We first reviewed Chapter 9 PowerPoint on Six-Sigma

Understand total quality management.

Describe how quality is measured and be aware of the different dimensions of quality.
Explain the define, measure, analyze, improve, and control (DMAIC) quality improvement process.
Understand what ISO certification means.
Learning Objectives for Chapter 9:
Key Six Sigma Concepts
attributes most important to the customer
Critical to quality:
failing to deliver what customer wants
Defect:
what your process can deliver
Process capability:
what customer sees and feels
Variation:
ensuring consistent, predictable processes to improve
what the customer sees and feels

Stable operations:
designing to meet customer needs and process
capability

Design for six-sigma:

managing the entire organization so that it excels on all dimensions of products and services
that are important to the customer

Careful design of the product or service 1.

Ensuring that the organizations systems can consistently produce the design 2.
Total quality management:
inherent value of the product in the marketplace
Design quality:
degree to which the product or service design
specifications are met

Conformance quality:
the person who does the work takes responsibility for
making sure it meets specifications

Quality at the source:

000 , 000 , 1
units of Number unit per error for ies opportunit of Number
defects of Number
DPMO

=
One metric is defects per million opportunities (DPMO)
If you created 1,000,000 units and find 8 defects with 2
(8/2*1,000,000)*1,000,000=4E12
Which is 4 opportunities per 1,000,000 units
Analytical Tools for Six Sigma and Continuous Improvement

Flowcharts
Run charts
Make sure to have the thumb drive for tables and formulas
Will be open book
Review Formulas for flow-time, cycle-time, Little's Law, etc. from Chapter 5
Mid-Term is next Class!!!!
In-Class Lecture 10/11/2010
Monday, October 11, 2010
8:07 PM
Lecture Notes 10-4-2010 Page 1

Run charts

Helps to identify which items to tackle first by putting them side by side in order from greatest to least
Pareto charts

Can be mental
Checksheets
What causes problems?
Visually describe how things can go wrong
Cause-and-effect diagrams
Lecture Notes 10-4-2010 Page 2

Often called the Fishbone Diagram

Offer opportunity for improvement

Opportunity flow diagrams
Control charts
Lecture Notes 10-4-2010 Page 3

Allows for seeing if processes exit control limits, if they are you know you have an issue
Control charts
Established in 1987 by Department of Commerce
Goal is to help companies review and structure their quality programs
Has requirement that suppliers demonstrate they are measuring and documenting their quality
practices

Malcolm Baldrige National Quality Award

New Trained Employee
Green Belts
Trained Employee as he gains experience
Usually lead a Six-Sigma team
Black Belt
In depth training in improvements
Receive Statistical tools & Training
Master Black Belt
Corporate Training Creates:
SQC methods do not prevent defects
Defects arise when people make errors
Make sure to document everything that occurs
Successive check 1.
Self-check 2.
Source inspection 3.
Defects can be prevented by providing workers with feedback on errors
Shingos argument:
Such as the checksheets
Checklists
Special tooling that prevents workers from making errors
Poka-Yoke includes:
ISO 9000 and ISO 14000
Adopted in 1987
More than 160 countries
Series of standards agreed upon by the International Organization for
Standardization (ISO)

A prerequisite for global competition?

These organizations are only created to create these standards
Certification is done by other organizations
They do not audit or certify
The entire auto industry utilizes this
ISO 9000 an international reference for quality, ISO 14000 is primarily concerned
with environmental management

You can do it yourself by checking your firm against standards

A customer can audit the supplier
An certified outside organization can qualify
To standardize
Next we went over the quiz
Next we went over Chapter 9A PowerPoint
Learning objectives for 9A
Explain what statistical quality control is. 1.
Calculate the capability of a process. 2.
Understand how processes are monitored with control charts. 3.
Recognize acceptance sampling concepts. 4.
Lecture Notes 10-4-2010 Page 4
variation that is inherent in the production process
Example: a molding process that always leaves burrs or flaws on a molded item
Process is in "control"
Common variation:
caused by factors that can be clearly identified and possibly managed
Example: a poorly trained employee that creates variation in finished product output
Process is "out of control"
Assignable variation:

Variances must be kept within tolerance levels

Lower Tolerance Limits Upper Tolerance Limits
This is where you want to be an are always striving to get to
6
Cp = UTL - LTL
Cp is capability
Lecture Notes 10-4-2010 Page 5
Better then the original process
Capability Index
|
|
.
|

\
|

o o 3
X - UTL
or
3
LTL X
min = C
pk

Capability index (Cpk) shows how well parts being produced fit into design limit specifications
o o
X UTL
Z
X LTL
Z
UTL LTL

=

Also useful to calculate probabilities

Lower limit of 55 psi, upper limit of 65 psi
Designed for an average of 60 psi
Sample mean of 61 psi, standard deviation of 2 psi
Data
Calculate Cpk
( ) ( )
| | 6667 . 0 6667 . 0 , 1 min
2 3
61 65
,
2 3
55 61
min
3
,
3
min
= =
(

=
(
(

=
o o
x USL LSL x
C
pk

Example
Defective
Defective
55
60
61
65
Probability (X > 65)
Probability(X -61/2 > 65-61/2)
Probability (Z > 2)
*** can be calculated in Excel
0.02275
Probability
02410 . 0 02275 . 0 00135 . 0 ) 2 or 3 (
02275 . 0 ) 2 (
2
2
61 65
psi 65 than More
00135 . 0 ) 3 (
3
2
61 55
psi 55 than Less
= + = > <
= >
=

=
= <
=

=
Z Z P
Z P
X X
Z
Z P
X X
Z
o
o
Example of probability. See chapter 9A PowerPoint
Lecture Notes 10-4-2010 Page 6
( ) ( )
| | 6667 . 0 6667 . 0 , 1 min
2 3
61 65
,
2 3
55 61
min
3
,
3
min
= =
(

=
(
(

=
o o
x USL LSL x
C
pk

02410 . 0 02275 . 0 00135 . 0 ) 2 or 3 (

02275 . 0 ) 2 (
2
2
61 65
psi 65 than More
00135 . 0 ) 3 (
3
2
61 55
psi 55 than Less
= + = > <
= >
=

=
= <
=

=
Z Z P
Z P
X X
Z
Z P
X X
Z
o
o
Lower control limit (LCL) =
n
o
3
Upper control limit (UCL) =
n
o
3 +
for LCL UCL
Sample mean
( )
Sample range
(R)
R A x
2
R A x
2
+
R D
3
R D
4
Lecture Notes 10-4-2010 Page 7