  • Construct the chart.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
31
c Chart Equations
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
32
Process Capability
  • Specification Limits process requirements
  • Lower spec limit (LSL) the lower limit of the
    process output that meets the process
    requirements.
  • Upper spec limit (USL) the upper limit of the
    process output that meets the process
    requirements.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
33
Process Capability
Figure 12.20
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
The difference between 12.01 and 12.19 is
referred to as the process spread.
34
Process Capability
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.21
35
Process Capability Ratio Cp
  • Assumptions
  • The process is centered within specifications.
  • The process is normally distributed.
  • The process is stable.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
36
Cp
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
37
Process Capability Ratio Cpk
  • Assumptions
  • The process may or may not be centered in spec.
  • The process is normally distributed.
  • The process is stable.
  • Control charts will be used to monitor the
    process over time.

Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
38
Process Capability
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.22
39
Procedure for Finding Cpk
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
40
Process Capability
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur (c)2000 South-Western
College Publishing
Figure 12.23
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