Course Number: Management 330
Course Title: Quality Planning
and Analysis
Course Text and Recommended Material:
(1) On Line Text: "Quality Planning, Control and Improvement"
by Knight, John E. is also available in workbook form from the UTM
bookstore.
(2) Supplemental Text: Quality Planning and Analysis
by Frank Gryna, McGraw-Hill Irwin Publishing Co., ISBN 0 -
07 - 039368 - 0. Available in the UTM University Bookstore (Not Required)
Course Objectives:
(1) To present the basic philosophical nature of product and process
quality and its importance in today's business environment;
(2) To illustrate the concepts of statistical variation in process
data and that variation is the enemy of quality;
(3) To present the basic concepts of analysis of quality data - both
nominal and ratio;
(4) To present process control and process capability concepts;
(5) To present basics of Design of Experiments and
(6) To illustrate usage of Quality concepts, SPC, and DOE in
factories through appropriate plant tours and/or guest speakers.
Grading: Grades will be assigned as
follows:
A
90% and above
B
80% to 90%
C
70% and above
D
60% and above
F
below 60%
The following weights on materials can be anticipated:
First Test: 20%
Second Test: 20%
Attendance: 10%
Class Projects, Homework, and Class Presentations and
Discussion: 20%
Final Exam: 30%
Class Attendance Policy: Class will be taken each day precisely at the scheduled starting time. Each class and/or trip attended will be worth (1/n) % of the 10% given for attendance. For students taking the course on-line, the attendance grade will be replaced with a project grade which consists of a 10 page paper on how the various topics covered in the course are applied in your work setting.
Professional Organization Quality Link: The major quality
organization in American is the American Society for Quality. The
organization is well respected and well known throughout the quality field.
They provide professional assistance and certifications. I am personally
certified through ASQ as a Certified Quality Engineer and a Certified Quality
Manager. Other certifications are available as well. In order
to progress in the quality field, one will have to become likewise
certified through this organization. The organization and many other
links to cyberworld are available through http://www.asq.org/.
Please check out the link and become familiar with the services of the
American Society for Quality.
Management 330 Course Schedule Sheet
Instructor: Dr.
Ed Knight
Office Location: Business Administration Bldg. 229A
Office Telephone: (731)587-7351
Home Office: 124 Clark St., Martin, Tennessee
Home Telephone: (731) 588-1002
e-Mail Address: jknight@utm.edu
FAX: (731) 587-7231
Office Hours: Call my office any day and leave a message.
I will return your call. Better yet, send me an e-mail and I'll
answer hopefully within 24 hours. Another very profitable alternative
is to post your questions to the Blackboard.utm.edu
Communications button on the internet. Try going to http://blackboard.utm.edu.
You will already be registered for the course. Your login password
is your utm e-mail address and your user id is the last four digits of
your social security number. The initial page will show the Mgmt
330 course and you can click on that. Included under the initial
page is the Communications Button and a related e-mail communications system
button. This button will allow you to select a communication medium
- either to a person individually or to the class as a whole.
Using this vehicle, you can be in contact with the other students
in the class. They may be able to answer your question. As
the instructor, I will be monitoring the blackboard information and correct
any faulty information. Note: If you have questions specifically
for me about an assignment or something of a particular nature, e-mail
me directly and do not use the class communication selection.
CLASS SESSION #1: The History of Quality
Course Outline and Syllabus: 15 minutes
Lecture on History of QC up to 1980: 30 minutes
Film: "If Japan Can, Why Can't We?" 25 minutes
Quality has always been considered important in all cultures. However, the modern "industrial" approach to quality and statistical quality control was initially developed in the 1920's by Dr. Walter Shewhart. The evolution of the quality modern quality philosophy to 1980 and the revolution in the quality philosophy since then has been led by Dr. Edwards Deming. Dr. Deming was introduced to American managers in the 1980 television documentary "If Japan Can, Why Can't We?" Until his death in 1995, Dr. Deming lectured nearly ever major executive in America on the need for quality and his 14 points of profound knowledge of management. Several articles about Dr. Deming can be found on the Deming web site.
Chapter 1 of the on line textbook discusses the history of the quality movement, the changing business conditions that have necessitated greater emphasis on quality, the definition of quality, the quality function, the relationships between quality and productivity, and general concepts of managing for quality.
Class Assignment:
1. Read "The History of Quality" in Chapter
1 of Knight On Line text.
2. Read at least one article about Dr.
Deming in the linked material.
3. Read the article on the following link: The Discovery
of the Prophet of Quality by SPC Inc.
Lecture: (40 minutes)
Quality is one of the three fundamental elements of business.
The three important legs are production of goods and/or services,
financing
of
the good or service with attendant accounting, and customer service
through quality of the product or service. Quality is not
a static definition but is always changing given the changing nature of
business conditions. Thus, quality has seen many definitions as it
continues to evolve. Some definitions that have been used include
the following:
(a) Producing the
product to blueprint
(b) No defectives
or defects through 100%
inspection
(c) Conformance to
specifications (Crosby) - The Quality
Mind by Dr. Fujita
(d) Meeting or exceeding
customer requirements - WSJ article on the Odakyu
Dept. Store
(e) The loss imparted
to society (Taguchi - Costs increase as product measurements deviate from
target) - See Statistical Quality Design and Control by Devor, Chang,
and Sutherland; MacMillian, 1992, p. 47 to 51.
(f) Fitness
for use (Juran)
(g) Predictable degree
of uniformity (Deming)
(h) On target
with minimum variation (statistical repeatability with designed parameters)
Customers (anyone who is affected by the product or process) receive products (goods, software, or services). In manufacturing, quality features include performance, reliability, durability, ease of use, serviceability, esthetics, availability of options and expandability, and reputation. In service industries, quality features include accuracy, timeliness, completeness, friendliness and courtesy, anticipating customer needs, knowledge of the server, appearance of facilities and personnel, and reputation.
Quality is everyone's job but management holds primary responsibility. Dr. Deming developed his 14 points of management to provide guidelines for effective management. The quality issue will continue to be an important element is management given the relentless march in product liability, timeliness of product and service, and precision and speed of equipment in an effort to achieve greater productivity in an increasingly internatial world market place.
Classwork: (30 minutes)
1. Divide into groups of 3 or less students. Each
group will try to specify “What is a quality ‘hamburger’?” Two areas
of concern need to be addressed: the manufacturing and the service
component. For each manufacturing and service component,
(a) list a minimun of six operational quality features and related actionable
criteria for the hamburger. Prepare your report and one student will
be selected to present the manufacturing elements and one student
will be selected to present the service elements in Class Session number
3.
Homework:
1. Read What is Quality, Who is Responsible for Quality, and
Why Now in Chapter
1 of the Knight On Line Text.
2. Complete the report started in class on a "quality hamburger".
Be prepared to submit your team project electronically for discussion prior
to Class Session #3.
Homework Presentation and Discussion: Student presentations
and discussion of "What is a quality 'hamburger'?"
(20 minutes)
Lecture and Student Participation: (30 minutes)
The old adage from years ago was the "higher quality means higher costs
and lower productivity!" Dr. Deming taught the Japanese that this
adage was not always true! In fact, he taught them that higher
quality can often lead to lower costs and greater productivity.
Usually, improved cycle times are equated with improved quality.
Customers now expect instant turn-around! Finally, the relationship
of value and quality is presented.
Managing quality is extremely important. One of the early paradymns was that "prevention is better than detection". In light of this adage, quality management has been divided into three main elements: quality planning, quality control, and quality improvement. These three elements closely correspond to the famous "Deming wheel of improvement" which was called the PDCA cycle. The cycle was shorthand for Plan, Do, Check, and Act. Continuous application of the cycle leads to quality improvements.
Homework. (20 minutes of in-class work)
1. Work problem #1 in the Knight On Line text. Be prepared
to present your analysis on the board in class and to electronically submit
your analysis.
2. Read "The Relationship of Quality to Other Business
Functions" in Chapter
1 of Knight On Line Text.
Homework Presentation and Discussion: Student presentations on Homework Problem #1. (10 minutes)
Lecture: (25 minutes)
In order to motivate top management to become and remain involved in
quality activities, an organized and factual assessment of the quality
impact must be developed which can be translated into bottom-line economic
values that can drive strategic decisions and actions. One methodology
which is widely accepted is the development of a table that enumerates
the cost of poor quality into four categories: internal failure costs,
external failure costs, appraisal costs, and prevention costs. These
costs along with other "hidden quality costs" often surprise management
as to their size and can lead to decisive managerial action. In addition
to evaluating the costs of poor quality, typical company wide assessments
focus on determining the company's standing in the marketplace through
surveys and focus groups, evaluating the quality culture within the
organization through internal employee surveys, and overall assessments
of quality systems by comparison with accepted national or international
standards systems such as the Baldridge
Award or the ISO 9000 standards.
Class Exercise: For a Wendy's (or other fast food operation) hamburger and using your previous group of 3 members, brainstorm costs of poor quality (including their categorization) and methods of obtaining numerical measures of the poor quality. (40 minutes)
Homework:
1.. Read "Assessment of Quality" in Chapter
2 of the Knight On Line Text.
2. Continue working on your report on the "costs of poor quality
hamburgers". Be prepared to electronically submit your report to
the class.
Plant Visit and Guest Speaker from Leland Powell: (70 minutes)
The objectives of the plant trip are as follows:
1. To expose you to a real world company that
must sell product in a world where quality is important. You can
ask them related questions about their quality consciousness, strategy,
assessment programs, costs of quality, etc. (Planning and Organization
for Quality)
2. To expose you to a production environment
that must utilize methods either statistical or mechanical or optical that
control quality against stated production criteria. These visual examples
will be important as we later discuss Statistical Process Control
(Measurement and Control of Quality).
Homework: Continue working on your hamburger cost of poor quality report. Electronic submission is due before the beginning of class session #6.
Homework Presentation and Discussion: (10 minutes)
One student will be randomly selected to present their group's hamburger
cost of poor quality report.
Lecture: ( 30 minutes) "Identifying, Evaluating, Ranking and Selecting Quality Improvement Projects" . In this section, the operational element of translating quality problems into specific projects is reviewed. Once many quality projects have been identified from different departments, different customers, about different products, from different customers, from employees, etc., the projects will need to be economically evaluated for potential cost and financial returns. Then a methodology for ranking and final selection of specific projects must be developed based on factors such as rates of return, criticality of operations, time to completion, probability of success and other factors. A methodology that utilizes these concepts will be presented. Obviously, the Pareto principle is important at this stage as a tool for ranking the vital few versus the trivial many projects. An example of the Pareto diagram will be given using a demo SPC software from the internet called QI Demo. You can download a demo for the Excel add-ins directly to your computer. Once done, you can enter data into an Excel spreadsheet and easily perform the Pareto analysis including making excellent looking graphs. An example will be developed in class. Another useful link for some free demonstration software is PQ Systems.
Classwork and Homework:
1. Read Chapter 3 of Quality Planning and Analysis by Gryna pages
49 to 63.
2. Read Chapter
3 Quality Improvement and Cost Reduction from the On Line Text
by Knight.
3. Suppose I want to sell my home in the near future.
However, to receive "top dollar" for the house, some quality
improvement projects might need to be undertaken and completed. In
teams of 3, solicit from appropriate sources (at least one team member
should do an internet and library search on "home improvement returns")
and brainstorm a minimum of 25 improvement projects. Then develop
a quantitative methodology for evaluating and ranking 5 of the projects
and for eventual selection of the top 2 projects. While one team
member surfs the web for information on house improvement projects and
potential returns, others can be assigned to get information my wife or
myself or home decorators or contractors, etc. for projects and from
real estate agents, carpenters, plumbers, etc. on potential returns and
costs. The project should be submitted electronically before Session
#8. (30 minutes)
The measurement and presentation of the quality data is critical to the quality improvement process. Data collection to describe the problems within a process first depends on good operational definitions of measureable deficiencies or defects and then a good plan to validate the accuracy and repeatability of the data. Since quality problems are part of a process of providing goods and/or services, the process into which the problem occurs is oftentimes portrayed visually through the use of a flow process chart. With that overview, the Japanese developed what they termed the "Seven Simple Tools" to identify, measure, and graphically portray and present quality problems. The Japanese have learned that the effective application of these simple tools can significiantly improve most quality problems. The Asian Productivity Association of Tokyo developed a slide strip of these tools. An excellent book on these 7 tools has been translated into English and is available through Productivity Press, Inc. and is titled "Handbook of Quality Tools - The Japanese Approach". (25 minutes).
CLASSWORK:
1. Lecture on Operational Definitions - Chapter
4 of Knight On Line Text - The Measurement and Presentation of
Quality Data (15 minutes)
2. Develop in class discussion an operational definition of "late"
for student class attendance. (5 minutes)
3. Viewing of the Slide Strip on the "Seven Simple Tools" (30
minutes)
4. Teams continue working on the project from "identifying and
selecting" quality improvement projects for the home. (20 minutes)
Classwork and Homework:
1. Read Chapter 4 of the Knight On Line text.
2. Read pages 63 - 86 of Quality Planning and Analysis
by Gryna.
3. Continue to complete the home improvement project selection
project. Be prepared to electronically submit the report before the
next class session. (20 minutes)
Homework Presentation and Discussion: (10 minutes)
One student will be randomly selected to present their group's project
on the selection of quality improvement projects for the sale of a house.
Lecture: (30 minutes)
Many organized systems have been developed that aim to guide the practicioner
of CONTINUOUS quality improvement through a series of steps that will improve
the chances of success. One of the more recent and popular systems
is the Six Sigma sytem.
Another system which has been proven successful is from QualPro,
Inc. and is an 8 step improvement plan. These two systems will
be discussed as practical and proven systems for structuring projects and
project stages to insure greater than normal success.
Classwork and Homework: (30 minutes)
1. Read pages 70 - 86 of Chapter 3 in Quality Planning
and Analysis by Gryna.
2. Read and review Chapter
4 of the On Line Text by Knight.
3. Suggest and illustrate how the 7 tools can be applied to measure
the problem of student absenteeism from classes. You can use your groups
to develop the project. If you follow the steps indicated, you will
improve your efficiency and effectiveness on the project.
(a) Complete a flow diagram first. The flow diagram will
focus on the end product, that is, a student being absent from class.
Obviously, to reach that point, a student (or students) follow
a decision making logic and take actions which result in the absence.
Develop a logic chart for a minimum of three decisions and three actions.
(b) Complete a comprehensive Cause and Effect Diagram with the
major focus being "student absent". Then develop a minimum
of 5 major areas and 20 minor arrows to conceptualize the cause and effect
relationships.
(c) The remaining tools will focus on attempting to quantify
some of the proposed relationships. By reviewing the items in (a)
and (b) above, plenty of opportunities to conceptualize the use of
the remaining tools will be available.
Teams are to brainstorm for ideas while each individual will be responsible
for particular examples and applications. Be ready to submit
and present the report on the project by the beginning of Session 12.
4. Read Chapter
5 of the On Line Text by Knight.
Test #1: (30 minutes)
The first test will be short answer problems and short answer discussion
questions. The quiz will be taken on-line and the student will type
and edit the material before submitting. You will be able to check
your grade on-line using blackboard.utm.edu before the next class period.
Classwork and Homework: (40 minutes) Continue working on your project about student absenteeism. Be prepared to electronically submit the project prior to Class Session 11.
Homework Presentation and Discussion: (30 minutes)
One team of students will be randomly selected to present their group's
project on the use of the 7 tools for defining the problem of absenteeism.
Since other groups should be likewise prepared, hopefully a good
discussion of how others used the tools will develop.
Lecture: (30 minutes)
An introduction to the first two steps of the quality improvement process
will be given in Chapter
6 of the Knight notes. A discussion of the reason why teams are
desirable and the final composition of teams will be given. Then,
a discussion of key variables and their relative desirability will be discussed.
Finally, more information will be given on operational definitions
along with additional examples and practice.
Classwork and Homework: (10 minutes)
1. Each individual student is responsible for developing
an operational definition for one of the following situations. You
might want to refer to Dr. Deming’s blanket example as a guideline for
developing the operational definition and the method to evaluate one’s
conformance to the definition.
(a) Providing TIMELY waiting line service at a Wendy’s restaurant.
(b) Providing high service level stocking levels at Wal-Mart.
That is, having the desired product on the shelf when the customer wants
it.
(c) An excellent basketball free-throw shooter.
(d) An excellent tasting pie and related recipe.
Electronically submit your papers before the next class period.
Homework Presentation and Discussion: (20 minutes)
Individuals students will be called upon to present their operational
definitions for the situations presented in Class Session 11.
Lecture: (20 minutes)
Once the key measurable variable has been determined along with the
operational definition, the measurement system of the variable needs
to be accurate and precise. Any analysis of information depends on
good data. The old expressio of "garbage in - garbage out" clearly
applies. Techniques will be presented in Chapter
7 of the Knight text that will demonstrate methods of attempting to
validate the measurement system as accurate, capable, and reliable.
In Session 12, a discussion of the text material up through Accuracy
studies will be discussed. An Excel spreadsheet called M330CHP7PROB
has been developed to lead you in your study of these concepts.
Classwork and Homework: (30 minutes)
1. Read Chapter 7 in the Knight text up through Accuracy studies.
2. A short tutorial on Excel spreadsheets will be given on how
to write equations and develop graphs for the Accuracy charts.
3. Accuracy Study: For a typical bathroom scale
at your disposal, take a calibrated weight and weigh and record 20
readings as was done in the notes. The calibrated weight should be
at least a 10-pound “barbell” weight. Although these are not calibrated
exactly, we will use that as the “standard”. The procedure
to actually weigh and record should be as follows. Place the calibrated
weight on the scale and record the reading to the nearest estimated tenth
of a pound (you may need to guess). Following each weighing of the
“standard barbell” weight, step on the scale several times with your
own weight. Then put the barbell weight back on the scale and weigh
it again to the nearest tenth of a pound.
(a) Complete this procedure for 20 different readings into the model
spreadsheet given in the Excel link. .
(b) Interpret the graph.
Lecture: (40 minutes)
A measurement system must not only be accurate but also precise and
reliable. In fact, some consider precision of the measurement
system more important than accuracy! In this session, a measure
of gage precision and gage capability will be developed. Then the problems
of different people measuring the same item (reproducibility) will be presented.
Finally, the validation of a measurement system that can withstand blind
sampling and auditing will be stressed.
Classwork and Homework: (30 minutes)
1. Read the remainder of Chapter
7 of the Knight online text.
2. Precision and Gage Capability Study: For
the Precision Information from the Excel M330CHP7PROB
link, develop control charts for the study using the formulas on
the spreadsheet and in the notes. Also complete the gage capability
analysis and make comments.
3. Repeatability and Reproducibility Study: For
the Repeatability and Reproducibility Information on the Excel M330CHP7PROB.xls
link, develop Excel formulas and determine and display the final
answer for the standard deviation of the measurement system.
4. Blind Sampling Example: An airline ticket
reservation system is interested in getting good baseline productivity
information on the average time it takes for a agent to service a customer.
The productivity manager suggested that an industrial engineer be assigned
to randomly pick an agent, and when a call comes to that agent, use his
stopwatch to measure to time to complete the task. Discuss
how a blind sampling system could be set up and why such a blind sampling
procedure may in fact produce better results. You can use the “Insert
Text Box” already provided on the spreadsheet to write your answer.
Each student should complete the Chp. 7 spreadsheet and submit it to the dropbox before Session 13.
Homework Presentation and Discussion: (15 minutes)
Individuals students will be called upon to present their homework
on gage accuracy, capability, and blind sampling.
Lecture: (40 minutes)
Variation is the ENEMY OF QUALITY!! However, most people
have difficulty with correctly responding to variation given their inability
to discriminate between random and special cause variation. The quincunx
will be used to illustrate random variation while the famous "funnel experiment"
will be used to illustrate how people have difficulty interpreting variation.
Finally, the basic mathematical measures to assess variation (mean,
standard deviation, range, etc.) will be introduced. Students will
learn how to use Microsoft Excel to calculate the statistical measures
and to graph histograms.
Classwork and Homework: (15 minutes)
1. Read Chapter
8 in the Knight text.
2. Complete the homework in the embedded
link of Chapter 8 and submit it prior to Session 14.
Homework Presentation and Discussion: (20 minutes)
Individuals students will be called upon to discuss their response
to variation based on student grades. Finally, one sutdent
will be asked to present their Excel spreadsheet solutions for finding
statistical measures and charts.
Lecture: (25 minutes)
Process control can be achieved in a variety of ways. One methodology
is the development of processing standards and their cataloging as operating
manuals. Another methodology deals with the collection and analysis
of process data - called statistical process control. The definition
and modeling of statistical process control will be developed using Excel
spreadsheeting and graphing. Most of the linked Excel spreadsheet
material will be covered in class.
Classwork and Homework: (25 minutes)
1. Read Chapter
8 in the Knight text.
2. Complete the homework in the embedded link of Chapter 8 and
submit it prior to Session 15.
Lecture: (30 minutes)
Process control systems will be defined along with some important philosophical
concepts of process control. Next, reasons for assessing and gaining
process control will be presented. After pictorially demonstrating
the nature of statistical process control, a flow chart methodology
for developing process control charts from trial data will be presented
along with an example of the process using a standardized Excel plug in
program.
Classwork and Homework: 30 minutes
1. Read Chapter
9 of the Knight text.
2. Complete the homework in the Chapter 9 (problems 1 - 4) where
problems 3
and 4 are given in the link.
Homework Presentation and Discussion: (10 minutes) The problems 3 and 4 of Chapter 9 will be reviewed.
An Experiential Exercise: (60 minutes)
Statistical process control charts evolve dynamically. Books
have the unfortunate problem of presenting them in a static, completed
form. In order to have you psychologically experience the interpretation
of control chart data, an experiential exercise will be performed
in class using the marble board and a standard SPC charting format.
Homework:
1. Read Chapter
10 of the Knight text (first four pages).
Lecture: (45 minutes)
Based on the experiential exercise and the understanding gained from
that, additional control chart patterns and signals will be discussed.
Finally, a rather extensive discussion of how many control charts
that are implemented are of little value. These traps should be avoided
but provide great opportunity for the properly trained young analyst to
correct problems in a new job. Since many of these problems result
from poor sub-group sample selection, these concepts will be discussed.
This material will be graphically demonstrated throughout Chapter 10 of
the Knight notes.
Homework:
1. Read Chapter
10 of the Knight text (remainder of the chapter).
2. Work the homework problems in Chapter 10 of the Knight text.
Homework problem in Excel.