What Does Todays Business Look Like - SPC

Fall 2002 JozwiakMFGTEC 201 - Quality Assurance and Statistical Process Control

What Does Today’s Business What Does Today’s Business Environment Look Like?Environment Look Like?

Global marketplaceGlobal marketplace– foreign competitionforeign competition– foreign customersforeign customers

Global quality standardsGlobal quality standards– that are continually being upgradedthat are continually being upgraded

Volatile economyVolatile economy– good prospects for the “winner’s”good prospects for the “winner’s”

Rapid turnover of technologies and productsRapid turnover of technologies and products Employees are highly skilledEmployees are highly skilled


Quality - What’s the Big Deal?Quality - What’s the Big Deal?

The Eternal BattleThe Eternal Battle: : QQuantity vs. uantity vs. QQualityuality

Quantity goes directly to the Quantity goes directly to the bottom line:bottom line:– more product out ==> more $$$more product out ==> more $$$

But what are the costs associated But what are the costs associated with Quality?with Quality?


What is Quality?What is Quality? Fitness for UseFitness for Use Conformance to SpecificationsConformance to Specifications Producing the Very Best ProductsProducing the Very Best Products Excellence in Products and ServicesExcellence in Products and Services Total Customer SatisfactionTotal Customer Satisfaction Exceeding Customer ExpectationsExceeding Customer Expectations

Quality improvement starts with reducing Quality improvement starts with reducing Product VARIABILITY.Product VARIABILITY.


Quality - What’s the Big Deal?Quality - What’s the Big Deal?

Direct Costs of Poor Quality:Direct Costs of Poor Quality:– Lost Revenue: scrap, rework, repairLost Revenue: scrap, rework, repair– Lost Productivity: materials, machines, and personnelLost Productivity: materials, machines, and personnel– Inspection Costs: inspectors, testing machinesInspection Costs: inspectors, testing machines– External Costs: warranty claims, price adjustments, late External Costs: warranty claims, price adjustments, late

chargescharges

Indirect Costs of Poor Quality - Upset Indirect Costs of Poor Quality - Upset Customers:Customers:– It is 5-7X harder to attract a new customer than to retain a It is 5-7X harder to attract a new customer than to retain a

current onecurrent one– Dissatisfied customers tell 8-20 people about their Dissatisfied customers tell 8-20 people about their

dissatisfaction.dissatisfaction.– Satisfied customers only tell 3-5 people.Satisfied customers only tell 3-5 people.


Statistical Process ControlStatistical Process Control

How do we reduce Product Variability?How do we reduce Product Variability?

We use Statistical Process Control ! We use Statistical Process Control ! (SPC)(SPC)

Statistical Process ControlStatistical Process Control: The : The application of statistical techniques to application of statistical techniques to the control and improvement of the control and improvement of processes.processes.


What are the sources of What are the sources of variation in a process?variation in a process?

– Machine variationMachine variation– Raw Material variationRaw Material variation– Different methods usedDifferent methods used– Measurement variationMeasurement variation– Operator variationOperator variation– Environmental factorsEnvironmental factors


Causes of VariationCauses of Variation Random, chance, constant, common, Random, chance, constant, common,

unknown causesunknown causes– the “rhythm” of the processthe “rhythm” of the process

Assignable, special causesAssignable, special causes– something has changedsomething has changed


Random, chance variation:Random, chance variation:

““4M’s and OE”4M’s and OE”– MachineMachine– MaterialMaterial– MethodMethod– MeasurementMeasurement– OperatorOperator– EnvironmentEnvironment


AssignableAssignable Causes of Variation: Causes of Variation:The Backbone of SPCThe Backbone of SPC

Examples of things that may be Examples of things that may be assignableassignable causes of variation:causes of variation:– machine troubles (damaged saw teeth, plugged machine troubles (damaged saw teeth, plugged

blowpipe, etc.)blowpipe, etc.)– faulty measuring devicefaulty measuring device– operator overcontroloperator overcontrol– worker fatigueworker fatigue– drastic changes in raw materialdrastic changes in raw material


Prevention vs. DetectionPrevention vs. Detection Detection Model: Detection Model:

– $$$ lost to:$$$ lost to: making defective partsmaking defective parts finding defective partsfinding defective parts repairing or scrapping defective partsrepairing or scrapping defective parts

– if/when detection fails, additional $$$ lost to:if/when detection fails, additional $$$ lost to: warrantieswarranties cancelled orderscancelled orders


Detection ExampleDetection Example Count the number of f’s in this paragraph:Count the number of f’s in this paragraph:

The study of SPC can be both fun and rewarding for The study of SPC can be both fun and rewarding for everyone. When you find out that the fundamental ideas everyone. When you find out that the fundamental ideas of statistics are fairly easy to learn, you will discover that of statistics are fairly easy to learn, you will discover that your efforts result in a great deal of satisfaction. If you your efforts result in a great deal of satisfaction. If you treat a production problem as a puzzle, the application of treat a production problem as a puzzle, the application of SPC provides clues for its solution, and when the puzzle is SPC provides clues for its solution, and when the puzzle is finally solved, the feeling of satisfaction is very fulfilling. finally solved, the feeling of satisfaction is very fulfilling. Puzzles can be frustrating, but their final solution is fun.Puzzles can be frustrating, but their final solution is fun.


Prevention vs. DetectionPrevention vs. Detection

Prevention Model:Prevention Model:– minimal increased cost due to adding prevention minimal increased cost due to adding prevention

measures in the processmeasures in the process– utilizes SPC to reduce product variability at the utilizes SPC to reduce product variability at the

sourcesource– no waste!no waste!

?? Which model does the ?? Which model does the

semiconductor industry use??semiconductor industry use??


If SPC is the answer, If SPC is the answer, What is the question?What is the question?

What is the distribution of process output?What is the distribution of process output?– centering, range or “spread”, likelihood of an extreme valuecentering, range or “spread”, likelihood of an extreme value

Is the process capable of meeting customer expectations?Is the process capable of meeting customer expectations?– or, is the supplier’s product meeting specs.?or, is the supplier’s product meeting specs.?

What is causing the variability?What is causing the variability?– When is it reasonable to “get tough” with employees?When is it reasonable to “get tough” with employees?


Can we afford to minimize the variability?Can we afford to minimize the variability? Over time, how can we be sure the process hasn’t Over time, how can we be sure the process hasn’t

changed?changed? When should we “tinker” with the process and when When should we “tinker” with the process and when

should we leave it alone?should we leave it alone?

If SPC is the answer, If SPC is the answer, What is the question?What is the question?


SPC is a SPC is a tooltool to to supplementsupplement notnot replacereplace the the existing knowledge your people have of existing knowledge your people have of your process.your process.

Adoption of SPC principles often leads toAdoption of SPC principles often leads to– increased profitsincreased profits

– increased productivityincreased productivity

– increased employee involvement in the processincreased employee involvement in the process

– increased moraleincreased morale

New technology requires change. New technology requires change. Change Change fear, resistance,... fear, resistance,...


Quality ControlQuality Control– Activities undertaken to regulate quality of a productActivities undertaken to regulate quality of a product

ProductProduct Quality Control Quality Control– Activities to evaluate and regulate quality following Activities to evaluate and regulate quality following

production (“inspect and reject”)production (“inspect and reject”)

ProcessProcess Quality Control Quality Control– Activities to ensure a quality product is produced Activities to ensure a quality product is produced

during manufacturingduring manufacturing

Some definitions-Some definitions-


Statistical Quality Control (SQC)Statistical Quality Control (SQC)– The application of statistical techniques to the control The application of statistical techniques to the control

of quality (SPC, Acceptance Sampling, etc.)of quality (SPC, Acceptance Sampling, etc.)

Statistical Process Control (SPC)Statistical Process Control (SPC)– The application of statistical techniques to the control The application of statistical techniques to the control

of processes (sometimes considered a subset of SQC)of processes (sometimes considered a subset of SQC)

Total Quality Management (TQM)Total Quality Management (TQM)– An all-encompassing approach to quality consistent An all-encompassing approach to quality consistent

with Deming’s “14 points”with Deming’s “14 points”

Some definitions-Some definitions-

Definitions from Definitions from Quality Systems TerminologyQuality Systems Terminology, American , American Society for Quality Control, ANSI/ASQC A3-1987Society for Quality Control, ANSI/ASQC A3-1987


Who needs to understand and Who needs to understand and commit to SPC?commit to SPC?

Everyone in the plantEveryone in the plantmanagementmanagementproductionproductionengineering and designengineering and designsalessales

Giving one person all of the responsibility

for SPC will not work


10 Steps of Implementing SPC10 Steps of Implementing SPC

1. Analyze the process1. Analyze the process

2. Decrease obvious variability2. Decrease obvious variability

3. Gauge capability study3. Gauge capability study

4. Sampling plan4. Sampling plan

5. Implement 5. Implement CONTROL CHARTSCONTROL CHARTS

6. Put the operator in charge6. Put the operator in charge

7. Process capability study7. Process capability study

8. Improve the process8. Improve the process

9. Reduce sampling9. Reduce sampling

10. Return to step 110. Return to step 1


TQM- Deming’s 14 Points:TQM- Deming’s 14 Points: Create constancy of purpose for improvement of product and serviceCreate constancy of purpose for improvement of product and service Adopt the new philosophyAdopt the new philosophy Cease dependence on mass inspectionCease dependence on mass inspection End the practice of awarding business on price tag aloneEnd the practice of awarding business on price tag alone Improve constantly and forever the system of production and serviceImprove constantly and forever the system of production and service Institute trainingInstitute training Institute leadershipInstitute leadership Drive out fearDrive out fear Break down barriers between staff areasBreak down barriers between staff areas Eliminate slogans, exhortations, and targets for the workforceEliminate slogans, exhortations, and targets for the workforce Eliminate numerical quotasEliminate numerical quotas Remove barriers to pride of workmanshipRemove barriers to pride of workmanship Institute a vigorous program of education and retrainingInstitute a vigorous program of education and retraining Take action to accomplish the transformationTake action to accomplish the transformation


TQM- Deming’s 7 Deadly Diseases:TQM- Deming’s 7 Deadly Diseases: Lack of constancy of purpose, failure to plan aheadLack of constancy of purpose, failure to plan ahead Emphasis on short-term profitsEmphasis on short-term profits Evaluation of performance, merit rating, annual reviewEvaluation of performance, merit rating, annual review Mobility of managementMobility of management Running a company with visible figures aloneRunning a company with visible figures alone Excessive medical costsExcessive medical costs Excessive legal costsExcessive legal costs


TQM- Crosby’s 14 Steps:TQM- Crosby’s 14 Steps: Management commitmentManagement commitment The quality improvement teamThe quality improvement team MeasurementMeasurement The cost of qualityThe cost of quality Quality awarenessQuality awareness Corrective actionCorrective action Zero defects planningZero defects planning Employee educationEmployee education ZD dayZD day Goal settingGoal setting Error-cause removalError-cause removal Recognition of good work in the quality processRecognition of good work in the quality process Quality councilsQuality councils RepetitionRepetition


Deming vs. CrosbyDeming vs. Crosby Where do they agree?Where do they agree?

– Management commitmentManagement commitment

– Employee trainingEmployee training

– Never ending processNever ending process

– Remove barriers, create teamsRemove barriers, create teams

Where do they disagree?Where do they disagree?– The use of numerical quotasThe use of numerical quotas

– Zero defectsZero defects

– Slogans and postersSlogans and posters


Quality InitiativesQuality Initiatives

Malcolm Baldridge National Quality AwardMalcolm Baldridge National Quality Award– recognizes world-class quality managementrecognizes world-class quality management– establishes a set of standardsestablishes a set of standards

ISO9000ISO9000– globally accepted quality standardglobally accepted quality standard– assures customers of a certain level of qualityassures customers of a certain level of quality– requires regular re-certificationrequires regular re-certification