quality is function of a specific, measurable attribute of a product 

Ex: # of cylinders in a car

User-Based View (marketing) of Quality

• quality determined by what a customer wants 
• Performance, features, reliability, durability, serviceability, aesthetics, perceived quality (image, brand)

Ex: Lexus vs. Jeep

Value-Based View of Quality

relationship of usefulness/satisfaction to price

Ex: Timex watch

• Total Quality Management (TQM)
• ISO9000
• Six Sigma Programs
• Lean processes or lean manufacturing
• Lean Six Sigma Programs

Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer

A highly structured program for improving business processes

DMAIC= define, measure, analyze, imrpove, & control

Lean processes or Lean manufacturing

Create constancy of purpose for the improvement of product or service 

Ex: Plan out how the company is going to be working on improving the product or service. 

Adopt a new philosophy

Ex: Organization as a whole is moving towards quality by focusing more on customer and preparing for change in business

Cease depends on mass inspection for quality control

Ex: Costs for inspections are high so lower them by adding quality into the process of making product or service. Eliminate wrongs by switching to statistical control methods to save time and money.

End the practice of awarding business on the basis of price tag

Ex: Use single supplier for any one item while encouraging them to also imrpove their product which lowers cost to both parties. 

Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs

Ex: Do not look at the switch to better quality as a short term process, continuously improving ensures lower costs and better quality in the long run. 

Institute more thorough, better job-related training

Ex: Training helps employees all have the proper knowledge to do their job, and also reduces any variation in a process, which in turn lowers amount of defective products made

Institute leadership 

Ex: Have managers know who and how an employee does their job to properly lead them to do their best. Knowing the needs of the employees to inspire them, and having all necessities available to them.

Drive out fear, so that everyone may work effectively for the company

Ex: Eliminating any feelings of fear when it comes to ideas and promoting more team-based work. Establishing a common goal with supportive management to better accomplish goal.

Break down barriers between departments

Ex:Focus more on collaboration with cross-functional teams to achieve a shared vision.

Eliminate slogans, exhortations, and targets for the workforce that ask for zero defects and new levels of productivity

Ex: Lead by example and refrain from any catchy slogans. True leadership has a face, that actively engages with employees to make them better, not some phrase on a wall.

Eliminate work standards on the factory floor

Ex: Change production from an output level standard becuase quality is lost. Providing proper supplies for a reasonable output level raises quality, but is only calculated by conducting research on the process first.

Remove the barriers that rob employees at all levels in the company of their right to provide of workmanship

Ex: Avoid showing favoritism towards a certain employee simply due to his work output. Showing equality to all naturally will raise quality system by eliminating competition amongst one another.

Institute a vigorous program of eduction and self-improvement

Ex: Encourage employees to learn new skills to keep company improving and ready for the future.

Put everybody in the organization to work to accomplish the transformation

Ex:

• Lack of constancy of purpose
• Emphasis on short-term profits
• Evaluation of performance, merit rating, and annual reviews of performance
• Mobility of top management
• Running a company on visible figures alone
• Excessive medical costs
• Excessive legal damage awards swelled by lawyers working on contigency fees

0.045cm + .002cm

What do the numbers mean for specifications

0.045= target specfication

.002cm = Upper & Lower Specifiation Limits (USL & LSL)

• The line has a square shape where the bottom of the square is on the x-axis 
• A and B are areas between target Spec and USL and LSL
• C is outside of limits
• This view doesn't recognize the "degree of goodness"

• Line makes a U shape from LSL to USL becuase loss function is quadratic
• Loss imparted to producer, customer, and society during product's or service's use as a result of variation
• This view implies that it is most economical to produce on target with the smallest variation 

1. Prevention costs
2. Appraisal costs
3. Internal Failure costs
4. External Failure costs

• investments made to keep defective products from being produced or defective services from being delivered
• Ex: Reliability studies, improvement projects, training

• Are associated with efforts to monitor output conformanceto specfications
• Ex: Test and inspection, instrument maintenance

• occur when unsatifactory quality is found before delivery of product or service to customer
• Ex: Scrap and rework, corrective action, lost productive time

• occur when unsatisfactory quality is found after delivery of product service to customer
• Ex: Repair, warranty claims, liability costs, lost sales, customer complaint investigation

• 3 lines, 2 that cross which are different costs of quality, 1 above both symbolizing Total Costs
• Optimal quality level is where cost of quality (prevention & appraisal costs) control meets loss due to poor quality (internal & external costs)

• AS is used to avoid 100% inspection
• Statistical rules are used when taking a small sample from a large batch to see if it is acceptable
• Acceptable Quality Level (AQL) is basis of statistical rules
• Puts emphasis & effort on finding defects than prevention

• Focus is devloping and maintainging the standards for registration of the QMS in organizations instead of compliance of indivdual products
• Proves that the processes used are of QMS standards through extensive documentation

• a 3rd party registrar sends auditors to perform assessment of organization
• Organization can get prepared through bringing in consultants, doing internal audits, making improvements, and writing documentation
• Stay registered with periodic visits from auditors 

• Plan your processes, control your processes, improve your processes

• Customer focus 
• Leadership (clear responsibilities for top management) 
• Involvement of people
• Process view of organizations
• Cotinual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships
• Systematic approach to management

• Gives a common understanding of QMS requirements within org, between org & suppliers, between Org & customers
• Forces org to understand & document its processes
• Forces discipline in org to follow its QMS standards
• Registered companies improve image as and for supplier, can be a contractual requirement from customers, & validates org's capabilities 

• Manufacturing large
• Manufacturing small
• Services
• Health Care
• Education

• US law, managed by NIST
• A law passed by Congress

• Improve quality and productivity
• Proven by following criteria set by MBQA focusing on Leadership, strategic planning, customer and market focus, HR, process management, business results, measurement, analysis, & knowledge management

• Good for org's image, improves company, and proves company to be of high quality in comparison to others
• Can lead to financial difficulties post attempting or wining the award due to cost 

• After the MBQA became popular, the ISO decided to add certain aspects of the MBQA to their registration requirements

• ISO focuses on process, while MBQA focuses on overall company and its results
• MBQA focuses on competitiveness and how a company stands out, whil ISO 9000 is more for conformity and reaching QMS standards

• a variable that takes a value as a result of a probabilistic experiment
• Ex: Tossing 2 coins, Y being sum of a toss & probability of Y =, is greater than or less than a value 

• % of defective units made decreases

• n = # of observations in a subgroup
• M= # of samples (# of subgroups)

R=range of subgroup (taking highest and lowest and subtracting)

R-bar= taking all the ranges, adding them up, dividing by total # of ranges

•  is area from point x to the mean
•  (x-μ)/ σ

• Reject null hypothesis and is false, right conclusion
• Accept null hypothesis and is true, right conclusion
• Reject null hypothesis and is true, wrong conlusion meaning a Type 1 error has been made
• Accept null hypothesis and is false, wrong conclusion meaning a Type 2 error has been made

alpha= probability of making a Type 1 error

alpha is usually equal to .05

beta= probability of making a Type 2 error

• alpha-risk= the risk that we rejected it when we should not have, reduces the risk of rejecting null when you shouldn't that's why alpha-risk is so small
• beta-risk= somewhere inside the bell curve, in the do not reject range, beta-risk happens when we say to not reject when we actually should

• process is operating as designed= save $
• management can assess process capability & can predict yields and costs= better planning
• management can measure effects of changes to a process with greater reliability
• process less likely to drift into making defective items

Difference between statistically stable and unstable processes

• stable= affected by common causes of variation
• unstable= affected by common and special causes of variation

Common= poor maintenance of machines, poor working conditions, normal wear and tear

Special= operator absent, machine malfunction, computer crash

Purpose of control charts

They generate signals to us that a process may be out of control, when we get a signal saying it might be out of control we must investigate. If it is an external factor then we can continue on, if we cannot find a reason we have to keep researching

• •Process control refers to the statistical control of the process whereby the process is operating under standard conditions
  •Process capability refers to the ability of a process to produce goods or service outcomes that conform to design specifications (and meet the needs of the customer)
  •A process must be in control before you can statistically determine capability

When is A₂ used?

• UCL and LCL is mean + z value by alpha * (sigma /( sq root of n))
• test statistic for each sample is graphed on chart

• mean is replaced by Xbarbar
• std dev is replaced with Rbar/d₂
• control limits: Xbarbar + z value from alpha * (Rbar/d₂ *sq rt 'n')

• control limits: Xbarbar + 3*(Rbar/d₂ * sq rt n)
• But with z=3, A₂ then subs in making Xbarbar + A₂*Xbar

• Control limits: mean of R + z value from alpha * sigma of R

• To estimate sigma of R, σ_R = d₃*σ_x
• d3 is based on size of n, so d₃*Rbar/d₂
• Control limits: Rbar + z value from alpha (d3/d2)Rbar

Control limits: UCL- D_{4 *} Rbar

LCL- D₃*Rbar

C/L= Rbar

• beta-risk is a result of choice of alpha-risk and n

• Control charts show when a process has changed possibly producing something out of spec, but does not indicate if something is out of spec

• control limits are statistically derived from process data and are dependent on desired alpha-risk, beta-risk, and sample size
• spec limits are determined by the designer of the part or service

• No charts early in process
• not reacting to special causes in variation
• charts monitor the process not the manager
• incorrect sampling
• using poor measurement data
• managers thinking stat process control is too expensive