QC Chapter1

“Product”
Manufactured goods
品質管理 n Automobiles, computers, clothing, etc.
Services
Chapter 1 n Public transportation, banking, retailing, health care, etc.
Modern Quality Management and Improvement
品質管理 108學年度第⼀學期 NCTU-IEM 2
Eight Dimensions of Quality (cont’d)

Eight Dimensions of Quality (Garvin, 1987)
1. Performance
(Garvin, 1987) 5. Aesthetics
– Will the product do the intended job? – What does the product look like?
2. Reliability 6. Features
– How often does the product fail? – What does the product do?
3. Durability 7. Perceived Quality

– How long does the product last? – What is the reputation of the company or its product?
4. Serviceability 8. Conformance to Standards

– How easy is it to repair the product? – Is the product made exactly as the designer intended?
品質管理 108學年度第⼀學期 NCTU-IEM
品質管理 108學年度第⼀學期 NCTU-IEM 3 4
Three Dimensions Added to Service Quality Traditional Definition of Quality
1. Responsiveness
n How promptly was your request handled?
2. Professionalism
Quality of design
n Does the service provide have enough knowledge and skill
to serve? n Intentional to include variations in grades
3. Attentiveness Quality of conformance
n Are the customers’ needs and concerns being carefully n How well the product conforms to the specifications required
addressed? by the design Unfortunately, this definition has become associated more with the
conformance aspect of quality than with design
品質管理 108學年度第⼀學期 NCTU-IEM 5 品質管理 108學年度第⼀學期 NCTU-IEM 6
Modern Definition of Quality The Transmission Example

One of the automobile companies in the US performed a comparative
study of a transmission that was manufactured in a domestic plant and by
a Japanese supplier
This definition implies if variability in the important

characteristics of a product decreases, the quality of the
product increases
Warranty costs for transmissions Distributions of critical dimensions for transmissions

Quality Improvement Quality Engineering Terminology
Quality characteristics
n A number of elements that jointly describe what the user or consumer thinks
of quality
w Physical: length, weight, voltage, viscosity
The transmission example illustrates the utility of this w Sensory: taste, appearance, color
w Time Orientation: reliability, durability, serviceability
definition
n Critical-to-quality (CTQ) characteristics
An equivalent definition is that Quality Engineering
quality improvement is the elimination of waste n The set of operational, managerial, and engineering activities that a company
uses to ensure that the quality characteristics of a product are at the nominal
or required level
Terminology (cont’d) Terminology (cont’d)

Variability
n No two products are ever identical Specifications
Statistical methods n Target (or nominal) values
Variables
n Lower specification limit (LSL)
n
w Characteristics that you measure

n Upper specification limit (USL)
n e.g., weight, length, thickness
w May be in whole or in fractional numbers Defective (or nonconforming) product

Attributes
n
Defect (or nonconformity)
w Characteristics for which you focus on defects
w Classify products as either ‘good’ or ‘bad’, or count # of defects n Not all products containing a defect are necessarily defective
n e.g., radio works or not, # of particles on a wafer

History of Quality Improvement History of Quality Improvement (cont’d)
1798: Eli Whitney- 1960: Box and Hunter: DOE 1987: ISO publishes the first quality systems standard
interchangeable parts 1960s: SQC became
widespread in IE program 1989: Motorola’s six-sigma initiative begins
1997: Motorola’s six-sigma approach spreads to other industries
2000s: ISO 9000:2000 standard is issued. Supply-chain management
(1928) and supplier quality become even more critical factors in business
(1924)
success
(1875)
1913:
Henry Ford-Assembly line
Source: 修改自陳永甡, TQM 之探討, 品質月刊, pp. 16-19, 2004年6月
品質管理 108學年度第⼀學期 NCTU-IEM 品質管理 108學年度第⼀學期 NCTU-IEM

13 14
Production Process Statistical Methods

Statistical process control (SPC)
Controllable inputs n Control charts, plus other problem-solving tools
x1 x2 xp n Useful in monitoring processes, reducing variability through elimination
Measurement of assignable causes
Evaluation
Monitoring and
n On-line technique
Input raw materials,
... Control Design of experiments (DOE)
components, and
subassemblies n Discovering the key factors that influence process performance
Process Output Product n Process optimization
y=Quality characteristic
n Off-line technique
Acceptance Sampling
...
n Tends to reinforce the “conformance to specification”
z1 z2 zq n Lack of feedback for quality improvement
Uncontrollable inputs
Phase Diagram of the Use of
Quality-Engineering Methods 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
Quality Planning Quality Assurance

Set of activities that ensures that quality levels of products and
Strategic activity
services are properly maintained and that supplier and customer
n Vital to an organization’s long-term business success quality issues are properly resolved
Involves Documentation of the quality system is an important component,
n Identify customers (both external and internal) which involves:
n Identify customers’ needs (voice of the customer) n Policy (what and why)
n Procedures (how and who)
n Work instructions and specifications
n Records

Quality Control and Improvement Quality Philosophy and Management Strategies
Set of activities used to ensure that the products and
services meet requirements and are improved on a
continuous basis
Using statistical techniques
Often done on a project-by-project basis
Teamwork
W. Edwards Deming Joseph M. Juran Armand V. Feigenbaum
(1900 ~ 1993) (1904 ~2008 ) (1922 ~2014 )
戴明朱蘭、裘蘭費根堡
W. Edwards Deming The Shewhart Cycle (Deming cycle)

Influenced greatly by Walter A. Shewhart
Long career in government statistics Plan a change or an
Adopt the change or abandon it.
n US Department of Agriculture and Bureau of the Census (人口調查局) If adopted, make sure that it experiment aimed at
leads to permanent system improvement
During World War II, he worked with US defense contractors, deploying statistical
improvement.
methods
Act Plan
Sent to Japan after WWII to work on the census
Deming was asked by JUSE (Japanese Union of Scientists and Engineers，日本科技
聯盟) to lecture on statistical quality control to management Study and analyze the Check Do Carry out the change
Japanese adopted many aspects of Deming’s management philosophy results obtained.
(often a pilot study)
What was learned?
Deming stressed “continual never-ending improvement”
PDCA Cycle (Shewhart cycle; Deming cycle)
n Plan – Do – Check – Act
n Plan – Do – Study – Act

Deming’s View of a Production System Deming’s 14 Points
The Deming philosophy is an important framework for implementing quality
and productivity improvement
Suppliers of Design and Consumer Can be summarized in his 14 points for management (1982)
materials and Redesign research
equipment 1. Create constancy of purpose 2. Adopt a new philosophy that recognizes
toward improvement we are in a different economic age
Customers
Receipt and test
A of materials
B Production, assembly, inspection
C Distribution
D Tests of processes, machines, methods, costs
INPUTS PROCESSES OUTPUTS
Feedback
Source of the comics: http://www.managementwisdom.com/freilofdem14.html
3. Do not rely on mass inspection to 4. End the practice of awarding business on the basis 7. Improve leadership, recognize that the aim of 8. Drive out fear
“control” quality of price alone supervision is help people and equipment to do a
better job
5. Focus on continuous improvement 6. Institute training 9. Break down barriers between functional 10. Eliminate targets, slogans and numerical
areas of the business goals for the workforce such as zero defects

11. Eliminate numerical quotas and work 12. Remove barriers that discourage employees
standards from doing their jobs
Deming’s 14 Points (cont’d)
13. Institute an on-going program of education 14. Put everyone to work to accomplish the
for all employees transformation Note that the 14 points are about change
Joseph M. Juran Armand V. Feigenbaum

Born in Romania (1904), immigrated to the US First introduced the concept of company-wide quality control
Worked at AT&T Bell Labs, influenced by Walter Shewhart
n Author of “Total Quality Control (1951)”, promoted overall
Emphasizes a more strategic and planning oriented approach to quality than
does Deming organizational involvement in quality,
Juran believed that Deming was wrong to tell management to drive out fear Propose a three-step approach to improve quality
“Fear can bring out the best in people” -- Juran
n Quality leadership
Juran Trilogy (Quality trilogy，品質三部曲)
n Quality technology
n Planning , control and improvement
Juran Institute is still an active organization promoting the Juran philosophy and n Organizational commitment
quality improvement practices

Total Quality Management (TQM) Quality Systems and Standards
(in the US)
Started in the early 1980s, Deming/Juran philosophy as the focal point International Organization for Standardization (ISO) developed a series of
Emphasis on widespread training, quality awareness standards for quality systems
Training often turned over to HR function n First standards were issued in 1987
Not enough emphasis on quality control and improvement tools, poor n Current standards
follow-through, no project-by-project implementation strategy w ISO 9000:2015 QMS – Fundamentals and Vocabulary
w ISO 9001:2015 QMS – Requirements
TQM was largely unsuccessful (in the US)
w ISO 9004:2018 QMS – Guidance to achieve sustained success
n TQM is “just another program”
n Value engineering Industry-specific quality system standards, such as:
n Zero defects n Aerospace industry: AS 9100
n “Quality is free” n Automotive industry: QS 9000, IATF 16949:2016 (formerly known as ISO/TS 16949)
When TQM is wrapped around an ineffectiveness program, n Telecommunications industry: TL 9000
disaster is often the result
ISO 9001:2015 ISO 9001:2008 Process Approach

ISO 9001:2015 has eight clauses:
QMS
1. 適用範圍(Scope) Continuous Improvement
2. 參考標準(Normative Reference)
3. 辭彙與定義(Terms and Definition)
Customers’ Satisfaction
Feedback 5. Management
4. 組織背景(Organization and its context)
Customers’ Demand
Responsibility
5. 領導(Leadership)
Feedback
6. 品質管理系統規劃(Planning)
6. Resource 8. Mgt, Analysis,
7. 支援(Support) Management and Improvement
8. 營運 (Operation)
9. 績效評估 (Performance Evaluation)
7. Product Product／
10. 改善(Improvement) realization Service
Input Output
Value-added activities
The ISO certification process focuses heavily on quality assurance Information flow

ISO 9001:2015 PDCA cycle Certified QMS = Good Quality?
Firestone debacle
“Last August, Ford began recalling 6.5 million Firestone tires, most on the Explorer, following reports of sudden
blow-outs and tread loss.
Federal officials are investigating 174 deaths and more than 700 injuries linked to the Firestone tires.”
-- BBC News, Monday, 21 May, 2001 (http://news.bbc.co.uk/1/hi/business/1342679.stm)
9001:2008 Process
Firestone tires are manufactured at Bridgestone/Firestone plant in Decatur,

Illinois. The plant was QS 9000 certified and ISO 14001 certified.
The Malcolm Baldrige National Quality Award MBNQA

(MBNQA) Performance Excellence Criteria
Created by US Congress in 1987

8.5% 8.5%
Annually given to recognize US organizations for performance
excellence
12% 45%
n Manufacturing, service, small business, health care and education
The MBNQA process is a valuable assessment tool
8.5% 8.5%
9%
中華⺠國國家品質獎中華⺠國國家品質獎---評分項目 (2012年更新過)
(National Quality Award)
https://nqa.cpc.tw/NQA/Web/Index.aspx 全面卓越類（總分1000分）
1. 領導與經營理念 120
1985年行政院科技顧問會議 2. 策略管理 80
n 參考日本經驗 3. 研發與創新 80
n 經濟部領導推動全國性品質管理活動 4. 顧客與市場發展 100 65％
n 提升產品品質水準 5. 人力資源與知識管理 80
1990 年頒發第⼀屆國家品質獎 6. 資訊策略、應用與管理 80
設立宗旨 7. 流程（過程）管理 110
n 樹立⼀個最⾼的經營品質典範，讓企業或組織能夠觀摩學習 8. 經營績效管理 350 35％
Six Sigma Why “Quality Improvement” is Important: A

A disciplined and analytical approach to process and product improvement
Simple Example
Focus on reducing variability in key product quality characteristics to the level at A visit to a fast-food store:
which failure (or defects) are extremely unlikely Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce,
tomato), fries, and drink
Focus on process improvement with an emphasis on achieving significant business
impact This product has 10 components - is “99.73% good” okay?
P{Single meal good} = (0.9973)10 = 0.9733
Pioneered by Motorola in the 1987 and popularized by the success of General
Electric P{Monthly visit good} = (0.9733)4 = 0.8974
P{All visits during the year good} = (0.8974)12 = 0.2728
n GE:
How about “99.9% good” ?
w 1996: Invest US$150 million, Return US$200 million P{Single meal good} = (0.999)10 = 0.9900
w 1997: Invest US$400 million, Return US$600 million P{Monthly visit good} = (0.99)4 = 0.9607
P{All visits during the year good} = (0.9607)12 = 0.6186
w 1998: Invest US$400 million, Return over US$1 billion
An automobile has about 200,000 components
An airplane has several millions components
品質管理 108學年度第⼀學期 NCTU-IEM 43 How good each component should be? 44
The Motorola Six-Sigma Concept
± 3 σ Design Specification Width Normal distribution
Six Sigma (cont’d)
centered at the target (T)
LSL USL
It has become a program for improving corporate business
Spec. Limit % Inside Specs ppm Defective
±1 σ 68.27 317300 performance by both improving quality and paying attention to
±2 σ
±3 σ
95.45
99.73
45500
2700
reducing cost
±4 σ 99.9937 63 Specialized roles for people; Champions, Master Black Belts(MBB),
-3σ -2σ -1σ +1σ +2σ +3σ ±5 σ 99.999943 0.57
μ=T
±6 σ 99.9999998 0.002 Black Belts(BB), Green Belts
± 6 σ Design Specification Width
Normal distribution with mean Top-down driven (Champions from each business)
Shifted
LSL USL Shifted by ±1.5σ from T
1.5σ 1.5σ
Spec. Limit % Inside Specs ppm Defective
BBs and MBBs have responsibility (project definition, leadership,
±1 σ 30.23 697700 training/mentoring, team facilitation)
±2 σ 69.13 308700
±3 σ 93.32 66810 Involves a five-step process:
±4 σ 99.3790 6210
±5 σ 99.97670 233
n Define－Measure－Analyze－Improve－Control (DMAIC)
-6σ -5σ -4σ -3σ -2σ -1σ μ=T 1σ 2σ 3σ 4σ 5σ 6σ ±6 σ 99.999660 3.4
DMAIC Solves Problems by Using Six Sigma Tools What Makes Six Sigma Work?
Successful implementations characterized by:
DMAIC is a problem solving methodology n Committed leadership
Use this method to solve problems: n Supporting infrastructure
n Define problems in processes w Formal project selection process

n Measure performance w Formal project review process
n Analyze causes of problems w Dedicated resources
n Improve processes − remove variations and w Financial system integration
nonvalue-added activities
n Proper deployment of statistical methods into the right
n Control processes so problems do not recur A P places in the organization
Closely related to the Shewhart cycle (Deming Project-by-project improvement strategy (borrowed from Juran)
C D
cycle, PDCA cycle)

Design for Six Sigma (DFSS)
Taking variability reduction upstream from manufacturing (or operational Supply Chain Quality Management
six sigma) into product design and development
Every design decision is a business decision The supply chain often represents a significant component of
the total value of the organization’s products or services
Failures in the supply chain have potentially huge impact on
the organization
49 品質管理 108學年度第⼀學期 NCTU-IEM 50
Key Supply Chain Processes Quality Costs

Cost of Quality: Sum of costs incurred in maintaining acceptable quality levels
Service management plus the cost of failure to maintain that level (cost of poor quality).
Cost of Poor Quality (COPQ) : annual monetary loss of products and process
Demand management that are not achieving their quality objectives
Order fulfillment Reasons for companies to estimate quality costs:
1. Improve the communications between middle managers and upper managers in quality
Quality issues
1% defect rate vs. 15% of sales
Manufacturing flow management
u
2. Major opportunities for cost reduction can be identified

Supplier relationship management 3. Opportunities for reducing customer dissatisfaction and associated threats to product
salability can be identified
Logistics and distribution 4. Provide a means of evaluating the progress of quality improvement activities and
spotlighting obstacles to improvements
Returns management 5. Knowing the COPQ leads to the development of a strategic quality plan that is consistent
with overall organization of goals
Categories of Quality Costs
Prevention costs
Quality Costs (cont.)
Internal failure costs
n Quality planning and engineering n Scrap Prevention Costs
n New products review n Rework Cost of
n Product/process design n Retest conformance
n Process control n Failure analysis Appraisal Costs
n Burn-in n Downtime
n Training n Yield losses Cost of Quality
n Quality data acquisition and n Downgrading Internal Failure
analysis Costs
External failure costs Cost of
Appraisal costs (Usually budgeted items) n Complaint adjustment Nonconformance
n Inspection and test of incoming External Failure
n Returned product/material
material Costs
n Warranty charges
n Product inspection and test
n Liability costs
n Materials and services consumed
n Indirect costs
n Maintaining accuracy of test
equipment
The Analysis and Use of Quality Costs Why quality-cost collection and analysis efforts fail?
How large are quality costs?
n Depends on the type of organization and the success of their quality improvement effort Failure to use quality-cost information as a mechanism for generating
w 4% or 5% sales vs. 35% or 40% sales improvement opportunities
w high-tech firm vs. service industry
Overemphasis in treating quality costs are of part of the accounting systems
Leverage effect rather than a management control tool
n $1 invested in prevention and appraisal might yield a return of $10 or $100 (or more) n Spend too much effort in making the figures perfect
Put too much effort to appraisal and not enough to prevention Management often underestimates the depth and extent of the commitment
n At early stage of quality-cost program, it’s not unusual to find appraisal costs are eight to ten to prevention that must be made
times of prevention costs
n Rarely exceed 1% to 2% revenue
Not easy to generating the quality-cost figure n Should’ve been increased to 5% to 6% revenue
n Not a direct component in the accounting records n Must be spent largely on the technical methods of quality improvement (not on
n Generate by estimates or need to use special procedure to track establishing programs such as TQM, zero defects, or other similar activities)
Use quality-cost analyses to help identify the improvement opportunities
n Pareto analysis (80/20 rule)

Total Revenue in a Typical Manufacturing Legal Aspects of Quality
Organization
Product liability exposure
n Liability exposure increased as production volume increases
Concept of strict liability
n Responsibility of both manufacturer and seller/distributor
w Immediate responsiveness to unsatisfactory quality
n Advertising must be supported by valid data
Can be improved by 20%
within one or two years via
Quality improvement tools
Implementing Quality Improvement Control Charts

Strategic management of quality Developed by W. A. Shewhart in 1924 (when he was
n Quality planning working in Bell Laboratories)
n Quality assurance
Tell when to adjust process
n Quality control and improvement
Supplier selection and supply chain management

n Quality, cost, delivery, (service)
Quality function is not responsible for quality Walter A. Shewart (1891-1967)
(蕭華特、蕭瓦特、舒華特、舒哈特 …)

Factorial Design Acceptance Sampling
Factors are varied together in such a way that all possible
combinations of factor levels are tested
A factorial experiment with three factors (each with two levels)
The Juran Trilogy

The Juran Trilogy
1. Planning
Identify customers’ needs
Develop products/services and processes to respond to customers’ needs
2. Control
To ensure products/services meets the requirements
Primary tool: SPC
3. Improvement
Continuous (incremental)
Breakthrough (large, rapid improvement)
These three processes are interrelated

Project-by-project improvement
品質管理 108學年度第⼀學期 NCTU-IEM 63 64
Structure of a Typical Six-Sigma Organization
What ISO's name means
“ Because "International Organization for Standardization"
would have different abbreviations in different languages
("IOS" in English, "OIN" in French for Organisation
internationale de normalisation), it was decided at the outset
to use a word derived from the Greek isos, meaning "equal".
Therefore, whatever the country, whatever the language, the
short form of the organization's name is always ISO. ”
From:
http://www.iso.org/iso/about.htm#eleven
品質管理 108學年度第⼀學期 NCTU-IEM 67

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“Product”

品質管理 108學年度第⼀學期 NCTU-IEM 2

Eight Dimensions of Quality (cont’d)

3. Durability 7. Perceived Quality

4. Serviceability 8. Conformance to Standards

Modern Definition of Quality The Transmission Example

This definition implies if variability in the important

Warranty costs for transmissions Distributions of critical dimensions for transmissions

品質管理 108學年度第⼀學期 NCTU-IEM 7 品質管理 108學年度第⼀學期 NCTU-IEM 8

品質管理 108學年度第⼀學期 NCTU-IEM 9 品質管理 108學年度第⼀學期 NCTU-IEM 10

Terminology (cont’d) Terminology (cont’d)

w Characteristics that you measure

w May be in whole or in fractional numbers Defective (or nonconforming) product

品質管理 108學年度第⼀學期 NCTU-IEM 11 品質管理 108學年度第⼀學期 NCTU-IEM 12

Source: 修改自 陳永甡, TQM 之探討, 品質月刊, pp. 16-19, 2004年6月

品質管理 108學年度第⼀學期 NCTU-IEM 品質管理 108學年度第⼀學期 NCTU-IEM

Production Process Statistical Methods

品質管理 108學年度第⼀學期 NCTU-IEM 17 品質管理 108學年度第⼀學期 NCTU-IEM 18

Quality Planning Quality Assurance

品質管理 108學年度第⼀學期 NCTU-IEM 19 品質管理 108學年度第⼀學期 NCTU-IEM 20

W. Edwards Deming The Shewhart Cycle (Deming cycle)

n Plan – Do – Study – Act

INPUTS PROCESSES OUTPUTS

品質管理 108學年度第⼀學期 NCTU-IEM 27 品質管理 108學年度第⼀學期 NCTU-IEM 28

Deming’s 14 Points (cont’d)

品質管理 108學年度第⼀學期 NCTU-IEM 29 品質管理 108學年度第⼀學期 NCTU-IEM 30

Joseph M. Juran Armand V. Feigenbaum

品質管理 108學年度第⼀學期 NCTU-IEM 31 品質管理 108學年度第⼀學期 NCTU-IEM 32

ISO 9001:2015 ISO 9001:2008 Process Approach

品質管理 108學年度第⼀學期 NCTU-IEM 35 品質管理 108學年度第⼀學期 NCTU-IEM 36

Firestone tires are manufactured at Bridgestone/Firestone plant in Decatur,

The Malcolm Baldrige National Quality Award MBNQA

Created by US Congress in 1987

品質管理 108學年度第⼀學期 NCTU-IEM 41 品質管理 108學年度第⼀學期 NCTU-IEM 42

Six Sigma Why “Quality Improvement” is Important: A

Use this method to solve problems: n Supporting infrastructure

n Define problems in processes w Formal project selection process

品質管理 108學年度第⼀學期 NCTU-IEM 47 品質管理 108學年度第⼀學期 NCTU-IEM 48

49 品質管理 108學年度第⼀學期 NCTU-IEM 50

Key Supply Chain Processes Quality Costs

2. Major opportunities for cost reduction can be identified

品質管理 108學年度第⼀學期 NCTU-IEM 55 品質管理 108學年度第⼀學期 NCTU-IEM 56

品質管理 108學年度第⼀學期 NCTU-IEM 57 品質管理 108學年度第⼀學期 NCTU-IEM 58

Implementing Quality Improvement Control Charts

Supplier selection and supply chain management

品質管理 108學年度第⼀學期 NCTU-IEM 59 品質管理 108學年度第⼀學期 NCTU-IEM 60

A factorial experiment with three factors (each with two levels)

品質管理 108學年度第⼀學期 NCTU-IEM 61 品質管理 108學年度第⼀學期 NCTU-IEM 62

The Juran Trilogy

These three processes are interrelated

品質管理 108學年度第⼀學期 NCTU-IEM 65 品質管理 108學年度第⼀學期 NCTU-IEM 66

品質管理 108學年度第⼀學期 NCTU-IEM 67

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Source: 修改自陳永甡, TQM 之探討, 品質月刊, pp. 16-19, 2004年6月