Management systemsfor improving quality 41 BENCHMARKING Benchmarking is a topic of general interest in quality management Quality. 15 items Praise for Taguchi's Quality Engineering Handbook ''Classic! This handbook is an excellent reference for engineers and quality professionals in any. To my family: my wife Carol, my daughters Amy and Angle and my son Andrew. Writing a book is a lonely task—by being the.

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The subject of quality engineering and management is about PDF. Chapter. from book Handbook of Performability Engineering Download full-text PDF. PDF Download Quality Engineering Handbook (Quality and Reliability), Download PDF Quality Engineering Handbook (Quality and Reliability), Free PDF. engineering, quality control, human resources, and cost accounting. .. version of Juran's Quality Handbook did not specifically advocate cross.

Management and Leadership 2. The Quality System 3. Product and Process Design 4. Product and Process Control 5. Continuous Improvement 6.

Quantitative Methods and Tools Each of these sections has an introduction and summary to give a broad picture of how the details fit together. There are 82 elements in the CQE BoK, and each element is highlighted at the beginning of the pertinent section.

Keep in mind that the book was not written as a study guide to pass the certification exam, but as a comprehensive guide to the field of quality engineering. Therefore, most of the sections include material that goes well beyond the CQE exam requirements. If you are using this book to study for the exam you must carefully examine the wording of the BoK to see which topics are of most immediate concern.

Some of the more technical material must be studied intensely and repetitively before it is fully grasped. Examples are often essential to complete the learning process, and we have therefore provided many. We also recognize that often xxvi How to Use This Book xxvii your thirst for knowledge cannot be satisfied by the contents of just this one book, so we have listed many sources of additional information. You want information and you want it quick. Often a single fact, procedure, or definition is required.

Regardless of the kind of information you seek, the best starting point is the index. The editors and production staff have greatly extended the index of this second edition, and we recommend you use it regularly to look things up. Several other features serve your reference needs. Immediately following the main text are the necessary statistical tables, all of which are cited in the text. Once familiar with a given statistical tool, you can often use the appropriate table without consulting the chapter.

Statistical tables are listed both in the Table of Contents front matter and immediately preceding Appendix A back matter. All figures and tables in the chapters are listed in the front matter, immediately following the Table of Contents. Consulting these lists may lead you to a key answer in certain cases.

An extensive glossary provides another reference tool. The editors believe that you will find this book a valuable learning and reference tool. But you are the final judge of our success, so we welcome your comments and suggestions. Please e-mail, phone, or mail using the contact information located on the back cover and copyright page.

Acknowledgments W e would like to acknowledgment the following authors and contributors to the previous editions of this book: Martha Atkins Dennis Arter Andy Barnett Dale H. Besterfield Forrest W. Munro Duke Okes Jack B. Monroe, and Dr. Rong Pan for their review of the examples and calculations, and also to John A.

Bringer Jr. Quality Philosophies and Foundations B. The Quality Management System C. Leadership Principles and Techniques E. Facilitation Principles and Techniques F. Communication Skills G. How to collect credit information and how much credit to set for a given person constitute the most important details in the era of information.

An organization collecting money from a number of people and corporations and lending to those in need of money is a bank. Its business is conducted in the world of information or credit. Such a world of reliance on information from plastic money to electronic money has already begun.

After all, depositors evaluate a bank. A credible bank that can offer higher interest is regarded as a good and highly productive bank. Unfortunately, in Japan, we still lack research on automated systems to make a proper decision instantaneously.

Because a computer itself cannot take any responsibility, functional evaluation of a system based on software plays a key role in establishing a company. After a company is established, daily routine management of software update and improvement of the database becomes more important. Globalization of information transactions is progressing. A single information center will soon cover all the world and reduce costs drastically. Soon, huge bank buildings with many clerks will not be required.

Freedom includes situations where we can obtain what we want freely, that is, without restraint of individual freedom by others. As discussed earlier, when electronic money systems are designed, numerous people become unemployed because many bank clerks are no longer needed.

Nevertheless, unless the redundant people produce something new, total social productivity does not increase. An increase in productivity is irreversible. Of course, a bank does not itself need to offer new jobs to people unemployed due to improved productivity. It is widely said that one of the new key industries will be the leisure industry, including travel, which has no limit and could include space travel.

What Is Productivity? This is an improvement in the overall social standard of living. Rather than keeping unemployed people doing nothing and paying an unemployment allowance, we should pay unemployed people a certain amount of money to let them work, such as reducing the number of students in a class or preparing a larger number of academic courses.

This is an important action to take when attempting to solve the unemployment issue. We will not discuss here whether the necessary expenses would be borne by government or a part of them shared by families of students. Instead, we should determine the improved living standard over a year school life. The best chance to test this is, when a number of classrooms are empty because the number of students is declining. The debate over whether an enormous expenditure is needed to improve the standard of living of the elderly has heated up.

A key point at issue is whether older people can continue to lead healthy lives without a loss of mental acuity. On the other hand, organizing a group of people to talk with the elderly before they show signs of senility is more essential than inventing a robot to assist and talk with them.

What is important is to develop practical means of achieving the goal and evaluating it. We should create a specialized laboratory. In fact, there are quite a few people who age without becoming senile who could be studied. Using the Mahalanobis—Taguchi system MTS , regarded as a key method in quality engineering, we should study how they maintain their health.

We discuss later how a company comes to be considered healthy. Some corporations run an active and sound business at all times. Toyota is said to be able to deliver a car to a customer within 20 days of receiving an order. Risks to Quality 13 Production engineering thus focuses on improving production speed to reduce the cost of indirect departments, including sales, administration, and development. To achieve the goal by taking advantage of quality engineering, we should stabilize the production process and drastically increase production speed.

Because a manufacturing department can improve market quality by a few percent only, it does not need to take that responsibility. The media splashed articles about our inappropriate preparation for these risks all over the front pages. In quality engineering we call such risks either signals or noises.

The best possible result is that the enemy hesitates to attack for fear of such weapons. On the other hand, quality engineering recommends that we evaluate uncountable noises in the market with only two noise factors.

Because market noises are generated by users and are due to their conditions of use, the effects evaluated in their study would be minimal or nonexisting. Take as an example an earthquakeproof building. Therefore, we do not assess a building using the point on the seismic intensity scale at which it will collapse.

Using the signal-to-noise SN ratio, we evaluate its robustness to noises at a seismic intensity scale of about 4, for example. In addition, as a countermeasure for human life, earthquake prediction is important as well as earthquake-proof and safety studies.

Further, a robust house is not economical in the face of an enormous earthquake.

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Risk Management We usually have the following noises: Countermeasures against Risks 1. Noises due to erroneous or careless use 2.

Noises due to the environment 3. Among common countermeasures against such noises are the training of users to head off misuse and the prevention of subsequent loss and 14 1. The Second Industrial Revolution and Information Technology damage by, for example, the design of easy-to-use products.

In Europe and the United States, the term, user friendly is often used for designs whose goal is to prevent misuse of software or medical errors. Of course, all error cannot be designed out of a product.

For example, there are a vast number of automobile accidents every year because of mistakes in driving. Since human errors are inevitable, it is essential to design sensors and alarms to let us know our mistakes or to design a system to avoid a car accident automatically. In developing an integrated sensing system that can judge as human beings do, the MTS process in quality engineering may be instrumental. In other examples, such as handling radioactive substances, human errors cannot be prevented completely.

If certain human errors do not lead to such important results as sustaining human life or extremely valuable property, we do not need to take technical countermeasures. On the other hand, risk management handles noises that jeopardize human life, important property, or national treasures. In terms of hardware failures, there are some measures that can be used, such as redundant systems, daily routine checkups, or preventive maintenance. Such rational design is called on-line quality engineering [1, Chaps.

The natural environment includes earthquakes and typhoons. From an economic point of view, we should not design buildings that can withstand any type of natural disaster. For an earthquake, for which point on the seismic intensity scale we design a building is determined by a standard in tolerance design.

If we design the robustness of a building using the quality engineering technique, we select a certain seismic intensity, such as 4, and study it to minimize the deformation of the building. However, this does not mean that we design a building that is unbreakable even in a large-scale earthquake.

To mitigate the effects of an earthquake or typhoon on human life, we need to forecast such events. Instead of relying on cause-and-effect or regression relationships, we should focus on prediction by pattern recognition. This technique, integrating multidimensional information obtained to date, creates Mahalanobis space see Section 4.

The Mahalanobis distance becomes 1, on average, in the space. We assume that the Mahalanobis space exists as unit space only if there is no earthquake. We wish to see how the Mahalanobis distance changes in accordance with the SN ratio forecasting accuracy proportional to the seismic intensity after we calculate a formal equation of the distance after an earthquake.

Risks to Quality The same technique holds for problems of the elderly. In actuality, there are quite a few year-olds who are still healthy and alert. We would collect information from their youth, such as how many cigarettes they smoked. What sorts of information should be gathered is a matter of the design of the information system. For n different-aged persons belonging to a unit space, we create the Mahalanobis space for their information by collecting either quantitative or qualitative data, such as professions.

This Mahalanobis space is a unit space. For this information we calculate a distance for a single person who is senile or cannot lead a normal life. If the distance becomes great and at the same time matches the degree of how senile or bedridden a person is, we may be able to forecast and change the futures of some elderly people.

Table of contents

For the most part, some items in the list are not helpful. Recently, in the world of software engineering, a number of problems have been brought about by hackers. Kem, John J. Riley, and Louis N.

Jones Schrock and Henry L. Lefevre Priest Bert Keats and Norma Paris Hubele Robinson and Richard K. Miller Defect Prevention: Kane downloading and Quality, Max McRobb Quality Function Deployment: A Practitioner's Approach, James L.

Bossert Statistical Process Control in Manufacturing, edited by J. Bert Keats and Douglas C. Montgomery Total Manufacturing Assurance, Douglas C. Brauer and John Cesarone Deming's 14 Points Applied to Services, A. Rosander Evaluation and Control of Measurements, John Mandel Achieving Excellence in Business: Ebel McNeese and Robert A.

Klein Berger Managing for World-Class Quality: Shecter Cound ISO Preparing for Registration, James L. Lamprecht Statistical Problem Solving, Wendell E. Carr Gaining the Competitive Edge. Lester, Norbert L. Enrick, and Harry E. Evans Mehta Cottman Singer and Ronald P. Upton Condra Stein Quality by Experimental Design: Barker Roberts Stamatis Moss Statistical Applications in Process Control, edited byJ.

The Theory of Constraints: Applications in Quality and Manufacturing: Quality Management Handbook: Kimber, Robert W. Grenier, and John Jourdan Heldt Multivariate Quality Control: Kenett Reliability Engineering and Risk Analysis: Quality Engineering Handbook, Thomas Pyzdek Product Development and Design for Manufacturing: A Collaborative Approach to Producibility and Reliability: Priest and Jose M.

Sanchez Reliability Improvement with Design of Experiments: Quality Engineering Handbook: To my family: Writing a book is a lonely task—by being therefor me myfamily made it bearable. Preface and Acknowledgements This work was written to fulfill my long-held desire to provide a single source that cov- ers every topic in the body of knowledge for quality engineering. In teaching courses in the past I found that literally every text book had to be supplemented with materials from other sources including some massive tomes!

Students were constantly being referred to technical journals, magazine articles and other books. My goal for this book is for it to serve as the single best resource for information about the field of quality engineering, serving as a teaching tool, a desk reference and as a base for certification training, for the student or the quality professional. It was difficult deciding where to draw the line on including material in the book. My personal library contains literally hundreds of relevant books, not to mention the articles in technical journals and magazines.

Virtually every major element in the quality engi- neering body of knowledge is the topic of entire college courses. It is even possible to obtain college degrees in some quality engineering subject areas, such as statistics.

My challenge was to digest this material while providing enough detail to present a coherent picture of the whole. I believe that I have succeeded. Of course, you, the reader, must be the final judge.

I welcome your suggestions. This book is based on one of my previous books: It has been revised and expanded to accommodate the expansion of what is expected of a quality professional. I would like to thank Bryan Dodson and Dennis Nolan for materi- al excerpted from their book: The Reliability Engineering Handbook. In this context, ethics are defined as the rules or standards governing the conduct of a person or the members of aprofession.

The basic principles of ethical behavior have been very nicely summarized in the Code of Ethics for Members of the American Society for Quality, which are shown in Figure 1.

Table 1. The appropriate response to these and other situations can be deter- mined by referring to the appropriate item in the ASQ code of ethics. Violations of the code of ethics by a quality professional may be brought before the ASQ Professional Ethics and Qualifications Committee. In extreme cases of ethics violations, ASQ mem- bership privileges may be revoked. Will be honest and impartial and will serve with devotion my employer, my clients, and the public. Will strive to increase the competence and prestige of the profession.

Will use my knowledge and skill for the advancement of human welfare, and in promoting the safety and reliability of products for public use. Will earnestly endeavor to aid the work of the Society. Relations with the Public 1. Relations with Employers and Clients 2. If employed, I will engage in supplementary employment of consulting practice only with the consent of my employer.

Relations with Peers 3. Figure I. ASQ code of ethics. From American Society for Quality. Table I. Conflict of interest situations. Releasing non-conforming items to a customer without the customer's knowledge.

Accepting non-conforming supplier materials without proper authorization. Ignoring or failing to report unsafe conditions, either in a product or a workplace. Plagiarism by yourself or another e.

Revealing proprietary information. Failing to reveal a conflict of interest when knowledge of it would affect an important decision. Management systems for improving quality I. The future, however, depends entirely on what is done now. The decisions, actions, resource allocation, and work done now will create the future. The present and immediate short range require strategic decisions as much as the long range. The long range is based largely on short range plans and decisions.

Conversely, unless the long range is considered when making short range plans and deci- sions, the result will be a lack of direction that will eventually ruin the organization. The terms "short range" and "long range" are not determined by a span of time.

A deci- sion is not short range simply because it can be implemented quickly, nor is it a long range decision to "decide" that we will take some action a decade from now.

The range of a deci- sion is the period of time over which the decision will have an effect. If we decide that our business requires that we grow Giant Sequoias, then it is a long range decision indeed.

Despite the inevitability of the future, it cannot be predicted. How can one plan for the unpredictable? The short answer is that one cannot.

However, long range planning can still provide valuable benefits. Long range planning's benefits include preventing man- agers from uncritically extending present trends into the future, from assuming that today's products, services, markets, and technologies will be the products, services, mar- kets and technologies of tomorrow. Above all, long range planning will prevent managers from devoting their energies and resources to the defense of yesterday Drucker, To avoid confusion, these are listed here.

It is not a bundle of techniques. Strategic planning involves answering two simple questions: Although models and quantitative methods may be used, they do not constitute planning.

At least one well-known text on planning defines strategic planning as "application of scientific methods to business deci- sions. Strategic planning is not forecasting. As stated above, the future is unpredictable.

Perhaps Drucker said it best: Strategic planning is an entrepreneur- ial activity that deliberately seeks to upset the probabilities by innovations and changes to the way people work and live. Strategic planning does not deal with future decisions. It deals with thefuturity of present decisions. Decisions exist only in the present.

Yet our decisions may commit us for a long time, perhaps even permanently. Strategic planning is not an attempt to eliminate or minimize risk. It does, howev- er, seek to assure that the risks taken are the right risks. The end result of success- ful strategic planning must be capacity to take a greater risk by choosing rationally among risk-taking courses of action.

Planning starts with the objectives of the business. What do we have to do now to achieve our objectives tomorrow? Planning must go beyond simply coming up with new things the business can do in the future.

The first step is to ask of each present activity, product, process, or market "If we weren't already doing this, would we start? After identifying what old baggage to dump, the next step in the planning process is to ask "What new and different things do we have to do, and when? The essence of planning is to make present decisions with knowledge of their futurity. It is the futurity that determines the time span, not vice versa.

Futurity answers the question "What do we have to do today if we want to be in some particular place in the future? What will not get done if we don't commit resources to it today? The question must be answered by each organization. Strategic planning aims to make changes in the way people work today.

The changes are designed to make things different tomorrow than they were yesterday. Plans must result in changes in work. If a manager admits that none of her best people are working on the plan today, then she has no plan. A plan shows how to assign scarce resources, and the most scarce resource is always good people. Of course, whenever our most precious resources are being used we must assure that they are used properly. This means account- ability must be built into the plan. Deadlines are necessary, as is feedback on progress and measurement of the final result.

This has resulted in disappointing results and an increasing lack of respect for the practice of strategic planning.

This section will present the most popular approaches to strategic planning. We will then discuss the problems with these approaches. Finally, we will present ideas for rescuing strategic plan- ning; after all, as stated earlier, management has no choice but to plan for the future. There are three main schools of thought on strategy formation: The design school—Sometimes called the SWOT school, the basis of strategy forma- tion is the comparison of internal Strengths and Weaknesses to external Opportunities and Threats.

As shown in Figure 1. Outside opportunities are exploited by inside strengths, while threats are avoided and weaknesses circumvented. Taken into consideration, both in the creation of the strategies and their subsequent evaluation to choose the best, are the values of the leadership aswell as the ethics of the society and other aspects of so-called social responsibility.

And once a strategy has been chosen, it is implemented. Figure 1. Design school model of strategy formulation. From Mintzberg, H. The Rise and Fall of Strategic Planning. Strategy formation should be a controlled, conscious process of thought. Responsibility for the process must rest with the CEO, who is the strategist. The CEO is seen as the architect whose plans everyone else builds. The model of strategy formation must be kept simple and informal.

Strategies should be unique: Strategies are built upon distinct, core competencies. Strategies must come out of the design process fully developed. The strategies should be made explicit and, if possible, articulated, which means that they have to be kept simple.

Finally, once these unique, full-blown, explicit, and simple strategies are fully for- mulated, they must be implemented. The planning school—Accepts the premises of the design school, except the assump- tions that the process be simple and informal and that the chief executive be the key actor. The basic premises of the planning school are: Strategy formation should be controlled and conscious as well as a formalized and elaborated process, decomposed into distinct steps, each delineated by checklists and supported by techniques.

Responsibility for the overall process rests with the chief executive in principle; responsibility for its execution rests with the staff planners in practice. Strategies come out of this process fully developed, typically as generic positions, to be explicated so that they can then be implemented through detailed attention to objectives, budgets, programs, and operating plans of various kinds. The positioning school—Focuses on the content of strategies differentiation, diversi- fication, etc.

In other words, the position- ing school simply extrapolates the messages of the planning school into the domain of actual strategy content. An example of this approach is the Boston Consulting Group's growth share matrix of cash cows, stars, dogs, and wildcats. This model categorizes com- panies according to the growth of the market and the company's market share, the com- pany then determines its strategy based on the category it is in.

Ansoff in a book entitled Corporate Strategy.

The certified quality engineer handbook

In this seminal work the strategic plan consisted of a product-market strategy, and objectives which, combined with an administrative and design strategy, pro- duced a strategic budget. These relationships are illustrated in Figure 1.

Ansoff's strategic plan. The strategic plan is the end result of an elaborate planning process. The results since then have been disappointing. An extensive meta-analysis of empirical studies covering nearly 2, organizations concluded that "the overall effect of planning on performance is very weak" Boyd, Mintzberg summarizes over twenty years of strategic planning practice and research by stating "At the very least, we have found that planning is not 'the one best way,' that it certainly does not pay in general, and that at best, it may have some suitability in particular contexts, such as larger organizations, those in mass production, etc.

In short, the evidence on strategic planning leads to the conclusion that it often does- n't work. Mintzberg postulates that this is so because strategic planning of which capital budgeting is a part is based on "The Grand Fallacy: Analysis may precede and support synthesis, by defining the parts that can be combined into wholes.

Analysis may follow and elabo- rate synthesis, by decomposing and formalizing its consequences. But analysis cannot sub- stitute for synthesis. No amount of elaboration will ever enable formal procedures to forecast discontinuities, to inform managers who are detached from their operations, to create novel strategies.

Ultimately, the term "strategic planning" has proved to be an oxy- moron. Indeed, before integrating the two, we must first allow intuitive think- ing, since the conventional approach dismisses it as "too biased.

Thus, each approach has advantages and dis- advantages. Since normal human beings are capable of performing both types of think- ing, why not let them? Since planners tend to be more analytic, and managers more intuitive, the "planning dilemma" may well suggest its own solution. Planners have the time and technique to engage in the analysis.

Managers have the intuition and detailed knowledge to suggest projects and to detect possible errors in the analysis.

If the two work together, as equal partners, the two modes of thinking can be combined to produce bet- ter decisions than either could do without the other. Mintzberg calls this combined approach to thinking "soft analysis. Judgment takes its place alongside formal procedures, and a mutu- al understanding is allowed to develop between staff planner and line manager.

Management systemsfor improving quality elegance in technique. Each issue is approached as a unique, creative challenge. The approach is systematic, but seldom rigorous, distinguishing between "analytic thinking" and "analytic technique. Strategic programming provides a framework that delineates the roles of planning, plans, and planners.

This framework constitutes an operational def- inition of planning. The central premise of strategic programming is that effective organizations engage in formal planning not to create strategies but to program the strategies they already have, that is, to elaborate and operationalize their consequences formally.

Thus, strategy is not the result of planning, but its starting point. Programming is a management activity which translates decisions into specific action patterns for implementation. The primary tasks involved in programming are: Scheduling activities in support of decisions 2.

Assignment and scheduling of resources in support of decisions i. Establishing patterns of work flows in the firm 4. Establishing patterns of authority and responsibility 5. Establishing communication flow networks Early authors on strategic planning viewed strategic programming as a "narrow con- text" in which to define planning.

However, after decades of experience with planning, strategic programming is coming to be seen as planning's preeminent role. General Electric's chief planner stated in an interview: I make a distinction between planning and strategy—they're two different things. Strategy means thinking through a company's basis of competitive advantage.

Planning, on the other hand, focuses on making the strategy work. Strategic programming produces action plans. These plans serve two primary purpos- es: Plans, as communication media, inform people of intended strategy and its consequences. As control devices, they specify what behaviors are expected of particular units and individuals in order to realize strategy, and then being available to feed back into the strategy making process compar- isons of these expectations with actual performance.

Strategic programming involves a series of three steps: Codifying the strategy—Planning refines the central strategic concepts of man- agement into a relatively few principal thrusts around which the organization can pattern its resource commitments and measure its managers' performance. It is often necessary, but not always, to concretize these abstractions for com- munication to others.

The planner must keep in mind that, at times, the images are more effective communications devices than precise and measurable plans. Stories still have their place. Elaborating the strategy—The portions of the plan codified in step 1 can be decomposed into a hierarchy that begins with substrategies, proceeds through ad hoc programs of various kinds, and ends with specific action plans—specifying what people must do to realize the strategy as intended.

This constitutes action planning: They follow a hierarchy of plans.

This is the essence of policy deployment. While this sounds a great deal like tradi- tional strategic planning, strategic programming involves two fundamental differ- ences. First, strategy formation is expressly precluded from the model. Second, strategic programming is presented not as an imperative but as a process that is appropriate only under certain conditions see "When to use strategic program- ming" below.

Converting the elaborated strategy—This step involves going from action planning to action. Objectives are restated, budgets redone, policies and procedures over- hauled, and the daily routine is changed to reflect the hierarchy of plans. Unfortunately, very little research has been done to help the manager know how to do this effectively. The best guidance at this time seems to be an abundance of case studies of firms that have successfully done it.Such rational design is called on-line quality engineering [1, Chaps.

Training—Quality goals often require that employees acquire new knowledge, skills, and abilities. Moss 2. Used in this way QFD becomes a powerful project plan- ning tool. An extensive meta-analysis of empirical studies covering nearly 2, organizations concluded that "the overall effect of planning on performance is very weak" Boyd, Rahul Sharma. Excavate 2 days Exterior fixtures 2 days Figure 1.