10:

SIX SIGMA
and
QUALITY
CONTROL
SIX SIGMA:
A business process for improving quality, reducing costs, and increasing customer
satisfaction.

It is based on the application of certain tools and techniques to selected projects to

achieve strategic business results.

Statistically: Six Sigma means having no more than 3.4 defects per
million opportunities in any process, product, or
service.

Conceptually: The term is much broader, referring to a program designed

to reduce the occurrence of defects to achieve lower costs
and improved customer satisfaction.
COMPONENTS OF SIX-SIGMA:
Management Technical
Component
02 Component
01
Involves providing Involves improving
strong leadership, process performance,
defining performance reducing variation,
metrics, selecting utilizing statistical
projects likely to methods, and
achieve business designing a structured
results, and selecting improvement
and training strategy, which
appropriate people. involves definition,
measurement, analysis,
improvement, and
For Six Sigma to succeed in any organization, buy-in at the top is essential

Top management must formulate and communicate the company’s overall

objectives and lead the program for a successful deployment.

Other key players in Six-Sigma programs are:

Program Master Black Black
Champions Belts Belts
Champions identify Master black belts Are project team leaders
and rank potential have extensive responsible for
projects, help select training in statistics implementing process
and evaluate and use of quality improvement projects.
candidates, manage tools. They are They have typically
program resources, teachers and mentors completed four weeks of
and serve as of black belts. Six-Sigma training and
advocates for the have demonstrated
Green
program. Belts mastery of the subject
Green belts are members of project matter through an exam
teams and successful completion
of one or more projects.
DMAIC
is a formalized problem-solving process of Six Sigma. It is composed of
five steps that can be applied to any process to improve its effectiveness.

Define Analyze
Set the context
Measure Use data and tools
and objectives for Determine the to understand the
improvement baseline cause-and-effect
performance and relationships of
capability of the the process.
process.
Contro
l Improve
Establish plans and Develop the
procedures to ensure that modifications that
improvements are lead to a validated
sustained. improvement in the
process.
 Six Sigma is based on
these guiding principles:

 Reduction of variation is an important goal.

 The methodology is data driven; it requires valid
measurements.
 Outputs are determined by inputs; focus on
modifying and/or controlling inputs to improve
outputs.
 Only a critical few inputs have a significant
impact on outputs (the Pareto effect)
concentrate on those
QUALITY
CONTROL
CHAPTER 10:
QUALITY CONTROL: A process that
evaluates output relative to a standard
and takes corrective action when output
doesn’t meet standards.

Quality assurance that relies primarily

on inspection of lots (batches) of
previously produced items is referred
to as acceptance sampling.
Quality control efforts that occur
during production are referred to as
statistical process control.
Approaches To Quality Assurance
10.2: INSPECTION
Inspection can occur at three
points:
INSPECTION Before Production: The logic of checking
is an appraisal conformance before production is to make sure
that inputs are acceptable.
activity that
During Production: The logic of checking
compares goods or
conformance during production is to make
services to a sure the con-version of inputs into outputs is
standard. proceeding in an acceptable manner.
Inspection is a vital monitoring during the production process is
but often referred to as process control.
unappreciated After Production: The logic of checking
aspect of quality conformance of output is to make a final
verification of conformance before passing
control.
goods on to customers.
The purpose of inspection is to provide information on the
degree to which items conform to a standard.

The basic issues are:

• How much to inspect and how often
• At what points in the process inspection should occur
• Whether to inspect in a centralized or on-site location
• Whether to inspect attributes (i.e., count the number of times something
occurs) or vari-ables (i.e., measure the value of a characteristic)
 How Much to Inspect and How Often
The amount of inspection can range from no inspection whatsoever to inspection of each
item numerous times. Low-cost, high-volume items often require little inspection because
the cost associated with passing defective items is quite low and the processes that produce
these items are usually highly reliable, so defects are rare. Conversely, high-cost, low-
volume items that have large costs associated with passing defective products often require
more intensive inspections.

The amount of inspection

needed is governed by the
costs of inspection and the
expected costs of passing
defective items. If inspection
activities increase, inspection
costs increase, but the costs of
undetected defects decrease.
Where to Inspect in the
Process
• Raw materials and purchased parts.
• Finished products.
• Before a costly operation.
• Before an irreversible process.
• Before a covering process.
10.3: STATISTICAL PROCESS CONTROL
Quality control is concerned with.. Statistical
Quality of process control
01 Conformance
02 (SPC)
Does the output of a Used to evaluate
process conform to process output to
the intent of design? decide if a process is
“in control” or if
corrective action is
Random needed
Process Variability
Assignable
01 Variation 02 variation
Natural variation in the In process output, a
output of a process, variation whose cause can
created by countless be identified. A nonrandom
minor factors. variation
 Sampling and Sampling
Sampling Distributions
Distribution - a theoretical distribution that describes the
random variability of sample statistics.

A sampling
distribution
serves as the
theoretical basis
for distinguishing
between random
and nonrandom
values of a
sampling statistic.

Central limit theorem - The distribution of sample averages tends to be

normal regardless of the shape of the process distribution.
The Control
Process
Sampling and corrective action are only a part of the control
process. Effective control requires the following steps:
Compar
Define e
The first step is
Measure There must be a Evaluate
to define in Only those standard of Management must
sufficient detail characteristics comparison that establish a
what is to be that can be can be used to definition of out of
controlled. counted or evaluate the control.
measured are measurements.
Monitor
candidates for
control. Results Correct
To ensure that corrective action is When a process is
effective, the output of a process must judged to be out of
be monitored for a sufficient period of control, corrective
time to verify that the problem has action must be
been eliminated. taken.
 Control Charts: The Voice of the
Process
Control Chart Two Limits of Control Charts
A visual tool for monitoring forecast Control charts have two limits that separate
errors. random variation and nonrandom variation. The
A time-ordered plot of sample larger value is the upper control limit (UCL), and
statistics. It is used to monitor sample the smaller value is the lower control limit (LCL).
to determine if the variability exhibited A sample statistic that falls between these two
reflects random variation. limits suggests randomness, while a value
outside or on either limit non-randomness.
Control Limits
The dividing lines between random and
nonrandom deviations from the mean of
the distribution.
 Control Charts: The Voice of the
Process
Type I error - where the “error” is
concluding that non-randomness is
present when only randomness is
present. It is also referred to as an
alpha risk, where alpha (α) is the
sum of the probabilities in the
two tails.
Type II error - which is concluding
that a process is in control when it is
really out of control.

There are four commonly used control charts. Two

are used for variables, and two are used for
attributes.
Variables - Generate data that are
measured.
Attributes - Generate data that are
Control Charts for Variables
Mean Control Charts - Control chart used to monitor the
central tendency of a process

A mean control chart, sometimes referred to as an ̄x (“x-bar”)

chart, is based on a normal distribution. It can be constructed in one of
two ways. The choice depends on what information is available. Although
the value of the standard deviation of a process, σ, is often unknown, if a
reasonable estimate is available, one can compute control limits using
these formulas:
Control Charts for Variables
Range Control Chart - Control chart used to monitor
process dispersion
(R-charts) are used to monitor process dispersion; they are sensitive
to changes in process dispersion. Although the underlying sampling
distribution is not normal, the concepts for the use of range charts are
much the same as those for the use of mean charts. Control limits for
range charts are found using the average sample range in conjunction with
these formulas:
Control Charts for Attributes
Control charts for attributes are used when the process characteristic is
counted rather than measured. For example, the number of defective
items in a sample is counted, whereas the length of each item is
measured.
p-Chart - is used to monitor the proportion of defective items
generated by a process.
Control Charts for Attributes
Control charts for attributes are used when the process characteristic is
counted rather than measured. For example, the number of defective
items in a sample is counted, whereas the length of each item is
measured.
c-chart - Control chart for attributes, used to monitor the
number of defects per unit
 Managerial Considerations
Concerning Control Charts

Managers must make a number of important decisions

about the use of control charts:
• At what points in the process to use control charts
• What size samples to take
• What type of control chart to use (i.e., variables or
attribute) How often should samples be taken
Run Tests
Run Test Two useful run tests
involve:
Checks for patterns in a
1. Examination of the number of runs up and
sequence of observations.
down and;
2. Runs above and below the median
Run
Defined as a sequence of
observations with a
certain characteristic,
followed by one or more
observations with a
different characteristic
10.4 PROCESS CAPABILITY
Specifications or tolerances
Process Variability
A range of acceptable values Natural or inherent variability in a
established by engineering design or process.
customer requirements.

Process Capability
The inherent variability of process
output relative to the variation
allowed by the design specification

Capability Analysis
Capability analysis is performed on a process that is in control (i.e., the process exhibits
only random variation) for the purpose of determining if the range of variation is
within design specifications that would make the output acceptable for its intended
Improving Process
Capability
Improving process capability requires reducing the process variability that
is inherent in a process. This might involve simplifying, standardizing,
making the process mistake-proof, upgrading equipment, or automating.

Taguchi Loss Function

Genichi Taguchi, a Japanese quality expert, holds a nontraditional view of what
constitutes poor quality, and hence the cost of poor quality. Taguchi believes
that any deviation from the target value represents poor quality, and that
the farther away from the target a deviation is, the greater the cost.

Limitations of Capability Indexes

There are several risks of using a capability index:
 The process may not be stable, in which case a capability index is meaningless.
 The process output may not be normally distributed, in which case inferences about
the fraction of output that isn’t acceptable will be incorrect.
 The process is not centered, but the Cp index is used, giving a misleading result
10.5 OPERATIONS STRATEGY
Quality is a major consideration for virtually all customers, so
achieving and maintaining quality standards is of strategic importance
to all business organizations.
Quality assurance and product and service design are two vital
links in the process.
Organizations should continually seek to increase the capability of the
processes they use, so they can move from a position of using
inspection or extensive use of control charts to achieve desired
levels of quality to one where quality is built into products and
processes, so that little or no effort is needed to assure quality.
Processes that exhibit evidence of non-randomness, or processes
that are deemed to not be capable, should be viewed as opportunities
for continuous process improvement.
SUMMARY
OVERV
I
EW
SUMMARY OF FORMULAS
SUMMARY OF FORMULAS
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