QUALITY CONTROL ASSIGNMENT

MEHRAN UNIVERSITY OF ENGINEERING AND TECHNOLOGY

JAMSHORO

ASSIGNMENT

SUBMITTED BY: MASOOD AHMED (15ch41)

Muhammed Ramzan (15ch49)
Kanwal Kumar (15ch155)

Submitted to: Madam aisha kausar

Assigned topic:
• Purpose of quality specifications
• Defination of unit product
• Completeness of specifications
• Standardization in specifications
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QUALITY: The working definition of 'quality' is the minimum level of performance required to
fulfil a specification. This in turn underscores the importance of a precise description in terms
of an item's specifications.

Specifications: These include a list of characteristics that a product should present to ensure
that the quality requirements for this product are met.
These characteristics must be
supported by realistic and applicable control methods. Generally, reference is made to an
international or a national control standard, or, more rarely, an in-house procedure.

National specifications: Nations impose their own national specifications for all products
imported into their markets. These respond to several preoccupations but, in general, are
designed to protect consumers, local markets and national producers. Nations also require
exporters to conform to required specifications, which in turn helps to promote the
production of export-quality products. Always ensure that the goods intended for importation
conform to the country's national specifications. If this is not possible, contact the appropriate
national authorities to have the goods authorized as an exception to the import regulations.

International specifications: Many products already have internationally-recognised

specifications (size of freight containers, quality of fuels, etc.), which are set out in the ISO
standards. Other internationally-recognized bodies have also established standard
specifications: GAFTA for international trade contracts covering cereals, CEI for international
standards on electrical devices, ECHO for humanitarian food-aid products from the EU,
etc. The Movement conforms, wherever possible, to international specifications for all
standard products

DEFINATION OF UNIT OF PRODUCT:To built the Unit of Product, the amount of money
required for the product which is cost per unit, known as Unit of Product. The cost per unit is
called unit of Product.

Unit cost: A unit cost is the total expenditure incurred by a company to produce, store and
sell one unit of a particular product or service. Unit costs include all fixed costs, or overhead
costs, and all variable costs, or direct material costs and direct labor costs, involved in
production. Determining the unit cost is a quick way to check if companies are efficient in
producing their products.

How it works:
EX: Let's assume it costs Company XYZ $10,000 to purchase 5,000 widgets that it will
resell in its retail outlets. Company XYZ's cost per unit is:

$10,000 / 5,000 = $2 per unit

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Often, calculating the cost per unit isn't so simple, especially in manufacturing situations.
Usually, costs per unit involve variable costs (costs that vary with the number of units made)
and fixed costs (costs that don't vary with the number of units made).

Purpose of this? Knowing cost per unit helps business owners determine when they'll turn
a profit and helps them price their products with that in mind. It provides a dynamic overview
of the relationships among revenues, costs and profits.

Completeness of Specification: Specifications form what is called the purchase description,

The purchase specification forms the heart of the procurement. Whether or not a purchase
order or contract will be performed to the satisfaction of the buying organization frequently
is determined at the time the specification is selected or written. Purchase specifications serve
a number of purposes, among them to:

■ Communicate to professionals in the supply management department what to buy.

■ Communicate to prospective suppliers what is required.

■ Establish the tangible goods to be provided.

■ Establish the intangible services to be provided, such as warranty, maintenance, and

support.

■ Establish the standards against which inspections, tests, and quality checks are made.

■ Balance the specification goals of individual departments, relevant suppliers, desired

product or service performance and cost. Recognition that procurements should be
made with the understanding of total cost of ownership (as discussed in the Total Cost of
Ownership chapter) requires supply managers to consider specifications that go beyond the
tangible good or primary service needed. For example, laptop specifications should include
the desired warranty and support levels. In a manufacturing firm, when specifications for the
tangible product are fixed, the final design of the product is also fixed. The final design of the
product often dictates fixing ancillary costs such as packaging and required service for the
product. Therefore, when the final design is fixed, the product’s competitive stance and its
profit potential are also fixed. As we stated in our new product development chapter, it is
estimated that75 to 85 percent of avoidable total costs are controllable at the design stage.
Consequently, early involvement of supplier professionals is essential in the firm’s effort to
reduce total cost. Develop. We discuss simple specifications first, and then complex
specifications. All categories of specifications are presented in the Figure 11.2, since
combinations of the categories of specifications are possible.
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Categories of Specifications Purchase specifications can be classified into two broad
categories—simple and complex— also referred to as low detail and high detail. The
classification simple or complex is a reflection of the development of the specification itself
and not the complexity of the product or service or the fulfillment of the specification. Both
simple and complex specifications require a balancing of departmental differences, along with
quality, delivery, and cost. However, in most cases, simple specifications require less balancing
than complex specifications. Complex or detailed specifications are used when a simple
specification is not possible or preferable. A complex specification requires more resources
and time to de-

Development of Specifications: Developing specifications can be a difficult task to manage

because it involves many variables, including the problem of conflicting human sensitivities
and orientations. Many departments are capable of contributing to specifications
development; they are frequently thwarted from fully doing so, however, because of
conflicting views. Before the optimum in design can be achieved, these major conflicting views
must be reconciled.

Common Specifications Problems: Several problems that are caused by the specifications
themselves commonly arise unnecessarily. These should be headed off beforehand and
addressed in the specifications development process, before the specifications have been
completed. Three of these common problems are given below. Lack of Clarity Lack of clarity
can result in unpleasant surprises Limiting Competition Care must be exercised to ensure that
specifications are not written around a specific product, so as to limit competition.
Unreasonable Tolerances Specifying an unreasonable tolerance is another common
specification mistake.

Standardization A uniform identification that is agreed on is called a standard. In business

practice, the concept of standardization is applied in either industrial or managerial
standardization. Industrial standardization can be defined as “the process of establishing
agreement on uniform identifications for definite characteristics of quality, design,
performance, quantity, service, and so on.” Managerial standardization deals with such things
as operating practices, procedures, and systems.

Types and Sources of Standards: In industry, there are three basic types of materials
standards: (1) international standards, (2) industry or national standards, and (3) company
standards. If a designer or user cannot adapt a national or international standard for his or
her purpose, the second choice is to use a company standard. If the required part is truly a
nonrepetitive “special,” then use of a standard is impossible. Where can one get standard
specifications? Specifications for items that have been standardized can be obtained from the
organizations that have developed them, such as
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those listed below:

■ International Organization for Standardization

■ National Bureau of Standards

■ American National Standards Institute

■ American Society for Testing and Materials

■ American Society for Quality

■ Society of Automotive Engineers

■ Society of Mechanical Engineers

■ American Institute of Electrical Engineers

■ Federal Bureau of Specifications

■ National Lumber Manufacturers’ Association

Benefits of Standardization: Standardization benefits an organization in a variety of ways: it

enables mass production, enables customization, improves supplier coordination, improves
quality, enables simplification, enables delayed differentiation and, as a result of many of the
other benefits, lowers inventories.

■ Enables mass production. As Eli Whitney discovered, mass production becomes possible
through the creation of interchangeable parts. Standardized parts and components enable
management to stabilize production processes and focus on continuous improvement,
thereby reducing costs. Enables customization. Standardized parts and modules enable
manufacturers to make a wide variety of finished products from a relatively small number of
parts. Improves supplier coordination. Standardized parts and components provide a very
clear specification for the supplier Improves quality. Standard parts and components are
repetitively manufactured to the same design, enabling investment by the producing
company in better machinery, training, and materials. The result is a significantly lower defect
rate Enables simplification. Once standard parts are identified, simplification can be used to
identify redundant standard parts that can be eliminated. Simplification is discussed in the
next section. Enables delayed differentiation. When customization of the product is
accomplished as close to customer demand as possible, the differentiation of the product or
service is delayed Lowers inventories. Lower inventories result from the number of distinct
parts carried being reduced