The

Management
and
Control
of Quality

JAMES R. EVANS
University of Cincinnati

WILLIAM M. LINDSAY
Northern Kentucky University

TfCHNISCHE HOCHSCHULE DARMSTADT

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 CONTENTS

Preface xix

PART 1 THE QUALITY SYSTEM

1 Quality Assurance in Organizations 2

1.1 The Importance of Quality 3
QUALITY IN PRACTICE: The National Campaign for Quality in Britain
1.2 What Is Quality? 6
1.3 Quality in Production Systems 9
Components of the Production System 10
Business Support Systems 12
Quality Management 12
QUALITY IN PRACTICE: The Spare Parts Quality System at DEC 12
Quality in Service Organizations 13
1.4 Quality, Productivity, and Strategic Planning 15
QUALITY IN PRACTICE: Productivity and Quality at Westinghouse 18
1.5 Managing Quality: Philosophies and Leadership 19
Quality Leadership Philosophies 22
Quality Commitment 24
Summary 25
Questions for Review and Discussion 25
References 27

2 The Economics of Quality Assurance 28

2.1 The Value and Cost of Quality 29

Quality of Design Economics 30
Quality of Conformance Economics 31
2.2 Quality Cost Classification 33
Prevention Costs 33

ix
 CONTENTS

Appraisal Costs 34
Internal Failure Costs 34
External Failure Costs 34
Quality Costs in Service Organizations 35
2.3 Quality Cost Measurement and Reporting 35
Data Collection 36
Measuring Quality Costs 36
Quality Cost Reporting 38
QUALITY IN PRACTICE: Quality Cost Analysis with Color Computer
Graphics 42
2.4 Quality Cost Analysis and Productivity Improvement 43
QUALITY IN PRACTICE: Cost and Productivity Improvement at the
Continental Bank 44
Summary 45
Questions for Review and Discussion 46
Problems 47
References 48

PART 2 THE MANAGEMENT SYSTEM 49

3 Planning for Quality Assurance 50

3.1 General Concepts of Managerial Planning 51

The Importance of Planning 52
3.2 The Hierarchical Nature of Planning 53
Hierarchical.Planning for Quality Assurance 54
QUALITY IN PRACTICE: Quality Planning at the Continental Bank 56
3.3 The Planning Process 58
An Example of a Quality Planning Statement 60
QUALITY IN PRACTICE: Quality Planning for Jaguar 62
3.4 Operationalizing Strategic Plans 62
3.5 Quality Planning and Business Functions 64
Marketing and Quality Planning 64
Product/Process Design and Quality Planning 65
Operations Management and Quality Planning 65
Finance and Quality Planning 66
Summary 67
Questions for Review and Discussion 67
References 68
 CONTENTS Xi

4 Organizing for Quality 69

4.1 The Scope of Organizing 71
Authority and Responsibility 71
Corporate Culture 72
QUALITY IN PRACTICE: Quality Organization at Philips Corporation 73
4.2 Quality Task Identification 74
New Design Control 74
Incoming Material Control 75
Manufacturing Quality Assurance 76
Special Process Studies 76 "
General Management 77
4.3 Organization Structure 77
The Organization Chart 78
NJob and Position Descriptions 82
Policies and Procedures 83
Committees 84
Facilities 85
Planning the Organization Structure 85
4.4 Task Design 86
The Classical Approach 86
Organizational Behavior Approaches 87
Sociotechnical Approaches 88
Summary 89
Questions for Review and Discussion 89
References ^90

5 Motivation and Control for Quality 91

5.1 Motivation 92
QUALITY IN PRACTICE: Quality Turnaround at Ford 94
5.2 An Overview of Motivation Theories 95
Content Models 96
Process Theories 97
QUALITY IN PRACTICE: Using Time Off as a Reinforcer 102
5.3 Task Design for Motivation 104
QUALITY IN PRACTICE: Quality and Task Design at IBM 106
5.4 Leadership 106
Developmental Leadership Theories 109
5.5 Control Systems for Quality 110
Operation of the Control System 112
QUALITY IN PRACTICE: DisneylandA Kingdom of Service
Quality 114
Summary 115
XII CONTENTS

Questions for Review and Discussion 115

References 116

6 Employee Involvement Teams and Quality Assurance 118

6.1 Historical Foundations 120

Classical and Industrial Engineering Approaches 121
Statistical Quality Control 122
Behavioral Management Innovations 122
QUALITY IN PRACTICE: Employee Involvement at Ford Motor
Company 123 ,
6.2 Quality (Control) Circles 125
History of Quality Control Circles in Japan 126
History of Quality Circles in the United States 127
6.3 Quality Circle Operations and Implementation 127
Establishing Quality Circle Programs 130
6.4 Evaluating Employee Involvement Programs 132
Measurement Perspectives 132
Measurement Practices in Japan and the United States 136
Implications for Management 137
Summary 139
Questions for Review and Discussion 140
References 141

THE TECHNICAL SYSTEM:

QUALITY OF DESIGN AND PERFORMANCE 143

7 Review of Fundamental Statistics 144

7.1 Descriptive and Predictive Statistics 145

7.2 Data Collection and Sampling 146
Populations and Samples 146
Practical Sampling Issues 148
7.3 Data Organization and Presentation 150
7.4 Descriptive Statistical Measures 151
Measures of Central Tendency 151
Measures of Dispersion 152
Calculations Using Grouped Data 153
Interpreting Descriptive Statistics 155
7.5 Probability Theory 156
Random Variables and Probability Distributions 157
Important Probability Distributions 161
 CONTENTS XIII

7.6 Sampling Theory and Distributions 169

Sampling Distributions 171
7.7 Hypothesis Testing 173
7.8 Correlation and Regression 177
Correlation Analysis 177
Regression Analysis 178
Summary 180
Questions for Review and Discussion 181
Problems 182
References 183
Appendix 7-A STATPAD and SAMSPAD-I: Lotus 1-2-3 Templates for Statistical Quality
Control 184

8 Quality and Product Design 188

8.1 An Overview of Quality Engineering 189

QUALITY IN PRACTICE-. Some Examples of Quality Engineering at
AT&T 192
8.2 Product Planning and Design 192
Design Considerations 193
Construction of a Prototype 194
Final Design 195
QUALITY IN PRACTICE: Product Testing at Texas Instruments 195
Quality and the Product Planning Process 196
QUALITY IN PRACTICE: The Taurus-Sable Experience 197
8.3 Standards and Technical Specifications 198
Product Specifications 199
Factors Affecting Tolerances 201
An Illustration of Tolerancing 202
Tolerances for Mating Parts 203
Designing Mating Parts 204
Unequal Individual Tolerances 206
Overall Tolerances on Assemblies 207
8.4 Designing for Quality 209
Designing Quality in Computer Software 211
QUALITY IN PRACTICE: Software Quality Assurance at Los Alamos
National Laboratory 212
8.5 Design Reviews 213
Design Review Techniques 214
Safety and Product Liability 215
Summary 218
Questions and Review and Discussion 218
Problems 219
References 221
XIV CONTENTS

9 Quality in Process Planning 222

9.1 Elements of Process Planning 223
Information and Control Systems 224
QUALITY IN PRACTICE: Quality and Productivity Planning at General
Electric 225
9.2 The Concept of Process Variation 226
Process Capability 227
9.3 Statistical Analysis of Process Variation 229
9.4 Process Capability Index 235
9.5 Process Capability Studies 238
Example of a Process Capability Study 238
9.6 Quality and Process Design for Services 241
Summary 244
Questions for Review and Discussion 245
Problems 245
References 248
Appendix 9-A DESTATI: A Lotus 1-2-3 Template for Descriptive Statistics 249

10 Quality and Reliability 254

10.1 Fundamental Concepts of Reliability 255
10.2 Reliability Engineering 256
Design Issues 256
Reliability and Quality 258
10.3 Reliability Testing 258
QUALITY IN PRACTICE: Testing Audio Components at Shure Bros.,
Inc. 258
10.4 Product Life Characteristics 259
QUALITY IN PRACTICE: Semiconductor Testing 261
10.5 Reliability Computations 262
10.6 System Reliability 266
Series Systems 266
Parallel Systems 267
Series-Parallel Systems 268
10.7 Maintainability and Availability 270
Summary 271
Questions for Review and Discussion 272
Problems 272
References 275
 CONTENTS XV

THE TECHNICAL SYSTEM:

PART 4 QUALITY OF CONFORMANCE 277

11 Inspection and Measurement 278

11.1 The Role of Inspection in Quality Assurance 280

Product Specifications 281
11.2 Planning Inspection Activites 282
What To Inspect 282
Type of Inspection 283
Locating Inspection Stations 284
Inspection Quantity 286
Inspection Methods 286
Human Factors Issues 287
11.3% Measurement 288
Physical Measurement and Gaging 289
11.4 Gages and Measuring Instruments 291
Variable Gages 291
Fixed Gages 291
Calibration 294
11.5 Automation and Inspection Technology 294
Automated Equipment 295
QUALITY IN PRACTICE: Vision Systems for Semiconductor
Inspection 298
Implementation Issues 298
QUALITY IN PRACTICE: Introducing Automated Inspection at
McDonnell-Douglas 299
Summary 300
Questions for Review and Discussion 300
References 301
Appendix 11-A Military Specification: Inspection System Requirements 302
Appendix 11-B Military Specification: Calibration System Requirements 308

- 12 Fundamentals of Statistical Process Control 312

12.1 The Concept of Statistical Control 313
Determining the State of Statistical Control 314
Control Charts 317
12.2 Variables Control Charts 318
Interpretation of Control Charts 321
12.3 Applications of Control Charts 323
Establishing Statistical Control 323
Determining Process Capability 324
xvi CONTENTS

QUALITY IN PRACTICE: An Application of Control Charts to Process

Capability 326
Process Monitoring and Control 328
QUALITY IN PRACTICE: Using SQC for Process Improvement at Dow
Chemical Company 329
Applications in Service Organizations 330
12.4 Control Charts for Attributes 331
Variable Sample Size 333
12.5 Designing Control Charts 334
Basis for Sampling 334
Sample Size 336
Sampling Frequency 336
Location of Control Limits 336
QUALITY IN PRACTICE: Process Control Management at Corning
Glass 338
Summary 339
Questions for Review and Discussion 340
Problems 341
References 346
Appendix 12-A PCHART: A Lotus 1 -2-3 Template for Percent Nonconforming Control
Charts 347

13 Additional Topics in Statistical Process Control 352

13.1 Statistical Foundations of Control Charts 353
Variables Control Charts 353
Fraction Nonconforming Control Charts 355
Basis for Control Chart Interpretation Rules 356
13.2 Special Control Charts for Variables 359
x- and s-Charts 359
Charts for Individuals 360
13.3 Special Control Charts for Attributes 364
np-Charts for Number Nonconforming 364
Charts for Defects 366
13.4 Other Special Control Charts 368
Control Charts for Medians 368
EWMA Charts 369
Cumulative Sum Control Charts 370
Summary 372
Questions for Review and Discussion 372
Problems 372
References 374
Appendix 13-A XSCHART: A Lotus 1-2-3 Template for x- and s-Charts 375
 CONTENTS XVii

14 Fundamentals of Acceptance Sampling 379

14.1 Acceptance Inspection Techniques 380
14.2 Acceptance Sampling Plans 383
Sample Selection 384
14.3 Factors in Selecting a Sampling Plan 385
Risk in Acceptance Sampling 386
Severity of Inspection 387
14.4 Operating Characteristic Curves 388
14.5 Indexing Sampling Plans 393
Indifference Quality Level 393
Limiting Quality (LQ)/Lot Tolerance Percent Defective (LTPD) 394
Acceptable Quality Level (AQL) 394
Average Outgoing Quality Limit (AOQL) 394
N Comparison of Sampling Plans 395
14.6 Applications of OC Curves 396
Computing Average Outgoing Quality 396
Computing Average Total Inspection 398
14.7 MIL-STD-105 Sampling Tables 399
Operational Procedures 399
Double and Multiple Sampling Plans 400
y
14.8 Economics of Sampling 400
Summary 403
Questions for Review and Discussion 405
Problems 405
References 407
Appendix 14-A SAMSPAD-I: Lotus 1-2-3 Templates for Sampling Plan Design 408

15 Additional Topics in Acceptance Sampling 416

15.1 Chain Sampling Plans 417

15.2 Continuous Sampling Plans 418
15.3 Skip-Lot Sampling Plans 422
QUALITY IN PRACTICE: Eliminating Acceptance Inspection at Hewlett-
z' Packard through Supplier Quality Improvement 423
15.4 Dodge-Romig Sampling Plans 424
15.5 Selection of Attributes Plans 425
15.6 Acceptance Sampling Plans for Variables Inspection 427
MIL-STD-414 Procedures and Examples 428
15.7 The Lot-Plot Method for Variables Sampling 429
Summary 430
Questions for Review and Discussion 430
Problems 431
References 432
xviii CONTENTS

PART 5 QUALITY IMPROVEMENT 433

16 Quality Analysis and Problem Solving 434

16.1 The Nature of Problem Solving 435

16.2 Problem-Solving Methodology for Quality Improvement 437
1
Mess Finding and Fact Finding 438
Problem Finding 439
Idea Finding 441
Solution Finding 445
QUALITY IN PRACTICE: Reducing Inspection Errors in Electronic
Assembly 446
Implementation 447
16.3 The Taguchi Approach 448
QUALITY IN PRACTICE: Quality Improvements through Taguchi
Methods 449
16.4 Organizational Issues in Problem Solving 450
Deming's 14 Points 451
QUALITY IN PRACTICE: Organizing a Manufacturing Improvement
Program 453
16.5 Education and Training for Quality 454
QUALITY IN PRACTICE: Quality and Reliability Training at AT&T 455
Summary 455
Questions for Review and Discussion 456
References 456

CASES 459

APPENDICES
A Areas for the Standard Normal Distribution 496
B Factors for Control Charts 497
C Random Digits 498
D Binomial Probabilities 499
E Poisson Probabilities 505
F Selected Tables from MlL-STD-105D 511
G Dodge-Romig Single Sampling Tables 551
H Selected Tables from MIL-STD-414 563

INDEX 579