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E-raamat: Forensic Systems Engineering: Evaluating Operations by Discovery

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"Describes the purpose of forensic systems engineering: to identify dysfunctional processes and to determine root causes of process failure, and further, to assist the court in determining whether harm or a breach of contract has occurred"--

"Forensic Systems Analysis addresses relatively new developments in two professions: the law and engineering. The author covers the theory of process liability, management of operations, process liability and operations, analysis of dysfunctional processes, process risk analysis, and process/product verification and validation. He also discusses process stability, capability, and reliability. The narrative is addressed to both plaintiff and defendant and offers analyses that present novel uses of traditional engineering methods concerning risk and product quality and reliability. The presented methodologies and arguments are equally valid when applied to service industries. Managers, engineers, technicians, auditors, and diverse analysts benefit from thebook's rigorous approach to system tactics and constraints related to product and service operations"--

A systems-level approach to reducing liability through process improvement

Forensic Systems Analysis: Evaluating Operations by Discovery presents a systematic framework for uncovering and resolving problematic process failures. Carefully building the causal relationship from process to product, the discussion lays out in significant detail the appropriate and tactical approaches necessary to the pursuit of litigation with respect to corporate operations.

Systemic process failures are addressed by flipping process improvement models to study both improvement and failure, resulting in arguments and methodologies relevant to any product or service industry. Guidance on risk analysis of operations combines evaluation of process control, stability, capability, verification, validation, specification, product reliability, serial dependence, and more, providing a robust framework with which to target large-scale nonconforming products and services. 

Relevant to anyone involved in business, manufacturing, service, and control, this book:

  • Covers process liability and operations management from both engineering and legal perspectives
  • Offers analyses that present novel uses of traditional engineering methods concerning risk and product quality and reliability
  • Takes a rigorous approach to system tactics and constraints related to product and service operations and identifies dysfunctional processes
  • Offers both prescriptive and descriptive solutions to both the plaintiff and the defendant

The global economy has created an environment in which huge production volume, complex data bases, and multiple dispersed suppliers greatly challenge industrial operations. This informative guide provides a practical blueprint for uncovering problematic process failures.

Preface xix
1 What Is Forensic Systems Engineering? 1(6)
1.1 Systems and Systems Engineering
1(1)
1.2 Forensic Systems Engineering
2(2)
References
4(3)
2 Contracts, Specifications, and Standards 7(10)
2.1 General
7(2)
2.2 The Contract
9(3)
2.2.1 Considerations
9(1)
2.2.2 Contract Review
10(2)
2.3 Specifications
12(2)
2.4 Standards
14(2)
Credits
16(1)
References
16(1)
3 Management Systems 17(8)
3.1 Management Standards
18(1)
3.1.1 Operations and Good Business Practices
18(1)
3.1.2 Attributes of Management Standards
18(1)
3.2 Effective Management Systems
19(4)
3.2.1 Malcolm Baldrige
19(1)
3.2.2 Total Quality Management
20(1)
3.2.3 Six Sigma
20(1)
3.2.4 Lean
21(1)
3.2.5 Production Part Approval Process
22(1)
3.3 Performance and Performance
23(1)
3.4 Addendum
23(1)
Credits
24(1)
References
24(1)
4 Performance Management: ISO 9001 25(12)
4.1 Background of ISO 9000
26(6)
4.1.1 ISO 9001 in the United States
27(1)
4.1.2 Structure of ISO 9000:2005
27(1)
4.1.3 The Process Approach
28(4)
4.2 Form and Substance
32(3)
4.2.1 Reference Performance Standards
33(1)
4.2.2 Forensics and the Paper Trail
34(1)
Credits
35(1)
References
35(2)
5 The Materiality of Operations 37(10)
5.1 Rationale for Financial Metrics
38(3)
5.1.1 Sarbanes-Oxley
38(1)
5.1.1.1 Title III: Corporate Responsibility
38(1)
5.1.1.2 Title IV: Enhanced Financial Disclosures
39(1)
5.1.2 Internal Control
39(2)
5.1.3 The Materiality of Quality
41(1)
5.2 Mapping Operations to Finance
41(3)
5.2.1 The Liability of Quality
43(1)
5.2.2 The Forensic View
44(1)
Credits
44(1)
References
44(3)
6 Process Liability 47(8)
6.1 Theory of Process Liability
48(4)
6.1.1 Operations and Process Liability
50(1)
6.1.2 Process Liability and Misfeasance
51(1)
6.2 Process Liability and the Law
52(1)
Credits
52(1)
References
52(3)
7 Forensic Analysis of Process Liability 55(16)
7.1 Improper Manufacturing Operations
57(5)
7.1.1 Verification and Validation
57(2)
7.1.1.1 Nonstandard Design Procedures
57(1)
7.1.1.2 Unverified or Unvalidated Design
58(1)
7.1.1.3 Tests Waived by Management
58(1)
7.1.1.4 Altered Test Procedures and Results
58(1)
7.1.2 Resource Management
59(2)
7.1.2.1 Unmonitored Outsourcing
59(1)
7.1.2.2 Substandard Purchased Parts
60(1)
7.1.2.3 Ghost Inventory
60(1)
7.1.2.4 Ineffective Flow Down
61(1)
7.1.3 Process Management
61(1)
7.1.3.1 Forced Production
61(1)
7.1.3.2 Abuse and Threats by Management
62(1)
7.2 Management Responsibility
62(5)
7.2.1 Effective Internal Controls
62(1)
7.2.2 Business Standards of Care
63(1)
7.2.3 Liability Risk Management
64(1)
7.2.4 Employee Empowerment
65(1)
7.2.5 Effective Management Review
65(1)
7.2.6 Closed-Loop Processes
66(1)
References
67(4)
8 Legal Trends to Process Liability 71(6)
8.1 An Idea Whose Time Has Come
71(1)
8.2 Some Court Actions Thus Far
72(3)
8.2.1 QMS Certified Organizations
73(1)
8.2.2 QMS Noncertified Organizations
74(1)
References
75(2)
9 Process Stability and Capability 77(14)
9.1 Process Stability
77(6)
9.1.1 Stability and Stationarity
78(1)
9.1.2 Stability Conditions
79(1)
9.1.3 Stable Processes
80(2)
9.1.4 Measuring Process Stability
82(1)
9.2 Process Capability
83(2)
9.2.1 Measuring Capability
83(2)
9.2.2 A Limit of Process Capability
85(1)
9.3 The Rare Event
85(2)
9.3.1 Instability and the Rare Event
85(1)
9.3.2 Identifying the Rare Event
86(1)
9.4 Attribute Testing
87(1)
References
88(3)
10 Forensic Issues in Product Reliability 91(16)
10.1 Background in Product Reliability
91(3)
10.2 Legal Issues in the Design of Reliability
94(3)
10.2.1 Good Design Practices
95(1)
10.2.2 Design Is Intrinsic to Manufacturing and Service
95(1)
10.2.3 Intended Use
95(1)
10.2.4 Paper Trail of Evidence
96(1)
10.2.5 Reliability Is an Implied Design Requirement
97(1)
10.3 Legal Issues in Measuring Reliability
97(3)
10.3.1 Failure Modes
97(1)
10.3.2 Estimation of MTTF
98(1)
10.3.3 The More Failure Data the Better
99(1)
10.3.4 The Paper Trail of Reliability Measurement
99(1)
10.4 Legal Issues in Testing for Reliability
100(2)
10.4.1 Defined and Documented Life Test Procedures
100(1)
10.4.2 Life Test Records and Reports
101(1)
10.4.3 Test Procedures
101(1)
10.5 When Product Reliability Is not in the Contract
102(2)
10.5.1 Product Liability
102(1)
10.5.2 ISO 9001 and FAR
103(1)
10.6 Warranty and Reliability
104(1)
References
105(2)
11 Forensic View of Internal Control 107(18)
11.1 Internal Controls
108(2)
11.1.1 Purpose of Control
108(1)
11.1.2 Control Defined
109(1)
11.1.3 Control Elements in Operations
109(1)
11.2 Control Stability
110(5)
11.2.1 Model of a Continuous System
111(1)
11.2.2 Transfer Functions
112(3)
11.3 Implementing Controls
115(2)
11.4 Control of Operations
117(6)
11.4.1 Proportional (Gain) Control
118(1)
11.4.2 Controlling the Effect of Change
119(2)
11.4.2.1 Integral Control
120(1)
11.4.2.2 Derivative (Rate) Control
121(1)
11.4.3 Responsibility, Authority, and Accountability
121(2)
References
123(2)
12 Case Study: Madelena Airframes Corporation 125(14)
12.1 Background of the Case
126(1)
12.2 Problem Description
127(1)
12.2.1 MAC Policies and Procedures (Missile Production)
127(1)
12.2.2 Missile Test
127(1)
12.3 Examining the Evidence
128(4)
12.3.1 Evidence: The Players
129(1)
12.3.2 Evidence: E-mails
129(3)
12.4 Depositions
132(1)
12.4.1 Deposition of the General Manager
132(1)
12.4.2 Deposition of the Senior Test Engineer
132(1)
12.4.3 Deposition of the Production Manager
132(1)
12.4.4 Deposition of the Chief Design Engineer
133(1)
12.4.5 Deposition of the Test Programs Manager
133(1)
12.5 Problem Analysis
133(3)
12.5.1 Review of the Evidence
133(1)
12.5.2 Nonconformities
134(3)
12.5.2.1 Clause 7.3.1(b) Design and Development Planning
134(1)
12.5.2.2 Clause 7.3.5 Design and Development Verification
135(1)
12.5.2.3 Clause 7.3.6 Design and Development Validation
135(1)
12.5.2.4 Clause 8.1 General Test Requirements
135(1)
12.5.2.5 Clause 8.2.4 Monitoring and Measurement of Product
135(1)
12.5.2.6 Clause 4.1 General QMS Requirements
135(1)
12.5.2.7 Clause 5.6.1 General Management Review Requirements
135(1)
12.6 Arriving at the Truth
136(1)
12.7 Damages
137(1)
12.7.1 Synthesis of Damages
137(1)
12.7.2 Costs of Correction
137(1)
References
138(1)
13 Examining Serially Dependent Processes 139(10)
13.1 Serial Dependence: Causal Correlation
140(2)
13.2 Properties of Serial Dependence
142(5)
13.2.1 Work Station Definition
142(1)
13.2.2 Assumptions
142(2)
13.2.2.1 Assumption 1
143(1)
13.2.2.2 Assumption 2
143(1)
13.2.2.3 Assumption 3
143(1)
13.2.3 Development of the Conditional Distribution
144(1)
13.2.4 Process Stability
145(2)
13.3 Serial Dependence: Noncausal Correlation
147(1)
13.4 Forensic Systems Analysis
147(1)
Credits
148(1)
References
148(1)
14 Measuring Operations 149(12)
14.1 ISO 9000 as Internal Controls
151(1)
14.2 QMS Characteristics
152(2)
14.3 The QMS Forensic Model
154(3)
14.3.1 Estimating Control Risk
155(1)
14.3.2 Cost of Liability
156(1)
14.4 The Forensic Lab and Operations
157(1)
14.5 Conclusions
158(1)
Credits
159(1)
References
159(2)
15 Stability Analysis of Dysfunctional Processes 161(18)
15.1 Special Terms
162(3)
15.1.1 Dysfunction
162(1)
15.1.2 Common and Special Causes
163(1)
15.1.3 Disturbances and Interventions
163(1)
15.1.4 Cause and Effect
163(2)
15.2 Literature Review
165(3)
15.3 Question Before the Law
168(1)
15.4 Process Stability
169(4)
15.4.1 Internal Control
170(1)
15.4.2 Mathematical Model for Correlation
170(3)
15.5 Conclusions
173(1)
Credits
174(1)
References
174(5)
16 Verification and Validation 179(18)
16.1 Cause and Effect
180(5)
16.1.1 An Historical View
180(2)
16.1.2 Productivity versus Quality
182(3)
16.2 What Is in a Name?
185(5)
16.2.1 Verification and Validation Defined
186(1)
16.2.2 Inspection and Test
187(1)
16.2.3 Monitor and Measure
188(1)
16.2.4 Subtle Transitions
189(1)
16.3 The Forensic View of Measurement
190(4)
16.3.1 Machine Tools and Tooling
190(1)
16.3.2 Measurement
191(1)
16.3.3 Control Charting
192(1)
16.3.4 First Pass Yield
192(1)
16.3.5 First Article Inspection
193(1)
16.3.6 Tool Try
194(1)
References
194(3)
17 Forensic Sampling of Internal Controls 197(14)
17.1 Populations
198(3)
17.1.1 Sample Population
199(1)
17.1.2 Homogeneity
199(1)
17.1.3 Population Size
200(1)
17.1.4 One Hundred Percent Inspection
201(1)
17.2 Sampling Plan
201(3)
17.2.1 Objectives
201(1)
17.2.2 Statistical and Nonstatistical Sampling
202(1)
17.2.3 Fixed Size and Stop-or-Go
203(1)
17.2.4 Sample Selection and Size
204(1)
17.3 Attribute Sampling
204(5)
17.3.1 Internal Control Sampling
204(2)
17.3.2 Deviation Rates
206(1)
17.3.2.1 Acceptable Deviation Rate
206(1)
17.3.2.2 System Deviation Rate
207(1)
17.3.3 Sampling Risks
207(1)
17.3.3.1 Control Risk
207(1)
17.3.3.2 Alpha and Beta Risks
208(1)
17.3.4 Confidence Level
208(1)
17.3.5 Evaluation
209(1)
17.4 Forensic System Caveats
209(1)
References
210(1)
18 Forensic Analysis of Supplier Control 211(18)
18.1 Outsourcing
213(2)
18.2 Supply Chain Management
215(1)
18.3 Forensic Analysis of Supply Systems
216(7)
18.3.1 Basic Principles of Supplier Control
216(1)
18.3.2 The Forensic Challenge
216(7)
18.3.2.1 Ensure that Purchased Units Conform to Contracted Specifications
217(1)
18.3.2.2 Assessment of the Supplier Process
218(1)
18.3.2.3 Tracking
218(1)
18.3.2.4 Customer Relations
219(2)
18.3.2.5 Verification and Storage of Supplies
221(1)
18.3.2.6 Identification and Traceability
222(1)
18.4 Supplier Verification: A Case Study
223(3)
18.4.1 Manufacture
224(1)
18.4.2 V50 Testing
224(2)
18.4.3 V50 Test Results
226(1)
18.5 Malfeasant Supply Systems
226(1)
References
227(2)
19 Discovering System Nonconformity 229(18)
19.1 Identifying Nonconformities
231(3)
19.1.1 Reporting Nonconformities
232(1)
19.1.2 Disputes
233(1)
19.2 The Elements of Assessment
234(2)
19.2.1 Measures of Performance
234(1)
19.2.2 Considerations in Forensic Analysis of Systems
235(1)
19.3 Forming Decisions
236(2)
19.4 Describing Nonconformities
238(2)
19.5 A Forensic View of Documented Information
240(6)
19.5.1 Requirements in Documented Information
241(1)
19.5.2 The Quality Manual
241(2)
19.5.3 Documented Information Control
243(1)
19.5.4 Records
244(2)
Acknowledgment
246(1)
References
246(1)
Appendix A The Engineering Design Process: A Descriptive View 247(8)
A.1 Design and Development
248(4)
A.1.1 The Design Process
248(1)
A.1.2 Customer Requirements
249(1)
A.1.3 Interactive Design
249(1)
A.1.4 Intermediate Testing
249(2)
A.1.5 Final Iteration
251(1)
A.2 Forensic Analysis of the Design Process
252(1)
References
253(2)
Appendix B Introduction to Product Reliability 255(18)
B.1 Reliability Characteristics
256(3)
B.1.1 Reliability Metrics
256(1)
B.1.2 Visual Life Cycle
257(2)
B.2 Weibull Analysis
259(4)
B.2.1 Distributions
259(1)
B.2.2 Shape and Scale
260(2)
B.2.2.1 Shape
260(2)
B.2.2.2 Scale
262(1)
B.2.3 The B-Percentile
262(1)
B.3 Design for Reliability
263(2)
B.4 Measuring Reliability
265(4)
B.4.1 On Reliability Metrics
265(1)
B.4.2 Graphing Failure Data
266(3)
B.5 Testing for Reliability
269(2)
References
271(2)
Appendix C Brief Review of Probability and Statistics 273(14)
C.1 Measures of Location
274(2)
C.1.1 Average: The Mean Value
274(1)
C.1.2 Average: The Median
275(1)
C.1.3 Average: The Mode
275(1)
C.2 Measures of Dispersion
276(1)
C.2.1 Variance
276(1)
C.2.2 Range
276(1)
C.3 Distributions
277(4)
C.3.1 Continuous Distributions
277(2)
C.3.2 Discrete Distributions
279(2)
C.4 Tests of Hypotheses
281(3)
C.4.1 Estimating Parametric Change
281(3)
C.4.2 Confidence Level
284(1)
C.5 Ordered Statistics
284(1)
References
285(2)
Appendix D Sampling of Internal Control Systems 287(18)
D.1 Populations
288(3)
D.1.1 Sample Populations
289(1)
D.1.2 Population Size
290(1)
D.1.3 Homogeneity
290(1)
D.2 Attribute Sampling
291(3)
D.2.1 Acceptable Deviation Rate
292(1)
D.2.2 System Deviation Rate
293(1)
D.2.3 Controls
293(1)
D.3 Sampling Risks
294(3)
D.3.1 Control Risk
294(1)
D.3.2 Consumer and Producer Risks
294(1)
D.3.3 Alpha and Beta Errors
295(2)
D.4 Sampling Analysis
297(5)
D.4.1 Statistical Inference
297(1)
D.4.2 Sample Distributions
298(1)
D.4.3 Sample Size
299(1)
D.4.4 Estimating the SDR
299(1)
D.4.5 Confidence Interval
300(2)
References
302(3)
Appendix E Statistical Sampling Plans 305(16)
E.1 Fixed-Size Attribute Sampling Plan
306(7)
E.1.1 Determine the Objectives
306(1)
E.1.2 Define Attribute and Deviation Conditions
306(1)
E.1.2.1 Acceptable Deviation Rate
306(1)
E.1.2.2 System Deviation Rate
307(1)
E.1.3 Define the Population
307(1)
E.1.4 Determine the Method of Sample Selection
307(1)
E.1.5 Determine the Sample Size
308(4)
E.1.6 Perform the Sampling Plan
312(1)
E.1.7 Evaluate Sample Results
312(1)
E.2 Stop-or-Go Sampling
313(3)
E.2.1 Acceptable Deviation Rate
313(1)
E.2.2 Sample Size
314(2)
E.2.3 Evaluation
316(1)
E.3 One Hundred Percent Inspection
316(1)
E.4 Application: An Attribute Sampling Plan
317(1)
References
318(3)
Appendix F Nonstatistical Sampling Plans 321(8)
F.1 Sampling Format
322(5)
F.1.1 Frame of the Sampling Plan
322(1)
F.1.2 Attribute and Deviation Conditions
323(1)
F.1.3 The Population
323(1)
F.1.4 Nonstatistical Sample Selection
324(1)
F.1.5 Sample Size
325(1)
F.1.6 The Effect of Sample Size on Beta Error
326(1)
F.1.7 Evaluating Sample Results
327(1)
F.2 Nonstatistical Estimations
327(1)
References
328(1)
Index 329
William A. Stimson, PhD, is an independent consultant in systems engineering, and an expert witness for the Department of Justice and private law firms in evaluation of contractor performance. He has taken an active role in developing legal strategy for the evaluation of performance of operations in litigation, presented on the topic of forensic evaluation, and published peer-reviewed papers on dysfunctional processes.
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