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Chapter 9
Quality Management
Quality Specifications
Design quality: Inherent value of the
Costs of Quality
Appraisal Costs
External Failure
Costs
Costs of
Quality
Internal Failure
Costs
Prevention Costs
DPMO
Numberof defects
Numberof
opportunities
for error per x No. of units
unit
x1,000,000
DPMO
200
x1,000,000 1, 000
x200,000
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Step 1 - Define
What is the critical-to-quality characteristic?
The CTQ (critical-to-quality) characteristic
11
2 - Measure
How would we measure to evaluate the
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2 Measure (continued)
Lets assume that the government says
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2. Measure (continued)
We go out and buy 1,000 boxes of
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Lower Tolerance
= 15.2
Process
Mean = 15.875
Std. Dev. = .529
Upper Tolerance
= 16.8
What percentage of boxes are defective (i.e. less than 15.2 oz)?
Z = (x Mean)/Std. Dev. = (15.2 15.875)/.529 = -1.276
Probability corresponding to Z of 1.276 = .898 (from z table)
Subtract from 1:
1 - .898 = .102
Approximately, 10 percent of the boxes have less than 15.2
Ounces of cereal in them!
15
Decrease
Variation
Center Process
Increase
Specifications
16
17
18
Step 5 Control
Statistical Process Control (SPC)
Use data from the actual process
Estimate distributions
Look at capability - is good quality
possible
Statistically monitor the process
over time
19
Frequency
Can be used
to find when
80% of the
problems
may be
attributed to
20% of the
causes
Design
Assy.
Instruct.
Purch.
Training
20
Monday
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
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Number of Lots
Data Ranges
4 Defects
in lot
22
Machine
Man
The results
or effect
Effect
Environment
Method
Material
23
UCL
1010
1000
990
LCL
980
970
0
10 11 12 13 14 15
24
25
survey methodology
Examines Dimensions of Service