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UNIVERSITI TEKNIKAL MALAYSIA MELAKA

A Study on Quality Tools and Techniques based


on SWOT Analysis at CTRM AC

Thesis submitted in accordance with the requirements of Universiti Teknikal


Malaysia Melaka for the Bachelors Degree in Manufacturing Engineering
(Manufacturing Design) with Honours

By

Sheikh Fahmi Bin Mohamed Bamadhaj

Faculty of Manufacturing Engineering


May 2007
ABSTRACT

This study discusses the quality tools and techniques used at CTRM Aero Composites
(CTRM AC), Melaka. The purpose of the study is to identify and analyze the quality tools
and techniques used at CTRM AC in terms of strength, weakness, opportunities and
threats (SWOT). The data was gathered from primary and secondary data. The primary
data includes gathering data from interviews and observations while the secondary data
are literature reviews from journals, books, internet and CTRM AC quality report. From
all the data collections, the result was analyzed using the SWOT analysis. The results was
focused on the 7QC tools, 8D Problem Solving Technique and FMEA. Results show that
the tools used at CTRM AC have their pros and cons but it is founded to be suitable for
this type of industry. This is because they do not use sampling technique but inspect every
part and each part is very important because it is an aircraft component. Therefore, the 7
QC tools are known as the use of statistical methods in a systematic manner to identify
root causes of problem. 8D Problem Solving Techniques is to identify, correct and
eliminate the recurrence of quality problems and FMEA is a method that examines
potential failures in products or processes. If these three methods are used properly, the
company will achieve a major success in producing products with minimal defects or
quality problems.

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ABSTRAK

Kajian ini membincangkan tentang penggunaan alat dan teknik kualiti yang digunakan di
CTRM Aero Composites (CTRM AC), Melaka. Tujuan kajian ini adalah untuk
mengenalpasti dan analisi alat and teknik kualiti yang digunakan di CTRM AC dalam
bentuk kekuatan, kelemahan, peluang dan ancaman yang juga dikenali sebagai kaedah
analisis SWOT. Data dikumpul dari segi data utama dan data sekunder. Data utama terdiri
daripada temuduga dan pemerhatian. Data sekunder pula adalah tinjauan perpustakaan
yang terdiri daripada jurnal atau majalah, buku, internet dan laporan kualiti CTRM AC.
Dari semua data yang dikumpul, hasilnya dianalisi dengan menggunakan kaedah analisis
SWOT. Hasil kajian difokus kepada 7QC Tools, Teknik Penyelesaian Masalah 8D dan
FMEA. Hasilnya menunjukkan bahawa alat dan teknik kualiti yang digunakan ada
kebaikan dan kelemahannya tetapi ianya sesuai untuk industri ini. Ini kerana mereka tidak
menggunakan teknik sampling malahan setiap produk diperiksa kerana setiap bahagian
amat kritikal disebabkan ia adalah bahagian kapal terbang. Oleh itu, 7QC Tools adalah
kegunaan statistik dalam kaedah sistematik untuk mengenalpasti punca sesuatu masalah.
Teknik Penyelesaian Masalah 8D adalah untuk mengenalpasti, memperbaiki dan
mengelak dari kejadian itu berulang manakala FMEA pula adalah kaedah memeriksa
kerosakan atau kegagalan yang bakal berlaku terhadap sesuatu produk atau proses. Jika
ketiga-tiga kaedah ini digunakan dengan betul dan jayanya, syarikat ini akan mencapai
kejayaan yang besar dalam menghasilkan produk dengan masalah kualiti yang minimum.

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CHAPTER 1
INTRODUCTION

1.1 Introduction

Quality has emerged and remained a dominant theme in management thinking over the
past fifty years. While the initial approaches arose from American theorists and
practitioners, it was predominantly Japanese companies that undertook the early
commercial applications (Beckford, 2002). Besterfield (2004) stated that in the early
days, most products manufactured were not complicated and quality was not affected. In
fact, because productivity improved, there was a decrease in cost, which resulted in lower
customer expectations. He also includes that as product became more complicated and
jobs more specialized, it became necessary to inspect products after manufacture.

However, the subject area of Quality keeps advancing in both breadth and depth with the
scope of application of quality tools and techniques having expended beyond the
traditional manufacturing arena. Quality issues are now the concern of all organizations
including the services and public sectors. Quality tools, techniques, concepts and
methodologies have been enhanced and integrated with other features to suit new
challenges. Today, the subject of quality is sufficient to be treated as a specialized field of
study on its own (Hassan et al., 2000).

This chapter will provide an overview of the research project titled A Study on Quality
Tools and Techniques based on SWOT Analysis at CTRM AC. The study was conducted
at CTRM Aero Composites which is situated at Batu Berendam, Melaka.

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1.2 Company Background

Composites Technology Research Malaysia Sdn. Bhd (CTRM) was incorporated in


November 1990 by Minister of Finance Malaysia Inc. in response to the government
having the vision for the advanced composite industry, thus giving CTRM the mandate to
spearhead Malaysias foray into the aerospace and composite manufacturing. It is an
investment holding company and operates through its subsidiaries (CTRM Aero
Composites Sdn Bhd, CTRM Aviation Sdn Bhd and CTRM Excelnet Engineering Sdn
Bhd) in various projects such as manufacturing of composite components, MRO services
and engineering design.

Until August 2006, the total number of employees at CTRM is 948. CTRM Sdn Bhd
focuses on three main areas: aerospace, composites and engineering. These three areas
will provide the full range of the aerospace and composites industry. CTRM Aero
Composites Sdn Bhd specialises in composites components manufacturing. CTRM
Aviation Sdn Bhd specialises in MRO services whilst CTRM Excelnet Engineering is the
group design center.

CTRM Aero Composites was established by the Malaysian Government as a vehicle for
the acquisition of composite technology into Malaysia. In line of this, CTRM Aero
Composites was then established as CTRMs composites production unit to manufacture
under contract and subcontract major aerospace composite components to meet its own
and worldwide demand. CTRM Aero Composites production facilities is one of the most
advanced of its kind in the region and will be the stepping stone for Malaysia to fully
realize its vision to be the leader in the composite industry in years to come.

1.2.1 Premises and Facility

CTRM Aero Composites facility is located in Melaka, 160 km from the nations capital
Kuala Lumpur. CTRM Aero Composites main building is shown in Figure 1.1. Address
for CTRM Aero Composites:

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CTRM Aero Composites Sdn. Bhd.,
Composites Technology City,
Batu Berendam, Melaka
75350 MALAYSIA

Figure 1.1: CTRM AC Building 1

The facility, specially designed for advanced composites manufacturing, consists of


20,880 sq-m which includes a factory floor area of 19,200 sq-m. Main facilities and
equipment available includes walk-in freezers, coordinating measuring machine (CMM),
materials drying oven, composites ply cutting machine, controlled environment
laminating room, walk-in curing ovens, autoclaves, universal testing machines, non-
destructive testing (ultrasonic) equipment and CNC machine.

1.2.2 Products

1. Airbus Military A400M


Horizontal Tail Plane Trailing Edge (HTP TE)
Vertical Tail Plane Trailing Edge (VTP TE)
Vertical Tail Plane Leading Edge (VTP LE)

2. Airbus A380
Fixed Leading Edge Lower Panels (FLELP)
Inboard Outer Fixed Leading Edge (IOFLE)

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3. Airbus A320
Leading Edge Panels
Trailing Edge Panels
Aileron Panels
Underwing and Overwing Panels
Top Assembly Panels
Moveable Fairing
Spoiler

4. Airbus A300
Wing Fixed Trailing Edge Assembly (FTE)

5. Airbus A318/A319/A320/A321 (A321 SERIES)


Leading and Trailing Edge (LTE) Panel
Trailing Edge Panels (22 panels/ ship set)
Trailing Edge Panels ( 22 Panels/ ship set)

6. Goodrich V2500
Phase I: Blank Cascade Actuator Cover
Phase II: Torque Ring Fairing Torque Ring Cone
Phase III: Outer Panel

7. Alvis Bridging
BR90 Tactical bridging System 6-meter module launch rail using
advanced composite material

1.3 Problem Statements

In the aerospace industry, it is very important to get the desired specification for the
product. Because of that, quality plays an important role in producing a good product.
Since the aerospace industry is still new in this country, there are no specific study done

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about the quality tools and techniques that are suitable to be used in this industry.
Therefore, this study will analyze the quality tools and techniques used at CTRM AC in
terms of Strength, Weakness, Opportunities and Threats (SWOT).

1.4 Objectives

Specific objectives of this study are:

1. To identify the Quality Tools and Techniques used by CTRM AC towards zero
defect.
2. To analyze the Quality Tools and Techniques in terms of Strength, Weakness,
Opportunities and Threats at CTRM AC.

1.5 Scope of Study

This study is prepared to identify and analyze the Quality Tools and Techniques used by
CTRM AC which is situated in Melaka. The data was gathered from primary and
secondary data. The primary data includes gathering data from interviews and
observations while the secondary data are literature reviews from journals, books, internet
and CTRM quality report. From all the data collections, the result was analyzed using the
SWOT analysis technique which analyzes the quality tools and techniques used in terms
of strength, weakness, opportunities and threats. The duration of this study was from
December 2006 until April 2007. The results of this study may not be applicable to other
industries with different operational background.

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1.6 Importance of Study

The importance of this study is as follows:

1. A starting point in terms of defining the ultimate quality tool and technique
that should be used for CTRM and other aerospace industry.
2. As academic references for Universities and Colleges in subjects that are
related to quality.
3. Readers can gain knowledge in quality and use as reference in related studies.

1.7 Outline of Study

This study is divided into five (5) chapters. Chapter 1 is mainly about the introduction
which consists of the company background, problem statements, objectives, scope of
study, importance of study and the outline of the study. Chapter 2 is the literature review.
This chapter discusses the definition and gives and introduction to the key words which is
quality based on the references gathered.

Chapter 3 is the methodology. This chapter explains the research methodologies that were
used to gather the data to support the analysis of the study. The methodology includes the
planning of the study, survey instrument, flowchart of the study, data collection and
analysis technique.

Result and discussion of this study is in Chapter 4 which includes the current
implementation of quality tools and techniques at CTRM AC and how it was analyzed
using the SWOT analysis. Finally, Chapter 5 will give the conclusion of the whole study.

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CHAPTER 2
LITERATURE REVIEW

2.1 Introduction

This chapter provides the definitions of the key word which is quality. A detailed
description on quality is also provided in order to give an understanding about the
philosophy. Other than that, since this study is focusing on the quality tools and
techniques, the basic quality tools and techniques is also explained in this chapter.

2.2 Definition of Quality

Quality has been defined differently by different people. The essences of some
definitions are summarized in Table 2.1 (Hassan et al., 2000). Quality is the result of a
comparison between what was required and what was provided. It is judged not by the
producer but by the receiver. The judgment can be made of an intention, as is the case
when selecting suppliers, or an output, as is the case when purchasing a product or
service (Institute of Quality Assurance, 2006).

Quality is not perfection, a standard, a procedure, a measure or an adjective. No amount


of inspection changes the quality of a product or service. Quality does not exist in
isolation - there has to be an entity, the quality of which is being discussed. Quality is not
a specific characteristic of an entity but the extent to which that characteristic meets
certain needs. The value of the characteristic is unimportant - it is how its value compares
with customer needs that signify its quality (Institute of Quality Assurance, 2006).

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Table 2.1: Definitions of Quality

Quality Guru/ Definition


authority
Juran Fitness of use (1964), conformance to specifications

(Juran, 1988)
Crosby Conformance to requirements (Crosby, 1979)

Fegienbaum Total composite will meet the expectations of

customers (Fegienbaum, 1983)


Deming Aims at the needs of the customer, present and future

(Deming, 1986)
Taguchi Loss to society (Taguchi, 1986)

ISO 9000 Totality of features and characteristics of a product or

service to satisfy stated or implied need. (ISO 9000,


1992)

Besterfield (2004) stated that Quality is not the responsibility of any one person or
functional area; it is everyones job. It includes the assembly-line worker, the typist, the
purchasing agent, and the president of the company. The responsibility of the quality
begins when marketing determines the customers quality requirements and continues
until the product is received by a satisfied customer. Kano defines this quality orientation
of customer needs as illustrated in Figure 2.1. His model views quality in two dimensions
which are must be quality (to satisfy the expected needs) and attractive quality (the
unexpected that delights customers) (Kano et al., 1984).

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Customer
Satisfaction

Unexpected

ATTRACTIVE
QUALITY
Degree of
Availability
Expected
MUST BE
QUALITY

Figure 2.1: Kanos two-dimensional recognition of Quality (Kano et al., 1984)

The responsibility for quality is delegated to the various areas with the authority to make
quality decisions. In addition, a method of accountability, such as cost, error rate, or
nonconforming units, is included with that responsibility and authority. The area
responsible for quality control is shown in Figure 2.2. They are marketing, design
engineering, procurement, process design, production, inspection and test, packaging and
storage, product service, and the customer. Figure 2.2 is a close loop with the customer at
the top and the areas in the proper sequence in the loop.

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Customer

Product Service Marketing

Packaging and Quality Design


Storage Engineering
Product

Inspection and Procurement


Test

Production Process Design

Figure 2.2: Areas Responsible for Quality (Besterfield, 2004)

2.3 Quality Tools and Techniques

This topic can be set as guidance for implementing powerful improvement activities.
Quality tools and techniques are divided into the categories of quantitative and non
quantitative. The quantitative ones are statistical process control (SPC), acceptance
sampling, reliability, experimental design, Taguchis quality engineering, failure mode
and effect analysis (FMEA) and quality function deployment (QFD). The non
quantitative ones are ISO 9000, ISO 14000, benchmarking, total productive mentenance
(TPM), management tools, quality by design, products liability, and information
technology (Besterfield, 2004). The purpose is to provide background information and
overviews of tool usage that will assist in selecting, sequencing and applying major TQM
tools, methods and processes.

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2.3.1 Statistical Process Control (SPC)

According to Besterfield (2004), SPC is comprised of several tools such as Pareto


diagram, cause and effect diagram, check sheets, process flow diagram, scatter diagram,
histogram, and control charts.

2.3.1.1 Pareto Diagram

According to Michalski (1998), Pareto chart is a bar chart arranged in a descending order
of size or importance from left to the right to separate the display the critical few from
the trivial many causes a problem. It is named after Vilfredo Pareto who, in the late
1800s, postulated the 80/20 role, which states that 80 percent of the trouble due 20
percent of the causes. The Pareto chart is used to identify the most important problems
(Besterfield et al., 2003).

Based on Michalski (1998), the typical application for a Pareto chart is:
To prioritize potential causes of a problem
To establish and identify cause and effect
To reach consensus on what needs to be addressed first
To identify improvement opportunities
To measure success of corrective action

Sometimes a Pareto diagram has a cumulative line, as shown in Figure 2.3. This line
represents the sum of the data as they are added together from left to right. Two scales are
used: The one on the left is either frequency or dollars, and the one on the right is percent
(Besterfield, 2004).

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Figure 2.3: Pareto Diagram (Besterfield, 2004)

2.3.1.2 Cause and Effect Diagram

The cause and effect diagram is a graphical representation of potential causes for a given
affect. Since it was first used by Ishikawa, this type of illustration is also known as
Ishikawa diagram. In addition, it is often referred to as a fishbone diagram due to a
skeletal appearance. The purpose of the diagram is to assist in brainstorming and enabling
a team to identify and graphically display, in increasing detail, the root causes of a
problem (Basu, 2004).

Cause and effect diagram is arguably the most commonly used of all in quality
improvement tools. The effect is a specific problem and is considered to constitute the
head of the diagram. The potential causes and sub-causes of the problem form of the
bone structure of the skeletal fish. Figure 2.4 shows an example of the Cause and Effect
Diagram.

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Method Human

Quality
Defects

Material Equipment

Figure 2.4: Cause and Effect Diagram (Basu, 2004)

2.3.1.3 Process Flow Diagram

For many products and services, it may be useful to construct a process flow diagram.
Figure 2.5 shows a flow diagram for the order entry activity of a make-to-order company.
These diagrams show the flow of the product or service as it moves through the various
processing operations. The diagram makes it easy to visualize the entire system, identify
potential trouble spots, and locate control activities. It answers the question, "Who is the
next customer?" Improvements can be accomplished by reducing, combining, or
eliminating steps (Besterfield, 2004).

Standardized symbols are used by industrial engineers; however, they are not necessary
for problem solving. The symbols used in the figure should be sufficient (Besterfield,
2004).

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Figure 2.5: Flow Diagram for an Order Entry Activity

2.3.1.4 Check Sheets

A check sheet is a sheet or form used to record data. It is one of the simplest methods for
collecting and determining trends and providing information for decision making. The
recording can be used to determine the occurrence of events such as a non-conformity
and, where relevant, their position (McQuater et al, 1995). Figure 2.6 shows an example
of a simple quality control check sheet.

Figure 2.6: Quality Control Check sheet

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2.3.1.5 Histogram

A histogram is a graphical representation of frequency of occurrence versus data points


or a class that represents a set of data points. The histogram makes it easy to find the
shape, the central value and the extent of dispersion. Any basic book on statistics or
quality control explains how to construct a histogram. One major use of the histogram is
as a visual means for identifying the distribution of data (Duffuaa and Ben-Daya, 1995).
Figure 2.7 shows an example of a histogram.

Figure 2.7: Sample of Histogram

2.3.1.6 Scatter Diagram

The scatter diagram is another visual display of data. It shows the association between
two variables acting continuously on the same item. The scatter diagram illustrates the
strength of the correlation between the variables through the slope of a line. This
correlation can point to, but does not prove, a causal relationship. Therefore, it is

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important not to rush to conclusions about the relationship between variables as there
may be another variable that modifies the relationship.

For example, analyzing a scatter diagram of the relationship between weight and height
would lead one to believe that the two variables are related. This relationship, however,
does not mean causality; for instance, while growing taller may cause one to weigh more,
gaining weight does not necessarily indicate that one is growing taller. The scatter
diagram is easy to use, but should be interpreted with caution as the scale may be too
small to see the relationship between variables, or confounding factors may be involved.
Figure 2.8 shows an example of a scatter diagram (Anon, 2007b).

Figure 2.8: Sample of a Scatter Diagram

2.3.1.7 Control Charts

The control chart is a graph used to study how a process changes over time. Data are
plotted in time order. A control chart always has a central line for the average, an upper

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line for the upper control limit and a lower line for the lower control limit. These lines are
determined from historical data. By comparing current data to these lines, you can draw
conclusions about whether the process variation is consistent (in control) or is
unpredictable (out of control, affected by special causes of variation) (American Society
for Quality, 2007).

Control charts for variable data are used in pairs. The top chart monitors the average, or
the centering of the distribution of data from the process. The bottom chart monitors the
range, or the width of the distribution. If your data were shots in target practice, the
average is where the shots are clustering, and the range is how tightly they are clustered.
Control charts for attribute data are used singly (American Society for Quality, 2007).
Figure 2.9 shows an example of a control chart

Figure 2.9: Control Chart for Strength Test

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2.3.2 Failure Mode and Effect Analysis (FMEA)

A failure mode effect analysis (FMEA) is a technique that allows a cross-functional team
to identify potential failure modes or causes of failures that may occur as a result of
design or process deficiencies. This analysis furthermore, produce estimates of the effects
and level of severity of failures, and it provides recommendations for corrective design of
process changes (Michalski, 1998).

Based on Besterfield et al. (2003), FMEA is a before-the-event action requiring a team


effort to easily and inexpensively alleviate changes in design and production. There are
several types of FMEA: design FMEA as shown in Figure 2.10, process FMEA,
equipment FMEA, maintenance FMEA, concept FMEA, service FMEA, system FMEA
and environmental FMEA. Basically, FMEA is used to consider potential failure modes,
causes, effects and corrective action to be taken. Besides that, it can also be used to
predict the reliability of complex products and processes, access the impact of failures on
internal and external customers and identify ways for a product or subsystem to fail
meeting specifications (Michalski, 1998).

Figure 2.10: Design FMEA Form (Besterfield, 2003)

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2.3.3 Quality Function Deployment (QFD)

QFD is a system that identifies and sets the priorities for product, service and process
improvement opportunities that lead to increased customer satisfaction. It ensures the
accurate deployment of the "voice of the customer" throughout the organization from
product planning to field service. The multi-functional team approach to QFD improves
those processes necessary to provide goods and services that meet or exceed customer
expectations. The QFD process answers the following questions:

1. What do customers want?


2. Are all wants equally important?
3. Will delivering perceived needs yield a competitive advantage?
4. How can we change the product, service, or process?
5. How does an engineering decision affect customer perception?
6. How does an engineering change effect other technical descriptors?
7. What is the relationship to parts deployment, process planning, and
production planning?

QFD reduces start up costs, reduces engineering design changes, and most
important, leads to increase customer satisfaction (Besterfield, 2004). The
House of Quality is the first matrix in a four-phase QFD (Quality Function
Deployment) process. It's called the House of Quality because of the
correlation matrix that is roof shaped and sits on top of the main body of the
matrix. The correlation matrix evaluates how the defined product
specifications optimize or sub-optimize each other (Anon, 2007). Figure 2.11
shows the QFD house of quality for enterprice product development
processes.

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Figure 2.11: QFD House of Quality

2.3.4 Design of Experiment (DOE)

The objective of DOE is to determine those variables in a process or product that are the
critical parameters and their target values. By using formal experimental techniques, the
effect of many variables can be studied at one time. Changes to the process or product are
introduced in a random fashion or by carefully planned, highly structured experiments
(Besterfield et al., 2003).

There are three approaches to DOE: classical, Taguchi, and Shainin. The classical is
based on the work of Sir Ronald Fischer in agriculture during the 1930s. Dr. Genichi
Taguchi simplified the classical method and introduced additional engineering design

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concepts. The Dorian Shainin approach uses a variety of problem-solving methods after a
product is in production. The wise practitioner will become familiar with all three
approaches and develop his own methodology (Besterfield et al., 2003).

Since DOE identifies the critical parameters and their target values, its use should
actually precede SPC in many circumstances. It is not unusual to find after an experiment
that SPC was controlling the wrong variable or the target was incorrect (Besterfield et al.,
2003).

2.3.5 Quality By Design

Quality by design is the practice of using a multidisciplinary team to conduct product or


service concepting, design, and production planning at one time. It is also known as
simultaneous engineering or parallel engineering. The team is composed of specialists
from design engineering, marketing, purchasing, quality, manufacturing engineering,
finance, and the customer. Suppliers of process equipment, purchased parts, and services
are included on the team at appropriate times (Besterfield, 2004).

In the past, the major functions would complete their task, "throw it over the wall" to the
next department in the sequence, and not be concerned with any internal customer
problems that may arise. Quality by design requires the major functions to be going on at
the same time. This system provides for immediate feedback and prevents quality and
productivity problems from occurring (Besterfield, 2004).

The major benefits are faster product development, shorter time to market, better quality,
less work-in-process, fewer engineering change orders, and increased productivity.
Design For Manufacturing and Assembly (DFMA) is an integral part of the process
(Besterfield, 2004).

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2.3.6 Products Liability

Consumers are initiating lawsuits in record numbers as a result of injury, death, and
property damage from faulty product or service design or faulty workmanship. The
number of liability lawsuits has skyrocketed since 1965. Jury verdicts in favor of the
injured party have continued to rise in recent years. The size of the judgment or settle-
ment has also increased significantly, which has caused an increase in product liability
insurance. Although the larger manufacturers have been able to absorb the judgment or
settlement cost and pass the cost on to the consumer, smaller manufacturers have
occasionally been forced into bankruptcy. Although injured consumers must be com-
pensated, it is also necessary to maintain viable manufacturing entities (Besterfield,
2004).

Reasons for injuries fall generally into three areas-the behavior or knowledge of a user,
the environment where the product is used, and whether the factory has designed and
constructed the product carefully using safety analysis and quality control. The safety
and quality of products has been steadily improving. Manufacturers have met the
challenge admirably: for instance, using safety glass where previously glass shards
caused many severe injuries, placing safety guards around lawn mower blades to prevent
lacerations and amputations, redesigning hot water vaporizers to reduce the risk of burns
to children, and removing sharp edges on car dashboards to minimize secondary collision
injuries (Besterfield, 2004).

Resources are limited; therefore, the perfect product or service is, in many cases, an
unattainable goal. In the long term, customers pay for the cost of regulations and
lawsuits. It is appropriate to mention the old cliche, An ounce of prevention is worth a
pound of cure. An adequate prevention program can substantially reduce the risk of
damaging litigation (Besterfield, 2004).

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2.3.7 Benchmarking

Benchmarking is measuring performance against that of best-in-class organizations,


determining how the best in class achieve those performance levels, and using the
information as the basis for goals , strategies and implementation (Besterfield et al.,
2003).

Implicit in this definition are two key elements. First, measuring performance requires
some sort of units of measure. These are called metrics and are usually expressed
numerically. The numbers achieved by the best-in-class benchmark are the target. The
organization seeking improvement then plots its own performance against the target.
Second, benchmarking requires that managers understand why their performance differs.
Benchmarkers must develop a thorough and in-depth knowledge of both their own
processes and the processes of the best-in-class organization. An understanding of the
differences allows managers to organize their improvement efforts to meet the goal.
Benchmarking is about setting goals and objectives and about meeting them by
improving processes (Besterfield et al., 2003).

According to Besterfield et al. (2003), organizations that benchmark adapt the process to
best fit their own needs and culture. Although the number of steps in the process may
vary from organization to organization, the following six steps contain the core
techniques.

1. Decide what to benchmark.


2. Understand current performance.
3. Plan.
4. Study others.
5. Learn from the data.
6. Use the findings.

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2.4 Summary of Quality Tools and Techniques

No. Tools/Techniques Description Example References


1 Pareto Chart Bar chart arranged in a
descending order of size or
importance from left to the
right Michalski (1998)
Besterfield (2004)
Besterfield et al.
(2003)

2 Cause and Effect Graphical representation of


Diagram potential causes for a given Method Human
affect

Basu (2004)
Quality
Defects

MaterialEquipment