presentation1 (vpa) tqm
TRANSCRIPT
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Total QualityManagement
Prof. V. P. Arora
Associate Professor
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Definition of Total Quality Management (TQM)Total Quality Management (TQM) is an enhancement tothe traditional way of doing business. It is a proven
technique to guarantee survival in world-classcompetition.Total Made up of the whole.Quality Degree of excellence a product or serviceprovides.
Management Act, art, or manner of handling,controlling, directing etc.
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TQM
Managing the entire organization so that it excels in all
dimensions of products & services that are important tothe customer
Philosophical Element Generic Tools Tools of Q.C Deptt.
Customer Driven quality
Leadership
Continuous improvement
Employee participation & development
Quick response
Design quality & prevention
Management by fact
Partnership development
Corporate responsibility & citizenship
SPC Tools
Process flow charts
Check sheets
Pareto analysis &histogram
Cause & effect (or fish
bone) diagrams
Run charts
Scatter diagrams
Control charts Qualityfunction deployment
SQC Methods
Sampling plans
Process capability
Taguchi Methods
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Elements of Total Quality ManagementSPC = statistical process controlBasic Approach of TQM requires six basic concepts:
1. A committed and involved management to providelong-term, top-to-bottom organizational support.
2. An unwavering focus on the customer, bothinternally and externally.
3. Effective involvement and utilization of the entirework force.
4. Continuous improvement of the business andproduction process.
5. Treating suppliers as partner.
6. Establish performance measures for the processes.These concepts outline an excellent way to run an
organization.
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The Dimensions of Quality
Dimension Meaning and Example
Performance Primary product characteristics, such as the brightnes
of the picture
Features Secondary characteristics, added features, such as
remote control
Conformance Meeting specifications or industry standards,
workmanship
Reliability Consistency of performance over time, average timefor the unit to fail
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human-to-human interface, such as the courtesy of
the dealer
Aesthetics sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being
ranked first
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ISO 9000 SERIESISO 9000 is a series of standards agreed upon by theinternational organization for standardization (ISO) andadopted in 1987.
More than 100 countries now recognize the 9000 seriesfor quality standards and certification for international
trade. In Europe & European common market (ECM)alone, more than 50,000 companies have certified ascomplying with these standards.All companies having international trade will have to
adopt these standards eventually.
THE ISO 9000 SERIESISO 9000 consists of five primary parts numbered
as 9000 through 9004
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ISO
9002
Design
Development Procurement Production Installation Servicing
ISO 9001
ISO9003
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QUALITY SYSTEM ISOGuide line for Use:9000 : Quality management & quality assurancestandards- guidelines for selection & use.9004 : Quality management & quality systemelements guidelinesQuality system9001 : Model for quality assurance in design,
production, installation & servicing.9002 : Model for quality assurance in production &installation.9003 : Model for quality assurance in final inspection
test.ISO certification can take from 3 to 6 months to as longas two years if top management is not fully committed.Certification involves getting the proper documents,initiating the required procedures & practices and
conducting internal audits.
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There are three forms of certification.First Party : A firm audits itself against ISO 9000
standards
Second Party : A customer audits its supplierThird Party : A Qualified national or international
standards or certifying Agencyserves as auditor
The best certification is by a third party and once passed,the firm can be registered & recorded as havingachieved ISO 9000 status.
ISO specifies the way the firm operates as well as its
quality standards, delivery times, service levels & soon. If a manufacturer wants to purchase, he can eithervisit / audit the supplier but it is always easier,cheaper, quicker & legally safer to select certified
supplier
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Benefits from ISO-9000
ISO 9000 certification has become the de-facto minimumrequirement for those wishing to compete globally
All actions in preparing for ISO certification & inmaintaining the certification would result instreamlining of quality management system which may
lead to improvements in product quality.
It can also lead to significant cost reductions throughreduction in rework, warranty work, repair, scrap, etc
ISO 9000 lays stress on customer orientation. This wouldresult in better overall results for the company inaddition to improving customer relations.
There may be an impetus to improve employee relations,
employee empowerment and
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The 20 Elements to be addressed in an ISO 9000Quality System
1.Management Responsibility2.quality system3.contract review4.design control
5.document control6.Purchasing7.Customer-Supply Material8.Product Identification and Traceability9.Process Control
10.Inspection and Testing
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11.Inspection, Measuring, and Test Equipment12.Inspection and Test Status13.Control of Nonconforming Product
14.Corrective Action15.Handling, Storage, Packaging, and Delivery16.Quality Records17.Internal Quality Audits
18.Training19.Servicing20.Statistical Techniques
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Quality Function Deployment (QFD)QFD is a systematic and organized approach of
taking customer needs and demands into considerationwhile designing new products and services or while
improving the existing products and services. Someexperts also call it as customer driven engineeringbecause the voice of the customer is diffused throughoutthe product (or service) development life cycle.
These needs are deployed into design requirementsand subsequently through the manufacturing chain ofcritical part characteristics and key process requirements.Finally, these needs are deployed in operationalspecifications.
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Benefits of QFDThe major benefits of QFD are meeting and exceeding
customer satisfaction and thus obtaining higher marketshare and profits.
1.QFD minimizes the later engineering changes andresults in better quality
2.Customer complaints about and dissatisfaction withnew products decrease with passage of time.
3.QFD applies a cross-functional approach breakingcommunication walls amongst departments of acompany.
4.Develop a deeper understanding of customer needs and
have the customers voice into the business for makingtrade-offs, resulting in superior decisions for theorganization.
5.Streamlining of processes helps in elimination of many
internal processes that do not add value.
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6. QFD helps in evaluating customer needs with respectto competitive products and services.
7.It provides opportunities for introducing new products.8.QFD provides an excellent framework for cross-
functional deployment of quality, cost and delivery.
9.QFD by collecting and analyzing latest information on acontinuous basis allows for quick changes in productdevelopment process.
QFD provides a much needed horizontal weave across the
organization which in turn helps in smooth propagation ofTQM. In the most Indian companies, this horizontalweave is missing in the current traditional managementhierarchy because these organizations are managed
vertically. The shorter product/service development cycleand hi her roductivit are the main merits of FD.
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TQM GURUSA TQM Guru is an expert thinker who communicates histhoughts through verbal and written expressions and thuscontributes to the field of TQM. Starting just after World
War II a number of philosophers and thinkers have madetheir contributions to the movement of Total QualityManagement. In the summer of 1985 the name TotalQuality Management was first suggested by Nancy
Warren, a behavioural scientist in the US Navy,thereafter, a number of TQM Gurus have made theirsignificant contributions. Many of the TQM Gurus areAmericans and a very few of them have their origin inJapan. Some of the major contributors towards thethought of TQM are:
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PHILOSOPHIES OF QUALITY GURUS
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PHILOSOPHIES OF QUALITY GURUSThe customers of today are very different compared toyester years. Today the customer is demanding quality inproduct, in services, in life, in everything. Only those
companies that upgrade to global standards will survive.There are many theories propagated by quality experts.
Demings approach to TQM
Deming is among the pioneers of the TQM concept. Hisviews on improving quality contains fourteen pointsapproach as given below:
1 Ai t ti i t f f i i
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1.Aim at creating consistency of purpose for improvingservices and products
2.Aim at adopting the new philosophy for making theaccepted levels of defects, delays, or mistakes
unwanted.3.Aim to stop reliance on mass inspection as it neither
improves nor guarantees quality (The team workbetween the firm and its supplies is the way for the
process of improvement.)4.Try to stop awarding business with respect to the price.5.Aim to discover problems. Management must work
continually to improve the system6.Aim to take advantage of modern methods used for
training. In developing a training program, take intoconsideration such items as
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7 Ai t i tit t d i i h
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7.Aim to institute modern supervision approaches.8.Aim to eradicate fear so that everyone involved may
work to his or her full capacity.9.Aim to tear down department barriers so that everyone
can work as a team member10.Try to eliminate items such as goals, posters, and
slogans that call for new productivity levels without theimprovement of methods.
11.Aim to make your organization free of work standardsprescribing numeric quotas.
12.Aim to eliminate factors that inhibit employeeworkmanship pride.
13.Aim to establish an effective education and trainingprogram.
14.Establish ways to develop a program that will push theabove 13 points every day for new endingimprovement.
PhilipB Crosby
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PhilipB. CrosbyQuality is free declares Philip Crosby. He continues to believe that
quality means getting it right the first time, rather than merelylaying down acceptable levels of quality. The 14 steps of qualityimprovement declared by Crosby are:
1.Make it clear that management is committed to quality.[Key: management Commitment.]
2.Form quality improvement teams with representativesfrom each department [Key: Quality improvement]
3.Determine where current and potential qualityproblems lie [Key: Quality measurement]
4.Evaluate the cost of quality and explain its use a s amanagement tool. [Key: Cost of Quality]
5.Raise the quality awareness and personal concern of allemployees. [Key: Quality awareness]6.Take actions to correct problems identified through
previous steps [Key: Corrective action]
7 Establish a committee fo the e o defects p og amme
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7.Establish a committee for the zero defects programme.[Key: Zero Defect Planning]
8.Train supervisors to actively carry out their part of thequality improvement programme. [Key: Supervisor
training]9.Hold a zero defects day to let all employees realize
that there has been a change. [Key: ZD day]10.Encourage individuals to establish improvement goals
for themselves and their groups [Key: Goal setting]11.Encourage employees to communicate to management
the obstacles they face in attaining their. [Key: Error-cause removal]
Joseph M Juran
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Joseph M, JuranJuran advocated ten steps to quality improvement1.Start with building awareness of the need and
opportunity for improvement.
2.set realistic goals for improvement3.Organize to reach the goals (by methods to establish a
quality council, identify problems, select Projects,appoint teams, designate facilitators).
4.Emphasis on training5.Solve problems by carrying out projects6.Progress must be reported7.Give recognition to any body who achieves8.Communicate results with all concerned9.Keep score by being quantitative10.Maintain a regular momentum by making annual
improvement part of the systems and processes of thecompany
Evolutionary Phases of Quality Activity Focus
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Phase
Inspection Detection and segregation of defectives
Sampling schemes Economy and efficiency
Quality control Prevention of sub-standard and economic manufacture
SPC Use of statistical concepts
SQC Methods for efficiency and economy
QC Teams Investigation and resolution of quality problems
Quality Assurance Customer satisfaction using systems approach, quality policy,objectives planning and audit jointly in the case oforganized/dominant customers
Vender Quality Assurance Ensuring manufacture and supply of required quality product
Evolutionary Phases of Quality Activity Focus
Quality Engineering Robust products at commensurate cost through product design and process
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y g g p g p g pengineering
TQC Coordination to make all functional groups of an organization to dischargetheir responsibilities towards product quality
Self-control Integration of quality related tasks with the jobs
QC education & training Performance of the job right the first time and every time
CWQC Consumer oriented quality control participation by employees at all levels of improvements
Quality circles and Self-directed Teams Participation of employee teams in improvement of quality, cost,productivity, work life, etc. in their work areas
TQM Continuous improvement all around including environment, work life,quality, cost schedules, etc.
Steering Council Top managers leadership and participation
Policy management/and deployment Regular activities to reflect policies
QFS, Taguchi methods, and Design ofExperiments
Customer delight to add value over and above consumer needs
HRD Enable employees perform their roles well in spite of swift changes takingplace all around-technology, organization, environment, society, etc.
Quality Audits Top management to gain first-hand knowledge of practices
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CONCEPT OF KAIZENImai has brought together various management theories,philosophies and tools that have been popular in Japanover the years, as a single concept, Kaizen. There aremany quality experts, whose principles formed the basisof the Kaizen concept. Kaizen means continuousimprovement involving everybody. The philosophyadvocates on-going improvement, not only in ones
working life, but also in personal life, home life and sociallife. The term Kaizen originates from the Japanese words,Kai that means change, whereas, zen means for thebetter, therefore, it means change for the better. It
signifies constant and gradual improvement, no matterhow small it is. It should be taking place all the time inevery process, involving everyone from all the ranks ofmanagement and the workforce. In brief, the systemincludes:
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Total employee involvement starting from topmanagement;
Empowering people;
Listening to them; Promoting zero investment improvements; and Focus on efforts rather than results in Kaizen
evaluation and performance appraisal.
The four phases ofKaizen are: Motivation management; Human resource development; Improvement; and Institutionalization.
The Kaizen umbrella, as shown in Figure is quitecomprehensive. It is not any one technique rather aphilosophy of continuous quality improvement.
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KAIZEN
Kanban
Quality
improvement
Just in
time
Zero-
Defect
Small Group
Activities
Cooperative
Labour -
Management
Relation
ProductivityImprovement
Customer
orientation
TQM
Robotics
Quality Circles
Suggestion
schemes -
T PM
ISO: 9000 Standards
TPM=Total Preventive Maintenance
COST OF QUALITY
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COST OF QUALITYThe cost of quality (COQ) is defined as the sum of the
costs of everything that would not have beennecessary if everything else was done right the first
time.Types of quality costsThe cost of quality (COQ) can be classified into three
major categories as given below:
1.Cost of conformance,2.Cost of non-conformance,3.Basic operational costs.
Cost of Conformance (COC)
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Cost of Conformance (COC)Cost of conformance (COC) is the cost which anorganization incurs in meeting the requirements of itscustomers. A strong element of this cost is the money
that a company spends on the product for preventing itform going wrong or checking the product right before itreaches the customer.Cost of Non-conformance (CONC)
The cost of non-conformance (CONC) to customerrequirements are the failure costs. These costs areincurred by a company in repairing what has gone wrongduring manufacturing.Basic Operational costs (BOC)The basic operational costs (BOC) are those costs whichan organization cannot avoid encountering during thenormal performance of its business.
H i ht dBasic
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Heightened
Efficiency
Improved Customer
Satisfaction
Lower
Operating Cost
Cost of
Non-
Conformance
(CONC)
Cost of
Conformance
(COC)
Cost of
Qualify
(COQ)
Cost of
Quality
Reduced
Operating
Cost (BOC)
Benefits of Reducing the Cost ofQuality
If all the three categories of costs are systematically reduced, several
benefits can accrue to the company.
ANOTHER METHOD TO MEASURE COST OF QUALITY:
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ANOTHER METHOD TO MEASURE COST OF QUALITY:This analysis is based on following assumptions:
i. That failures are causedii. That prevention is cheaper
iii.That performance can be measured
Four Types of costs:1. Appraisal costsThe costs of inspection, testing & other tasks to ensure
that the product or process is acceptable.2. Prevention costs
The sum of all costs to prevent defects such as:
a. Identify cause of defectb.Implement corrective action to eliminate the
causec. To train personneld.To re-design product or system.e.New equipment or modifications.
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3)Internal failure costsThe cost of defects incurred within the system:
a.Scrap
b.Re-workc. Repair
4.External failure costsThe costs of defects that pass through the system:
a.Customer warranty replacementsb.Loss of customer or goodwillc. Handling complaintsd.Product repair
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The rule of thumb says that for every rupee spent in
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The rule of thumb says that for every rupee spent inprevention, we can save ten rupees in failure & appraisalcosts.Often, increases in productivity occur as a by product of
efforts to reduce the cost of quality.
BENCH MARKINGIf you know your enemy and know yourself, you need
not fear the result of a hundred battles.According to Kehoe (1996) benchmarking can be definedas measuring the performance of processes within yourorganization, comparing these performance levels with
the best in class companies and where deficiencies exist,using the information on the best practices to improveyour organisations own business processes.
David Kearns defines benchmarking as the continuous
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David Kearns defines benchmarking as the continuousprocess of measuring products, services and practicesagainst the toughest competitors or those companiesrecognized as industry leaders.
There are several considerations in this definition
i. Continuous process.ii. Measuring.iii.Products, services and practices.iv.Companies renowned as industry leaders
Benefits of Benchmarking
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Benefits of Benchmarking1.Best practices from any industry to be creatively
incorporated into the processes of the benchmarkedfunction.
2.Identify a technological breakthrough3.It permits the individuals to broaden their background
and experience.4.It helps in meeting more effectively the end-user or
customer requirements.5.It supports in establishing goals (target setting) basedon a concerted view of external conditions.
6.It helps in determining true measures of productivityand effectiveness.
7.It assists in attaining a competitive position.8.It helps in becoming aware of and searching for
industrys best practices.9.Benchmarking allows individuals to see outside the
box. It provides for accelerating change and managing
Pitfalls of Benchmarking
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Pitfalls of BenchmarkingStatistics show that 70 percent of all processimprovement initiatives fail. The most common reasons ofthese failures are:
i. Lack of focus and priority;ii. Lack of strategic relevance;iii.Lack of leadership;iv.Lack of perseverance; and
v. Lack of planning.
Obstacles to Benchmarking
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Obstacles to BenchmarkingThe following are the most typical causes and obstacles
preventing the smooth and fast implementation ofbenchmarking practices:
1. Management not buying into the idea.2. No clear owner of the programme.3. Failure to consider customer-requirements.4. Change of sponsor before completion of the
programme.5. Programme taking too long and leading to loss ofinterest.
6. Not involving right staff in the programme.7. Team not measuring issues it agreed to address.
8. Programme causing too much disruption of work andnot seen relevant to work.
9. Conflicting objectives of the organization and those ofits benchmarking partners.
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Continuous Improvement (CI)Continuous improvement (CI) is a managementphilosophy that approaches the challenge of product and
process improvement as a never-ending process ofachieving small wins. It is an integral part of a totalquality management system.Continuous improvement seeks continual improvement ofmachinery, materials, labor utilization, and production
methods through application of suggestions and ideas ofteam members. Though pioneered by U.S. firms, thisphilosophy has become the cornerstone of the Japaneseapproach to operations.
Although management in both Japan and the Westhistorically have implemented CI in manufacturing plants,it has become quite common in services as well.
h f f
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The Key features of continuous improvement strategiesare:
Accountability is built in.
Incorporation of systematic learning (e.g., plan, do,check, act). Decisions based on facts. Diagnostic and remedial journey. Involvement of everyone within an organization.
Linkage of improvement activity with organizationalgoal.
Processes are divided into clear deliverables. Consideration of several solutions before
implementing the best.
oo s roce ures o1 V i f i l ti t
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1.Varies from simple suggestion systembased on brain storming to structuredprogrammes utilizing statistical process
control tools (SPC Tools)2.Deming wheel (PDCA) cycle3.Zero defect concept4.Bench Marking5.Six sigma
SPC Tools (Also known as Tools of TQC)StratificationCheck SheetProcess flow chart
Pareto analysisRun chartHistogramScatter diagramCauses & effect diagram (Fish Bone /Ishikawa
Diagram)
Deming wheel (PDCA cycle)
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g ( y )Another Tool is PDCA cycle:P= PlanD=Do
C=CheckA=ActIt is often called Deming wheel
Implement
Flow Chart
Cause & effect
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Pareto diagramsScatter diagrams
Runcharts
Control charts
Implement
recommendations Define process
& problems
Group
&
Value
Collect Data
2. Do
3.Check
4.Act
1. Plan
Cause & e ect
Define Problem
Suggest possible
causes
Deming Wheel
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PLAN PHASE (Also Known As Theme)In this Phase, specific problem is identified and
analysis is done using 5W2H Method
5W = - WHAT- WHY- WHERE- WHEN- WHO
2H = - HOW- HOW MUCH
DO PHASE: Is implementing the change- Should be done in a small scale first
CHECK PHASE: Deals with evaluating data collectedduring the implementation
Compare original goal vs. actual resultsACT PHASE: Improvement is codified as the new
standard procedure & replicated in similar processes
Bench Marking For CI
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Bench Marking is to find out what industry competitors &excellent performers are doing; find out the best practices thatlead to superior performance & see how it can be implemented
The Shin go system Fail safe design
Two aspects:i. Single minute exchange of die (SMED)-procedures to accomplish
drastic cut in set-up timesii. Use of source inspection and the poka-yoke system to achieve
zero defects.
(poka-yoke = fail safe procedures)Shingo argued that SQC methods do not prevent defects. The way to
prevent defects from coming out at the end of the process is tointroduce controls within the process. Inspection should be on100% items of three types.
a. Successive check inspectionBy next person or group leaderb. Self - CheckBy individual worker who produces the product.c. Source InspectionWorker checks for the errors that will cause defects.
POKA-YOKE (Fail Safe Procedures)
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( )All three types of inspections described above rely oncontrols consisting of Fail Safe Procedures of devicescalled POKA-YOKE.
POKA-YOKE includes such things as Chick Lists or special tooling that
i. Prevents the worker from making an error that
leads to a defect before starting a process.ii. Gives rapid Feed Back of abnormalities in the
process to the worker in time to correct it.
QUALITY CIRCLES
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A quality circle is a group of employees from the samework area and doing similar type of work voluntarily meetfor an hour periodically either every week or fortnightly to
identify and analyze
a.Quality of work they performb.Working conditions
The common number of employees for a quality circlegroup is about 8-10 individuals.
Pre-Requisites for successful quality circles
Members of Quality circles must have prior training inproblem solvingTop management support/attitudeActual implementation to be pre-ceded by carefully
developed plan for maximum returns.
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Problem solving cycle of a
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Quality circleoperation cycle
(c2) Data from
specialist if needed
(f) Review of recommendation
approval by management (g)Implementation
(a) Problem
Identification
(e)Presentation to
management
(c1) Problem analysis and
discuss alternatives
(d) Arrive at best
solution
(b) Problem
selection by
members
Quality circle
Structure of Quality Circle
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Every quality circle will have a leader and a deputyleader. For three or four quality circles there will be afacilitator, whose job is to co-ordinate the functioning of
the quality circles. In an organization, there will be a highlevel committee consisting of the CEO and two othersenior members to monitor the quality circle activities andformulate guidelines for effective functioning including
rewarding system. Each quality circle will have membersranging from 8 to 10 in number. All must havevolunteered to join this movement. The structure ofquality circle is shown in Fig. below
Executive committee
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Steering committee
Facilitator Facilitator Facilitator
Quality circle Quality circle Quality circle
Leader
Dy. Leadear
Manager
Member
Member
Structure of QualityCircle
The benefits of quality circle1 Develop mutual trust and cooperation between management and
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1. Develop mutual trust and cooperation between management andworkers as well as involve the workers in the decision makingprocess in their work area.
2. Improvement in productivity.
3. Changes the total attitude to a constant, self renovation force ofbusiness enterprise.
4. Develops the knowledge management culture in the organizationat the workers level.
5. Improves the quality of the products and services
6. Leads to increase in sales and reduction in the cost of production.7. Focus on higher safety and reduction in accidents.8. Ensures better housekeeping.9. Increases profitability by reduction in waste.10.Creates better motivation and involvement of the employees
leading to reduced absenteeism & Grievances11.Leads to enriched quality of work life.12.Creates an atmosphere of positive and proactive work force with
harmony and mutual trust.13.Creates better human relations and participative culture.14.Promotes job knowledge.
15.Creates a greater sense of belonging.
RE ENGINEERING
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The fundamental rethinking and radical re-design ofbusiness processes to achieve dramatic improvementsof performance in cost, quality, service & speed
Re engineering not for incremental increase inimprovements but for making Quantum LeapsVisualizing and stream-lining any or all Businessprocesses through combining, eliminating or
restructuringIt is a top down programme since lower down;perspective to visualize changes may not be there.It is different from OD, particularly with respect tominimal participation of employees at various levels.
HOW TO MAKE RE-ENGINEERING & OD CONGRUENT
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A. Making process as humane as possible through
RetrainingTransfer
Retirement incentivesAvoiding layoffs
A. Those who look for OD-Type values and processes canlook for avenues for meaningful involvement of
employeesB. People with OD skills can help emerging new teams to be
more effective for successful implementation of re-engineering (Re-Engg. Teams, steering committee,Process teams to replace functional deptts.)
C.OD. knowledge about how to design parallel structures isrelevant to re-engineering.
D.When large scale systems changes affecting number oforganizational units, number of people affected, the numberof org systems altered and /or depth of cultural changes areinvolved, multiple types or O.D. interventions are utilized.
i. Reduction in hierarchical levels from say eight to fourh f l d h l ld
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ii. Shifting to a more participative leadership style wouldeffect responsibilities of employees at every level &would require changes in work flow, reporting relation
ships, jobs description & training programmesAdvantages Of Re-Engineering (Positive Impact)
1.Improvement in entire org. as a whole.2.Better systems & mgt. improvement in areas of
i. Products & servicesii. Designing & operationsiii.Improved system operations
1.Takes advantage of improved technology
2.Improved application of industrial engg. in areas ofi. Organizational strategiesii. Management functionsiii. Plant utilizationiv. Quality improvement
v. Creativity & innovation
5. Improvement in customer satisfaction
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Negative Impact of Re-Engineering
Does not pay much attention to the social system of
organizations relative to change processes & re-design of work. No consensus approach & noinvolvement of people lower down in the org.Strained industrial relations because re-engg. Would
result in large lay-offs & dislocation of people.Impact of layoffs & thus resistance to re-engg. canbe minimized through
oRe-training & re-deployment
oReduction through attritionoTransfer to other locations, comprehensive &carefully designed out-placements programmesoEarly retirement inducements
oAdequate notice period to employees before- HISTORICAL EVOLUTION OF TQM
C titi i t d d b tt lit f
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Competitive environment demands a better quality ofproduct or service at lower rates. The impact of poorquality on any organization leads to:
i. Low customer satisfaction and low market shareii. Low productivity, revenue and profitiii.Low morale of workforceiv.More rework material and labour costsv. Poor quality of goods and servicevi.High inspection costvii.Higher process bottlenecks and delay in product
shipment
viii.Higher work-in-progress inventoryix.High repair costsx. High material wastage and scrap
Evolutions of QualityTotal quality is not a revolutionary but an evolutionary concept It
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Total quality is not a revolutionary but an evolutionary concept. Ithas evolved over the years as shown
1975 1980 19851990 1995 2000
OPERATIONS CUSTOMERS INNOVATIONS
Quality of
Work life
Quality
Circle
Productivity
Employees
Involvement
Quality Total
Quality
Self-
Directed
Teams
Total Quality
Control /
Management
Self-Directed & self-
Managed Teams
The Evolution of Quality Means and
Evoluation
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900 1920 1940 1960 1980 1990 2000
Years
Operato
r
Forem
an
Inspecti
on
Statisti
cal
Quality
Control
Total
Quality
Control
(TQC)
Total Quality
Control
Company wideControl
Total Quality
Management
TQM
The Evolution of Quality over the
The focus has also undergone a shift form operations tot t i ti I f t i
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customers to innovation. In any manufacturing company,three management concerns-quality, cost andproductivity-must be evaluated in relation to the
customer.
Definition of QualityA b f d fi iti f lit h b d d
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A number of definitions of quality have been propoundedby experts.
1. Quality is fitness for use or purpose.
- Joseph M. Juran2. Quality is conformance to requirements.
- Philip B. Crosby3. A predictable degree of uniformity and dependability at
low cost and suited to market.W. Edwards Deming4.. . . development, manufacture, administration and
distribution of consistently low cost products andservices that customers need and want. - Bill
Conway5. Total composite of product and service characteristics
of marketing, engineering, manufacturing andmaintenance through which the product and service in
use will meet the expectations of the customer.-
6.Quality is the degree of excellence at an acceptablep ice and cont ol of a iabilit at an acceptable cost
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price and control of variability at an acceptable cost.7.The totality of features and characteristics of a product
or service that bear on its ability to satisfy stated or
implied needs of customers. - ISO 840:Quality Vocabulary
In brief Quality is one which satisfies customers needsand continuously keeps on performing its functions as
desired by the customers as per specified standards.
New Definition of QualityQuality is about organizations, quality is strategic, quality
is for everyone, quality is led by management, quality isappropriate grade and quality is \aboutimprovement-Big Q.A good quality process changes the way things are doneby:
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What is total Quality?
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What is total Quality?Total quality is defined as the mobilisation of the wholeorganization to achieve quality continuously, economically
and in entirety. Total quality not only satisfies butdelights the customers by offering attractive features inproducts and services.Total Quality control (TQC)TQC, TQM and Total Quality are synonymous terms and
used interchangeably in the field of quality.Total quality Control is an effective system forintegrating the quality development and improvementefforts of various groups in an organization so as to
enable marketing, engineering, production and service atthe most economical levels which allow for full customersatisfaction.
Factors Affecting TQCThe scope of total quality control (TQC) encompasses all
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The scope of total quality control (TQC) encompasses allactivities and stages of industrial life cycle, viz.
1. Marketing evaluates the level of quality which customers want
and for which they are willing to pay.2. Engineering reduces this marketing evaluation to exactspecifications.
3. Purchasing chooses, contracts with, and retains vendors forparts and materials.
4. Manufacturing (engineering) selects the jigs, tools, andprocesses for production.
5. Manufacturing supervisions and shop operators exert a majorquality influence during parts making, sub-assembly and finalassembly.
6. Mechanical inspection and functional tests check conformance
to specifications.7. Shipping influences the caliber of the packaging and
transportation.8. Installation and product service help ensure proper operation
by installing the product according to proper instructions and
maintaining it through service.
Q FactorManagers must appreciate the broader meaning of
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Managers must appreciate the broader meaning ofquality. They should know the difference between big Qquality and little quality. Big Q quality is important
because it encompasses cost, delivery and safety as wellas the traditional view of conformance quality. Big Qfactor is commonly used in various terms of Total qualityManagement, for example, TQM, TQC, SQC, QA, etc.Dimensions of Quality (Kanos Model)Noriaki Kano and others have proposed the concept oftwo dimensions of product quality:
Must be (expected and performance) quality and
Attractive (excitement) quality. Kano gives thefollowing three features of quality.
Expected Features
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Expected Features Fundamental functions must be present. Absence of these features dissatisfies,
Performance Features These features create satisfaction if customersexpectations are exceeded.
There will be dissatisfaction if they fall short ofexpectations.
Excitement Features Innovations beyond customers awareness. Even minor items, if perceived by customers as of
superior value, can enhance market share.
They must be based on intimate knowledge ofcustomer perception, product function and usageconditions to be successful.
CUSTOMER SATISFACTION
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CUSTOMER FOCUSIt is said that in an organization quality begins and ends withcustomers. The most coveted Baldrige Quality Award also stresses
on customer related issues. Out of 1000 pts, about 300 pts areattributed to customers,Customer WindowCustomers decisions are mostly controlled by perception. Therecan be a gap between what is perceived to be good and what is
important to the customer. The customer window highlights therelationship between the perception of the customer about theproduct attributes and the importance of those attributes fromtechnical point of view. The priority of focus is indicated in thecustomer window. Many a times survey among the customers
reveal that factors in the top left quadrant of the customerwindow are significant. Organizations attempt to focus on this,without realizing that these attributes can only have short termdividends. Attributes in the top right quadrant needs to befocused first. Some important factors will have very poor
perception among customers. These are critical ones.
Very good
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III I
IV II
Very good
Customer
Perception
Poor
Not at all Very much
Importance to customer
Customer Satisfaction ModelCustomer satisfaction model relates customers
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Customer satisfaction model relates customer ssatisfaction and value addition. It is schematicallyrepresented in Fig. The value addition in the product or
service is plotted along the x -axis and the satisfactionalong the y axis.
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Type B CustomersCustomer
Without expectations
Value addition not
available
Type A customersCustomer
With expectations
Value addition
available
Delighted
Customers
Dissatisfied customers
Points for customer satisfaction
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1. Customer satisfaction should be the primary driving force of TQM.2. As a first step, analyse who the customers are and assess what
problems they experience.
3. The company should cooperate with the customer to resolve theproblems experienced by them.4. One-to-one relationships should be established between the
company and its customers.5. Analysis of the sales process should be undertaken to enhance
customer satisfaction, and also to increase sales volume andreduce costs inherent in the process.
6. The concept of customer satisfaction should be internalisedwithin the integral part of employee care rather than stand alonein the form of behavioural training for customer contact staff.
7. An organization should encourage customer complaints as an
opportunity for quality improvement.8. Customer relations are of great importance. Relationships between
the company customers and suppliers should carry equal weight.9. Active partnerships between the business and its suppliers should
be established. Customers should be delighted by offering total
quality products for meeting and exceeding their expectations.
Techniques for measuring customer value customer perception of quality
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customer perception of qualityPersonal Interviews: Ask them in personal interviews,one on-one, in on /site meetings, telephone calls, or
teleconference. Discussion should be guided by astructured set of questions.Protocol Analysis: called content analysis, can be usedto make sense of verbal data gathered through open-ended interviews or discussions.Focus Groups: Uses an unstructured interview toencourage a group of customers to discuss their feelings,attitudes and perceptions about a particular topic.Laddering: Laddering provides a method for identifying
the needs, desires, wants or values of customers, and theproduct attributes instrumental in serving them.Laddering is most often used in individual interviews, butcan be used in focus groups.
Trade-off Analysis: Once a set of attributes has beenidentified as potential components of product or service
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identified as potential components of product or servicevalue, managers need to determine the relativeimportance of each.
Market Test: A market test always involves havingtarget customers try the product, usually under the samecircumstances in which they would use similar products.Direct Observation: Managers can often improve theirunderstanding of value by directly observing thecustomers at each stage of decision making and use ofthe product or service.Other Sources of Data on customer: Traditionally usedby managers collect details of complaints, returns,
warranty date etc.After Sale Feedback
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The value analysis team is a cross-functional team. If thebj i f l l i i h f h k l
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objective of value analysis is enhancement of the market value,then the value analysis team leader will be the head of themarketing department. If the objective of value analysis is to
reduce the cost or the product innovation, then the value analysisteam leader will be the head of the manufacturing.Cost of valueThe value is of two types, namely the use value and the esteemvalue.
Use value: The product quality is fundamentally defined asfitness for use. Value analysis is primarily concerned with the usevalue. This is also known as the primary or the basic value of theproduct.Esteem value
The esteem value is the enhanced value associated with a brandor a product created by smart marketers. This is a notional orsnob value for which the customer is ready to pay higher. This isalso known as the secondary value associated with the product.
Steps in Value Analysis
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The following steps are to be followed for the valueanalysis.
1. Collect data about cost function, customer needs, historyand likely future developments related to the productand its use. Determine the function of the product.
2. Develop alternative designs. The selected alternativesshould be able to fulfill the functional requirement of theproduct.
3. Ascertain the cost of the alternatives.4. Evaluate the alternatives in all respect. The alternative
which fulfills all the basic or primary value considerationsand maximum number of secondary value considerationsis the ideal alternative subject to the cost considerationwhich should be minimum.
5. Recommend and implement the best solution. Identifythe control point and devise a plan for periodicmeasurement of the performance and correct thedeviations if any.
Value Analysis - Areas of ImprovementIn value analysis, the areas of improvements are basically
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In value analysis, the areas of improvements are basicallyidentified in four areas. They are:
a.The functional aspect of the product and services,b.The intrinsic cost of the materials,c. Manufacturing andd.Specification.
AIMS OF VALUE ENGINEERING
Simplify the productUse cheaper & better materialsModify & improve product design.Use efficient processes
Reduce product cost.Increase utility of product by economical meansSave money or increase profits
Steps / Procedure in Value Engineering
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Identify the productCollect the relevant informationDefine different functionsDefine / create different alternativesCritically evaluate the alternativesDevelop the best alternativeImplement the alternative
Step I: Identify the Product
Any design change should add valueValue can be applied to a product as a whole or to
its subunits
Step II: Collect relevant information
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Technical specifications with drawingsProduction processes, machines, layout, instructionsheet, etc.Time study details & manufacturing capacityComplete cost data & marketing detailsLatest developments in related products
Step III: Define different functionsDefine primary, secondary and tertiary functionsSpecify value content of each function & identifyhigh cost areas.
Step IV: Create different alternatives
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Through brainstorming sessions based on detailsavailable from above, create different alternativesAll feasible and non-feasible suggestions arerecorded without any criticism rather participantsare encouraged to express their views freely
Step V: Critically Evaluate the Alternatives
Compare, evaluate, critically assess for theirsuitability & feasibility as regards their financial &technical requirements. Ideas technically sound andhaving lesser costs are further developed
Step VI: Develop the best alternative
Development plans comprising of drawingsketches, building of models, conducting
discussions with purchase section, finance section
Step VII: Implement the Alternative
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The best alternative is converted into a proto-typemanufacturing model which ultimately alternatelygoes into operation and its results are recorded.
Advantages o Value Engineering
It is a much faster cost reduction technique.
It is less expensive technique.Reduces production costs and adds value to salesincome of the product
Applications of value engineering
Machine tool Industries.Auto IndustriesImport substitutes, etc
CREATING QUALITY CULTURESeven S Framework for Change
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gMckinseys 7-s framework comprises elements such asstrategy, structures, systems, staff, skills, styles and
shared values. Strategy, structures and systems arecalled 3-hard Ss viz., strategy, structure and systems fordoing things. It is a good start but not enough.Organizations which are truly excellent and strive toimprove quality in everything include: IBM, Motorola,
Corning, 3M, Down Chemicals, Toyota, Matsushita,Mitsubishi, Hitachi, ICI, Pedigree, Pet Foods, Hewlet-Packard, etc. All these use the 3-hard Ss approach andsupplement it with the 4-soft Ss viz., staff, skills, styles
and shared values.The soft Ss approach relate to people, their actions
and the roles they play. Improvement does not comeform strategy, structure and system. It comes from thesoft Ss per se. Improvement in quality, movement in
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Structure
SystemsStrategy
Structure
Values
Skills Styles
Staff
Resistance to cultural change
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People are afraid that the change will affect their way offunctioning.People perceive that they will lose their control overthings.There is a personal uncertainty that they will not be ableto live up to the expectations of others.The change may mean more work for them.
There may be past resentments against management.They think that TQM will die its natural death aftersometime like several other concepts.There is an attitude that TQM will go away if I ignore it.They are unwilling to take ownership and feel committed.
They think it is somebody elses responsibility.They have the attitude first you change, then I will.They think that others will find out that what I have beendoing over the years is wrong. I could be penalized for mymisdeeds.
Corporate CultureK h (1996) d fi i ti lt th h d
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Kohoe (1996) defines organization culture as the sharedvalues and norms of behaviour of the individuals withinthe organisation.
CREATING QUALITY CULTURE (CONTINUED)
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Differences in quality cultures:
Negative quality culture (Hide the scrap scenario)
Positive quality culture (Climb the ladders to delight the
customer scenario)
TQM WORK CULTURE
Culture change is the secret to implementing TQM. Founders ofcompanies create the original cultures. The beliefs of the founder
and the senior managers teams are translated into rules,
systems, norms and styles of managing. These are passed on to
people who join the company.
Many traditional Indian companies portray the old culture which is
not exactly geared up for TQM. The culture, they say, is
something unique to Japan. However, this is not true and has
been proved wrong by Japanese themselves, when they started
collaborative ventures in foreign counties like the US and India.
Japanese Management is as exportable as its products. Janpanese
guiding principles-granting employees broad authority to organize
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g g p p g g p y y g
their tasks and insisting on high quality from workers and suppliers-
are now proving themselves in the US towns.
There is also evidence to suggest that the values inherent in theculture are rapidly being adopted by employees as their personal
values.
Values and CultureValues are the building blocks of a culture. Values are stable, long-term
beliefs that are hard to change. They define what is right or wrong; good
or bad; and correct or incorrect.
Requisite Changes to Implement Quality Culture
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From Traditional Culture To TQM Culture
Hierarchical Style Participative style
Top down information
flow
Top down, lateral and upward
information flow
Inward quality focus Customer defined quality focus
Functional Focus Process focus
Short-term planning A vision for the future
Episodic improvement Comprehensive / Continuous
improvement
Top down initiatives All staff involved and engaged
Manage and delegate. Empower
Direct Counsel Ownership and participation Functional and narrow
scope of jobs
Integrated functions
Enforcement Promoting mutual trust
Fire fighting with few
individual/group
Team initiatives group focusing on
Continuous improvement.
DEVELOPING TQM CUTLURE
Developing TQM Culture
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Developing TQM Culture.
Superior quality can be obtained by pursuing two courses of action.
1. developing technologies to create products and processes which mecustomers, needs and
2. stimulating a culture throughout the organization that continually view
quality as a primary goal.
Step for Creating TQM Culture
Management accountability and a deep sense of responsibility towards
employees is the starting point.
Management thoughts and actions towards delighting its customers.
Removing organizational boundaries and internal competition.
Using fact-based decision making.
Use of Kaizen. Continuous improvement must be encouraged.
Do not use specially designed organization structures for TQM.
There ill initiall be a need for q alit ass rance department This
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There will initially be a need for quality assurance department. This
department should be include some specialists who will help
develop training courses, assist other parts of the organization in
difficult problem solving and assist senior management in theirevaluation of the management system.
Use natural organization existing in the company to promote and
implement your approach to quality.
To conclude change in the culture of a company are a natural
consequence of implementing TQM. Corporate cultures develop
over time and can be traced to the behavior and values of scenario
management. Top management need to apply the underlying
values and concepts of TQM daily. They must show by examplethat the customer is the first. They must listen to and respond to
employees ideas. Managers must see in their organizations that all
employees are respected that decisions are based on facts, and
that cooperation among employees must continue to be practiced.
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Process control or statistical
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process control (SPC)
SPC involves testing a random sample ofoutput from a process to determine
whether the process is producing items
within a pre-selected range. When the
tested output exceeds the range, it is a
signal to adjust the production process to
force the output back into the acceptable
range. This is accomplished by adjustingthe process itself.
Acceptance Sampling
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Acceptance Sampling
Acceptance sampling is frequently usedin a purchasing or receiving situation,
while process control is used in a
production situation of any type.
SQC for process control
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SQC for process control
Mainly, SQC is used for controlling qualityduring production in a mass production
industries which produce standard
products. SQC for process control is
based on the probability theory. When
several identical parts are produced,
most will approximately be the same
while few will be a little large & few willbe a little small. When plotted with size
on horizontal line, a normal or bell-shaped
curve of following type is obtained.
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Variation in size between 0 995 and 1 005
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Variation in size between 0.995 and 1.005with most measuring 1.000 are due to
chance causes. Chance causes are thosecauses which operate randomly and
independently of each other and follow
normal law of errors. Chance causes are
inherent and cannot be controlled orprevented. Chance causes are ignored
because any effort to eliminate them is
uneconomical and may be counter-
productive too. Vibration of a machine,voltage fluctuations, variation in
temperature, etc. are chance causes.
Assignable causes or Non-
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random causes
These can be easily identified asresponsible for variations and are not
distributed normally. Wear & tear of machine
parts, a worn out tool, setting of machine
being changed unintentionally, etc. areassignable causes. When it is known that an
improper size is made as a result of an
assignable cause, it is possible to detect the
cause & rectify it. If the size measures beyond 1.005 or below0.995, it is not due to chance causes but
because of assignable causes.
Advantages of SQC in industry
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Advantages of SQC in industry
1. Through SQC an objective check is maintainedon the quality of the product
2. Through SQC, it can be known whether the
manufacturing process is under control or not
and if it has gone out of control, remedialmeasures can be applied.
Preventive measures can also be initiated if there
is a signal that the process is soon going to be
out of control. Thus, waste of material, etc. is
avoided
3. SQC system, if adopted & strictly followed,
increases industrys goodwill since users may
rely on its products with greater confidence.
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4. Quality of products can be defended in anyenquiry on the basis of SQC records.
5. SQC has a healthy impact on workers since
they know that quality is being checked and
accordingly they work efficiently & withalertness.
6. Inspection expenses under SQC system are
reduced since sampling inspection is done as
against 100 % inspection.
Control Charts
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Control Charts
The control of quality in the manufactured product throughprocess control is achieved through control charts. Based on theory of probability and sampling, the presence ofassignable causes of erratic variations are detected in the
process. These causes are identified, eliminated & process
is stabilized & controlled at desirable performances.
A typical control chart consists of following three horizontallines on the graph
1. A control line to indicate the desired standard of the control level of the process.
2. An upper control limit indicating the upper limit of tolerance.
3. A lower control limit indicating the lower limit of tolerance.
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These limits are established to assist injudging the significance of the variation
in the quality of the product.
The control limits are different fromspecification limits (which refer to qualitycharacteristics of individual unit of
product)
These control limits are used to evaluatethe variations in quality from sample to
sample.
Out of Control
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Quality Scale
Central Line (Average)
Sample Numbers
Upper Control Limit (UCL)
Lower Control Limit (LCL)
3 Sigma
3 Sigma
Out of Control
Out of Control
Process is under control if no points liebeyond the control limits. An out of control
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y
situation includes1. Point(s) outside control limits (UCL & LCL)
2. Change or jump in level when successive plotted pointsare on one side with respect to central line, though within
control limits.
3. Trend or steady change in level A steady or progressive
change in plotted points called a trend.
These may be due to machine deterioration ortool wear. To be corrected before it goes too
far.
Control charts for variables are used formeasuring quality characteristics. Control Chart For Sample means (X-chart) Control chart for sample ranges (R-chart)
Acceptance Sampling
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Acceptance Sampling
Acceptance Sampling is performed ongoods that already exist to determine what
percentage of products confirm to
specifications. These products may be
items received from another company andevaluated by the receiving deptt or they
may be components that have passed
through a processing step and evaluated by
company personnel either in production orlater in warehousing function.
Acceptance Sampling is executed through asampling plan.
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Single Sampling plan Based ondetermination of quality from evaluationof one sample. Two samples are also
used called double sampling.
Acceptance Sampling is carried out when100% inspection is costly or inspection
may be destructive. The whole lot of
items are accepted if the sample items
conform to the specifications otherwise itis rejected. Sample items are considered
to be representative of the whole lot.
Random Sample
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Random Sample
A random sample is one in which each unitin the lot has an equal chance of being
included in the sample and the sample is
likely to be representative of the lot.
Variables are quality characteristics thatcan be measured on a continuous scale. E.g.
Diameter of a shaft
Attributes are quality characteristicswhich can be classified in one of the two
categories namely good or bad; defective or
non-defective
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Type I Error This is an error insampling inspection. A sample from the
output of the process may lead to
conclusion that the process is out of
control whereas process may be
operating as intended.
Type II Error occurs when the process isnot working as intended, but the samplingerror causes one to infer that the process
is satisfactory.
Acceptable Quality Level
(AQL)
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(AQL)
Acceptable Quality Level is the maximumpercentage or fraction defective that is
considered as the overall process
average. The lots having quality equal to
AQL or better have a high probability of
acceptance (i.e. 0.95)
The objective of producer is to ensurethat the sampling plan has a lowprobability of rejecting good lots. Lots are
defined high quality if they contain no
more than a specified level of defects.
Lot Tolerance Percent
D f ti (LTPD)
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Defective (LTPD)
This is the upper limit of the percentageof defective products in an individual lot
that the consumer is willing to tolerate,
even if the process is aceptable. This is
also known as LIMITING QUALITY LEVEL
(LQL). Lots having quality equal to LTPD
or worse have a very low probability of
acceptance (0.10)
Producers Risk ()
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Producer s Risk ()
The probability associated with rejectinga high quality lot is denoted by and is
termed the Producers Risk.
This is the risk of getting a sample whichhas a higher proportion of defectives thanthe lot as a whole and thereby rejecting a
good lot based on sample evidence i.e. a
lot as good as AQL will be rejected by isof a particular sampling plan. While using
acceptance sampling plans, producers
hope to keep this risk as low as 5%.
Consumers Risk ()
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Consumer s Risk ()
The probability associated with accepting a lowquality lot is denoted by and is termed as
consumers risk.
This is the risk of getting a sample which has a lowerproportion of defectives than the lot as a whole and
thereby accepting a bad lot as a good lot i.e. it is theprobability that a lot with a percentage of defective
equal to LTPD will be accepted by the sampling plan.
While using sampling plans, consumers want to keep
this risk () as low as 10%.
The selection of particular values for AQL, , LTPDand is cost tradeoff or more typically, on company
policy or contractual requirements.
Average Outgoing Quality
Li it (AOQL)
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Limit (AOQL)
The main objective of acceptance sampling plansis to guarantee a certain quality level, no matter
what the incoming lot quality may be maintained
by the producer.
The fraction defective remaining in the lot afterinspection is known as outgoing quality of thelot. The average fraction defective remaining in the
lot after inspection is termed as average outgoing
quality (AOQ). Obviously, it is a function of
incoming lot quality. The fraction defectivemaintained by the producer. The maximum value of
AOQ subject to variations in to is known as
average outgoing quality limit (AOQL).
Average Sample Number
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Average Sample Number
Average number of items that must beinspected for coming to a decision
(acceptance or rejection) is called
Average Sample Number (ASN)
Operating Characteristic
C (O C C )
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Curve (O.C. Curve)
The following can happen when we go for acceptancesampling plans.
1. We accept good lots
2. We reject bad lots
3. We may accept bad lots
4. We may reject good lots
In vast majority of cases, we do accept good lots&reject bad lots. On rare occasions, we may accept
bad lots based on sample evidence although lot may
be good. When good lot is rejected, the error is knownas Error-I and the risk of rejecting a good lot based on
sample evidences is known as producer's risk ()
which should be kept as low as possible.
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When a bad lot is accepted based on sampleevidence, the error is known as Type-II error
and the risk of accepting a bad lot as good is
known as consumers risk () which again
should be kept as low as possible.
The operating characteristics (OC) describesan important feature of acceptance sampling
plans. It shows how well an acceptance plan
discriminates between good & bad lots.
1.00
0.95
Producersrisk () 5 %
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0.10
0 1 2 3 4 5 6 7 8 9 10AQL LTPD
Consumersrisk () 10 %
Actual percent defective (p) in the lot
Operatin Characteristics Curve
n = sample size
c = acceptance number(Maximum
number of defection in asample to accept the lot)
In this figure, a good lot may be defined as having nomore than 1 % defectives This is called acceptable
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more than 1 % defectives. This is called acceptable
quality level (AQL). If there is 1% actual defectives in
a lot, the probability of accepting the lot should be ashigh as 95% and then the probability of rejecting a
good lot is 5%. The probability of rejecting a lot at
the AQL quality is known as producers risk () . Let
us define a bad lot as having 5% or more defectives.
This is known as lot tolerance percent defective(LTPD). The probability of accepting a lot with 55
defectives should be as low as 10%. This is called
the Consumers risk (). But the probability of
rejecting a lot with 5% defectives or more is 90%.
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Sampling plans do not provide perfectdiscrimination between good & bad lots.
Some lots of low quality may be accepted
while some lots of very good quality may
be rejected due to sample evidence.
Ideal OC Curve
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The ideal OC curve can be achieved only through100% inspection. However, in practice we cannotgo for 100% inspection of big lots, the OC curve
selected should ensure that as the lot quality
decreases (i.e. % defectives increase), the
probability of acceptance of such lots should
decrease, although relationship is not linear.
N = 100 units. If
defectives < 2%,
lot accepted &
if 72%, lot is rejected
1.00
0 1% 2%
%a e of defectives
RejectAccept
Process Control with AttributeMeasurements using p charts
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g p
(Fraction Defective Chart)
Measurement by attributes means takingsamples and using a single decision the
item is good or it is bad.
We can use simple statistics to create pchart with a upper control limit (UCL) andlower control limit (LCL). We can draw these
control limits on a graph & then plot the
fraction defective of each individual sample
tested. The process is assumed to beworking satisfactorily when samples taken
during the day periodically continue to stay
between the control limits.
p = Fraction defective
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p = Total number of defects from all samples
Number of samples X Sample size
Sp = p (1-p)
n
UCL = p + zsp
LCL = p zspp = central or control line of p chart
Sp = Standard deviation
n = sample size
z = number of standard deviations for a specific confidencez = 3 (99.7% confidence)
z = 2.58 (99.0 % confidence)
z = 1.96 (95% confidence level)
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LCL
__
Central Line (p)p
Out of control (UCL)
Sample Size
Process Control with variables
measurements using X and R charts
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measurements using X and R charts
In variables sampling, actual weight, volume,number of inches or other variables
measurements are measured and plotted on a
chart to determine acceptability or rejection of
the process based on these measurements. Fourissues to address in creating a control chart:
1.Size of samples sample size to be small so that
it is taken within a reasonable length of time &
to reduce cost of larger sample. Sample size of
five units preferred. For sample size exceeding
15 it would be better to use X charts with
standard deviation () rather than X charts with
range R.
2. Number of samples to set up the charts, 25
or 30 samples be taken and once chart has
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or 30 samples be taken and once chart has
been set up, each sample is compared and a
decision taken whether process is undercontrol.
3. Frequency of samples It is trade off between
cost of sampling (more so if it destructive
testing) vis-a-vis benefit of adjusting thesystem. Usually start with five units every half
an hour & reduce frequency of sample as
confidence in process builds up.
4. Control limits standard practice is to setcontrol limits 3 standard deviations about the
mean (99.7% confidence level). Thus, if any
sample falls outside this band it indicates that
the process is out of control.
X Chart
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If the standard deviation of the process distribution isknown, the X chart may be defined as
UCL X = X + zsx
LCL X = X - zsx
Where:
sx = S = standard deviation of sample means
ns = standard deviation of the process distribution
n = sample size
x = Average of sample means or a target value set for the
process
z = number of standard deviations for a specific confidence
(typically z = 3)
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An X chart is simply a plotting of themeans of the samples that were taken
from a process. X is the average of the
means.
In practice, however, the standarddeviation of the process is not known.
R - Chart
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An R Chart is the plotting of the Rangewithin each sample.
Range the range is the difference betweenthe highest and the lowest numbers in the
sample
An R Chart is the average of the range ofeach sample.
X =________
n
Where:x = mean of the sample
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x = mean of the sample
i = item number
n = total number of items in the sample
X =m
Upper control limit = UCL x = x + A2R Lower Control limit = LCL x = x A
2
R
Upper control limit for R = UCL R = D4R Lower Control limit for R = LCL R = D3R
Where:X = the average of the means of the samples
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g p j = sample number m = total number of samples Rj = Difference between the highest & lowest
measurement in the sample
R = Average of measurement differences R for allsamples or
R =m
X Chart (Mean Chart)
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Lower Control Limit (LCL X)
Central Line (X)Samplemeans
(x)
Upper Control Limit (UCL X)
Sample Numbers
Range Chart (R-chart)
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Lower Control Limit (LCL R)
Central Line (R)SampleRange
(R)
Upper Control Limit (UCL R)
(Sample Numbers)
C - Chart
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This chart applies to the number of non-conformities in samples of constant size.C is a variable representing the number of
non-conformities (defects) in each
sample. Usually the sample size is
considered to be one. The control limitsof this chart are based on poission
distribution.
Some applications of C-chart:1.To control number of non-conforming rivets in
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an aircraft wing.
2.To control the number of imperfectionsobserved in a galvanized sheet.
3.To control the number of surface
imperfections on a large casting like gear
blank which is used to rotate kiln in cementplants.
4.To control the number of defects in final
assemblies (like T.V., Radio, Computer etc.)
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The formulae for control limits are: UCLC = c + 3 c LCLC = c -- 3 c Where c is the mean of number of non-
conformities. Also, this is the central line
in control chart.
The plotting of c (number of defects ineach sample is done on the control chart(c-chart)
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0 1 2 3 4 5 6 7 8 9 10
C
C Chart
Upper Control Limit
Central Line
Lower Control Limit
Mean (c)
Sample Number
Classification of quality
control techniques
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control techniques
Control Charts areused to control in-
process quality
Acceptance sampling
aimed to controlquality of incoming
materials
How much to inspect & how
Often
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Often
Cost of passing
Defectives
Cost of
Inspection
Costs
Total Cost
Amount of Inspection
C Chart(Number of defects per unit)
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( p )
C = Number of defects per unit C = Average no of defects of all samples UCLC = c + 3 c LCLC = c -- 3 c CLC = c
Q. During an examination of equal length of
cloth, the following are the number of defects
observed:
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observed:
2, 3, 4, 0, 5, 6, 7, 4, 3, 2
Draw a control chart for the number of defects &
comment whether the process is under
control or not?
Ans: Average number of defects in 10 sample
units is:
C = C = 2+3+4+0+5+6+7+4+3+2
k10
= 3.6
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9.3 (UCL)
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Sample Numbers
3.6 (CL)
LCL = 0
X Chart & R ChartQ The following data gives the measurements of axle of
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Q. The following data gives the measurements of axle of
bicycle wheel (in mm.) 12 samples were taken so that
each sample contains the measurements of 4 axles.Obtain control limits for X Chart & R Charts and comment
whether the process is under control or not.
Sample nos.
Given the value of constants from table of sample size (n=4)
A2 = 0.73, D3 = 0, D4 = 2.28
1 2 3 4 5 6 7 8 9 10 11 12139 140 142 136 145 146 148 145 140 140 141 138
140 142 136 137 146 148 145 146 139 140 137 140
145 142 143 142 146 149 146 147 141 139 142 144144 139 141 142 146 144 146 144 138 139 139 138
SolutionSample Sample Values Total Sample
Sample (0.0001 inch) Mean (x) Range
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pNo.
( ) ( ) g
(1) (2) (3) (4) = (3) 4 (R) (5)
1 139 140 145 144 568 142.00 6
2 140 142 142 139 563 140.75 3
3 142 136 143 141 562 140.50 7
4 136 137 142 142 557 139.25 65 145 146 146 146 583 145.75 1
6 146 148 149 144 587 146.75 5
7 148 145 146 146 585 146.25 3
8 145 146 147 144 582 145.50 3
9 140 139 141 138 558 139.50 310 140 140 139 139 558 139.50 1
11 141 137 142 139 559 139.75 5
12 138 140 144 138 560 140.00 6
Total x =
1705 50
R = 49
From the above table we get:
x = 1/12 x = 1705.50/12 = 142.125
R = 1/12 R = 49/12 = 4.08
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We are given that for n = 4, A2 = 0.73, D2 = 0, D4 = 2.28
X Chart 3 control limits are given by:
UCL x = x + A2R = 142.125 + 0.73 x 4.08 = 145.10
LCL x = x A2R = 142.125 0.73 x 4.08 = 139.15
CL x = x = 142.125
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UCL (145.1)
LCL (139.15)
CL (142.12)
Sample Number
SampleMean
(x)
Since the sample Point (means)corresponding to sample numbers 5, 6, 7 and
8 lie outside the control limits, the x chart
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8 lie outside the control limits, the x chart
indicates lack of control in process average
. This suggests the presence of someassignable causes of chaotic variations
which must be detected and corrected.
R Chart: 3- control limits are given by:
UCLR = D4R = 2.28 x 4.08 = 9.3024 LCLR = D3R = 0 x 4.08 = 0 CLR = R = 4.08 Since x-chart shows lack of control, the
process cannot be regarded in statistical
control although R-chart exhibits statistical
control.
UCL (9.3)
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Sample Number
SampleRange
LCL (0)
CL (4.08)
Control Charts for Attributes:
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As an alternative to x and R or x and s charts wehave the control charts for attributes which areused:
When we deal with quality characteristics whichcannot be measured quantitatively. In such
cases the inspection of units is accompanied byclassifying them as acceptable or non
acceptable, defective or non defective.
When we deal with characteristics which areactually observed as attributes although they
could be measured quantitatively, e.g., go and
not-go gauge test results.
Question on x chart & R chartQ. You are given values of sample means (x) and the ranges
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g p ( ) g
(R) for ten samples of size 5 each. Draw mean & range
chart and comment on the state of control of the process.
Use the following control chart constants:
For n = sample size = 5
From Tables (Given)
A2 = 0.58, D3 = 0, D4 = 2.115
Sampleno.
1 2 3 4 5 6 7 8 9 10
X 43 49 37 44 45 37 51 46 43 47
R 5 6 5 7 7 4 8 6 4 6
Solution: Mean Chart (X Chart)
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X = x/10 = 442/10 = 44.2
R = R/10 = 58/10 = 5.8
3 control limits are
UCL(x) = x +A2R = 44.2+0.58 x 5.8 = 47.567
LCL(x) = X A2R = 44.2 0.58 x 5.8 = 40.836
Central line = x = 44.2
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Sample Numbers
Sample
mean
(X)
CL (44.2)
LC (40.83
UCL (47.5)
Range Chart
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3 control limits are:UCL(R) = D4R
= 2.115 x 5.8
= 12.267LCL (R) = D3R = 0 x 0.58
= 0
Central line = R = 5.8
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Q. From the following data, construct afraction defective chart (p chart)
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GroupNumber
SampleSize
No. ofDefective
s1 32 2
2 32 3
3 50 34 50 2
5 32 1
6 80 4
7 50 28 50 0
9 32 2
10 32 1
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Group Number(Group Number)
Fraction Defective (p)
1 2/32=0.0625
2 3/32=0.0940
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3 3/50=0.0600
4 2/50=0.04005 1/32=0.0300
6 4/80=0.0500
7 2/50=0.0400
8 0/50=0.0000
9 2/32=0.062510 1/32=0.0300