Statistical Quality

Control

Lecture 4
Review
WHAT IS STATISTICAL QUALITY
CONTROL?
1. Statistical quality control (SQC) is the term used to
describe the set of statistical tools used by quality
professionals.

• Statistical quality control can be divided into three broad

categories:
1. Descriptive statistics
2. Statistical process control (SPC)
3. Acceptance sampling
 Sources of Variation
• Variation exists in all processes.
• Variation can be categorized as either:
– Common or Random causes of variation, or
• Random causes that we cannot identify
• Unavoidable, e.g. slight differences in process variables like
diameter, weight, service time, temperature
– Assignable causes of variation
• Causes can be identified and eliminated: poor employee
training, worn tool, machine needing repair

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 Descriptive Statistics
• Descriptive Statistics include:
n
– The Mean- measure of central
tendency
x i 1
i
– The Range- difference between x
largest/smallest observations in a
set of data n
– Standard Deviation measures
 x 
n
2
the amount of data dispersion X
around mean i
i 1
– Distribution of Data shape σ
• Normal or bell shaped or n 1
• Skewed

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 Distribution of Data
• Normal distributions • Skewed distribution

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 SPC Methods-Developing
Control Charts
Control Charts (aka process or QC charts) show sample data plotted on a graph
with CL, UCL, and LCL
Control chart for variables are used to monitor characteristics that can be
measured, e.g. length, weight, diameter, time
Control charts for attributes are used to monitor characteristics that have
discrete values and can be counted, e.g. % defective, # of flaws in a shirt, etc.

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 Setting Control Limits
• Percentage of values under • Control limits balance
normal curve risks like Type I error

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 Control Charts for Variables
• Use x-bar charts to monitor the changes in the mean of
a process (central tendencies)

• Use R-bar charts to monitor the dispersion or

variability of the process

– System can show acceptable central tendencies but

unacceptable variability ,or
– System can show acceptable variability but unacceptable
central tendencies
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 Control Charts for Variables
• Use x-bar and R-bar
charts together
• Used to monitor different
variables
• X-bar & R-bar Charts
reveal different problems
• Is statistical control on
one chart, out of control
on the other chart? OK?

© Wiley 2010 10
New Lecture
 Control Charts for Attributes
• Control charts for attributes are used to measure quality
characteristics that are counted rather than measured.

• Attributes are discrete in nature and entail simple yes-or-

no decisions.

• For example, this could be:

– The number of nonfunctioning light bulbs,
– The proportion of broken eggs in a carton,
– The number of rotten apples,
– The number of scratches on a tile, or
– The number of complaints issued
 Control Charts for Attributes
P-charts
• P-charts are used to measure the proportion of items in a sample
that are defective.

• Examples are:
– The proportion of broken cookies in a batch and
– The proportion of cars produced with a misaligned fender.

• P-charts are appropriate when both the number of defectives

measured and the size of the total sample can be counted. A
proportion can then be computed and used as the statistic of
measurement.
 P-Chart Example
A production manager for a tire company has inspected the number of
defective tires in five random samples with 20 tires in each sample. The
table below shows the number of defective tires in each sample of 20 tires.
Calculate the control limits.
Solution:
Sample Number Number of Proportion
of Tires in Defective
Defective each
# Defectives 9
Tires Sample CL  p    .09
Total Inspected 100
1 3 20 .15
2 2 20 .10 p(1  p ) (.09)(.91)
σp    0.64
n 20
3 1 20 .05
UCLp  p  z σ   .09  3(.064)  .282
4 2 20 .10
LCLp  p  z σ   .09  3(.064)  .102  0
5 2 20 .05
Total 9 100 .09
15
P- Control Chart

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 Control Charts for Attributes
C-charts
• C-charts count the actual number of defects.

• For example,
– we can count the number of complaints from customers in a month,
– the number of bacteria on a petri dish,or
– the number of barnacles on the bottom of a boat.

• However, we cannot compute the proportion of complaints

from customers, the proportion of bacteria on a petri dish, or
the proportion of barnacles on the bottom of a boat.
 C-Chart Example
The number of weekly customer complaints are monitored in a large hotel
using a c-chart. Develop three sigma control limits using the data table below.

Week Number of
Complaints Solution:
1 3 # complaints 22
2 2 CL    2.2
# of samples 10
3 3
4 1 UCLc  c  z c  2.2  3 2.2  6.65
5 3
6 3 LCLc  c  z c  2.2  3 2.2  2.25  0
7 2
8 1
9 3
10 1 19
Total 22
C- Control Chart

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 Important Points

• Statistical quality control (SQC) techniques

– Descriptive statistics tools such as the mean, range, and standard deviation. These tools are used to
describe quality characteristics and relationships.

– Another category of SQC techniques consists of statistical process control (SPC) methods that are used
to monitor changes in the production process.

• Common and assignable causes of variation.

– Common causes of variation are based on random causes that cannot be identified. A certain amount of
common or normal variation occurs in every process due to differences in materials, workers, machines,
and other factors.

– Assignable causes of variation, on the other hand, are variations that can be identified and eliminated.
• An important part of statistical process control (SPC) is
monitoring the production process to make sure that the only
variations in the process are those due to common or normal
causes. Under these conditions we say that a production process
is in a state of control.

• You should also understand the different types of quality control

charts that are used to monitor the production process: x-bar
charts, R-range charts, p-charts, and c-charts.
 Notice and Comment

Simply setting up control charts to monitor whether a process is in control

does not guarantee process capability. To produce an acceptable product,
the process must be capable and in control before production begins.
 PROCESS CAPABILITY
• A critical aspect of statistical quality control is evaluating the ability of a
production process to meet or exceed preset specifications. This is called
process capability.

• To understand exactly what this means, let’s look more closely at the term
specification.

• Product specifications, often called tolerances, are preset ranges of acceptable

quality characteristics, such as product dimensions. For a product to be
considered acceptable, its characteristics must fall within this preset range.
Otherwise, the product is not acceptable. Product specifications, or tolerance
limits, are usually established by design engineers or product design specialists.
 Process Capability
Product Specifications
– Preset product or service dimensions, tolerances: bottle fill might be 16 oz. ±.2 oz. (15.8oz.-
16.2oz.)
– Based on how product is to be used or what the customer expects
Process Capability – Cp and Cpk
– Assessing capability involves evaluating process variability relative to preset product or
service specifications
– Cp assumes that the process is centered in the specification range

specification width USL  LSL

Cp  
process width 6σ
– Cpk helps to address a possible lack of centering of the process

 USL  μ μ  LSL 
Cpk  min ,  26
 3σ 3σ 
• The process produces 99.74
percent (three sigma) of the
product with volumes between
15.8 and 16.2 ounces.

• One can see that the process

variability closely matches the
preset specifications. Almost
all the output falls within the
preset specification range.
• the process produces 99.74 percent
(three sigma) of the product with
volumes between 15.7 and 16.3 ounces.

• The process variability is outside the

preset specifications. A large
percentage of the product will fall
outside the specified limits.

• This means that the process is not

capable of producing the product
within the preset specifications.
• The production process produces
99.74 percent (three sigma) of the
product with volumes between
15.9 and 16.1 ounces.

• In this case the process variability

is within specifications and the
process exceeds the minimum
capability.
 Relationship between Process
Variability and Specification Width
• Three possible ranges for Cp

– Cp = 1, as in Fig. (a), process

variability just meets specifications

– Cp ≤ 1, as in Fig. (b), process not

capable of producing within
specifications

– Cp ≥ 1, as in Fig. (c), process

exceeds minimal specifications

• One shortcoming, Cp assumes that the

process is centered on the specification
range

• Cp=Cpk when process is centered

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• A Cp value of 1 means that 99.74 percent of the products produced will fall within the
specification limits. This also means that .26 percent (100% 99.74%) of the products
will not be acceptable.

• Although this percentage sounds very small, when we think of it in terms of parts per
million (ppm) we can see that it can still result in a lot of defects.

• The number .26 percent corresponds to 2600 parts per million (ppm) defective (0.0026
1,000,000). That number can seem very high if we think of it in terms of 2600 wrong
prescriptions out of a million, or 2600 incorrect medical procedures out of a million, or
even 2600 malfunctioning aircraft out of a million.

• You can see that this number of defects is still high. The way to reduce the ppm
defective is to increase process capability.
 Computing the Cp Value at Cocoa Fizz: 3 bottling machines are being
evaluated for possible use at the Fizz plant. The machines must be
capable of meeting the design specification of 15.8-16.2 oz. with at
least a process capability index of 1.0 (Cp≥1)

The table below shows the information gathered Solution:

from production runs on each machine. Are
they all acceptable? – Machine A
USL  LSL .4
Cp   1.33
6σ 6(.05)
Machine σ USL-LSL 6σ
– Machine B
A .05 .4 .3
Cp=
B .1 .4 .6
– Machine C
C .2 .4 1.2

Cp=
© Wiley 2010 32
Computing the Cpk Value at Cocoa Fizz

• Design specifications call for a target

value of 16.0 ±0.2 OZ.
(USL = 16.2 & LSL = 15.8)
• Observed process output has now
shifted and has a µ of 15.9 and a
σ of 0.1 oz.
 16.2  15.9 15.9  15.8 
Cpk  min , 
 3(.1) 3(.1) 
.1
Cpk   .33
.3
• Cpk is less than 1, revealing that the
process is not capable
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 ±6 Sigma versus ± 3 Sigma
• PPM Defective for ±3σ versus
• In 1980’s, Motorola coined “six-sigma” ±6σ quality
to describe their higher quality efforts
Six-sigma quality standard is now a
benchmark in many industries
– Before design, marketing ensures
customer product characteristics
– Operations ensures that product design
characteristics can be met by controlling
materials and processes to 6σ levels
– Other functions like finance and
accounting use 6σ concepts to control all
of their processes

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End of Lecture
Statistical Quality
Control

Acceptance Sampling
 Acceptance Sampling

A form of inspection applied to lots or batches of

items before or after a process to judge
conformance to predetermined standards
 Acceptance Sampling
Acceptance Sampling is very useful when

•Large numbers of items must be processed in a short

amount of time
•The cost of “passing defectives” is low
•Fatigue/boredom is caused by inspecting large numbers of
items

. Destructive testing is required

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 Sampling Plans
Sampling Plans specify the lot size, sample size, number
of samples and acceptance/rejection criteria. Sampling
plans involve
. Single sampling
. Double sampling
. Multiple sampling

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 Single Sampling Plan
A Single Sampling Plan is one where
. A representative sample of n items is drawn from a lot size of
N items.
. Each item in the sample is examined and classified as
good/defective
. If the number of defective exceeds a specified rejection
number (C - cut off point) the whole lot is rejected; otherwise the whole
lot is accepted

Lot (N Random Lot (N Random

sample
items) sample items) (n items)
(n
items)

15 - 40
 Double Sampling Plan
A Double Sampling Plan allows the opportunity to take a
second sample if the results of the original sample are
inconclusive.

. Specifies the lot size, size of the initial sample, the

accept/reject/inconclusive criteria for the initial sample
(CL - lower level of defectives, CU - upper level of
defectives)

. Specifies the size of the second sample and the acceptance rejection
criteria based on the total number of defective observed in both the first
and second sample (CT- total allowable defectives)

It works like the following example

15 - 41
 Double Sampling Plan

Lot First Random

sample

First sample
Accept inconclusive, take Reject Lot
Lot second sample

CL CU
Compare number of defective found in the first random
sample to CL and CU and make appropriate decision.
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 Double Sampling Plan
Lot First Random
sample

Second Random sample

Accept Lot Reject Lot

CT
Compare the total number of defective in both lots to CT
(CT- total allowable defectives) and make the
appropriate
15 - 43
decision
 Multiple Sampling Plan
A Multiple Sampling Plan is similar to the double sampling
plan in that successive trials are made, each of which has
acceptance, rejection and inconclusive options.

Which Plan you choose depends on

. Cost and time

. Number of samples needed and number of items in

each sample

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 Acceptance Sampling
Purposes
Determine quality level
Ensure quality is within predetermined level

Advantages Disadvantages
Economy Risks of accepting “bad” lots and
Less handling damage rejecting “good” lots
Fewer inspectors Added planning and documentation
Upgrading of the inspection job Sample provides less information
Applicability to destructive testing than 100-percent inspection
Entire lot rejection (motivation for
improvement)
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 Operating Characteristic Curve
(OCC)
An Operating Characteristic Curve (OCC) is a probability curve for a
sampling plan that shows the probabilities of accepting lots with various
lot quality levels (% defectives).

1
Probability of accepting lot

Under this sampling plan, if the lot has 3% defective

0.9 . the
0.8 probability of accepting the lot is 90% . the
probability of rejecting the lot is 10%
0.7
0.6
0.5 If the lot has 20% defective
0.4 . it has a small probability (5%) of being accepted
. the probability of rejecting the lot is 95%
0.3
0.2
0.1
0
0 .05 .10 .15 .20 Lot quality (% defective)
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 Operating Characteristic Curve (OCC)
Under this sampling plan what is the probability of accepting a lot that
has 5% defectives?

1
Probability of accepting lot

0.9
0.8 Approximately 80%
0.7 This sampling plan may not be
acceptable to customer. Therefore,
0.6
this sampling plan may not be
0.5 acceptable for meeting the
0.4 customers level of quality.

0.3
0.2
0.1
0
0 .05 .10 .15 .20 Lot quality (% defective)
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 Customer Acceptance Levels
Most customers understand that 100% inspection is impractical and
are generally willing to accept that a certain level of defectives will be
produced.

The Acceptable Quality Level (AQL) is the percentage level of

defects at which a customer is willing to accept as lot as “good”.

The Lot Tolerance Percent Defective (LTPD) is the upper limit on the
percentage of defectives that a customer is willing to accept.

Customers want lots with quality better than or equal to the AQL but
are willing to live with some lots with quality as poor as the LTPD, but
prefer not to accept lots with quality levels worse than the LTPD.

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 Customer Acceptance Levels
Therefore the sampling plan must be designed to assure the customer
that they will be receiving the required AQL and LTPD.
LTPD

The AQL and LTPD are dependent on many things (reliability, liability,
competitor quality levels, etc.) and will vary by industry and by
customer.

Typically industry standards are set because suppliers have more than
one customer and customers have more than one supplier.

The Consumer’s Risk is the probability that an unacceptable lot (e.g.

above the LTPD)
LTPD will be accepted.

The Producer’s Risk is the probability that a “good” lot will be rejected.

15 - 49
 OCC, AQL & Producer’s Risk
1
0.9 Producer’s Risk = probability acceptable lot is
Probability of accepting lot

rejected
0.8
0.7
0.6
0.5 AQL - percentage level of defects at
0.4 which a customer is willing to
accept
0.3
0.2
0.1
0
0 .05 .10 .15 Lot
.20 quality (% defective)
“Acceptable Lot”
15 - 50
 OCC, LTPD & Consumer’s Risk
1
0.9
Probability of accepting lot

0.8
0.7
LTPD - upper limit on the
0.6 percentage of defectives that a
0.5 customer is willing to accept.
0.4
0.3
0.2
0.1 Consumer’s Risk = probability unacceptable is
0 accepted

0 .05 .10 .15 Lot

.20 quality (% defective)
“Unacceptable
15 - 51 Lot”
End of Lecture

52
Statistical Quality
Control

SIX SIGMA
 SIX SIGMA
"Delivering Tomorrow's Performance
Today"

54
 PRESENTATION LAYOUT
• Six Sigma: An overview
• What is Sigma and Six Sigma?
• Why Six Sigma?
• Six Sigma Levels
• Six Sigma Methodology and Management
• Key Roles for Six Sigma
• Tools for Six Sigma
• Trainings and Certifications
• Conclusion

55
BEFORE WE START !!!

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• Your first question is likely….
What is Six Sigma?

• Your second question is likely…

Why Six Sigma?

57
 WHAT IS SIGMA ?

• A term (Greek) used in statistics to represent

standard deviation from mean value, an indicator of
the degree of variation in a set of a process.

• Sigma measures how far a given process deviates

from perfection. Higher sigma capability, better
performance.

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 WHAT IS SIX SIGMA?
• Six Sigma - A highly disciplined process that
enables organizations deliver nearly perfect
products and services.
• The figure of six arrived statistically from current
average maturity of most business enterprises
• A philosophy and a goal: as perfect as practically
possible.
• A methodology and a symbol of quality.

Contd…
59
 WHAT IS SIX SIGMA?
• A statistical concept that measures a process in
terms of defects – at the six sigma level, there 3.4 
defects per million opportunities.

Contd…
But, it is much more! 60
 WHAT IS SIX SIGMA?
• Six Sigma is a methodology that provides
businesses with the tools to improve the
capability of their business processes.

• This increase in performance and decrease in

process variation leads to defect reduction
and vast improvement in profits, employee
morale and quality of product.
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 WHAT IS SIX SIGMA
Six Sigma is not:
•A standard
•A certification
•Another metric like percentage

But
• It is a Quality Philosophy and the way of improving
performance by knowing where you are and where
you could be.
• Methodology to measure and improve company’s
performance, practices and systems
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 WHAT IS SIX SIGMA?
• Six Sigma is a rigorous and a systematic
methodology that utilizes information
(management by facts) and statistical analysis to
measure and improve quality.

• By identifying and preventing 'defects' in

manufacturing and service-related processes in
order to anticipate and exceed expectations of all
stakeholders to accomplish effectiveness.
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 WHY SIX SIGMA ?

• Six Sigma emerged as a natural evolution in business to

increase profit by eliminating defects

• The Current business environment now demands and

rewards innovation more than ever before due to:

 Customer Expectations
 Technological Change
 Global Competition
 Market Fragmentation
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 SIGMA LEVELS
Sigma Level ( Process Defects per Million
Capability) Opportunities
2 308,537

3 66,807

4 6,210

5 233

6 3.4
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COMPANIES USING
Six Sigma is in use in virtually
all industries around the
world. Some of companies
can be listed as:
• Motorola
• Ericsson
• General Electric
• Sony
• Ford Motor Co.
• CITI bank

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 SIX SIGMA METHODOLOGY
(It takes money to save money)
• BPMS
Business Process Management System

• DMAIC
Six Sigma Improvement Methodology

• DMADV
Creating new process which will perform at Six
Sigma
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 BUSINESS PROCESS
MANAGEMENT SYSTEM
• BPM strategies emphasize on process improvement and
automation to derive performance.

• One of the most powerful ways to improve business

performance is combining business process management
(BPM) strategies with Six Sigma strategies

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 BUSINESS PROCESS
MANAGEMENT SYSTEM:
• BPM strategies emphasize process improvements and
automation to drive performance, while Six Sigma uses
statistical analysis to drive quality improvements.

• The two strategies are not mutually exclusive, however, and

some savvy companies have discovered that combining BPM
and Six Sigma can create dramatic results.

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 BPM life-cycle
Business process management activities can be
grouped into five categories:

• Design
• Modeling
• Execution
• Monitoring
• Optimization
 Design
• Process Design encompasses both the identification of
existing processes and the design of "to-be"
processes.

• The aim is to ensure that a correct and efficient

theoretical design is prepared.

• The proposed improvement could be in human-to-human,

human-to-system, and system-to-system workflows, and might
target regulatory, market, or competitive challenges faced by the
businesses.
 Modeling
• Modeling takes the theoretical design and introduces
combinations of variables (e.g., changes in rent or materials
costs, which determine how the process might operate under
different circumstances).

It also involves running "what-if analysis" on the

processes:
• What if I have 75% of resources to do the same task?"
• "What if I want to do the same job for 80% of the current cost?".
 Execution
Process Automation is:

•to develop/purchase an application that executes the required steps of

the process, to use a combination of software and human
intervention.

•Developed software enables the full BP to be defined in a computer

language directly executed by the computer.

•The system will use services in connected applications to perform

business operations, or, when a step is too complex to automate, will
ask for human input.
 Monitoring
• Tracking of individual processes, so, that information on their state
can be easily seen, and statistics on the performance of one or
more processes can be provided.

• The degree of monitoring depends on what information the business

wants to evaluate and analyze and how business wants it to be
monitored, in real-time, near real-time or ad-hoc.

• Process mining is a collection of methods and tools related to

process monitoring.

• The aim of this is to analyze event logs extracted through process

monitoring and to compare them with an a priori process model. It
allows to detect discrepancies between the actual process
execution and the a priori model.
 Optimization
• Process optimization includes
– retrieving process performance information from
modeling or monitoring phase;

– identifying the potential or actual bottlenecks and

the potential opportunities for cost savings or other
improvements; and then,

– applying those enhancements in the design of the

process.
 DMAIC
(Define, Measure, Analyze, Improve. Control)
• A logical and structured
approach to problem solving
and process improvement.

• An iterative process
(continuous improvement)

• A quality tool which focus on

change management style.
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 WHAT IS DMAIC?
(Define, Measure, Analyze, Improve. Control)
• DMAIC is a basic component of the Six Sigma methodology- a
way to improve work processes by eliminating defects. It is
normally defined as a set of practices that improve efficiency
and eliminate defects.

• Six Sigma has been around for more than 20 years and heavily
influenced by TQM (total quality management) and Zero
Defect principles. In its methodology, it asserts that in order to
achieve high quality manufacturing and business processes,
continued efforts must be made to reduce variations.

77
 WHAT IS DMAIC?
(Define, Measure, Analyze, Improve. Control)
• Define process goals in terms of key critical parameters (i.e.
critical to quality or critical to production) on the basis of
customer requirements or Voice Of Customer (VOC)
• Measure the current process performance in context of goals
• Analyze the current scenario in terms of causes of variations and
defects
• Improve the process by systematically reducing variation and
eliminating defects
• Control future performance of the process

78
 DMAIC
• Define: Define is the first step in the process.

• In this step, it is important to define specific goals in

achieving outcomes that are consistent with both your
customer’s demands and your own business’s strategy.

• In essence, you are laying down a road map for

accomplishment.

79
 DMAIC
• Measure: In order to determine whether or
not defects have been reduced, you need a
base measurement.

• In this step, accurate measurements must be made and

relevant data must be collected so that future comparisons
can be measured to determine whether or not defects have
been reduced.

80
 DMAIC
• Analyze: Analysis is extremely important
to determine relationships and the factors of
causality.

• If you are trying to understand how to fix a problem, cause

and effect is extremely necessary and must be considered.

81
 DMAIC
• Improve: Making improvements or
optimizing your processes .

• This is based on measurements and analysis can ensure

that defects are lowered and processes are streamlined.

82
 DMAIC
• Control: This is the last step in the DMAIC
methodology. Control ensures that any variances stand
out and are corrected before they can influence a
process negatively causing defects.

• Controls can be in the form of pilot runs to determine if the

processes are capable and then once data is collected, a process
can transition into standard production. However, continued
measurement and analysis must ensue to keep processes on
track and free of defects below the Six Sigma limit.
83
 WHAT IS DMADV?
Acronym for:

84
 WHAT IS DMADV?

• DMADV is a Six Sigma framework that focuses primarily

on the development of a new service, product or process as
opposed to improving a previously existing one.
 
• This approach – Define, Measure, Analyze, Design, Verify
– is especially useful when implementing new strategies
and initiatives because of its basis in data, early
identification of success and thorough analysis.

85
 When to use DMADV?

• When a non-existent product or process needs to be

developed at a company .

• When an existing process or product already exists but still

needs to meet a Six Sigma level or customer specification

86
 When to use DMADV?

• When a non-existent product or process needs to be

developed at a company .

• When an existing process or product already exists but still

needs to meet a Six Sigma level or customer specification

87
 DMADV
Define
•The goals of the first phase are to identify the purpose of the
project, process or service, to identify and then set realistic
and measurable goals as seen from the perspectives of the
organization and the stakeholder(s), to create the schedule
and guidelines for the review and to identify and assess
potential risks.

•A clear definition of the project is established during this

step, and every strategy and goal must be aligned with the
expectations of the company and the customers.
88
 DMADV
Measurement
•Next comes measuring the factors that are critical to quality, or
CTQs.
•Steps taken should include:
– defining requirements and market segments,
– identifying the critical design parameters,
– designing scorecards that will evaluate the design components more
important to the quality,
– reassessing risk and assessing the production process capability and
product capability.
•Once the values for these factors are known, then an effective approach can be taken to
start the production process. It is important here to determine which metrics are critical to
the stakeholder and to translate the customer requirements into clear project goals.
89
 DMADV
Analysis
•Actions taken during this phase will include:
– developing design alternatives,
– identifying the optimal combination of requirements to achieve value
within constraints,
– developing conceptual designs,
– evaluating then selecting the best components, then developing the best
possible design.
•An estimate of the total life cycle cost of the design is determined.
•After exploring the different design alternatives, what is the best
design option available for meeting the goals?

90
 DMADV

Design
•This stage of DMADV includes both a detailed and high
level design for the selected alternative.

•The elements of the design are prioritized and from there a high level
design is developed.

•Once this step is complete, a more detailed model will be prototyped in

order to identify where errors may occur and to make necessary
modifications.

91
 DMADV
Verify
•In the final phase, the team validates that the design is
acceptable to all stakeholders.
Will the design be effective in the real world?

•Several pilot and production runs will be necessary to ensure that the
quality is the highest possible.
•Here, expectations will be confirmed, deployment will be expanded and
all lessons learned will be documented.
•The Verify step also includes a plan to transition the product or service to
a routine operation and to ensure that this change is sustainable.

92
WHEN SHOULD SIX SIGMA BE
USED?

Its usage depends on the type of business. In general,

“If there are processes that generate a lot of

negative customer feedback, whether that
customer is internal or external, the components
of Six Sigma should be considered as a mean to
study and rectify the problem.”

93
 BENEFITS OF SIX SIGMA
• Generates sustained success
• Sets performance goal for everyone
• Enhances value for customers
• Accelerates rate of improvement
• Promotes learning across boundaries
• Executes strategic change

94
 SIX SIGMA MANAGEMENT
When practiced as a management system, Six Sigma is
a high performance system for executing business
strategy.

Six Sigma is a top down solution to help organizations:

– Align their business strategy to critical improvement efforts
– Mobilize teams to attack high impact projects
– Accelerate improved business results
– Govern efforts to ensure improvements are sustained

95
 KEY ROLES FOR SIX SIGMA
Six Sigma identifies several key roles for its
successful implementation: Top

– Executive leadership
– Champions
– Master Black Belts (Identify projects& functions)
– Black Belts (Identify non value added activities)
– Green Belts ( works on small projects ) Bottom

96
 KEY ROLES FOR SIX SIGMA
• The Six Sigma Belts (Green, Black, and Master Black) denote
the different levels an individual can achieve in Six Sigma, a
business management approach that was at the onset
advanced by Motorola's manufacturing division in the USA in
1986.

• It has its basis on attentive and meticulous planning and

constant determined application that can be made exclusive in
dealing with issues that concern a business so as to improve
on the marketability of their products and services.

97
 KEY ROLES FOR SIX SIGMA
• The master, or master black belt is a person who is at the
highest level of expertise on the subject.

• They are fully devoted to the process and have no other job
responsibilities outside the methodology.

• They are involved in every aspect of training and mentoring

of all of the lower belt ranks.

98
 KEY ROLES FOR SIX SIGMA
• A certified Black Belt exhibits team leadership, understands team
dynamics, and assigns their team members with roles and
responsibilities.

• They have a complete understanding of the DMAIC model in

accordance with the Six Sigma principles, have a basic knowledge
of lean enterprise concepts, and they can quickly identify "non-
value-added" activities.

• Black Belts primarily focus on project execution, whereas

Champions and Master Black Belts focus on identifying projects
and functions for Six Sigma.
99
 KEY ROLES FOR SIX SIGMA
• Six Sigma Green Belt has emphasis on the DMAIC (Define,
Measure, Analyze, Improve and Control) model.

• Six Sigma Green Belt certification helps the employee serve

as a trained team member within his or her function-specific
area of the organization.

• This focus allows the Green Belt to work on small, carefully

defined Six Sigma projects, requiring less than a Black Belt's
full-time commitment to Six Sigma throughout the
organization.
100
101
102
Check
Reading
material
103
 TOOLS & TECHNIQUES
7QC tools

1. Check Sheets (collect data to make improvements)

2. Pareto Charts( define problem and frequency)

3. Cause and effect diagram (Identify possible causes to solve problem)

4. Histogram (Bar charts of accumulated data to evaluate distribution of data)

5. Scatter diagram (plots many data points and pattern between two variables)

6. Flow Chart (Identify unwanted steps)

7. Control charts (Control limits around mean value) 104

 CONCLUSION
Six Sigma is methodology used for:
• Aligning key business processes to achieve those
requirements.
• Utilizing rigorous data analysis to minimize data
variation in those processes.
• Driving rapid and sustainable improvement to
business processes.

105
End of Lecture

106
1.4 Management Aspects of Quality
Improvement

Effective management of quality requires the

execution of three activities:
1. Quality Planning
2. Quality Assurance
3. Quality Control and Improvement
 Constructing an X-bar Chart: A quality control inspector at the Cocoa Fizz soft
drink company has taken three samples with four observations each of the
volume of bottles filled. If the standard deviation of the bottling operation is .2
ounces, use the below data to develop control charts with limits of 3 standard
deviations for the 16 oz. bottling operation.

Center line and control limit

Time 1 Time 2 Time 3
formulas
Observation 1 15.8 16.1 16.0

Observation 2 16.0 16.0 15.9 x 1  x 2  ...x n σ

x , σx 
Observation 3 15.8 15.8 15.9 k n
where (k) is the # of sample means and (n)
Observation 4 15.9 15.9 15.8
is the # of observations w/in each sample
Sample 15.875 15.975 15.9 UCL x  x  zσ x
means (X-bar)
Sample 0.2 0.3 0.2 LCL x  x  zσ x
ranges (R)

© Wiley 2010 111

 Solution and Control Chart (x-bar)

• Center line (x-double bar):

15.875  15.975  15.9

x  15.92
3
• Control limits for±3σ limits:
 .2 
UCL x  x  zσ x  15.92  3   16.22
 4
 .2 
LCL x  x  zσ x  15.92  3   15.62
 4

© Wiley 2010 112

X-Bar Control Chart

© Wiley 2010 113

 Control Chart for Range (R)

• Center Line and Control Limit • Factors for three sigma control limits
formulas: Sample Size
Factor for x-Chart Factors for R-Chart

(n) A2 D3 D4
2 1.88 0.00 3.27
0.2  0.3  0.2 3 1.02 0.00 2.57
R  .233 4 0.73 0.00 2.28
3
5 0.58 0.00 2.11
6 0.48 0.00 2.00
UCLR  D4 R  2.28(.233)  .53 7 0.42 0.08 1.92
8 0.37 0.14 1.86
LCLR  D3 R  0.0(.233)  0.0 9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
© Wiley 2010 1141.65
15 0.22 0.35
R-Bar Control Chart

© Wiley 2010 115

 Second Method for the X-bar Chart Using
R-bar and the A2 Factor

• Use this method when sigma for the process

distribution is not know
• Control limits solution:
0.2  0.3  0.2
R  .233
3

UCL x  x  A 2 R  15.92  0.73.233  16.09

LCL x  x  A 2 R  15.92  0.73.233  15.75

© Wiley 2010 116