UNIT- 4

WHAT IS QUALITY?????Quality is the ability of a product or serviceto consistently meet or exceed customer

Expectations.

“The degree of excellence of a thing”(Webster’s Dictionary)

DIMENSIONS OF QUALITY1. Performance - characteristics of the product or service2. Aesthetics- appearance, feel, smell, taste3. Special features - extra characteristics4. Conformance - customer’s expectations5. Safety - risk of injury or harm6. Reliability - consistency of performance7. Durability - useful life of the product or service8. Perception - reputation9. Service after the sale - handling of complaints,

customer satisfaction

THE DETERMINANTS OF QUALITY Quality of Design - intention of

designers to include or exclude features in a product or service designed to meet a customer/client need/want/requirement.- it represents the inherent value of the product or service in the marketplace

Poor design can result in manufacturing or service problems

• Customer disapproval

CONT…. Quality conformance - the degree to

which the goods or services conform to the intent of the designers

• Requires customer education/awareness as to the intended use of the product/service (e.g. Electrical requirements, medication instructions, attorney advice)

Ease of use Service after delivery

FITNESS FOR CONSUMER USE

BENEFITS OF QUALITY Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Better quality of life for all.

COSTS OF QUALITY When considering the “costs of quality” we must consider:

Failure costs - costs caused by defective parts, products, or faulty services

. Internal - failures discovered during production (e.g. rework, problems, material/product losses, downtime)

. External - failures discovered after delivery (e.g. warranty, returned goods, liability claims, penalties)

Appraisal costs - costs of activities designed to ensure quality or uncover defects (e.g. in-line inspection, final inspection, field testing, crash test dummies, crumpled cars)

Prevention costs - costs of preventing defects from occurring (e.g. training, working with vendors, quality control procedures, quality improvement programs, extra attention in design and production)

DEMING’S 14 POINTS Create constancy of purpose Adopt philosophy of prevention Cease dependence on inspection Do not award business based on price tag alone Constantly improve system and workers Institute worker training Adopt and institute leadership

CONT….. Eliminate fear among employees Eliminate barriers between departments Eliminate slogans, exhortations, and targets Remove numerical quotas Enhance worker pride Institute vigorous training & education programs Take action to accomplish the

transformation

THE PDCA CYCLE

DoCheck

Act Plan

PDCA CYCLE- SEVEN STEPS OR PHASES Identify the opportunity Analyze the current process Develop the optimal solution (s) Implement changes Study the results Standardize the solution Plan for the future.

CONTINUOUS PROCESS IMPROVEMENT CYCLE

Phase I Identify the Opportunity

Phase 2 Analyze the process

Phase 3 Develop the optimal solution(s)

Phase 4 ImplementationPhae 5 Study the results

Phase 7 Plan for the future

Phase 6 Standardise the solution

Act Plan

Check Do

QUALITY CIRCLE Voluntary groups of employees who work on similar

tasks or share an area of responsibility

They agree to meet on a regular basis to discuss & solve

problems related to work.

They operate on the principle that employee

participation in decision-making and problem-solving

improves the quality of work

OBJECTIVES OF QC Change in Attitude Self development Development of self spirit Improved organizational culture

STRUCTURE OF QUALITY CIRCLEA steering committee

Co-ordinator

Facilitator

Circle leader

Circle members

THE OPERATION OF QUALITY CIRCLE1. Problem identification2. Problem selection3. Problem Analysis 4. Generate alternative solutions5. Select the most appropriate solution6. Prepare plan of action 7. present solution to management for

approval.8. Implementation of solution

BASIC PROBLEM SOLVING TECHNIQUES/ 7QC TOOLS

The following techniques are most commonly used to analyse and solve work related problems.

o Pareto chartHistogram Flow diagramCheck sheetScatter diagramControl chart

Run chartCause and effect diagram

HISTOGRAM Histograms are graphical frequency tables

that visually capture and display the variation in a set of data.

05

10152025303540

1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1

PARETO CHART

28

1612 12

64 3

0

5

10

15

20

25

30

LooseThreads

Stitchingflaws

Buttonproblems

Materialflaws

FLOWCHART A flowchart diagrams the steps in a process. Flowcharts help problem solvers better

understand the process so they can highlight quality problems.

FLOWCHART

CHECK SHEET A check sheet is a fact-finding tool used to

collect data about quality problems. A typical check sheet tallies the number of defects by previously identified categories. The next step is to graph the defects per category in a histogram.

CHECK SHEET

Shifts

Defe

ct Ty

pe

CHECK SHEET

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 1998REPAIR TECHNICIAN: Bob

TV SET MODEL 1013Integrated Circuits ||||Capacitors |||| |||| |||| |||| ||||Resistors ||Transformers ||||CommandsCRT |

CAUSE-AND-EFFECT DIAGRAMS Show the relationships between a problem

and its possible causes.

CAUSE AND EFFECT “SKELETON”

QualityProblem

Materials

EquipmentPeople

Procedures

SCATTER DIAGRAM Scatter diagrams and tightness of points

plotted on the graph gives an indication of the strength of the relationship. A cluster of points resembling a straight line indicates the strongest correlation between the variables. In this graph, there is a strong positive correlation between x and y.

SCATTER DIAGRAM

.

NEW SEVEN Q.C. TOOLS

Affinity Diagrams Relations Diagrams Tree Diagrams Matrix Diagrams Arrow Diagrams Process Decision Program Charts Matrix Data Analysis

AFFINITY DIAGRAMS Affinity diagram is a tool that gather

large amount of language data( ideas, opinions, issues) and organises them into grouping based on their natural relationships.

CONSTRUCTING AN AFFINITY DIAGRAM GROUP METHOD APPROACH Select a topic Collect verbal data by brainstorming Discuss info collected until everyone

understands it thoroughly Write each item on separate data card Spread out all cards on table Move data cards into groups of similar

themes

CONT… Combine statements on data cards to

new Affinity statement Make new card with Affinity statement Continue to combine until less than 5

groups

RELATIONS DIAGRAMS For Finding Solutions Strategies by

Clarifying Relationships with Complex Interrelated Causes

Resolves tangled issues by unraveling the logical connection

Allows for “Multi-directional” thinking rather than linear

Also known as Interrelationship diagrams

CONSTRUCTING A RELATIONS DIAGRAM

Express the problem in form of “Why isn’t something happening?”

Each member lists 5 causes affecting problem

Write each item on a card Discuss info collected until everyone

understands it thoroughly Move cards into similar groups

CONT…. Asking why, explore the cause-effect

relationships, and divide the cards into primary, secondary and tertiary causes

Connect all cards by these relationships Further discuss until all possible causes have

been identified Review whole diagram looking for relationships

among causes Connect all related groups

COMPLETING A RELATIONS DIAGRAM

Slide 7 0f 7

Why doesn’t X happen?

Primary Cause

Primary Cause

Primary Cause

Primary Cause

Tertiary Cause

Secondary Cause

Secondary Cause

Secondary Cause

Secondary Cause

Tertiary Cause

4th level Cause

Tertiary Cause

Tertiary Cause

4th level Cause 5th level

Cause

6th level Cause

Tertiary Cause

Secondary Cause

Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)

TREE DIAGRAMS For Systematically Pursuing the Best Strategies for Attaining an Objective

The tree diagram is an analysis tool for breaking down a broad or top level goal of a team into many levels of increasingly detailed and specific actions that need to be done in order to achieve the stated goal.

Discuss means of achieving objective (primary means, first level strategy)

TREE DIAGRAMS Constructing a Tree Diagram Group Method Approach

Write Relations Diagram topic (Objective card)

Identify constraints on how objective can be achieved

Take each primary mean, write ob-jective for achieving it (secondary means)

CONT… Continue to expand to the fourth

level Review each system of means in both directions (from objective to means and means to objective)

Connect all levels

Completing a Tree Diagram

To Accomplish

3rd means

3rd means

Primary means

3rd means

3rd means

ConstraintsPrimary means

Secondary means

Secondary means

Secondary means

Secondary means

3rd means

3rd means

3rd means

3rd means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

4th means

MATRIX DIAGRAM

The purpose of a matrix diagram is to explore the existence and the extent of relations between individual items in two sets of factors or features or characteristics and express them in a symbolic form that is easy to understand.

PROCEDURE Decide the two sets of factors for which

relations are required to be clarified. Call the set of the main factors ‘features’ The set of factors dependent on it

counterpart ‘characteristics’. Divide the features into primary, secondary

and tertiary features. Divide the characteristics into primary,

secondary and tertiary characteristics

CONT… Place the features vertically on the left hand

side of the matrix and characteristics horizontally on top of the matrix.

Enter the importance of the features on the column after that for the tertiary features.

In the main body of the matrix, place symbols at the squares denoting the relationship between the feature and the characteristic meeting at the intersection.

The symbols to be used are :

CONT… Strong relationship Medium relationship Weak relationship

In case there is no relation between the concerned feature and characteristic, leave the square blank to indicate ‘no relation’.

MATRIX DATA ANALYSIS DIAGRAM

The purpose of matrix data analysis diagram is to present numerical data about two sets of factors in a matrix form and analyse it to get numerical output.

PROCEDURE Decide the two factors whose relations are to

be analysed. Check the number of individual items in the

two factors. Prepare a matrix to accommodate all the

items of the two factors. Enter numerical data in the matrix. Give the diagram a suitable title.

PROCESS DECISION PROGRAMME CHART

The Process Decision Program Chart (PDPC) is a very useful and powerful method to overcome a problem or a goal to be achieved which are not familiar. With the help of PDPC we can map out all the conceivable events or contingencies that can occur in the implementation stage and also find out feasible counter measures to overcome these problems.

PROCEDURE

Prepare a ‘normal’ flowchart of the process with all expected events as steps in the chart.

Consider the possibility of the process not going as per the plan due to any abnormal, though less probable, occurrences.

Show these occurrences on the flowchart through branching at appropriate locations.

CONT… Consider how the abnormal occurrence will

affect the process and search for ways and means to counter the effect.

Show these countermeasures in rectangles connecting the corresponding abnormal occurrence on one side and the process objective or the goal on the other.

Give a suitable title to the diagram.

ARROW DIAGRAM The diagram provides a clear understanding

of the schedule of various steps in the process which helps one to monitor the process for ensuring its completion on time.

PROCEDURE

From strategies on Tree diagram, select one (Objective of Arrow Diagram)

Identify constraints to Objective

Write all essential activities on separate cards

List all activities necessary to achieving Objective

CONT…

Organize cards in sequential order of activities

Remove any duplicate activities Review order of activities, find

sequence with greatest amount of activities

Arrange parallel activities

Record names and other necessary information

Next, complete the diagram

Examine path, number nodes in sequence from left to right

CONT…

TPM DEFINITION A company-wide team-based effort to build

quality into equipment and to improve overall equipment effectiveness

Total all employees are involved it aims to eliminate all accidents, defects and

breakdowns Productive

actions are performed while production goes on troubles for production are minimized

Maintenance keep in good condition repair, clean, lubricate

1. TPM DEFINITION (2) TPM combines the traditionally American

practice of preventive maintenance with Total Quality Control and Total Employee Involvement, to create a culture where operators develop ownership of their equipment, and become full partners with Maintenance, Engineering and Management to assure equipment operates properly everyday.

3. TPM PRINCIPLES Increase Overall Equipment Effectiveness

(OEE) Improve existing planned maintenance

systems The operator is the best condition monitor Provide training to upgrade operations and

maintenance skills Involve everyone and utilize cross-functional

teamwork

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WHAT IS SIX SIGMA?

• Degree of variation;• Level of performance in terms of

defects;• Statistical measurement of process

capability;• Benchmark for comparison;• Process improvement

methodology;• It is a Goal;• Strategy for change;• A commitment to customers to

achieve an acceptable level of performance

Sigma is a letter

in the Greek Alphabet

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SIX SIGMA DEFINITIONS• Business Definition

A break through strategy to significantly improve customer satisfaction and shareholder value by reducing variability in every aspect of business.

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SIX SIGMA PROJECT METHODOLOGY

ControlDefine Measure Analyze Improve

Establish standards to maintain process;

Design the controls, implement and monitor.

Evaluate financial impact of the project

Identify, evaluate and select projects for improvement

Set goalsForm teams.

Collect data on size of the selected problem,

identify key customer requirements,

Determine key product and process characteristic.

Analyze data, establish and confirm the “ vital few “ determinants of the performance.

Validate hypothesis

Improvement strategy

Develop ideas to remove root causes

Design and carry out experiments,

Optimize the process.

Final solutions

Project Phases

WHAT IS ISO? ISO is the acronym for International Organization

for Standardization located in Geneva, Switzerland.

It is the specialized international agency for standardization of system and its certification.

It is an attempt to bring in uniformity in the quality standard of different countries.

At present , It comprises the national standard bodies of 91 countries.

OBJECTIVES OF ISO 9000 To facilitate international trade of goods and

services.

To obtain competitiveness by obtaining required quality in a cost effective way.

ISO 9000 CLAUSES Clause 1- Scope (1.1:General,1.2 :Application) Clause 2- Normative Reference

Clause 3- Terms and definition

Clause 4- Quality Management System (4.1: General Requirements, 4.2: Documentation

Requirements)

Clause-5 Management Responsibly(5.1: Management Commitment, 5.2: Customer

Focus, 5.3: Quality Policy, 5.4: Planning objectives & system, 5.5:

Responsibility, Authority and Communication, 5.6: Management Review)

Clause -6 Resource Management(6.1: Provision for Resources, 6.2: Human

Resources, 6.3: Infrastructure, 6.4: Work environment)

Clause-8 Measurement , Analysis and Improvement

(8.1: General, 8.2: Monitoring and measurement, 8.3: Control of Non-conformity, 8.4: Analysis of Data, 8.5: Improvement)

Clause- 7 Product Realizations(7.1: Planning of Product, 7.2: Customer

Related Process e.g. Determination of requirement, Review of requirement & Customer Communication 7.3: Design & Development e.g. Design planning , inputs , output. Review, verification, and validation, 7.4: Purchasing, 7.5: Product and service Provision,7.6: Control of monitoring and measuring devices ),

ISO 9001:2000

OBJECTIVEIntroduce the concept of new ISO 9001 Standard

Highlight important areas and changes of the new standard

Briefly introduce the system requirements of the new standard

WHAT IS ISO 9001: 20002nd revision of Quality Management System Requirement Standard from International Organization for Standards

Replacement for previous ISO 9001 / 9002 and 9003 standards of 1994

Introduced considerable conceptual changes

NEW ISO 9001

QMSResource management

Measurement, analysis & improvements

Product Realization

ManagementResponsibility

Continual Improvement cycle

General requirements

General requirements

PROS AND CONSMore business oriented. Less procedure oriented

Company wide involvement

Mutual benefit to all interested parties

Customer focus than product focus

Demanding more resources ??

Continual improvements

Less emphasis on documentation

CHALLENGES IN IMPLEMENTING NEW STANDARD

Communication

Management Support

Other employee Support

New ISO

Encouragement

ISO 9001:2000 TRANSITION PROCESS

2 years

Review of QMS & Product realization

Review of Measurement, analysis & improvements

Review of Management responsibility

Review of Resource management

1st visit 2nd visit 3rd visit 4th visit

NUMERICAL ABC company produces 2000 TV sets in a year, for

which it needs an equal number of pictured tube. Each tube cost RS. 10 and the cost to hold a tube in stock for a year is rupees 2.40 besides the cost of placing an order is RS 150 which is not related to its size.

Now, if an order of 2000 tubes is placed only one order per annum is required. When 1000 units are ordered, two orders in a year are need, while if 500 units are ordered to be supplied, then total of 4 orders per annum are required.

Find out the order size that minimizes the cost function TQ.

Number of working days in a year are 250 Lead time 15 days