23. Shewhart’s PDCA Model 4.Act 1.Plan 3.Check 2.Do Identify the improvement and make a plan Test the plan Is the plan working Implement the plan

29. Traditional View of Quality-Cost Trade offs Low correction cost High detection cost High prevention cost High correction cost Low detection cost Low prevention cost Optimum Quality % of defects Cost

32. Quality Loss Function; Distribution of Products Produced Low loss High loss Frequency Lower Target Upper Specification Loss (to producing organization, customer, and society) Quality Loss Function (a) Unacceptable Poor Fair Good Best Target-oriented quality yields more product in the “best” category Target-oriented quality brings products toward the target value Conformance-oriented quality keeps product within three standard deviations Distribution of specifications for product produced (b)

40. Flow Charts (Chicken Processing Plant) Packing station Weighting & labeling Quick freeze (60 min) Storage (4 to 6 hrs) Shipping dock

42. Check Sheet Types of Error ------------------------------------------------------------------- Month Broken Wrong Mixed Contamination package label items --------------------------------------------------------------------------------------------- Jan 7 5 3 0 Feb 5 7 4 0 Mar 9 3 2 0 Apr 4 5 3 3 May 5 7 2 7 Jun 2 5 4 6 ---------------------------------------------------------------------------------------------- Total Percentage

44. Pareto Analysis of Production Process (Total Defects = 44)

46. Cause and Effect Diagram Example Too many defects Problem

47. Cause and Effect Diagram Example Method Manpower Material Machinery Too many defects Main Cause Main Cause

48. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Sub-Cause

49. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Tired Old Slow

51. Process Control Chart

52. Patterns to Look for in Control Charts

56. Inspection Points in Services Bank Teller stations Loan accounts Checking accounts Shortages, courtesy, speed, accuracy Collateral, proper credit checks, rates, terms of loans, default rates, loan rates Accuracy, speed of entry, rate of overdraws Organization Some Points of Inspection Issues to Consider

57. Inspection Points in Services Retail store Stockrooms Display areas Sales counters Clean, uncluttered, organized, level of stockouts, amply supply, rotation of goods Attractive, well-organized, stocked, visible goods, good lighting Neat, courteous knowledgeable personnel; waiting time; accuracy in credit checking and sales entry Organization Some Points of Inspection Issues to Consider

58. Inspection Points in Services Restaurant Kitchen Cashier station Dining areas Clean, proper storage, unadulterated food, health regulations observed, well-organized Speed, accuracy, appearance Clean, comfortable, regular monitoring by personnel, Organization Some Points of Inspection Issues to Consider

63. Analyze Survey Data

64. Ranking Speed of Service 1.96 Poor Seating 2.14 Printed Program 2.34 Concession Prices 2.36 Traffic 2.41 Season Ticket Plans 2.78 Entertainment 3.23 Parking 3.28 Ticket Pricing 3.36 Items in Weighted Descending Order Food Selection 3.44 Good

66. Categorize Open-Ended Comments

67. Ranking (ABC Analysis) Speed of Service 1.96 Poor Seating 2.14 Printed Program 2.34 Concession Prices 2.36 Traffic 2.41 Season Ticket Plans 2.78 Entertainment 3.23 Parking 3.28 Ticket Pricing 3.36 Items in Descending Order Food Selection 3.44 Good

68. Pareto Chart 100% 70% 40% 10%

69. Cause and Effect Diagram Internal Facility Manpower External Facility Food Stands Too many complains Main Cause Main Cause