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  • Statistical Quality ControlLecture 1 introduction Dr. Simon Alaraj

  • Learning ObjectivesTo provide the student with in-depth knowledge in developing effective quality control and improvement methods and tools. To introduce advanced and practical quality control and improvement methods as they are used in different application areas of manufacturing, services and other sectors. To understand the importance of quality issues related to productivity and reducing production cost.

  • Grading AllocationClass participation based on:Participation in class answering questionsIn-class exercisesRandom attendance taken

    Midterm Exam30%Assignments (quizzes)10%Oral Presentations5%Term Paper20%Final Exam 30% Class participation5%

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Classroom RulesTurn off cell phones and other communication devicesNo completing homework or other assignmentsUse common sense and be considerate of othersNotify instructor when absent from class as soon as possibleBefore or after the factJustifiable reason

  • Exams & AssignmentsAssignmentsAround 6 homework assignments will be given.Group study is encouraged but splitting up assignments is not.A random selection of problems will be graded.ExamsBased on homework, lecture material, text reading.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Learning Objectives

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.1.1 Definitions Meaning of Quality and Quality Improvement1.1.1 The Eight Dimensions of Quality

    Performance: Will the product do the intended job?Reliability: How often does the product fail?Durability: How long does the product last?Serviceability: How easy is it to repair?Aesthetics: How does it look like?Features: What does the product do?Perceived Quality: Reputation of company or Product.Conformance to Standards:

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.This is a traditional definitionQuality of designQuality of conformance

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.This is a modern definition of quality

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The Transmission Example

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. The transmission example illustrates the utility of this definition An equivalent definition is that quality improvement is the elimination of waste. This is useful in service or transactional businesses.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.1-1.2 Terminology

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Terminology contdSpecificationsLower specification limitUpper specification limitTarget or nominal valuesDefective or nonconforming productDefect or nonconformityNot all products containing a defect are necessarily defective

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.1.2. History of Quality Improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.1.3 Statistical Methods for Quality Control and Improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Statistical MethodsStatistical process control (SPC)Control charts, plus other problem-solving toolsUseful in monitoring processes, reducing variability through elimination of assignable causesOn-line techniqueDesigned experiments (DOX)Discovering the key factors that influence process performanceProcess optimizationOff-line techniqueAcceptance Sampling

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Walter A. Shewart (1891-1967) Trained in engineering and physics Long career at Bell Labs Developed the first control chart about 1924

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Effective management of quality requires the execution of three activities:Quality PlanningQuality AssuranceQuality Control and Improvement1.4 Management Aspects of Quality Improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.W. Edwards Deming

    Taught engineering, physics in the 1920s, finished PhD in 1928Met Walter Shewhart at Western ElectricLong career in government statistics, USDA, Bureau of the CensusDuring WWII, he worked with US defense contractors, deploying statistical methodsSent to Japan after WWII to work on the census1.4.1 Quality Philosophy and Management Strategy

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.DemingDeming was asked by JUSE to lecture on statistical quality control to managementJapanese adopted many aspects of Demings management philosophyDeming stressed continual never-ending improvementDeming lectured widely in North America during the 1980s; he died 24 December 1993

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Demings 14 Points1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age3. Cease reliance on mass inspection to improve quality4. End the practice of awarding business on the basis of price alone5. Improve constantly and forever the system of production and service6. Institute training7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job8. Drive out fear9. Break down barriers between departments

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.14 Points contd10. Eliminate slogans and targets for the workforce such as zero defects11. Eliminate work standards12. Remove barriers that rob workers of the right to pride in the quality of their work13. Institute a vigorous program of education and self-improvement14. Put everyone to work to accomplish the transformationNote that the 14 points are about change

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Demings Deadly DiseasesLack of constancy of purposeEmphasis on short-term profitsPerformance evaluation, merit rating, annual reviewsMobility of managementRunning a company on visible figures aloneExcessive medical costs for employee health careExcessive costs of warrantees

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Demings Obstacles to Success

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Joseph M. JuranBorn in Romania (1904-2008), immigrated to the USWorked at Western Electric, influenced by Walter ShewhartEmphasizes a more strategic and planning oriented approach to quality than does DemingJuran Institute is still an active organization promoting the Juran philosophy and quality improvement practices

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The Juran TrilogyPlanningControlImprovement

    These three processes are interrelatedControl versus breakthroughProject-by-project improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Some of the Other GurusKaoru IshikawaSon of the founder of JUSE, promoted widespread use of basic toolsArmand FeigenbaumAuthor of Total Quality Control, promoted overall organizational involvement in quality,Three-step approach emphasized quality leadership, quality technology, and organizational commitment Lesser gods, false prophets

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Total Quality Management (TQM)Started in the early 1980s, Deming/Juran philosophy as the focal pointEmphasis on widespread training, quality awarenessTraining often turned over to HR functionNot enough emphasis on quality control and improvement tools, poor follow-through, no project-by-project implementation strategyTQM was largely unsuccessful

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Total Quality Management (TQM)TQM is just another program Value engineeringZero defectsQuality is free

    Recipes for Ineffectiveness and maybe Disaster

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Quality Systems and Standards

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. The ISO certification process focuses heavily on quality assurance, without sufficient weight given to quality planning and quality control and improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc. The MBNQA process is a valuable assessment tool See Table 1-4 for Performance Excellence Criteria and point valuesThe Malcolm Baldrige National Quality Award

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Six SigmaUse of statistics & other analytical tools has grown steadily for over 80 years Statistical quality control (origins in 1920, explosive growth during WW II, 1950s)Operations research (1940s)FDA, EPA in the 1970sTQM (Total Quality Management) movement in the 1980sReengineering of business processes (late 1980s)Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business ImpactA process is an organized sequence of activities that produces an output that adds value to the organizationAll work is performed in (interconnected) processesEasy to see in some situations (manufacturing)Harder in othersAny process can be improvedAn organized approach to improvement is necessaryThe process focus is essential to Six Sigma

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Why Quality Improvement is Important: A Simple Example A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink.

    This product has 10 components - is 99% good okay?

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Six Sigma FocusInitially in manufacturing Commercial applicationsBankingFinancePublic sector ServicesDFSS Design for Six SigmaOnly so much improvement can be wrung out of an existing systemNew process designNew product design (engineering)

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Some Commercial ApplicationsReducing average and variation of days outstanding on accounts receivableManaging costs of consultants (public accountants, lawyers)Skip tracingCredit scoringClosing the books (faster, less variation)Audit accuracy, account reconciliation ForecastingInventory managementTax filingPayroll accuracy

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Six SigmaA disciplined and analytical approach to process and product improvementSpecialized roles for people; Champions, Master Black belts, Black Belts, Green BeltsTop-down driven (Champions from each business)BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation)Involves a five-step process (DMAIC) : Define MeasureAnalyzeImproveControl

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.What Makes it Work?Successful implementations characterized by:Committed leadershipUse of top talentSupporting infrastructureFormal project selection processFormal project review processDedicated resourcesFinancial system integrationProject-by-project improvement strategy (borrowed from Juran)

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Design for Six Sigma (DFSS)Taking variability reduction upstream from manufacturing (or operational six sigma) into product design and developmentEvery design decision is a business decision

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.DFSS Matches Customer Needswith CapabilityMean and variability affects product performance and costDesigners can predict costs and yields in the design phaseConsider mean and variability in the design phaseEstablish top level mean, variability and failure rate targets for a designRationally allocate mean, variability, and failure rate targets to subsystem and component levelsMatch requirements against process capability and identify gaps Close gaps to optimize a producible designIdentify variability drivers and optimize designs or make designs robust to variabilityProcess capability impact design decisionsDFSS enhances product design methods.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.11DMAIC Solves Problems by UsingSix Sigma Tools DMAIC is a problem solving methodologyClosely related to the Shewhart CycleUse this method to solve problems:Define problems in processesMeasure performanceAnalyze causes of problemsImprove processes remove variations and non-value-added activitiesControl processes so problems do not recur

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Lean SystemsFocuses on elimination of wasteLong cycle timesLong queues in-process inventoryInadequate throughputReworkNon-value-added work activitiesMakes use of many of the tools of operations research and industrial engineering

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Littles Law

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Lean Focuses on Waste EliminationDefinitionA set of methods and tools used to eliminate waste in a processLean helps identify anything not absolutely required to deliver a quality product on time.

    Benefits of using LeanLean methods help reduce inventory, lead time, and costLean methods increase productivity, quality, on time delivery, capacity, and sales

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The supply chain often represents a significant component of the total value of the organizations products or services

    Failures in the supply chain have potentially huge impact on the organization

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Key Supply Chain ProcessesService managementDemand managementOrder fulfillmentQualityManufacturing flow managementSupplier relationship managementLogistics and distributionReturns managementChapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Key Supply Chain Management (SCM) Activities:Supplier qualification or certificationSupplier developmentSupplier auditsChapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Returns ManagementChapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Costs attributable to poor supplier quality

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Quality Costs

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • The Hidden Factory (or Office)Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Legal Aspects of QualityProduct liability exposure

    Concept of strict liabilityResponsibility of both manufacturer and seller/distributorAdvertising must be supported by valid data

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 1*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.A strategic management process, focused along the eight dimension of qualitySuppliers and supply chain management must be involvedMust focus on all three components: Quality Planning, Quality Assurance, and Quality Control and ImprovementImplementing Quality Improvement

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Numerical Summary of DataSample average:

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • The Standard DeviationChapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Probability Distributions

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Will see many examples in the textSometimes called a probability mass functionSometimes called a probability density function

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The mean is the point at which the distribution exactly balances.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The mean is not necessarily the 50th percentile of the distribution (thats the median)The mean is not necessarily the most likely value of the random variable (thats the mode)

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.The Normal Distribution3.3 Important Continuous Distributions

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • The Central Limit TheoremChapter 3*Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.Practical interpretation the sum of independent random variables is approximately normally distributed regardless of the distribution of each individual random variable in the sum

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*4.1 Statistics and Sampling DistributionsStatistical inference is concerned with drawing conclusions about populations (or processes) based on sample data from that systemRandom sample a sample that is selected so that the observations are independent a random sample has the property that it has the same probability of selection as any other sample.Statistic any function of the observations in a sample that doesn't contain unknown parametersThe sample mean, the sample variance, and the sample standard deviation are all statistics

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*Observations in a sample are used to draw conclusions about the population

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*Sampling DistributionsA statistic is a random variable, because a different sample will produce a different observed value of the statisticEvery statistic has a probability distributionThe probability distribution of a statistic is called a sampling distribution

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*Sampling from a Normal Distribution

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*Properties of Point Estimators

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • Relative efficiency of the range:Chapter 4Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.*

    Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. Copyright (c) 2012 John Wiley & Sons, Inc.

  • HW # 1Chapter 3*3.11, 3.37, 3.47 pages 99-102

    4.3, 4.4, 4.9, 4.22 pages 169-172

    Due to XXXXXXX

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