The Great Blue Bead Company

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The Great Blue Bead Company
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• Quality Is Our Priority

Based on a term project by Elizabeth A. Hoffman
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The Great Blue Bead Company

• Forman Mr. John Mainieri
• 6 willing workers
• A recorder
• 2 inspectors
• 1 chief inspector

Quality Is Our Priority
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The Great Blue Bead CompanyProduction Process

• Grasp the paddle and mix the raw materials.
• Insert the paddle into the bead mixture.
• Raise the paddle at a 20 degree angle so that as
  many depressions as possible will hold a bead.
  Gently angel to one side so excess production
  beads fall off. We want to produce 21 beads per
  shift (worker).
• Inspectors count the beads independently and
  record the counts. Count both defectives and
  total beads produced.

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The Great Blue Bead Company

• The chief inspector checks the counts and
  announces the results, which are written down by
  the recorder.
• The chief inspector dismisses the worker.
• When all six willing workers have produced the
  days quota, the foreman evaluates the results.

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ZERO DEFECTS
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ZERO DEFECTS
ZERO DEFECTS
ZERO DEFECTS
ZERO DEFECTS
ZERO DEFECTS
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Red Bead Experiment Simulated Results
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DAY 4
DAY 1
DAY 2
DAY 3
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Red Bead Experiment- Lessons for Managers

• Variation exists in systems and, if stable, can
  be predicted.
• Although the exact number of red beads in any
  particular paddle is not predictable, we can
  describe statistically what we expect from the
  system.

Adapted from the Management and Control of
QUALITY, 4th ed. by Evans and Lindsay,
South-Western
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Red Bead Experiment- Lessons for Managers

• All the variation in the production of red beads,
  and the variation from day to day of any willing
  worker, came entirely from the process itself.
• Neither motivation nor threats had any influence.
• Many managers believe that all variation is
  controllable and place blame on those who cannot
  do anything about it.

Adapted from the Management and Control of
QUALITY, 4th ed. by Evans and Lindsay,
South-Western
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Red Bead Experiment- Lessons for Managers

• Numerical goals are often meaningless.
• Merit pay and probation actually reward or
  penalize the system and lead to worker
  frustration.
• There is no basis for assuming that the best
  willing workers of the past will be the best in
  the future.

Adapted from the Management and Control of
QUALITY, 4th ed. by Evans and Lindsay,
South-Western
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Red Bead Experiment- Lessons for Managers

• Management is responsible for the system. The
  experiment shows bad management.
• Procedures are rigid.
• Willing workers have no say in improving the
  process.
• Management is responsible for the incoming
  material, but did not work with the supplier to
  improve the inputs to the system.

Adapted from the Management and Control of
QUALITY, 4th ed. by Evans and Lindsay,
South-Western
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Red Bead Experiment- Lessons for Managers

• Management designed the system and decided to
  rely on inspection to control the process. Three
  inspectors are probably as costly as the six
  workers and add practically no value to the input.

Adapted from the Management and Control of
QUALITY, 4th ed. by Evans and Lindsay,
South-Western
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Chapter 15Statistical Applications in Quality
and Productivity Management
Chapter Objectives

• Introduction to the History of Quality
• Demings 14 Points of Management
• Common Cause Variation and Special Cause
  Variation
• Control Charts for the Proportion of
  Nonconforming Items
• Control Charts for the Range and Mean

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Quality Management

• Focus on process improvement
• System, not individual
• Teamwork
• Customer satisfaction
• Organizational transformation
• No fear
• Requires investment, saves money

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Dr. W. Edwards Deming

• B.S. in Electrical Engineering University of
  Wyoming, 1921
• M.S. Mathematics and Mathematical Physics
  University of Colorado, 1925
• Ph.D. from Yale University, 1928

http//www.deming.org/
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Control Charts

• Sequential collection of variable data
• Control Chart to monitor variation
• Focus on time
• Study nature of variability
• Causes of Variation
• Special or Assignable
• Chance or Common

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Control Limits

• Used to evaluate variation for
• Variation outside established control limits
• Patterns over time
• Process Average 3 standard deviations
• Upper Control Limit (UCL)
• process average 3 standard deviations
• Lower Control Limit (LCL)
• process average 3 standard deviations

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Control Chart Patterns
Special or Assignable Cause Variation This is a
signal.
Outside Control Limit
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Control Chart Patterns
Pattern over Time
Increasing Trend
The magic number is 8!
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Control Chart Patterns
Common Cause Variation Static vs. a Signal
Within Control Limits
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The p Chart

• Attribute Control Chart
• For Proportion of Non-Conforming Items
• Control Limits

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The p Chart
Obtaining Upper and Lower Control Limits
Do 14.4 Canisters in class
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Classroom Example
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Example 15.3 cont.
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SummaryThe p Chart

• Control Chart for the Proportion
• Used to determine whether special or common
• Control Limits

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Control Charts for theRange and Mean

• Used when characteristic is measured numerically
  called Variables Control Charts
• More sensitive than p chart
• Two charts
• Variation in a process (range)
• Process Average (mean)
• Interpret variation chart first (range)

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The R Chart

• Must be examined first
• Out of control variation could cause
  misinterpretation of the mean chart

From table E.10 on page 572 d3 represents the
relationship between the standard deviation and
the standard error d2 represents the relationship
between the standard deviation and range
Control Limits for the Range
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Control Limits for the R Chart
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Control Limits for the R ChartThe Simple Way
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Control Limits for the R ChartThe Simple Way
You dont need to do the math on this slide. This
is just to show you where D values come from.
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Control Limits for the R ChartThe Simple Way
See Table E.10 on page 572 for values of the
coefficients.
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The Chart

• If the Range is in Control
• Measures the variability of the mean

Control Limits for the Mean Chart
OR
See Table E.10 on page 572 for values of the
coefficients.
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Control Charts for the Range and Mean

• In class, do 14.4 (canister) and 14.14 (SPWATER)
• For Home Work do problems 14.5 (Medrec) on page
  517 and 14.15 (Tensile)

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SummaryControl Charts for the Rangeand Mean

• Two charts
• Variation in a process
• Process Average
• Interpret variation chart first (range)
• Control Limits for the Range

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SummaryControl Charts for the Rangeand Mean

• Interpret mean chart second
• Control Limits for the Range

Subgroups of size n
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OR
OR
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