Understand Quality
Costs of Quality
Impact of Quality on Operations
Impact of Quality on Supply Chain
Operations Management-104
Quality Control
Operations Management-104
Debabrata Ghosh
Approach:
To begin with, the QAT team ran a survey of 1000 past and present customers, asking them to rate their
experiences with each of the following aspects of ANZ Door's products and services:
Cost of purchasing and maintaining a door
Response time from ordering a door until its delivery
Degree of door customization permitted in accommodating individual preferences
After sales service quality
Door quality in terms of its fit and finish; ease of operation and durability
Operations Management-104
Number of Complaints
Cost
10
Response Time
Customization
Service Quality
15
Door Quality
25
Step 2: Based on the above table, QAT team applies the Pareto Chart to prioritize customer complaints
Number of Complaints
Customization
Response Time
Cost
Service Quality
Door Quality
Number of Complaints
0
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10
20
30
10
9 a.m.
81
82
80
74
75
81
83
86
88
82
11 a.m.
73
87
83
81
86
86
82
83
79
84
1 p.m.
85
88
76
91
82
83
76
82
86
89
3 p.m.
90
78
84
75
84
88
77
79
84
84
5 p.m.
80
84
82
83
75
81
78
85
85
80
Day
Time/
Day
11
12
13
14
15
16
17
18
19
20
9 a.m.
86
86
88
72
84
76
74
85
82
89
11 a.m.
84
83
79
86
85
82
86
85
84
80
1 p.m.
81
78
83
80
81
83
83
82
83
90
3 p.m.
81
80
83
79
88
84
89
77
92
83
5 p.m.
87
83
82
87
81
79
83
77
84
77
Operations Management-104
Operations Management-104
In the ANZ Door Manufacturing Case, the QAT team would expect 99.73% of the door weights would be
within +- 3 standard deviations from the mean (between 69.9 and 95.1 kg).
95%
99.74%
-3
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-2
-1
=0
i
n
= Sample Number
= Total number of samples
=
=
ith observation
Number of observations in each sub-group
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A2
D3
D4
1.88
3.27
1.02
2.57
0.73
2.28
0.58
2.11
0.48
2.00
0.42
0.08
1.92
0.37
0.14
1.86
0.34
0.18
1.82
10
0.31
0.22
1.78
11
0.29
0.26
1.74
Source: Exhibit 9A.6, Operations and Supply Management, Chase, Shankar, Jacobs and Aquilano, McGraw Hill 12 th Ed., 2010
Operations Management-104
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10
UCL
Normal Behavior
LCL
1
Samples
over time
Samples
over time
UCL
LCL
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Constructing p-charts
p is the proportion of non-conforming items found in a sample. p-chart is often called fraction nonconforming chart.
Assume, that k samples each of size n are collected.
Let y, represent the number non-conforming in a particular sample, then proportion nonconforming is y/n.
Let, pi be the fraction non-conforming in the i th sample, the average fraction non-conforming for
group of k samples is
Thus, UCL =
LCL = - z
+z
Q: The operators of automated sorting machines in a post office must read the ZIP code on letters
and divert the letters to the proper carrier routes. Over a months study, 25 samples each of 100
letters were chosen and the number of errors were recorded. The data presented is the following:
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Constructing c-charts
A non-conforming item may have more than one non-conformance factor.
For e.g. A customers order may have several errors such as wrong item, wrong quantity, wrong
price etc.
To monitor the number of non-conformances per unit, a c-chart is used.
For a c-chart,
UCL =
z
LCL =
where, sc =
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Type of Measurement
Discrete
Continuous
Type of Attribute
Proportion Nonconforming
Nonconformances
per unit
p-chart
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c-chart
14
Process Capability
Process capability is the ability of the process to meet customer specifications
The ANZ Door Manufacturing Case :
If the design specifications given by the design team for customer use varies between 75-85
Kg, process capability studies the variability of the process with respect to these design/customer
specifications.
Process Control
Process Capability
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Process Capability
Design
Specifications
(a) Process variation
exceeds design
specifications; process is
not capable of meeting
specifications all the time.
Process
Design
Specifications
(b) Design specifications and
process variation the same;
process is capable of meeting
specifications most of the
time.
Process
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Process Capability
Design
Specifications
(c) Design specifications
greater than process
variation; process is capable
of always conforming to
specifications.
Process
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Ans:
Prob(75<=X<=85) = Prob( X<=85) Prob(X<=75)
In excel,
= NORMDIST(85,82.5,4.2,TRUE) NORMDIST(75,82.5,4.2,TRUE)
= 0.724158 0.037073 = 0.687085
Thus, the door making process is capable of producing 68.7% of doors within specifications.
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Cp
=
=
tolerance range
process range
upper spec limit - lower spec limit
6
Process Capability Ratio
Cpk = minimum
upper specification limit - =
x
3
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19
Cp
Sigma level ()
Area under
the probability
density function
0.33
0.6826894921
68.27%
317311
0.67
0.9544997361
95.45%
45500
1.00
0.9973002039
99.73%
2700
1.33
0.9999366575
99.99%
63
1.67
0.9999994267
99.9999%
2.00
0.9999999980
99.9999998%
0.002
Operations Management-104
Process yield
16
42
60
500
20
4.5 sigma process. Percentage yield is 99.99966%. Therefore, percent defective is 0.00034%.
Thus, Defects in Parts per million = 3.4
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Six-sigma Examples
Mumbai Dabbawalas pick up, deliver and return tiffin lunch boxes from 200,000 homes and apartments
to 80,000 office locations that are situated over 40 miles away, hardly using any fuel or modern
technology. The distribution process is an ingenious combination of coding, aggregating and sorting
boxes and moving them in crates through public trains, push carts and bicycles from each household to
a correct office destination and back to home. The error rate in delivery is 1 in more than million trips
with a cost of about $10 a month.
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Ans:
Assume, s.d. of door weights is reduced from 4.2 kg to 2.5 kg
Prob(75<=X<=85) = Prob( X<=85) Prob(X<=75)
In excel,
= NORMDIST(85,80,2.5,TRUE) NORMDIST(75,80,2.5,TRUE)
= 0.9544
What about process control limits?
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Question:
Munchies snack food company packages potato chips in a process with a process mean of 8.8 oz and a
s.d. of 0.12 oz. The packages are designed for 9 oz of chips with a tolerance of 0.5 oz. The company
wants to determine the capability of the current process.
The process mean is off the center.
And the capability of the process is
Cpk = Min[ (8.8-8.5)/(3*0.12); (9.5-8.8)/(3*0.12)]
= Min[0.83,1.94]
= 0.83
Cp = (9.5-8.5)/(6*0.12) = 1.389
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