Question Ans Final
Question Ans Final
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16. Control Chart Data Point Outside UCL or LCL:
• It is considered the result of a special cause variation, indicating an unusual event that
needs investigation.
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5. Need for a Cross-Functional QFD Team:
• A cross-functional team ensures that all perspectives (e.g., marketing, engineering,
production, quality) are considered. This collaboration helps address customer needs
holistically and ensures feasibility in design and production.
The Start of the Japanese Quality Movement When the U.S. forces occupied Japan at the end of
World War II to set up the occupation government, they found the Japanese tele- phone system to be
poor in quality and unreliable. General MacAr- thur’s people knew this would be a major problem for
them and for Japan in trying to get the country on its feet again. Bell Laborato- ries’ people were
brought in to assist the Japanese telecommunica- tions industry, and starting in May 1946 they taught
their Japanese counterparts the principles of modern quality control based on Dr. Shewhart’s work.
While the Bell Labs people were in Japan, a copy of Shewhart’s book The Economic Control of
Quality of Manufactured Product was given to the Union of Japanese Scientists and Engineers
(JUSE). One of its members (the organization had only 12 at the time) was so taken with Shewhart’s
ideas that he stenciled by hand a copy of the book onto mimeograph masters, so that it could be
reproduced and circulated. These two events were the start of the quality move- ment in Japan.
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Discussion Questions 1. What was Shewhart’s source for the data required for his statis- tical process
control? 2. Shewhart describes two kinds of variation, that resulting from common causes and that
resulting from special causes. Define both.
1. What was Shewhart’s source for the data required for his statistical process control?
Answer:
Shewhart’s source for the data was the production processes in manufacturing. He used
measured data from actual outputs—like dimensions, weights, or other product characteristics
collected during production—to observe variation over time. This data allowed him to apply statistical
tools (like control charts) to monitor and improve process performance.
2. Shewhart describes two kinds of variation: common causes and special causes. Define
both.
Common Causes:
These are the natural, everyday variations inherent in a stable process. They are caused by normal
factors such as machine calibration, minor environmental changes, or standard operator techniques.
Common causes are built into the system and affect all outcomes predictably.
Special Causes:
These are unexpected or assignable variations that arise from specific, identifiable issues—such
as equipment failure, human error, or defective materials. Special causes are not part of the normal
process and often require immediate corrective action to bring the process back into control.
Labor costs, padding materials costs by 10% in anticipation of scrap-page, and allowing for inspection
sufficient to smoke out most of the defects—calculated at 20% of the basic manufacturing labor.
Company XYZ, which uses SPC in all its manufacturing processes, bids rework and scrap at much
lower rates and includes only enough inspection to audit processes and meet the customer’s own
minimum inspection criteria.
The following chart compares the bids from the two companies:
Company ABC Company XYZ Assembly labor $200,000 $200,000 Rework labor 50,000 (25%) 8,000
(4%) Inspection labor 40,000 (20%) 4,000 (2%) Materials 550,000 505,000 Totals $840,000 $717,000
With a difference of $123,000, there can be no doubt that Company XYZ will win the contract. Not
only is Company ABC’s bid 17% higher, but also one would be safe in predicting that its higher-priced
product would be inferior to XYZ’s product. SPC is the only difference here.
Discussion Questions
Discuss the following questions in class or outside of class with your fellow students:
1. How would you rate the comparative competitiveness of the two companies?
2. If you work for a company that does not employ SPC, how could SPC help the firm?
1. How would you rate the comparative competitiveness of the two companies?
Answer:
Company XYZ is clearly more competitive than Company ABC. Despite having the same base
assembly labor costs, XYZ:
• Has much lower rework and inspection costs (due to fewer defects),
• Uses fewer materials, avoiding over-padding to cover scrap,
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• And ultimately submits a bid that is $123,000 lower (a 17% cost advantage).
This not only makes XYZ more cost-efficient, but it also indicates higher quality and process
control, thanks to its use of Statistical Process Control (SPC). In contrast, ABC’s inflated costs
suggest inefficiencies and a reactive approach to quality.
2. If you work for a company that does not employ SPC, how could SPC help the firm?
Answer:
SPC could help by:
• Reducing defects through early detection of process issues,
• Lowering rework and scrap costs, which saves both time and materials,
• Decreasing the need for excessive inspection, freeing up labor and resources,
• Improving overall product quality, which enhances customer satisfaction and
competitiveness,
• And enabling data-driven decisions to optimize manufacturing performance.
1. Explain the rationale for continual improvement.
Continual improvement ensures that processes, products, and services evolve over time to meet
changing customer needs, improve efficiency, reduce waste, and maintain competitiveness. It fosters
innovation and adaptability.
4. If you were an executive manager, how would you structure the organization for quality
improvement?
I’d establish cross-functional quality teams, assign process owners, provide ongoing training,
implement data-driven tools (like SPC), and ensure communication channels for reporting,
sharing, and acting on improvement ideas.
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5. What is meant by using the scientific approach?
It means using data, experimentation, and observation to make informed decisions. The Plan-Do-
Check-Act (PDCA) cycle is a core example of this method, encouraging testing and adjusting before
fully implementing a change.
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10. What is CEDAC and how is it used?
CEDAC stands for Cause-and-Effect Diagram with the Addition of Cards. It’s a visual tool for
identifying root causes, enhanced with idea cards that allow team members to suggest improvements
and track ideas directly on the diagram.
12. Explain the rationale of Six Sigma’s target of 3.4 NPMO (Nonconformities Per Million
Opportunities).
Six Sigma aims for near-perfect performance, with only 3.4 defects per million opportunities. This
statistical benchmark ensures extremely high quality and customer satisfaction, minimizing errors and
variation.
15. Explain how Theory of Constraints (TOC) approaches continual improvement, and how it
differs from other approaches.
TOC focuses on identifying and eliminating bottlenecks that limit system performance. Unlike Lean
or Six Sigma, which aim to improve all areas, TOC targets the single most limiting factor to achieve
rapid and focused improvement.
Which approach Is Best?
Mark Berry, Sandra Griffith, and Juan Carlos are seniors at Florida Tech University, majoring in
industrial technology with a quality emphasis. All three hope to be quality directors after graduation.
“I am going to use the Kaizen approach when I graduate and land my first job,” said Mark. “It’s simple,
easy to use, and effective.” “Not me,” replied Sandra. “I like the Six Sigma approach.”
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“I’m not going to use either of them,” said Juan. “I’m going to make myself a master list of
improvement strategies and use whatever is best for the individual situation.” Join their debate. What
approach do you think is best for promoting continual improvement, and why?
Mark’s Kaizen Approach
Strengths:
• Focuses on continuous, incremental improvement
• Easy for employees at all levels to get involved
• Builds a strong quality culture over time
Best for:
Organizations just starting their quality journey, or those looking to empower teams and build
grassroots engagement without major structural change.
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My pick?
Start with Kaizen to build engagement, learn Six Sigma to tackle complex issues, and eventually
adopt Juan’s flexible mindset as you gain experience.
What kind of industry are you thinking about going into? That can influence which method would serve
you best.
Chapter-17
1. Define Quality Function Deployment (QFD).
Quality Function Deployment (QFD) is a structured methodology used in product development and
quality management to translate customer needs (voice of the customer) into technical design
requirements. It ensures that the final product meets or exceeds customer expectations by
systematically aligning design, engineering, and production processes with customer demands.
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5. Explain the need for the QFD team to be cross-functional.
A cross-functional QFD team is essential because:
• Different perspectives (marketing, engineering, manufacturing, quality) ensure comprehensive
analysis.
• Prevents biases and blind spots in interpreting customer needs.
• Facilitates buy-in and smoother implementation across departments.
• Ensures technical feasibility while meeting customer expectations.
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Summary
QFD is a powerful tool for aligning customer needs with product design, improving quality, and
reducing development risks. The House of Quality structures this process, while cross-functional
teams, affinity diagrams, and careful prioritization enhance effectiveness.
Chapter-18
1. What was Shewhart’s source for the data required for his statistical process control?
Walter A. Shewhart, the father of statistical process control (SPC), derived his data primarily from
industrial manufacturing processes, particularly from Bell Telephone Laboratories (Bell Labs),
where he worked. His work focused on:
• Production lines – Monitoring variations in manufacturing.
• Quality inspection data – Defect rates, dimensional measurements, etc.
• Experiments under controlled conditions – Testing theories of variation.
Shewhart's methods were based on empirical observations and laid the foundation for
control charts, which distinguish between natural and abnormal variations.
2. Shewhart describes two kinds of variation: that resulting from common causes and that
resulting from special causes. Define both.
Common Cause Variation (Random Variation)
• Inherent in the process – Naturally occurring fluctuations due to regular, everyday factors.
• Predictable within statistical limits – Follows a stable pattern (e.g., minor machine wear,
ambient temperature changes).
• Requires systemic process improvement – Reducing it demands fundamental changes
(e.g., better machinery, process redesign).
Special Cause Variation (Assignable Variation)
• Unpredictable and sporadic – Caused by unusual, non-random events.
• Detectable via control charts – Points outside control limits or non-random patterns signal
special causes.
• Can often be corrected locally – Examples include:
o Machine breakdowns
o Operator errors
o Defective raw materials
Key Insight:
Shewhart’s distinction helps determine whether a problem requires adjusting the process itself
(common causes) or fixing a specific issue (special causes). This concept became fundamental
to Deming’s PDCA cycle and Total Quality Management (TQM) in Japan.
1. How would you rate the comparative competitiveness of the two companies?
Company XYZ (Using SPC) is far more competitive than Company ABC (Traditional Approach)
for several reasons:
• Lower Costs:
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o Rework labor is only 4% (vs. ABC’s 25%) → Less waste from defects.
o Inspection labor is just 2% (vs. ABC’s 20%) → Less need for final inspection
because defects are prevented.
o Materials costs are **505K∗∗(vs.ABC’s505K∗∗(vs.ABC’s550K) → Less scrap due to
process control.
• Higher Efficiency & Predictability:
o SPC reduces variability, leading to consistent quality and fewer surprises.
o Less rework means faster production cycles and on-time deliveries.
• Better Quality Reputation:
o Fewer defects → Higher customer satisfaction → More repeat business.
o Lower inspection needs suggest trust in the process, not just end-of-line checks.
Conclusion:
XYZ’s bid is 17% cheaper and likely delivers better quality, making it the clear winner. ABC’s
outdated approach (high rework, excessive inspection, scrap padding) makes it non-competitive in a
modern manufacturing environment.
2. If you work for a company that does not employ SPC, how could SPC help the firm?
If a company does not use SPC, implementing it could provide major improvements in:
1. Cost Reduction:
o Less scrap & rework → Lower material and labor waste (as seen in XYZ’s bid).
o Reduced inspection costs – Instead of mass inspections, SPC focuses on
preventing defects in real time.
2. Quality Improvement:
o Early defect detection → Fix issues before they become costly failures.
o Stable processes → Fewer customer returns or warranty claims.
3. Competitive Advantage:
o Lower pricing (like XYZ) → Ability to win more bids.
o Stronger reputation for reliability → More customer trust.
4. Operational Efficiency:
o Data-driven decisions (instead of guesswork) → Continuous improvement.
o Employee engagement – Workers see real-time feedback and contribute to
problem-solving.
Implementation Steps:
• Train employees on control charts and variation analysis.
• Start with critical processes where defects are most costly.
• Use PDCA (Plan-Do-Check-Act) to refine SPC methods over time.
Final Thought:
SPC isn’t just a "nice-to-have" – it’s a necessity for staying competitive in manufacturing. Companies
that ignore it (like ABC) will keep losing bids to smarter, more efficient competitors (like XYZ).
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Chapter-19
1. Explain the rationale for continual improvement.
Continual improvement is essential because:
• Competitive Pressure: Businesses must constantly evolve to stay ahead.
• Customer Expectations: Quality demands increase over time.
• Cost Efficiency: Reducing waste and defects lowers operational costs.
• Employee Engagement: Encourages innovation and problem-solving.
• Risk Mitigation: Proactively addressing issues prevents major failures.
Core Idea: Organizations that do not improve will stagnate and lose market share to more agile
competitors.
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Goal: Make quality everyone’s responsibility, not just the "Quality Department."
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b. Synchronized Production
• Definition: Aligns production rates with customer demand (pull-based system).
• Benefits:
o Minimizes overproduction and inventory costs.
o Increases responsiveness to market changes.
• Example: Toyota’s Just-in-Time (JIT) system.
c. Jidoka (Autonomation)
• Definition: A Lean manufacturing principle where machines automatically detect defects
and stop production to prevent errors from propagating.
• Key Features:
o Built-in quality – Human or machine intelligence halts processes when abnormalities
occur.
o Empowers workers – Operators can intervene and resolve issues immediately.
• Example: Toyota’s production line stops if a defective part is detected, preventing waste.
d. Supplier Partners
• Definition: Treating suppliers as strategic partners rather than just vendors.
• Benefits:
o Improved quality & reliability – Suppliers align with your standards.
o Cost reductions – Long-term contracts and joint improvement efforts.
o Innovation – Suppliers contribute to product/process enhancements.
• Example: Apple works closely with Foxconn to ensure high-quality iPhone production.
e. Total Productive Maintenance (TPM)
• Definition: A proactive approach to equipment maintenance involving all employees.
• Goals:
o Zero breakdowns – Preventive maintenance to avoid failures.
o Maximize efficiency – Optimize machine availability and performance.
• Pillars of TPM:
o Autonomous maintenance (operators handle basic upkeep).
o Planned maintenance (scheduled inspections).
o Continuous improvement (Kaizen).
9. Concept of Kaizen
• Definition: A Japanese term meaning "continuous improvement" (Kai = change, Zen =
good).
• Core Principles:
o Small, incremental changes > massive overhauls.
o Employee involvement – All staff suggest and implement improvements.
o Standardize improvements – Successful changes become new best practices.
• Example: Daily 5-minute team meetings to discuss efficiency tweaks.
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10. CEDAC (Cause-and-Effect Diagram with Addition of Cards)
• Definition: An enhanced Fishbone (Ishikawa) diagram where teams use cards to
document causes and countermeasures.
• How It’s Used:
1. Identify a problem (effect).
2. Brainstorm causes (using cards).
3. Propose solutions (additional cards).
4. Prioritize and test fixes.
• Advantage: More visual and collaborative than traditional Fishbone diagrams.
12. Rationale for Six Sigma’s 3.4 Defects Per Million Opportunities (DPMO)
• Statistical Basis:
o A Six Sigma process has a defect rate of ±6 standard deviations (σ) from the
mean.
o Accounting for a 1.5σ process shift (real-world variation), this translates to 3.4
DPMO.
• Business Implication:
o Near-perfect quality (99.99966% defect-free).
o Critical for high-risk industries (e.g., aerospace, medical devices).
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o Customer: Auto assembly line
Six Sigma Defect reduction DMAIC, Control Charts Cutting medical errors
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