This document contains a PowerPoint presentation created by Sourabh Jain to help with his studies. The presentation provides a summary of key concepts from two books on total quality management, covering topics such as leadership, customer satisfaction, employee involvement, continuous process improvement, and performance measurement. It also discusses important quality thinkers and the benefits of implementing a total quality management system.
1. By Sourabh Jain
MBA 2010 - 2012
National Institute of Technology Karnataka,
Surathkal, India
12/11/2012 Sourabh Jain 1
2. Preface
• This is a PowerPoint file I created in order to
help me in my studies.
• The material in these slides are a distilled
version of the literature from 2 books
1. Total Quality Management – 3rd Edition –
Besterfield, Michna, Besterfield, Sacre.
2. Total Quality Management – Bharat Wakhlu
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3. HOME
Introduction Leadership
Customer Employee
Satisfaction Involvement
Continuous Process Performance
Improvement Measures
QMS SPC
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5. Quality
• Degree to which a set of inherent
characteristics fulfils requirements.
• Q=Performance/Expectations
• TQM; T = Total i.e. company-wide, suppliers,
customers; M = Management i.e. art of
directing and controlling
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6. Quality q and Total Quality Q
• Product orientation
• Ensure produced goods are fit for sale
• No prevention, No learning
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7. Quality q and Total Quality Q
• Customer/Process/Product orientation
• Listen to customer, product design, process
optimized
• Right the first time, every time; Learning; importance
of internal customers
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8. Dimensions of Quality
Dimension Meaning
Performance Primary product characteristics
Features Added features
Conformance Meeting standards
Reliability Consistency of performance
Durability Useful life
Service Resolution of complaints
Response Human to human interface
Aesthetics Sensory characteristics
Reputation Past performance
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9. Total Quality
1. Performance Superiority
2. Delight customers
3. Provide value (value=quality/cost)
4. Doing the right things
5. Right the first time
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10. Definition of TQM
• TQM is the art of managing the whole to achieve
excellence.
• TQM is a philosophy and a set of guiding
principles that represent the foundation of a
continually improving firm.
• It is the application of quantitative methods and
HR to improve all processes within a firm and
exceed customer needs now and in the future.
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11. 6 basic concepts of TQM
1. Committed and involved management to provide long term- top
to bottom – organizational support
2. Unwavering focus on the customer – internal and external
3. Effective involvement and utilization of entire workforce
4. Continuous improvement of business and production process
5. Treat suppliers as partners
6. Establish performance measures for processes
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12. Culture changes for TQM
Quality element OLD CULTURE TQM CULTURE
Definition Product oriented Customer oriented
Priorities Second to service and cost Equal to service and cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life cycle costs, Partnership
Manager’s Role Plan, assign, control, Delegate, coach, facilitate,
enforce mentor
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13. Model for TQM
Product,
Systems
Outstanding Services People
and
Leadership and power
Procedures
Process
MEETING/
EXCEEDING
CUSTOMER
EXPECTATIONS
CONTINUOUS CUSTOMER
BENCHMARKING SYSTEMATIC FOCUS
IMPROVEMENT
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14. Paradigms of TQM
• Belief that people are a potential source of
‘beneficial forces’ will lead to total quality
• Functional and Hierarchical divisions of a firm
contribute to parochial thinking – not good
• Everyone has to participate in obtaining total
quality
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15. Gurus of TQM
• Shewhart
1. Economic Control of Quality of Mfg product
2. Control Chart Theory
3. Assignable and chance causes of variation
4. Rational Subgroups
5. PDSA cycle
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16. Gurus of TQM
• Deming
1. Out of the Crisis
2. Quality, Productivity and Competitive
Position
3. 14 points to improve q,p,c
4. Taught SPC and quality to Japanese
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17. Gurus of TQM
• Juran
1. Juran’s Quality control Handbook
2. Project Improvements based on ROI
3. Promoted commitment to quality at all levels
4. Juran Trilogy – Planning, Control,
Improvement
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18. Gurus of TQM
• Feigenbaum
1. Total Quality Control
2. Customer Satisfaction
3. Genuine Management Involvement
4. Employee Involvement
5. Company wide total quality control
6. First line supervision leadership
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19. Gurus of TQM
• Ishikawa
1. SPC texts in Japanese and English
2. Adapted TQC i.e. TQM in Japan
3. Fishbone diagram
4. Quality circles
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20. Gurus of TQM
• Crosby
1. Quality is Free
2. Quality without tears
3. Do it right the first time
4. Zero defects
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21. Gurus of TQM
• Taguchi
1. Loss Function
2. Quality Engineering
3. Robust design of parameters/tolerances
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22. Obstacles to TQM
1. Lack of management commitment
2. Inability to change organization culture
3. Improper planning
4. Lack of continuous training and education
5. Incompatible Org structure & isolated
departments and individuals
6. Ineffective measurement techniques
7. Paying inadequate attention to customers
8. Inadequate use of empowerment and teamwork
9. Failure to continually improve
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23. Benefits of TQM
• Improve quality
• Employee participation and satisfaction
• Teamwork and Working relationships
• Customer satisfaction
• Productivity
• Communication
• Profitability and Market Share
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26. Manager vs. Leader
Manager Leadership for quality (Outstanding leadership)
Plan EXPOSE limited utility of current approaches
Organize ENVISION the future
Staff ENLIST others in the quest
Lead EMPOWER them to act
Control ENCOURAGE right effort
Feedback EXEMPLIFY by personal action
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27. Leadership Style
Leads to time bomb
situations Best style
FEARFUL WHOLESOME
RIGID STYLE
STYLE STYLE
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28. Characteristics of Quality Leaders
1. Priority attention to internal/external customers
2. Empower, rather than control subordinates
3. Emphasize improvement, rather than maintenance
4. Emphasize prevention
5. Encourage collaboration rather than competition
6. Train and coach, rather than direct and supervise
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29. Characteristics of Quality Leaders
7. Learn from problems
8. Continually try to improve communications
9. Continually demonstrate their commitment to quality
10. Choose suppliers on basis of quality, not price
11. Establish organizational systems to support quality effort
12. Encourage and Recognize team effort
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30. 7 habits of highly effective people
1. Be proactive - don’t let fate control you, you control it
2. Begin with the end in mind – have a vision and plan
3. Put first things first – learn to prioritize
4. Think win-win – seek mutual benefits
5. Seek first to understand, then be understood
6. Synergy – teams are better than individuals
7. Sharpen the saw – renew one’s physical, spiritual, mental and
emotional dimension
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31. Deming Philosophy
• Create and publish aims/purpose of firm
• Learn the new philosophy
• Understand purpose of inspection
• Stop awarding business on price alone
• Improve constantly and forever the system
• Institute training
• Teach and institute leadership
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32. Deming Philosophy
• Drive out fear, create trust and a climate for innovation
• Optimize efforts of teams, groups and staff areas
• Eliminate exhortations for the work force
• Eliminate numerical quotas for workforce and MBO
• Remove barriers that rob people of pride of workmanship
• Encourage education and self-empowerment for everyone
• Take action to accomplish the transformation
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35. Notes
• Customer – Internal and External is the focus.
• Customer Satisfaction is subjective, hence
hard to measure
• Customer Satisfaction should not be viewed in
a vacuum
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36. Customer feedback
1. To discover customer dissatisfaction
2. Discover relative priorities of Quality
3. Compare performance with competition
4. Identify customer’s needs
5. Determine opportunities for improvement
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37. Modes of feedback
1. Comment card – Service industry
2. Customer Questionnaire – mail, telephone
3. Focus groups – like a GD
4. Toll free telephone numbers – complaints
5. Customer visits – B2B
6. Report card – send to customer every quarter
7. The internet – blogs
8. Employee feedback – why problem?
9. Mass customization – variety at affordable cost
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38. Customer Complaints
Complain to Action
Management Shout at Front
1% Line Employees
19%
Do nothing
80%
Every complaint should be accepted, analyzed and acted upon because those
who don’t complain might have switched loyalty.
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39. Handling complaints
• Accept feedback
• Empower front-line employees to resolve
• More inspection does not solve it; find the root cause
• Communicate complaint to everyone in firm
• Contact complainant and put mind at ease
• Be proactive about customer needs
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41. Motivation
• Maslow’s Hierarchy of needs
• Herzberg’s 2-factor theory
• What employees want
1. Interesting Work
2. Appreciation
3. Involvement
4. Job Security
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42. Achieving a motivated work force
1. Know thyself
2. Know your employees
3. Establish a +ve attitude
4. Share goals
5. Monitor progress
6. Develop interesting work
7. Communicate effectively
8. Celebrate success
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43. Employee Surveys
1. Quality Council creates Survey team
2. Develop instrument (questionnaire).Constructs to be used are
1. Personality Characteristics
2. Management Styles
3. Job attitudes
4. The work
3. Administer survey (confidential and by 3rd party)
4. Compile and analyze (report is circulated in firm)
5. Determine areas for improvement
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44. Suggestion Systems
• Management must make it easy for employees to
suggest improvements
1. Be progressive – regularly ask employees
2. Remove fear – focus on the process, not the person
3. Simplify the process
4. Respond quickly - accept/Reject/Refer giving time
or reason
5. Reward the idea
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45. Performance Appraisal
• Purpose
1. Tells employee how they are performing
2. Basis for promotions and increments
3. Counseling
4. Opportunities
• Employee involvement is critical and appraisals
must be continuous.
• Types – Ranking, Narrative, Forced, Graphic
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46. Problems with appraisal systems
1. Emphasis on short term performance
2. Individual appraisals destroy teamwork
3. A person is only about 15 % responsible for
his results
4. Based on subjectivity and immeasurables
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47. Improving the appraisal system
1. Use rating scales with fewer rating categories
2. Equal emphasis to individual and group appraisals
3. More frequent performance reviews with focus on
improvement
4. Promotion decision to be based on current performance
AND potential for new post
5. External customer satisfaction a part of the process
6. 360 degree appraisals
7. Evaluation for process improvements
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48. Benefits of employee involvement
• Employees
1. Make better decisions using expert knowledge of
process
2. More likely to implement and support decisions they
had a part in making/better able to accept changes
3. Better able to spot pinpoint areas for improvement
4. Better able to take immediate corrective action
5. EI increases morale, improves industrial relations
and increases commitment to unit goals
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50. Juran Trilogy – Plan, Control, Improve
• Planning
1. Determine external and internal customers
2. Identify their needs and translate into requirements
3. Develop product/service as per needs of not only
customer but other stakeholders too
4. Develop processes able to produce product/service
5. Transfer plans to operations ensuring process validity
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51. Juran Trilogy – Plan, Control, Improve
• Control
1. Determine items to be controlled and their units of
measure
2. Set goals for controls and determine what sensors are
needed
3. Measure actual performance
4. Compare it with goals
5. Act on the difference
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52. Juran Trilogy – Plan, Control, Improve
• Improvement
• Quality council identifies improvement areas and establishes project
teams to work on it
Quality Control (during operations)
50
Sporadic Waste
40
30
Original Zone of Quality Control
QUALITY 20
New Zone of Quality Control
PLANNING 10 Chronic Waste Quality
Improvement
FEEDBACK
0
0 1 2 3 4 5 6 7 8 9 10
Time
FEEDBACK
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Cost of poor Quality
53. PDSA Cycle
Plan
Act Do
Study
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54. Problem Solving method
1 Identify
Opportunity
7 Plan for 2 Analyze
Future Process
6 3 Develop
Standardize Optimal
solution Solution (s)
5 Study the 4
results Implement
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55. 1 Identify Opportunity
• Identify problem – Pareto
analysis, Survey, Brainstorm, proposals
• Form team – QC forms a multifunction team if
required
• Define scope – scope, goals, milestones
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56. 2 Analyze Process
• Develop Process Flow diagram
• Define target performance measures
• Relevant Data collection
• Fishbone diagram
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57. 3 Develop Optimal Solution (s)
• Brainstorm – create new process/combine
different process/modify existing process
• Evaluate Test solutions using control charts –
criteria: feasibility, scope, training and effects
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58. 4 Implement
• Prepare implementation plan
• Obtain approval
• Implement process improvements
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59. 5 Study the results
• Monitor and evaluate the change
• Check if fine tuning is needed
• If dissatisfied with results, repeat some phases
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60. 6 Standardize solution
• Positrol (Positive control) – ensures important
variables are kept under control
• Process Certification
• Operator Certification
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61. 7 Plan for Future
• Regular reviews of progress by QC
• Knowledge Management System – save
learnings
• Repeat Phase 1.
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62. Kaizen
• Process of continuous improvement in small
increments without complex technology or high
costs making processes better
• Uses concepts like: Value/Non value added
activities, Mudas, Motion studies, SOP, 5S, Visual
Management, JIT etc
• 5S – Sort, Simplify, Sweep, Standardize, Sustain
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63. Six Sigma
• Uses Cp analysis as a way to measure progress
• We should reduce the process variability σ to keep process
centered on the target μ.
• Process Capability Index = USL-LSL/6 σ
• Process Performance Index Cpk
= min(USL-X,X-LSL)/3 σ
• Default Cp >1, Cpk =1
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65. Strategy
• QC creates a total system of measures using
info from stakeholders and firms’ VMG and
values
• Ex: Quality
• % reduction in nonconformities
• % of certified suppliers
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66. Strategy
• Cost
• % increase in inventory turnover
• % increase in output dollars per employee
• Similarly for innovation (NPD time), reliability (% processes
having Cp=2), flexibility(setup time) etc.
• Tracked monthly to show trends, identify problems and
allocate resources
• Depts create mechanisms and authorities to capture this
data
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67. Performance Measure Presentation
1. Time series graph (Time in days, weeks etc)
2. Control charts (R,Xbar)
3. Capability Index
4. Taguchi Loss Function
5. Cost of poor quality
6. Malcolm Balridge National Quality Award
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68. Quality Costs
• Those costs associated with the non-
achievement of product or service quality as is
required
• Quality cost programs – quantifies this cost
• Use Pareto analysis to find major cost drivers
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69. Quality Costs
• Preventive cost: Cost used up in preventing
recurrence of some failure. Ex: Customer
surveys, Product testing, Quality audits
• Appraisal cost: Cost of assuring acceptability
of product. Ex: laboratory support, measuring
equipment, certifications
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70. Quality Costs
• Internal Failure Cost: cost to evaluate, dispose
off, & either correct or replace nonconforming
products prior to customer delivery. Ex:
rework and scrap, poor supply
materials, internal failure labor loss
• External Failure Cost: After delivery. Ex:
returned goods, updates, warranty
claims, penalties, lost sales, liabilities, goodwill
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71. Malcolm Balridge National Quality
Award
• Leadership 110
• Strategic Planning 80
• Customer and Market focus 80
• Information and Analysis 80
• HR Focus 100
• Process Management 100
• Business Results 450
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73. QMS
• Registration under ISO involves assessment and
periodic surveillance audit of the adequacy of a
supplier’s quality system by a 3rd party
• Benefits of ISO
1. Customers are demanding compliance
2. To improve processes/systems
3. Global deployment of products
4. Snowball effect
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74. ISO 9000
• Generic in nature
• It has 3 standards
• ISO 9000:2000 QMS fundamentals/vocabulary
• ISO 9000:2000 QMS requirements
• ISO 9000:2000 QMS guidelines for
performance improvement
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75. ISO 9001 requirements
1. Scope
2. Normative reference
3. Terms and Definitions
4. QMS – General Reqs and Documents
5. Management Responsibility
6. Resource Management
7. Product Realization
8. Measurement, Analysis and Improvement
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76. Process based QMS
5
Management
Responsibility
4 QMS
8
6 Resource Continual Measurement Customer
Management Improve Analysis and Satisfaction
Improvement
ment
7 Product
Input Realization
Require Output
ments Product
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77. Implementation
1. Top management commitment
2. Appoint management representative
3. Awareness
4. Appoint implementation team
5. Training
6. Time Schedule
7. Select element owners
8. Review present system
9. Write the documents
10. Install the new system
11. Internal audit
12. Management review
13. Preassessment
14. Registration
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78. Documentation
What will be done and why ?
Policy
Procedures Who, When, Where
How
Work Instructions
Proof
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80. Introduction
• SPC is a technical tool for improving product
and service quality.
• Pareto Diagram
• Process Flow Diagram
• Cause and Effect Diagram
• Check Sheets
• Histogram
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81. Pareto Diagram
• Vital few and the useful many
• Ranks data classifications in descending order
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82. Pareto Diagram
• Solving 50 % of vital few is better and easier
than 50 % of useful many
• Never ending process
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84. Cause and Effect Diagram
• Brainstorming essential. 4 or more likely
causes determined by voting
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85. Cause and Effect Diagram
• Wide scope for application
• Encourages participation and contribution by
everyone
• Diagrams posted in key locations to stimulate
continued reference
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86. Check Sheets
• For ease of data collection
• Customized for situation
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87. Histograms
• Graphically estimates Cp, relationships to
specifications and target, shape of population
and gaps in data
• Graphical and analytical
• Ungrouped and Grouped data (for large data)
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89. Normal curve
• Larger the Std Dev, flatter the curve (less data)
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90. Types and Causes of variation
• Types
1. Within piece
2. Piece to piece
3. Time to time
• Causes
1. Equipment
2. Material
3. Environment
4. Operator
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92. Process Capability
• σ = Rbar/d2
• Cp = (USL-LSL)/6 σ
• USL-LSL=tolerance
• X
• X
• Cpk = min{(USL-Xbar) or (Xbar-LSL)}/3 σ
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93. Cp and Cpk
1. Cp value does not change as process center
changes
2. Cp=Cpk process is centered
3. Cpk<=Cp
4. Cpk>1 process conforms to specifications
5. Cpk<1 process not conforms to specifications
6. Cp<1 process not capable
7. Cpk=0 average =USL or LSL
8. Cpk <0 average outside specifications
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