Quality Management - Toyota

Presented to:
Mr. Antonio A. Emberda
In Partial Fulfilment of the Requirements in
MGT 428 - PRODUCTION AND OPERATIONS MANAGEMENT
MWF 6:55PM – 7:55PM

Presented by

GROUP 6:
Discar, Solitario
Lozada, Katrina
Herrera, Michael
Sucayan, Angelica
Compasion, Arielle
Abadies, Nerziel Joy
Gonzales, Ylla Marielle

Bachelor of Science in Accountancy

September 2017
 1.9 2 1.9 1.8 2.2 1.7 2 1.9 1.7 1.8

1.8 2.2 2.1 2.2 1.9 1.8 2.1 1.6 1.8 1.6

2.1 2.4 2.2 2.1 2.1 2 1.8 1.7 1.9 1.9

2.1 2 2.4 1.7 2.2 2 1.6 2 2.1 2.2

Total 78.5 SUM(B2:K5)

Mean 1.9625 B7/40

STDEV 0.209624206 STDEV.S(B2:K5)

Z-score NORMSDIST(Z-score) 1-NORMSDIST(Z-score)

2.087068133 0.981559012 0.018440988
-2.683373314 0.003644179 0.996355821
2.385220723 0.991465562 0.008534438

1. If the specification is such that no washer should be greater than 2.4

millimeters, assuming that the thicknesses are distributed normally, what
fraction of the output is expected to be greater than this thickness?

There are 40 sets of sample data, and from these data given we can derive
the average thickness in the sample which is 1.9625 and the standard deviation
which is 0.209624206. The probability that the thickness is greater than 2.4 is:
2.4 − 1.9625
𝑍= = 𝟐. 𝟎𝟖𝟕𝟎𝟔𝟖
0.209624206

Thus, the fraction defective that are expected to have a thickness greater
than 2.4 is .018441 or 1.8441% of the washers.

1 − NORMSDIST(2.087068) = 𝟎.018441

2. If there are an upper and lower specification, where the upper thickness limit
is 2.4 and the lower thickness limit 1.4, what fraction of the output is
expected to be out of tolerance?
LSL: 1.4
USL: 2.4
 (1.4 − 1.9625)
𝑍= = −𝟐. 𝟔𝟖𝟑𝟑𝟕𝟑
0.209624206

NORMSDIST(−2.683373) = 0.003644/ 0.3644%

Hence, the total expected fraction defective would be 0.018441+ 0.003644
= 0.022085 or about 2.2085% of the washers that are expected to be out of
tolerance.

3. What is the Cpk for the process?

(1.9625 − 1.4) (2.4 − 1.9625)

𝐶𝑝𝑘 = min [ , ]
3(0.209624206) 3(0.209624206)
= 𝑚𝑖𝑛[0.894458, 0.695689]
= 𝟎. 𝟔𝟗𝟓𝟔𝟖𝟗
The Cpk for the process is 0.695689 which is the smaller number.

4. What would be the Cpk for the process if it were centered between the
specification limits (assume the process standard deviation is the same)?
Since the center of the specification limits is 1.9, Cpk for the process is
equal at the value of 0.795074.

(1.9 − 1.4) (2.4 − 1.9)

𝐶𝑝𝑘 = min [ , ]
3(0.209624206) 3(0.209624206)
= 𝑚𝑖𝑛[0.795074, 0.795074]
= 𝟎. 𝟕𝟗𝟓𝟎𝟕𝟒

5. What percentage of output would be expected to be out of tolerance if the

process were centered?
2.4 − 1.9
𝑍= = 𝟐. 𝟑𝟖𝟓𝟐𝟐𝟏
0.209624206
2 × (1 − NORMSDIST)(2.385221) = 0.017068876/1.7%

Thus, the fraction defective would be about 1.7% if the process were
centered.
 6. Set up X- and range control charts for the current process. Assume the
operators will take samples of 10 washers at a time.

OBSERVATION
SAMPLE 1 2 3 4 5 6 7 8 9 10 X-bar R
1 1.9 2 1.9 1.8 2.2 1.7 2 1.9 1.7 1.8 1.89 0.5
2 1.8 2.2 2.1 2.2 1.9 1.8 2.1 1.6 1.8 1.6 1.91 0.6
3 2.1 2.4 2.2 2.1 2.1 2 1.8 1.7 1.9 1.9 2.02 0.7
4 2.1 2 2.4 1.7 2.2 2 1.6 2 2.1 2.2 2.03 0.8
Mean 1.9625 0.65

highest
measurement
lowest
measurement

Upper Control Limit

for X-bar 2.164
Lower Control Limit
for X-bar 1.761
Upper Control Limit
for R 1.157
Lower Control Limit
for R 0.143

7. Plot the data on your control charts. Does the current process appear to be
in control?

X-BAR CHART RANGE CHART

X-cell UCL mean LCL R UCL MEAN LCL

2.5 1.4

1.2
2
1

1.5
0.8

0.6
1

0.4
0.5
0.2

0 0
1 2 3 4 1 2 3 4
 Out of the 4 samples, there were no out of the control limits since it is
between the UCL and LCL lines. We would say that the current process appears to
be in control. This also implies that the process is working well without much noise
because it only has minimal amount of variation.
8. If the process could be improved so that the standard deviation were only
about .10 millimeter, what would be the best that could be expected with the
processes relative to fraction defective?

NORMDIST(Z- 1-NORMDIST(Z-
Z-score Fraction Defective
score) score)
If upper
spec 4.375 0.999993928 6.07162E-06 0.000607162%
If upper
and lower
spec -5.625 9.2754E-09 0.999999991 0.000608090%
If
centered 5 0.999999713 2.86652E-07 0.000057330%

Based on the table above, if standard deviation were only about .10
millimeters, the best that could be done is for the process to be centered at 1.9
which fraction defective would only be about 0.000057330% of the washers
compared to 0.000607162% and 0.000608090% which is if there is an upper
specification, and if both upper and lower specification are considered,
respectively.