PEARSON NEW INTERNATIONAL EDITION Quality Improvement Dale Besterfield Ninth Edition ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< ••••••••••••••••••••••••••••••••••••••< •••••••••••••••••••••••••••••••••••••( •••••••••••••••••••••••••••••••••••••< •••••••••••••••••••••••••••••••••••••< •••••••••••••••••••••••••••••••••••••< •••••••••••••••••••••••••••••••••••••< ALWAYS LEARNING PEARSON Pearson New International Edition Quality Improvement Dale Besterfield Ninth Edition PEARSON Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the Worid Wide Web at: www.pearsoned.co.uk © Pearson Education Limited 2014 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6-10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners PEARSON ISBN 10: 1-292-02230-2 ISBN 13: 978-1-292-02230-7 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Printed in the United States of America PEARSON CUSTOM LIBRAR Table of Contents Introduction to Quality Improvement Dale H Besterfield Lean Enterprise Dale H Besterfield Six Sigma Dale H Besterfield 11 Fundamentals of Statistics Dale H Besterfield 19 Statistical Process Control (SPC) Dale H Besterfield 51 Control Charts for Variables Dale H Besterfield 61 Additional SPC Techniques for Variables Dale H Besterfield 99 Fundamentals of Probability Dale H Besterfield 115 Control Charts for Attributes Dale H Besterfield 129 I Acceptance Sampling Dale H Besterfield 155 I I Reliability Dale H Besterfield 175 12 Management and Planning Tools Dale H Besterfield 191 I Experimental Design Dale H Besterfield 203 14 Taguchi's Quality Engineering Dale H Besterfield 223 I Selected Bibliography Dale H Besterfield 249 Index 251 INTRODUCTION TO QUALITY IMPROVEMENT OBJECTIVES Upon completion of this chapter, the reader is expected to ■ be able to define quality, quality control, quality improvement, statistical quality control, quality assurance, and process; ■ be able to describe FMEA, QFD, IS09000, IS014000, Benchmarking, TPM, Quality by Design, Products Liability, and IT INTRODUCTION Definitions When the term quality is used, we usually think of an excel­ lent product or service that fulfills or exceeds our expecta­ tions These expectations are based on the intended use and the selling price For example, a customer expects a differ­ ent performance from a plain steel washer than from a chrome-plated steel washer because they are different grades When a product surpasses our expectations, we consider that quality Thus, it is somewhat of an intangible based on perception Quality can be quantified as follows: where Q = quality P = performance E = expectations If Q is greater than 1.0, then the customer has a good feeling about the product or service Of course, the determination of P and E will most likely be based on perception, with the organization determining performance and the customer determining expectations Customer expectations are con­ tinually becoming more demanding The American Society for Quality (ASQ) defines quality as a subjective term for which each person or sector has its own definition In technical usage, quality can have two meanings: the characteristics of a product or service that bear on its ability to satisfy stated or implied needs, or a product or service that is free of deficiencies.1 A more definitive definition of quality is given in ISO 9000 It is defined there as the degree to which a set of inher­ ent characteristics fulfills requirements Degree means that quality can be used with adjectives such as poor, good, and excellent Inherent is defined as existing in something, espe­ cially as a permanent characteristic Characteristics can be quantitative or qualitative Requirement is a need or expecta­ tion that is stated; generally implied by the organization, its customers, and other interested parties; or obligatory Quality control is the use of techniques and activities to achieve and sustain the quality of a product or service Quality improvement is the use of tools and techniques to continually make the product or service better and better Statistical quality control (SQC) is the collection, analysis, and interpretation of data for use in quality activities Quality assurance is all the planned or systematic actions necessary to provide adequate confidence that a product or service will sat­ isfy given requirements for quality It involves making sure that quality is what it should be This includes a continuing evalua­ tion of adequacy and effectiveness with a view to having timely corrective measures and feedback initiated where necessary A process is a set of interrelated activities that uses spe­ cific inputs to produce specific outputs The output of one process is usually the input to another Process refers to both business and production activities Customer refers to both internal and external customers, and supplier refers to both internal and external suppliers QUALITY IMPROVEMENT TOOLS Quality improvement is not the responsibility of any one per­ son or functional area; it is everyone’s job It includes the equipment operator, the keyboard operator, the purchasing agent, the design engineer, and the president of the company There are many improvement tools to assist the organization and individuals to improve their product or service ^ave Nelson and Susan E Daniels,“Quality Glossary,” Quality Progress (June 2007): 39-59 The companion website for this text is www.pearsonhighered.com/besterfield From Chapter of Quality Improvement, Ninth Edition Dale H Besterfield Copyright © 2013 by Pearson Education, Inc All rights reserved Introduction to Quality Improvement Failure Mode and Effect Analysis (FMEA) FMEA is an analytical technique (a paper test) that com­ bines the technology and experience of people in identifying foreseeable failure modes of a product, service, or process, and planning for its elimination In other words, FMEA can be explained as a group of activities intended to ■ recognize and evaluate the potential failure of a product, service, or process and its effects; ■ identify actions that could eliminate or reduce the chance of the potential failure occurring; ISO 14000 How can we change the product, service, or process? ISO 14000 is the international standard for an environmen­ tal management system (EMS) It provides organizations with the EMS elements that can be integrated into other management systems to help achieve environmental and economic goals The standard describes the requirements for registration and/or self-declaration of the organization’s EMS Demonstration of successful implementation of the system can be used to assure other parties that an appropri­ ate EMS is in place ISO 14000 was written to be applicable to all types and sizes of organizations and to accommodate diverse geographic, cultural, and social conditions The requirements are based on the process and not on the prod­ uct or service It does, however, require commitment to the organization’s EMS policy, applicable regulations, and con­ tinual improvement The basic approach to EMS begins with the environ­ mental policy, which is followed by planning, implemen­ tation, and operation; checking and corrective action; and management review There is a logical sequence of events to achieve continual improvement Many of the require­ ments may be developed concurrently or revisited at any time The overall aim is to support environmental protec­ tion and prevention of pollution in balance with socioeco­ nomic needs How does an engineering decision affect customer per­ ception? Benchmarking ■ document the process FMEA is a before-the-event action requiring a team effort to alleviate most easily and inexpensively changes in design and production There are two types of FMEA: Design FMEA and Process FMEA Quality Function Deployment (QFD) QFD is a system that identifies and sets the priorities for product, service, and process improvement opportunities that lead to increased customer satisfaction It ensures the accurate deployment of the “voice of the customer” through­ out the organization, from product planning to field service The multifunctional team approach to QFD improves those processes necessary to provide goods and services that meet or exceed customer expectations The QFD process answers the following questions: What customers want? Are all wants equally important? Will delivering perceived needs yield a competitive advantage? How does an engineering change affect other technical descriptors? What is the relationship to parts deployment, process planning, and production planning? QFD reduces start-up costs, reduces engineering design changes, and, most important, leads to increased customer satisfaction ISO 9000 ISO stands for International Organization for Standards The 9000 series is a standardized Quality Management System (QMS) that has been approved by over 100 coun­ tries It consists of three standards: (1) ISO 9000, which covers fundamentals and vocabulary; (2) ISO 9001, which is the requirements; and (3) ISO 9004, which provides guidance for performance improvement The latest revision of ISO 9000 occurred in the year 2008, hence the designation ISO 9001:8000 The five clauses of QMS are continual improvement; management responsibility; resource management; product/service realization; and measurement, analysis, and improvement These five clauses are related to customer requirements and customer satisfaction It is the search for industry’s best practices that leads to superior performance Benchmarking is a relatively new way of doing business that was developed by Xerox in 1979 The idea is to find another company that is doing a particular process better than your company and then, using that information, improve your process For example, suppose a small company takes 15 hours to complete a payroll for 75 people, whereas the local bank takes 10 hours to complete one for 80 people Because both processes are similar, the small company should find out why the bank is more effi­ cient in its payroll process Benchmarking requires constant testing of internal processes against industry’s best practices It promotes teamwork by directing attention to business practices as well as production to remain competitive The technique Introduction to Quality Improvement is unarguable—if another company can a particular process or practice better, why can’t our company? Bench­ marking allows a company to establish realistic and credi­ ble goals Total Productive Maintenance (TPM) TPM is a technique that utilizes the entire workforce to obtain the optimum use of equipment There is a continu­ ous search to improve maintenance activities Emphasis is placed on an interaction between operators and mainte­ nance to maximize uptime The technical skills in TPM are daily equipment checking, machine inspection, fine-tuning machinery, lubrication, troubleshooting, and repair Quality by Design Quality by design is the practice of using a multidisciplinary team to conduct product or service conceptions, design, and production planning at one time It is also known as simul­ taneous engineering or parallel engineering The team is composed of specialists from design engineering, marketing, purchasing, quality, manufacturing engineering, finance, and the customer Suppliers of process equipment, pur­ chased parts, and services are included on the team at appro­ priate times In the past, the major functions would complete their task—“throw it over the wall” to the next department in the sequence—and not be concerned with any internal cus­ tomer problems that may arise Quality by design requires the major functions to be going on at the same time This system provides for immediate feedback and prevents qual­ ity and productivity problems from occurring The major benefits are faster product development, shorter time to market, better quality, less work-in-process, fewer engineering change orders, and increased productiv­ ity Design for Manufacturing and Assembly (DFMA) is an integral part of the process Products Liability Consumers are initiating lawsuits in record numbers as a result of injury, death, and property damage from faulty product or service design or faulty workmanship The number of liability lawsuits has skyrocketed since 1965 lury verdicts in favor of the injured party have continued to rise in recent years The size of the judgment or settle­ ment has also increased significantly, which has caused an increase in product liability insurance costs Although the larger organizations have been able to absorb the judgment or settlement cost and pass the cost on to the consumer, smaller organizations have occasionally been forced into bankruptcy Although injured consumers must be com­ pensated, it is also necessary to maintain viable manufac­ turing entities Reasons for injuries fall generally into three areas: the behavior or knowledge of a user, the environment where the product is used, and whether the factory has designed and constructed the product carefully using safety analysis and quality control The safety and quality of products has been steadily improving Organizations have met the chal­ lenge admirably—for instance, using safety glass where previously glass shards caused many severe injuries, plac­ ing safety guards around lawn mower blades to prevent lacerations and amputations, redesigning hot water vapor­ izers to reduce the risk of burns to children, and removing sharp edges on car dashboards to minimize secondary col­ lision injuries Resources are limited; therefore, the perfect product or service is, in many cases, an unattainable goal In the long term, customers pay for the cost of regulations and lawsuits It is appropriate to mention the old cliche, “An ounce of prevention is worth a pound of cure.” An adequate preven­ tion program can substantially reduce the risk of damaging litigation Information Technology (IT) IT is a tool like the other tools presented in this textbook And, like the other tools, it helps the organization achieve its goals Over the past few decades, computers and quality management practices have evolved together and have sup­ ported each other This interdependence will continue in the near future Information technology is defined as computer tech­ nology (either hardware or software) for processing and storing information, as well as communications technology for transmitting information There are three levels of information technology: -J Data are alphanumeric and can be moved about with­ out regard to meaning Information is the meaningful arrangement of data that creates patterns and activates meanings in a person’s mind It exists at the point of human perception Knowledge is the value-added content of human thought, derived from perception and intelligent manipulation of information Therefore, it is the basis Q for intelligent action Organizations need to become proficient in converting information to knowledge According to Alan Greenspan, former Chairman of the Federal Reserve, “Our economy is benefiting from structural gains in productivity that have been driven by a remarkable wave of technological innova­ tion What differentiates this period from other periods in our history is the extraordinary role played by information and communication technologies.”*4 Q_ E Wainright Martin, Carol V Brown, Daniel W DeHayes, and Jeffrey A Hoffer, Managing Information Technology, 4th ed (Upper Saddle River, NJ: Prentice-Hall, 2001) Kurt Albrecht, “Information: The Next Quality Revolution,” Quality Digest (June 1999): 30-32 4The Associated Press, “Information Technology Raises Productivity, Greenspan Says,” St Louis Post-Dispatch, June 14, 2000: p C2 Introduction to Quality Improvement COMPUTER PROGRAM The student version of Microsoft’s EXCEL has the capability of performing some of the calculations under the Formulas/ More Functions/Statistical or Formulas/Math & TrigTabs In addition, there are EXCEL program files on the website that will solve many of the exercises Information on these files is given in the appropriate chapter However, it is a good idea to solve most exercises either manually or by cal­ culator in order to better understand the concept The website address is www.pearsonhighered.com/ besterfield Bill Gates has observed: “The computer is just a tool to help in solving identified problems It isn’t, as people some­ times seem to expect, a magical panacea The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency The sec­ ond is that automation applied to an inefficient operation will magnify the inefficiency.”5 EXERCISES d University nonacademic department e Large department store Visit one or more of the following organizations Determine how they define quality and how it is con­ trolled f Grade school g Manufacturing facility h Large grocery store a Large bank b Health-care facility c University academic department Determine the quality improvement tools used by one of the organizations listed in Exercise ANSWERS TO SELECTED EXERCISES 27.2 ppm 5Bill Gates The Road Ahead (New York: Viking Penguin, 1995) LEAN ENTERPRISE OBJECTIVES Upon completion of this chapter, the reader is expected to ■ know the definitions of a value-added activity and a non-value-added activity; ■ know the types of waste and their categories; ■ be able to describe the lean fundamentals; ■ understand how to implement lean; automakers in 1950 to learn about U.S automobile pro­ duction He was amazed at the output per day At that time, Toyota was producing 40 automobiles a day and the quality of the Datson automobile was terrible With the eventual assistance of Taichi Ohno and Shigeo Shingo, a system was developed to reduce or eliminate non-valueadded activities, for which the customer was not willing to pay This system became known as the Toyota Production System (TPS) It was recently reintroduced and popular­ ized as Lean Enterprise.2 ■ be able to list at least five benefits of lean; ■ be able to construct a value stream map LEAN FUNDAMENTALS INTRODUCTION The basics of lean are types of waste, categories of waste, workplace organization, concept of flow, inventory control, visual management, Kaizen, and value stream A lean enterprise is one that emphasizes the prevention of waste throughout the organization Waste is defined as any extra time, labor, capital, space, facilities, or material that does not add value to the product or service for the customer In contrast, a value-added activity is one that must transform the product or service; have a customer who is willing to pay for it with money, time, or other resources; and be produced cor­ rectly the first time This concept embodies a set of principles, tools, and application methodologies that enable organiza­ tions to achieve dramatic competitive advantages in develop­ ment, cost, quality, and delivery performance HISTORIAL REVIEW Most lean concepts were practiced at Ford Motor Com­ pany in the 1920s Frank and Lillian Gilbreth’s concept of motion efficiency and Fredrick Taylor’s scientific manage­ ment principles were well known at that time Shigeo Shingo, the legendary Japanese industrial engineering con­ sultant, cites Taylor’s work as his inspiration Henry Ford’s books described lean concepts including just-in-time (JIT) inventory control, authority to stop the production line, time and motion study, standardized work methods, and waste elimination.1 Fiji Toyota visited the big three Detroit Levinson, William A., “Lean Manufacturing: Made in the USA,” Quality Digest (February 2002): 64 Types of Waste In order to eliminate or reduce waste, we need to look at the different types The first type was previously discussed and is non-value added and unnecessary for the system to func­ tion Administration, inspection, and reports are examples of activities that not add value to the product or service The second type is described as non-value added, but necessary for the system to function For example, to sell oil overseas, it must be transported by an oceangoing vessel, which does not add value to the product, or similarly, the travel cost of a lean consultant going to Uganda would not be value added However, both the transportation and travel costs are necessary for the activity to occur A third type of waste is due to unevenness or variation in quality, cost, or delivery An excellent example of this concept is given by Taguchi’s loss function As the quality characteristic varies from the target value, the cost increases Another example is illustrated by a work center that delivers an average of 50 units per hour, but has a range of 35 to 65 units per hour Aluka, George 1., “Create a Lean, Mean Machine,” Quality Progress (April 2003): 29-35 The companion website for this text is www.pearsonhighered.com/besterfield From Chapter of Quality Improvement, Ninth Edition Dale H Besterfield Copyright © 2013 by Pearson Education, Inc All rights reserved