Statistical Quality

Control (SQC)
BITS Pilani
Pilani Campus

Suhas A Chougule

BITS Pilani
Pilani Campus

Lecture-1

Quality improvement in the modern business

environment

Prescribed Textbook and

Study Material
Introduction to Statistical Quality Control By DOUGLAS C.
MONTGOMERY, Sixth Edition 2009 by John Wiley &
Sons, Inc

About the Faculty

A

Mechanical Engineer with post-graduation in

Operations management with 14 years of corporate
experience in versatile fields of Quality

Professional credentials:
Certified Six Sigma Black Belt from ASQ,
Certified Automotive-SPICE assessor from Intacs ,
Certified Lead auditor for ISO 9001:2008, Environment
(ISO 14001:2004), Health & Safety Management System
(OHSAS 18001:1999 ),
Certified assessor for Business Excellence Model based on
Malcom Baldrige model.
Corporate Experience
TATA Auto comp Ltd,
3M India Ltd,
HERE Solutions India Pvt. Ltd
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What we will cover today?

Quality and Quality dimensions

Quality history
What is SQC? Need for Quality control
Judgmental inspection and SQC inspection
Management aspects of Quality improvement
Quality philosophy and management principles
Designed experiment
Other Quality philosophies- TQM,QMS, Six Sigma
Quality cost

What is Quality and its

dimension?
Quality means fitness for use
Two Aspects of fitness for use: Quality of design and
quality of conformance
Quality of design is decided by type of materials used, its
grade, tolerance on the processed parts etc.
Quality of conformance is how well the product conform to
specifications required by the design.

What is Quality and its

dimension?
Quality Engineering:
Variability is existing in every process because of which no two
products/services are exactly identical
E.g. Time taken to address the service request in Bank , call center will
never match
Sources of variability include difference in skill, competency, line
bandwidth, environment etc.
The best way to describe variability is through statistical methods
While applying statistical methods, data need to classfy either as
attribute data or variable data
Variable data: Are usually continuous measurements e.g. Length,
voltage, weight
Attribute data: Are usually discrete data often expressed in terms of
counts e.g. Color of eyes: blue, green, brown, etc.
Socio-economic status: high, middle, low
Categories: good / bad, machine 1 / machine 2
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What is Quality and its

dimension?

Quality characteristics are often evaluated relative to

specifications
Nominal or Target value: A value of a measurement
that corresponds to desired value
USL- The largest allowable value for a quality
characteristics
LSL- The smallest allowable value for a quality
characteristics
Non-conforming products/defects- are those that fail to
meet one or more of its spefications

What is Quality and its

dimension?
Modern definition:
Quality in inversely proportional to variability
Japan

LSL

USL

Unites states

Defects

Distribution of critical dimensions for transmission

Quality dimension?
1.
2.
3.
4.
5.
6.
7.
8.

Performance
Reliability
Durability
Serviceability
Aesthetics
Features
Perceived Quality
Conformance to standards

10

Quality History

1900- Frederick W. Taylor introduces Scientific

management principles
1924- W. A Scewhart introduces the control chart concept
1946- The American Society for Quality control was formed
1951- A. V. Feigenbaum publishes the first edition of his
book, Total Quality Control
1975-1978- Interest in quality circle begins in North
America-this grows into the total quality management
movement
1987- ISO publishes the first quality system standard,
Motorolas six-sigma initiative begins
11

What is SQC?
Statistical quality control (SQC) is the
term used to describe the set of
statistical tools used by quality
professionals for Quality Control
Statistical quality control can be divided
into three broad categories:
1. Descriptive statistics
2. Statistical process control (SPC)
3. Acceptance sampling
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NEED OF QUALITY
CONTROL
In each process, excessive variations and
errors can cause nonconformities, which
leads to three undesirable consequences:
(a) scrapped or wasted resources;
(b) degraded process throughput;
(c) contamination from undetected
non conformities, reducing the value of
the product to the customer.

13

JUDGMENT INSPECTIONS
Historically, the first quality-control
methods were based on judgment
inspections.
Judgment inspections are made after a
process has transformed inputs into a
product.
Based on inspection, the product is
accepted, rejected, or reworked.

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SQC INSPECTIONS

The next major breakthrough in quality

control was made by a team led by
Shewhart at Bell Laboratories.
His team demonstrated that variation on
the production floor could be described
statistically and that statistical data could
identify when a process was drifting out of
control.
Statistical data were useful in guiding
adjustment of the process to reduce the
probability that nonconforming product
would be produced

15

SQC INSPECTIONS

16

Importance of Data
decisions are made all the
time that affect quality and
yield
data based decisions are
more accurate than
intuitive [assumption]
based decisions

17

Statistical Thinking
Underlying Principles

All work is a process

All processes vary
All variation is caused
Knowledge & management
of variation are keys to success

18

Statistical Thinking
A Control ChartOne of primary techniques of SPC
A very useful process monitoring technique when unusual
sources of variability are present
The chart has a center line (CL) and upper & lower control limits
. The center line represents where the process characteristics
should lie if there are no unusual sources of variation
The control limits i.e. UCL & LCL are determines from some
simple statistical considerations
Control charts are applied or used for output variable (s)
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Statistical Thinking

20

Designed experiment
Is extremely helpful in discovering the key variable
influencing the quality characteristics of interest in
the process
Are a major off-line quality control tool, because
they are often used during development activities
and the early stage of manufacturing
Example- Factorial design factors are varied
together in such a way that all possible combinations
of factor levels are tested
21

Acceptance sampling
Inspection and classification of a sample of units
selected at random from a large batch or lot and
ultimate decision about the lot usually occurs by
quality of samples
Different acceptance sampling are : Outgoing
inspection, incoming inspection

22

Short break

23

Management aspects of
Quality improvement
Three activities for effective management of Quality:
Quality planning- It involves identifying customers
(internal & external) and identifying their needs, Planning
for quality improvement on a specific, systematic basis
Quality Assurance- Is a set of activities that ensures
quality levels of products and services are properly
maintained and that supplier and customer quality issues
are properly resolved
Quality control and improvement- It involves set of
activities used to ensure that the products and services
meet requirements and are improved on a continuous
basis
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Quality Philosophy and mgmt.

principles
Major contributors for Quality improvement and management
philosophy:
W.E. Deming 14 points for Quality & productivity improvement
Seven deadly diseases of management
Shewhart cycle-PDCA Cycle

J M Juran- Juran Triology ( planning, control, improvement)

A V Feigenbaum- 19 step improvement process

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Other Quality philosophy

TQM
Quality system and standards e.g ISO 9001
Quality awards e.g. Malcom Baldrige National Quality award
Six Sigma- Focus is on reducing the variability in key
product quality characteristics to the level at which failure or
defects are extremely unlikely
Just in time , Poka-Yoke etc.- Initiatives developed for
improving the production systems

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Other Quality philosophy-TQM

TQM is a strategy for implementing and managing quality
improvement activities on an organization wide basis.
TQM involves broader spectrum of concepts and ideas e.g.
participative management & work culture, customer focus,
supplier quality improvement, integration of Quality system
with business goals
TQM approach involves quality councils or high level teams
that deal with strategic quality initiative, workforce level
teams and cross functional teams

27

Other Quality philosophy-TQM

Reasons for lack of conspicuous success of TQM:
Lack of top down, high level management commitment &
involvement
Inadequate use of statistical methods and insufficient
recognition of variability reduction as a prime objective
General concept against a specific business results oriented
objectives
Too much emphasis on widespread training

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Other Quality philosophy- QMS

International organization for
standardization
Publishes international agreements:
international standards.

ISO 9001 requirements

A tool that looks into processes in order
to help you to find weaknesses /
improvement opportunities. Serves as a
foundation.
The ISO standard describes what is
needed for an effective quality
management system not how to
develop the system.

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Other Quality philosophy- QMS

This International Standard is used by internal and external parties,
including certification bodies, to assess the organization's ability to
meet customer, regulatory and the organization's own requirements.
The standard has 8 requirements and a set of sub-requirements for
each
1. Scope
2. Normative Reference
3. Terms and definitions
4. Quality Management System requirements
5. Management Responsibility
6. Resource Management
7. Product Realization
8. Measurement, Analysis and Improvement
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Six Sigma
Problem-solving method
Data-driven approach to continuous
improvement
Understand critical inputs = control output
How
good can we be?
An approach to sustainable continuous improvement that:
- Moves us toward the goal of being a world-class company by
Common
improving language
the quality and consistency of our processes
- Uses statistical tools for significant process capability improvement.
Set of tools to tackle change
In other words...

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Other Quality philosophy- Six

Sigma
Six Sigma Is

Six Sigma is Not.

Data driven approach to

process improvement
Changing the way companies
solves it problems
Making a difference with our
results
Making a difference with our
customers
Applied to our top Priorities

A
A Separate Initiative
A replacement for common
sense
A passing Fad
Separate or additional Work

32

When is Six Sigma Used?

When?
Have a problem (process isnt working effectively or efficiently)
Arent sure of actions needed to improve
Can measure the improvement we want

Examples of project goals?

Reduce errors (mistakes, claims, material waste)

Improve quality (to a specification)
Reduce time (lead-time)
Improve productivity (speed, lost time, wasted effort)
Improve conformance to a target
Increase capacity, market share (growth)
Reduce inventory (cash flow)

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When is Six Sigma Used?

Business Strategy
Profitable Growth

Operational Excellence

Key Business Process Needs

Six Sigma
Tool Box:
DMAIC
DFSS
Lean
Leadership
Project Mgmt.

Execute
a process
(Example:
NPI)

Improve
a process

Design
a new
process

Functional
Tool Boxes:
Sales
Mktg.
Mfg.
R&D
Engr.
Sourcing
Supply Chain
eProductivity,
etc.

Business Results
Loyal Customers
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Other Quality philosophyPoka Yoke

POKA-YOKE
to avoid (yokeru) inadvertent errors (poka)
What is Poke-yoke?
A method that uses sensor or other devices for catching errors that may pass by
operators or assemblers.

35

Other Quality philosophyPoka Yoke

1. Control Approach
- Shuts down the process when an error
occurs.
- Keeps the suspect part in place when
an operation is incomplete.
2. Warning Approach
- Signals the operator to stop the
process and correct the problem.

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Other Quality philosophy- Malcom

Baldrige National Quality award
In the early and mid-1980s, many industry and government leaders saw
that a renewed emphasis on quality was no longer an option for
American companies but a necessity for doing business in an ever
expanding, and more demanding, competitive world market. But many
American businesses either did not believe quality mattered for them or
did not know where to begin. The Baldrige Award was envisioned as a
standard of excellence that would help U.S. organizations achieve worldclass quality.
Most popular and influential model in the western world is the one launched
by the US government called the Malcolm Baldrige Award Model (also
commonly known as the Baldrige model, the Baldrige criteria, or The
Criteria for Performance Excellence). More than 25 countries base their
frameworks upon the Baldrige criteria.

37

Other Quality philosophy- Malcom

Baldrige National Quality award

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Other Quality philosophy- Malcom

Baldrige National Quality award
P Preface: Organizational Profile

P.1 Organizational Description

P.2 Organizational Situation
Category and Items

Point Values

120

1 Leadership

1. Senior Leadership
1 Governance and Societal Responsibilities
1.
2 Strategic
Planning
2
2. Strategy Development
1 Strategy Implementation
2.
3 Customer
Focus
2
3. Voice of the Customer
1 Customer Engagement
3.
4 Measurement,
Analysis, and Knowledge
2

70
50

4. Measurement, Analysis, and Improvement of

1 Management
Organizational
4.
of Performance
Information, Knowledge, and
5 Workforce
Focus Technology
2 Information
5. Workforce Environment
1 Workforce Engagement
5.
6 Operations
Focus
2
6.
Work Systems
1
6.
Work Processes
2

45
45

85
40
45
85
45
40
90

Management

85
40
45
85
45
40

7 Results

7.
Product and Process Outcomes
1
7.
Customer-Focused Outcomes
2
7.
Workforce-Focused Outcomes
3
7.
Leadership and Governance Outcomes

450

120
90
80
80

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Other Quality philosophy- Malcom

Baldrige National Quality award
LeadershipExamines how senior executives guide the organization and how the
organization addresses its responsibilities to the public and practices good citizenship.
Strategic planning Examines how the organization sets strategic directions and how it
determines key action plans.
Customer focus Examines how the organization determines requirements and
expectations of customers and markets; builds relationships with customers; and
acquires, satisfies, and retains customers.
Measurement, analysis, and knowledge management Examines the management,
effective use, analysis, and improvement of data and information to support key
organization processes and the organizations performance management system.
Workforce focus Examines how the organization enables its workforce to develop its
full potential and how the workforce is aligned with the organizations objectives.
Process management Examines aspects of how key production/delivery and support
processes are designed, managed, and improved.
Results Examines the organizations performance and improvement in its key business
areas: customer satisfaction, financial and marketplace performance, human resources,
supplier and partner performance, operational performance, and governance and social
responsibility. The category also examines how the organization performs relative to
competitors.

40

Quality costs
Quality costs are those categories of costs that are
associated with producing, identifying , avoiding or repairing
products that do not meet requirements
Four categories of Quality costs:
Prevention cost
Appraisal cost
Internal failure cost
External failure cost

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Quality costs
Prevention cost

Quality planning & engineering

New products review
Products/process design
Process control
Training
Quality data acquisition and analysis

Appraisal cost

Inspection and test of incoming material

Products inspection and test
Materials and service consumed
Calibration cost

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Quality costs
Internal failure cost

Scrap
Rework
Retest
Failure analysis
Downtime
Yield losses

External failure cost

Complaint analysis
Returned products/material
Warranty charges
Liability costs
Indirect costs

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Summary of Lecture-1

Quality and Quality dimensions

Quality history
Management aspects of Quality improvement
Quality philosophy and management principles
SQC, Need of Quality control
Judgmental inspection and SQC inspection
Designed experiment
Other Quality philosophies
Quality cost

44

Summary of Lecture-1

End of
Lecture -1

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