Fundamentals of quality control and improvement pdf download

Now, more than ever, it is important to develop a quality strategy by. Authors: G. Sreeramulu - Categories: Discrimination in employment - Published: Constructing the Self in a Mediated World. Authors: Debra Grodin, Thomas R.

Self-Determination Theory and Healthy Aging. So, you won't have heavier bag to lug. You have remained in best website to start getting this info. So, when you require the book promptly, you can directly get it.

It's so simple and so fats, right? You have to favor to in this manner. Merely attach your tool computer or device to the internet connecting. Rooted in a statistics, this straightforward book presents real-world applications of quality control. Incorporating modern ideas, methods, and philosophies into total quality management, it focuses on the statistical process control and related subjects, such as achieving product and process quality through experimental design.

With examples to demonstrate applications, this book presents foundations of modern quality control and improvements applicable to manufacturing and service industries. It also presents principles of acceptance sampling and reliability to provide a complete reference. However, the airlines can manage its allocation of supply of seats in each of the above categories, based on data on demand that is collected on a real-time basis.

Customer satisfaction will be influenced by the "category" of the customer since priorities may be different for each category. For the business traveler, the important factor is getting a seat at the last minute where price is not a consideration, with the company reimbursing the cost.

Note that even for those in the tourist class, since seat prices change on a dynamic basis, the price paid for a seat will be different based on the day when the ticket was purchased. These demand distributions are projected based on historical data for the same route and same time frame, accounting for "special" causes that may impact demand. The model also requires estimation of certain costs, such as the cost of overselling, in which case the customer has to be booked on the next flight and could be awarded certain amount of dollars towards purchase of a ticket within the next year.

It requires estimation of the cost of underselling, with a seat going empty. In this case, however, there are various factors of influence. Likewise, there is a different opportunity cost if there is an unfilled demand for a "tourist" category seat, which had been shifted to a "business" category and goes empty. For instance, the hotel and hospitality industry is an example. An on-line reservation system could be set-up that monitors prices based on demand distribution and rates offered by competitors.

The hotel industry has an alternative way of increasing capacity in the event of overbooking. They will transport their guests to another facility with whom they subcontract and put them up free of charge. Rental car companies could be another example that could utilize such yield management practices. Here again, the capacity is limited, at a given site. Demand fluctuates, but customers could also be categorized.

For example, to the business traveler, price is not a concern, rather availability and the type of car desirable. For the tourist, price could be the main criterion, followed by desired size or type full size, fuel efficient. A third example could be cruise lines, that have similar features to the airline industry, with competition being not as extensive.

Demand is usually seasonal, providing opportunities for the company to offer attractive off-season rates. Movie theatres could also utilize such concepts to simultaneously manage fixed supply with demand. For instance, reduced prices could be offered to matinee or shows prior to 6 pm. It could negotiate agreements with manufacturers of products or providers of services to obtain either better warranty coverage or even better rates for its customers, thereby creating an avenue to improve customer satisfaction.

The customer could be given options to select from the package. From the annual summary of database of spending habits, by providing information to retail outlets, such stores could determine amounts to stock of the various types of goods.

The retail stores could also determine suitable pricing policies based on spending patterns. They could determine, related items to stock, that would be of interest to the particular customer. For a travel company, it may assist in the determination of types of packages to offer. Satisfying and exceeding the needs of the customer is the foremost objective.

The core values of the company are management commitment and a directed focus of all employees towards a common vision and mission.

Senior management creates a strategic plan, while mid-management develops operations plans accordingly. Implementation of plans requires an organizational culture that empowers people to suggest innovations through open channels of communication.

Further, focus is on process improvement, where suppliers, customers, and investors are integrated into the extended process. The selection of a company will vary with the individual. Each should identify the particular quality culture of the selected company and the manner in which it fits the general themes previously discussed. For issues dealing with product changes, the vendor is automatically notified sometimes ahead of time, when known so that appropriate process changes in the vendor operations can be implemented with the least delay.

Further, fluctuations in demand that may lead to increases during peak seasons could be communicated to the vendor ahead of time, so that there is no increase in lead time of obtaining parts or components. This ensures delivery to the customer to be on time as well as meet desired quantity. A vision is based on what the hospital wants to be. It could be, "Become the hospital of choice for people in the region. It could be, "Achieve a high level of patient satisfaction, from in-patients and out-patients, through the best clinical care and motivated employees.

This could be, "Obtain necessary feedback from patients and the hospital staff that includes physicians, nurses, and technical staff to identify causes of action that support continuous quality improvement. In terms of a metric, Motorola's assumption is that the distribution of the quality characteristic is normal, and that the process spread is much smaller than the specification spread.

In fact, it is assumed that initially, the specification limits are six standard deviations from the mean. Subsequently, shifts in the process mean may take place to the degree of 1. Here, the assumption is that larger shifts in the process mean will be detected by process controls that are in place and corresponding remedial actions will be taken. Thus, the nearest specification limit is 4. The proportion nonconforming outside the farthest specification limit is negligible, yielding a total nonconformance rate of 3.

As a philosophy, the six sigma concept is embraced by senior management as an ideology to promote the concept of continuous quality improvement. It is a strategic business initiative, in this context. When six sigma is considered as a methodology, it comprises the phases of define, measure, analyze, improve, and control, with various tools that could be utilized in each phase. In the define phase, attributes critical to quality, delivery, or cost are identified. Metrics that capture process performance are of interest in the measure phase.

In the analyze phase, the impact of the selected factors on the output variable is investigated through data analytic procedures. The improve phase consists of determining level of the input factors to achieve a desired level of the output variable. Finally, methods to sustain the gains identified in the improve phase are used in the control phase.

Primarily, statistical process control methods are utilized. Out of several alternative proposals, based on the priority ranking of needs and the relative impact of each alternative on meeting each customer need, a weighted index is developed. Under a scarcity of resource environment, proposed alternatives are selected based on the computed weighted index. QFD reduces product development cycle time through consideration of design aspects along with manufacturing feasibility.

It also cuts down on product developmental costs through consideration in the design phase of the myriad of issues that deal with technical ability of the company relative to competitors. There are some key ingredients necessary for the success of QFD. First, a significant commitment of time has to be devoted to complete the QFD process. Second the use of cross-functional teams is a necessary mode for information gathering required for the QFD process.

Some strategic outcome measures are retention or attraction of skilled technical people to the company and employee satisfaction. Some strategic performance measures could be policies to empower employees that support innovation and prevalent reward structure.

Internal processes perspective: Some diagnostic measures are errors per K lines of code, type of coding errors and their severity, and delay in responding to customer requests. Some strategic outcome measures are level of service to the client who could be internal or external , and time to develop software and implement it. Customer perspective: Some diagnostic measures are time to solve and respond to customer problems and number of monthly customer complaints.

Some strategic outcome measures are cost of providing service, reliability of operations, and degree of customer satisfaction. Some strategic performance measures could be cost of subcontracting certain services, and degree of trust in relationship with vendor. Some strategic outcome measures are return on investment, and market share of company. Some strategic performance measures could be degree of investment in equipment and infrastructure, and operating expenses. Some strategic outcome measures are degree of physician and nurse satisfaction, and number of suggestions for improvement by laboratory personnel and admissions staff.

Some strategic performance measures could be the type of reward structure for physicians or nurses, and incentive schemes for hospital staff. Internal processes perspective: Some diagnostic measures are average time to process in- patients for admission, delay in processing an X-ray, and medication errors per patient-day. Some strategic outcome measures are readmission rate, and length of stay for a certain diagnosis related group. Some strategic performance measures are infection rate and blood culture contamination rate.

Customer perspective: Some diagnostic measures are time to discharge patients, and time to deliver patient from check-in at the emergency department to a hospital bed.

Some strategic outcome measures are degree of satisfaction by in-patients, and proportion of patients that would recommend others.

Some strategic performance measures are cost of a certain surgical procedure, and treatment of patient by nursing staff. Financial perspective: Some diagnostic measures are proportion of reimbursement requests denied by Medicare, and physician time in surgery lost due to inappropriate scheduling. Some strategic outcome measures are cost per case of in-patients with a certain diagnosis, and market share captured. Some strategic performance measures could be percentage of asset utilization of operating room capacity, and reduction in unit costs of laboratory work.

Some strategic outcome measures could be number of process improvement suggestions received from employees, and reward structure to promote environment of continuous improvement. Some strategic performance measures could be spending on employee professional development, and type of recognition system, beyond pay, available to staff. Some strategic outcome measures are time to develop new process based on a new product innovation, and total cost per batch 1 million of microchips.

Some strategic performance measures could be expenditures in research and development of processes, and unit procurement costs from vendor. Customer perspective: Some diagnostic measures are response time to meet changes in customer orders, and number of shipments rejected by the customer. Some strategic outcome measures are proportion of customers complimentary of the company, and increase in annual referrals by customers.

Some strategic performance measures could be time to serve customers with a certain minimum volume of orders, and degree of discount offered to customers with high volume of orders.

Financial perspective: Some diagnostic measures are overhead costs per batch and cost of machine downtime per month. Some strategic outcome measures are return on investment and growth in market share.

Some strategic performance measures could be percentage of equipment utilization and amount of investment to upgrade equipment. Some strategic outcome measures are degree of satisfaction of technical staff, and revenue per employee-hour. Some strategic performance measures are incentive plans for scientists, and number of successful proposals annually. Internal processes perspective: Some diagnostic measures are time to develop a batch of prototype, and throughout rate of a prototype. Some strategic outcome measures are cost per batch of tablets, and proportion nonconforming ppm of product.

Some strategic performance measures are proportion nonconforming ppm of shipments from vendor and unit overhead costs per batch. Customer perspective: Some diagnostic measures are time to conduct survey of proposed drug, and lead time to meet customer order changes.

Some strategic outcome measures are percentage of satisfied scientists and engineers, and proportion of senior personnel retained. A strategic performance measure could be time to meet a competitor's deadline for a new product development.

Financial perspective: Some diagnostic measures could be cost of product that is scrapped due to not meeting desired specifications, and overhead costs per batch. Some strategic outcome measures could be profit margin, and sales growth.

Some strategic performance measures are cost savings due to equipment changes, and investment in equipment. For the airlines industry, customer requirements could be as follows: Price of ticket, convenience of schedule, delay in arrival, lost baggage, and in-flight service, among others.

Based on customer survey, priority ratings may be applied to the above requirements. Some technical descriptors could be as follows: Select cities to serve based on competition and demand, type and size of fleet, baggage identification barcoding and handling procedures, training of in-flight attendants and provision of desirable meals.

Possible vision statement could be, "Become the leader in the logistics industry, internationally. In a balanced scorecard analysis, in the learning and growth perspective, possible diagnostic measures could be proportion of time problems or delays occur due to failure of information technology IT systems, and proportion of failures due to lack of core competencies among staff. Some strategic outcome measures are degree of employee satisfaction, and retention of personnel with core skills.

Some strategic performance measures could be the degree of access to strategic information, and amount invested in professional development of technical staff. Under the perspective of internal process, possible diagnostic measures are proportion of deliveries delayed due to lack of facilities truck, ship, or rail and proportion of shipments damaged due to mishandling between one form of transport ship to another rail.

Some possible strategic outcome measures are operating efficiency of available modes of transportation ship, rail, truck , and cost per unit volume of shipment in each mode of transportation. Some strategic performance measures could be absenteeism rate of employees directly associated with handling of goods, and degree of investment in new technology.

Under the customer perspective, some diagnostic measures are response time to meet a customer request, and time to process a purchase order and payment for a customer. Some strategic outcome measures are cost of providing a follow-up service, and proportion of satisfied customers. Some performance outcome measures could be the unit cost of subcontracting a segment of the total transportation requirement and the degree of dependability of the subcontractor to contractual obligations.

In the financial perspective, some diagnostic measures could be costs incurred for idle storage of goods due to lack of available transport media, and proportion of costs due to breakdown of equipment. Some strategic outcome measures are return on investment, net revenue per unit volume shipped, and total market share. Some possible strategic performance measures are degree of expenses due to rental equipment, and revenue by customer categories based on volume of shipment.

Some possible customer requirements and their importance ratings are shown in Table No delay in shipments 5 2.

Shipment not delivered prior to due date 2 3. Ease of placing order 3 4. On-line tracking capability 4 5. Ease of using credit to place order 3 important importance rating of 5 requirement, the customer also prefers not to receive the shipment ahead of the promised delivery date, which could be based on following just-in-time JIT criteria. Otherwise, there will be a holding or carrying cost of this inventory, if delivered prior to the chosen date. The assigned importance to this requirement is not as much assigned rating of 2 as that compared to late shipments.

Further, ease of placing order is considered moderately important rating of 3 to the customer. The preference of having an on-line tracking capability, so that the customer may determine the exact location of the shipment in real time, is quite important with a rating of 4. Additionally, the ease of using customer-available credit to place the order is also of moderate importance.

Some possible means technical descriptors to achieve customer requirements are shown in Table Six technical descriptors are listed in Table Also, for each technical descriptor, the degree of its impact on meeting the five customer requirements is listed. The notation used is as follows: 5 - strong relationship; 3 - medium relationship; 1 - low relationship; and 0 - no relationship. Thus a 1 5 next to a certain technical descriptor indicates that the technical description has a strong relationship in impacting customer requirement 1, which is no delay in shipments.

The remainder of the QFD analysis may be completed through assignment of the appropriate numbers. For a company that develops microchips, technological development is one of the major factors that impacts the process of benchmarking.

Innovations in chip design are taking place at a rapid level. The steps of benchmarking could be as follows: 1 Decide on measures to benchmark - these could be, for example, physical size of chip, memory capacity of chip, and processing speed; 2 Develop a benchmarking plan - select specific measures on which to focus, identify a process to obtain information from leaders in the field, conduct cost-benefit analysis; 3 Select a method to collect data - type of TABLE Back-up fleet of carriers through subcontractor 1 5 ; 2 3 2.

Recruit part-time personnel 1 5 ; 2 1 3. Qualified staff to process order promptly 1 3 ; 2 1 ; 3 3 4. Top management has the responsibility of ensuring that the design of microchips remains current and competitive. Quality audits are of three types: System audit - this is the most extensive and inclusive type.

Here policies, procedures, and operating instructions are evaluated with respect to a reference standard. Further, evaluation of activities and operations to accomplish the desired quality objectives are also conducted. Hence, conformance of quality management standards and their implementation to specified norms are the objectives of such an audit. Such an audit may be used to evaluate a potential vendor. Process audit - this involves an evaluation of selected processes in the organization.

These processes are examined and compared to specified standards. While not as extensive as the system audit, such an audit is used to improve processes and have been identified maybe through Pareto analysis to be problem areas. Product audit - this involves an assessment of the final product or service to meet or exceed customer requirements. A product audit could determine the effectiveness of a management control system.

It is not part of the inspection process. For a company producing multiple products, those that perform poorly could be candidates for such an audit. For a financial institution that is considering outsourcing its information technology related services, some criteria to consider are as follows: Error-free performance reliability in recording transactions; Ease of access to updated information by identified personnel; Back up procedures to store and retrieve information so that there is no loss of information, potentially; Ease of obtaining summary information as desired by the financial institution say by type of transaction, account number, etc.

The financial institution should next assign weights to the selected criteria, based on its preference. The weights could be on a point scale. Following this, each vendor could be rated on a relative scale 1 to 5 , with 1 representing least desirable performance and 5 representing most desirable performance. Finally, a weighted score could be obtained for each vendor, where the weight is multiplied by the rating for each performance measure and then added up.

The vendor with the highest weighted score is a candidate for selection. Development of drugs for treatment of Alzheimer's disease using nanotechnology is an area of on-going research. Nanotechnology may assist in delivering an appropriate drug to appropriate cells within the human body without causing major side effects.

Innovation and time-based competition also play an important role since identification of cause-effect relationships and development of appropriate drugs are not necessarily known with certainty.

Such processes usually require a good deal of experimentation and testing. The mass-transit system in a large city is expected to encounter a projected increase in demand and is considering possible outsourcing. Some objectives could be: Increase capacity at an annual rate that exceeds rate of growth in demand; Ensure travel times meet customer expectations; Reduce delays through efficient scheduling; Provide accident-free services. Some strategic measures are: Percentage of customers satisfied outcome measure ; Return on equity outcome measure ; Percentage utilization of capacity performance measure.

There are several benefits of vendor certification. When the vendor is certified such that it consistently meets or exceeds the purchaser's criteria, the need for routine incoming inspection is eliminated. Additionally, a strategic partnership is created between the vendor and the purchaser. Changes in customer needs that require changes in the product, will necessitate changes in raw material or components provided by the vendor.

Joint effort between the purchaser and vendor helps to reduce lead time and cost, and improve quality. Typical phases of vendor certification are approved vendor, preferred vendor, and a certified vendor. Initially, the process is documented and performance measures are defined and selected.

Roles and responsibilities of the involved personnel are clearly delineated. A quality system survey of the vendor is performed. Vendors that meet acceptable performance standards on defined criteria set by the purchaser are identified as approved vendors. A vendor with a preferred status may be required to have a process control mechanism in place that shows a focus on problem prevention as opposed to problem detection.

A certified vendor, which is the next level, identifies a vendor that not only meets or exceeds the performance measures set by the purchaser, but also has an organizational quality culture that is in consonance with that of the purchaser. In this phase, the vendor and purchaser are partners with a common goal. Both act harmoniously to meet or exceed quality, cost, and delivery goals.

These companies may procure raw material or components from vendors that may be located in several countries. This can be accomplished through international certification standards, such as those developed by the International Standards Organization ISO. In the U. Thus, for suppliers who are QS certified, they may supply to all three automakers without having to face the burden of demonstrating their quality separately to each purchaser.

Cause-and-effect diagram for automobile accidents A cause-and-effect diagram for automobile accidents is shown in Figure Table From the calculated RPN values, the highest value is associated with transmission failure due to broken belts. Some action plans need to be designed to detect such broken or imminent to break belts during routine or preventive maintenance. Rating scores on severity, occurrences, and detection are assigned and the risk priority number RPN is calculated.

From the calculated RPN values, the highest value is associated with emotionally unfit due to personal issues, followed by emotionally unfit due to disturbed work environment.

Detection of such causes are difficult, specially personal issues. This leads to high RPN values which draws attention to create action items to address these issues.

For example, if there is only one version of the product with no customer options , we could collect historical data on demand by geographical region or state , as appropriate. A Pareto chart could depict such demand by region to demonstrate areas of high demand in decreasing order.

If we are able to identity factors or causes that influence product demand, perhaps a cause-and-effect diagram could be used.

Possible causes might be: Population of region, average disposable income, unemployment rate, competitors in the region, number of stores, ease of ordering product, and price. For each cause, certain sub causes could be listed. For example, under competitors in the region, sub causes could be warranty offered, unit price, and lead time to obtain product. A possible flow chart for visiting the physician's office for a routine procedure is shown in Figure There are several reasons for failure of total quality management in organizations.

First, is the lack of management commitment. While initial enthusiasm may be displayed by management for adoption of TQM, allocation of resources is vital. These measures may not be implemented by the organization leading to failure in TQM adoption. Second, lack of adoption of a common and consistent company mission that is embraced by all parts of the organization, could be a reason.

Often, goals of units within the organization are not coherent with the overall company goals. Sharing of information may lead to better decisions. Fourth, lack of cross-functional teams to address issues that impact the company could be a reason. Managers may recommend action plans that do not incorporate suggestions from a variety of sub-units that are affected by the decisions.

Vendors certified through such established standards and using third-party auditors do not need to go through further audits by their customers.

Scatterplot of life insurance coverage vs disposable income It seems that, with an increase in disposable income, life insurance coverage increases non-linearly. A flow chart is shown in Figure Accomplishing registration to ISO standards is significantly different from an audit process.

Such registration ensures that an acceptable quality management system is in place. The system includes processes, products, information systems, documentation, management team, quality culture and traceability, among other items.

Audits, on the other hand, may involve a system audit, process audit, or product audit. They may be internal or external. Audits usually identify deficient areas - they do not necessarily rectify the problem.

Development of remedial actions, based on the audit outcomes, is a task for management. Only on implementation of such remedial actions will the benefits be derived. In a global economy, many companies are multinational with branches in several countries.

With ISO standards having a universal impact, registration to such standards creates a seal of acceptance in all of these locations. The customer can trust in the quality management system that exists within the organization, if it is ISO certified.

Hence, the organization does not have to demonstrate its competence by going through other audits. Incoming inspection can be significantly reduced. Three business categories exist - manufacturing, service, and small business.

Nonprofit public, private, and government organizations are eligible in a separate category. Also, two other award categories exist - education and health- care. It is not a certification process to standards like ISO standards. The general idea behind the award is to motivate U. The objectives are to foster competitiveness. The award winners are expected to share information on their best practices so that other organizations may adopt or benefit from such knowledge.

Preparation for filing for the award stimulates a companywide quality effort. Based on the matrix plot, to achieve low levels of proportion nonconforming, high levels of temperature, low levels of pressure, high proportion of catalyst and low levels of acidity pH value are desirable.

Similarly, Figure shows a contour plot of proportion nonconforming for various levels of combinations of acidity and proportion catalyst. Contour plot of proportion nonconforming vs. So, an existing drug that is at least as good as the new drug, is recommended for replacement with the new drug by the agency.

A type II error occurs when a null hypothesis, that is not true, is not rejected. In this situation, the federal agency would not recommend the new drug, even though it increases average life. In the type I error situation, a proven drug would be replaced.

Get BOOK. Fundamentals of Quality Control and Improvement. A statistical approach to the principles of quality control and management Incorporating modern ideas, methods, and philosophies of quality management, Fundamentals of Quality Control and Improvement, Fourth Edition presents a quantitative approach to management-oriented techniques and enforces the integration of statistical concepts into quality assurance methods. Utilizing a sound theoretical.