Production and Operations Management

Module 7: Quality Management

Definitions

Quality

Degree to which a set of characteristics of a product or service meet

requirements
Characteristics may be subjective or objective
Subjective characteristics may be poor, good, excellent etc.
Objective characteristics may be defective parts per million (PPM), complaints,
Cost of poor Quality)

Characteristics may be:

– Physical ( e.g.. Mechanical, electrical, chemical)
– Sensory ( e.g.. Smell, touch, taste, sight, hearing)
– Behavioral (e.g.. courtesy, honesty)
– Temporal (e.g.. Punctuality, availability, reliability)
– Ergonomic ( related to human safety)
– Functional ( performance oriented)
– Others (e.g.. maintainability, reliability, spares support)

Inspection:
Inspection deals with verification of products to ensure that product produced meet
specified requirements. Main purpose of Inspection is to segregate good products from
bad.
Inspection may at receiving stage, in process stages and final stage
Inspection may be inspection with instruments , testing , visual
Inspection may be 100 %, sampling or Audit . extent of inspection depends on cost and
risk of bad products being accepted.

Quality Control
Quality control covers activities that are performed to ensure that product meet
requirements. These include right selection of materials, Statistical process control,
calibration of instruments, verification of tooling, setup inspections. Quality control
activities cover inspection also.
Statistical Quality Control
Statistical Quality control deals with the application of statistical techniques for control of
processes to produce quality products and also for inspection

Variability of a process (Process variation)

Each work station in a manufacturing cycle converts inputs to outputs. These processes
convert material inputs to value added outputs.
The characteristics of Products produced may be:
• Dimensional characteristics (eg Length, thickness, diameter)
• Form characteristics ( eg. parallelism, ovality)
• Physical and chemical properties ( eg. Hardness, chemical composition)

If a batch of products is produced, none individual items are not identical. There will
always be very small differences. Some times, these differences are apparent only when
measurements are taken with high accuracy instruments.

Variation in the batch= maximum dimension – minimum dimension

These variations are due to two broad causes

• Chance causes or Common causes
• Special causes or Assignable causes

Examples of chance causes are:

• slight variation in materials
• equipment variations (eg. Run out, play, backlash ,geometric inaccuracies
positional accuracy, repeatability)
• clearances in fixtures
• minute tool wear
• variations in environment (temperature, humidity)
• slight variation in measurements
•
Characteristics of chance causes are:
• many individual causes are present at the same time
• any one cause results in only a very a small amount of variation
• cannot be economically eliminated
• Output of process follows predictable pattern ( bell curve/ Normal curve)

Examples of Special causes are:

• Tool not sharpened when worn out
• batch of defective material
• component not located properly
• power failure
• excessive variation in measurements
 • machine malfunction
• setting disturbed
Characteristics of Special causes are:
• Consists of one or few individual causes
• any cause can result in large variation
• easy to detect and generally economical to eliminate
• no specific pattern n the Output

Variation in the process is minimum when only chance causes are present. Also the
distribution ( frequency diagram)out put exhibits normal curve.

Distribution pattern
(only common causes are present)

Average
Process Variation

variation in a process is the total variation that can be expected from the process when
very large quantities are produced.

Variation in the process is be computed based on the output values of a batch. Normally
the batch should be more 100 components .i.e. there should be at least 100 readings to
calculate the process variation.
Histogram or frequency diagram is drawn to make sure that only chance causes are
present. In other wards the process is under control (statistical control)
Suppose N readins are taken, then
Standard deviation ( sigma) ( σ ) is calculated from the formula

σ = root of ( (( M-X1)2 + ( M-X2)2 + ( M-X3)2 …….( M-XN)2 )/ N-1))

Where M= average of N readings

X1, X2 ,X3 ……. XN are individual readings

Process variation = 6 times σ or 6 σ

Property of Normal curve

Average

Process variation (6 σ)

68.3% of readings would lie

95.4% of readings in this range
would lie in this
range
99.7% of readings would lie
in this range

3 out of 1000 reading may fall outside +/- 3 σ limits

In manufacturing operations less variation means better quality.

If special causes are present , the variation will be more than 6 σ. Or the pattern would
change. This property is used in construction and use of control chats for statistical
process control.

The out put of a process has two properties. Process average and process variation (6
sigma)
Out put of a process should meet process requirements.
Requirements are given in specifications or Drawings. A typical specification has a mean
and Tolerance.
Example: Length to be 100.0 +0.6mm means product is acceptable if the length is 100.0
or 100.6mm.
Alternatively specification can be given as 100.0/100.6. This gives the lower and upper
specification limits.

Difference between upper specification and lower specification is the tolerance.

Two process measurements are normally made to indicate the capability of the process to
meet requirements. Namely:
• Process capability Cp
• Process capability index Cpk

Example:

100.3
Specn. mean
100.4
Process average

Process variation
(6 σ)=0.3
100.0
LSL 100.6
USL

Tolerance =0.6

Process capability = Tolerance/ process variation

For the above example, the process variation is 0.3:
Process capability = 0.6/0.3 = 2.0

Process capability Index

This takes into account both tolerance and specification mean.
Cpk is calculated for both upper and lower specification limits and lower of the two, is
the Cpk
Cpk ( Upper)= (upper specification- process average)/ 3 sigma = (100.6-100.4)/.15 =
1.33
Cpk ( lower)= (process average –lower specification)/ 3 sigma = (100.4-100.0)/.15 =
2.66

Cpk of the process is 1.33.

If the process capability index is equal to 1.33 , the process is considered acceptable.
More than 1.33 is desirable. This can take up variations in process average without
producing rejects on the long run.

Control charts
Control charts were developed by Walter Shewhart in 1920.
The chart is based on the principle that the variability of a process is minimum when the
process is running under chance causes (common causes) only. Trial batches are
produced and process variation ( 6 sigma)is established . Control charts are prepared with
control limits calculated on sample sizes . Sample sizes could be 2 to up to 9 . At fixed
intervals ( eg, 30 min, one hr, 4 hrs based on production quantity) samples are taken and
sample averages are plotted on the chart.

When the process is under control, all the points will be

• with in the limits
• No unnatural patterns will be present
• Distribution of points will be denser in the centre and very infrequent at the limits.

Any change in the above indicates presence assignable/ special causes (out of statistical
control). The process is stopped and actions are taken to eliminate the causes of variation.

UCL

Mean

LCL

Time
Construction of X bar –R chart

Step 1 - Choose quality characteristic to be controlled.

Step2 - determine sample size ( 3 to 5 is ideal) and no. of samples.
Step 3 - Collect samples at fixed intervals and note readings ; no. of samples depends on
production rate and total duration of manufacture.
Step4 -select No. of subgroups ( K ) Normally total no. of readings required is 75 to125
Step 5 – Calculate mean and range for each sample

Example : sample size =3 : No. of subgroups=26

parameter for charting -bond strength in grams
Sub Sample 1 Sample 2 Sample 3 Sub group Range ( R )
group Mean(X-bar)
no. 6.0 1.5
1 6.5 6.5 5.0 6.5 1.0
2 6.5 6.0 7.0 6.0 1.5
3 7.0 5.5 5.5 3.5 1.0
4 4.0 3.0 3.5 1.0 2.0
5 2.0 0.0 1.0 6.0 0
6 6.0 6.0 6.0 4.6 2.0
7 6.0 4.0 4.0 5.3 2.0
8 6.0 4.0 6.0
9 5.5 5.0 4.5 5.0 1.0
10 7.0 6.0 6.0 6.3 1.0
11 4.0 3.0 3.5 3.5 1.0
12 4.0 3.5 3.0 3.5 1.0
13 5.0 3.5 5.0 4.5 1.5
14 6.0 4.5 4.5 5.0 1.5
15 4.0 6.5 5.5 5.3 2.5
16 4.0 7.0 7.0 6.0 3.0
17 5.0 6.0 4.0 5.0 2.0
18 3.0 6.0 6.0 5.0 3.0
19 5.5 5.0 7.5 6.0 2,5
20 7.0 6.0 5.0 6.0 2.0
21 5.0 5.0 5.0 5.0 0
22 5.0 2.5 3.5 3.6 2.5
23 4.0 5.5 5.0 4.8 1.5
24 4.0 0 2.0 2.0 4.0
25 5.0 3.0 3.5 3.8 2.0
26 2.5 5.0 3.0 3.5 2.5

Step 5 – Calculate mean of subgroups ( X-double bar)

= (6.0 + 6.5 + ………..+ 3.8 + 3.5 ) / 26 = 4.72

Step 6- Calculate mean of ranges ( R-bar)

=( 1.5 + 1.0 + ………… + 2.0 + 2,5) / 26 = 1.75

Step 7 - Calculate control limits for X-bar chart and R –chart

Use statistical tables below:

Sample A2 D3 D4
size
2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
 5 0.58 0 2.11

For X-bar chart:

ULC = X-double bar + A2 x R-bar = 4.72 + 1.02 x 1.75 = 6.50
LCL = X-double bar - A2 x R-bar = 4.72 - 1.02 x 1.75 = 2.94
For R chart:
ULC = D4 x R-bar = 2.57 x 1.75 = 4.50
LCL = D3 x R-bar = 0 x 1.75 = 0
Step 8 – test for Homogeneity
Check sample averages or Ranges fall outside the control limits for any subgroups.
• sub group averages for no. 5 and 24 fall below lower control limit
• all values in Range are within control limits

Step 9 – remove subgroups which are outside control limits .

Step 10- Recalculate control limits

Modified X- double bar = 4.99

For X chart : Modified UCL = 6.67 : modified LCL= 4.21
For range chart ; Modified ULC = 3.31 : modified LCL=0

Step 11- check for Homogeneity. Repeat the process till all reading are homogeneous.
In the example , All 24 subgroups are with in control limits.

Step 12- construct control chart for X-bar and R chart

X-bar chart
UCL = 6.67

Mean =4.99

LCL = 3.31
 R chart
UCL = 4.21

Mean =1.64

LCL = 0

Types of control charts are:

1. For variable measurements (Quantitative) ( eg. Weight, dimensions):

• X-R chart ( mean -Range chart) - constant sample size – most popular
• X-MR chart ( mean – moving range chart)- for single value per batch
• Median- range ( middle value –range chart) – for easy calculations
• X-S chart ( mean –standard deviation chart – for large sample sizes

2 For Attribute measurements (Qualitative) (OK/not OK, Good/bad):

• np chart, - no of defectives – for constant sample size
• p chart, - percentage defectives – for varying sample sizes
• c chart – no of defects - for constant sample size
• u chart – no. of defects per part - for varying sample sizes

Control chart for attributes

Sample size = n : No. pf subgroups = K : Number of defectives in sub group = c

p= fraction defective = c/n ; p is calculated for each sub group ( p1=c1/n , p2=c2/n ……)
p-bar ( average/ mean ) = (c1 + c2 + …….) nK

UCL = n x p-bar + 3 Sqrt ( n x p-bar ( 1 - p-bar))

LCL = n x p-bar - 3 Sqrt ( n x p-bar ( 1 - p-bar))
 np chart
UCL

Mean = p-bar

LCL

Acceptance sampling

100 % Inspection is costly and time consuming when quantity to be inspected is large.
Sampling inspection is the best way of estimating the quality of incoming or outgoing
lots.

Acceptance sampling involves taking a random sample from the lot and by inspection of
the sample and after inspection to determine whether to accept the lot or not.

Sampling may be:

• Single sampling
• Double sampling
• Sequential sampling

The sampling plans are based on average outgoing quality levels required on the long
run. Based on the these quality levels sample sizes are determined and given in statistical
tables. IS 2500 is a standard which gives such a table.
Depending on the average outgoing quality levels the tables gives values for lot size,
sample size, quantity of defectives that is acceptable.

There is always a risk of rejecting good lots and risk of accepting bad lots in any
sampling plan.

The probability o accepting bad lots is called consumer’s risk . bad lot are defined by
LTPD value ( lot tolerance percent defective) and The probability o rejecting good lots is
called producer’s risk. Good lots are defined by Acceptable quality levels ( AQL)
The graph which gives the characteristics of the sampling plan indicating producers risk
and consumers risk is known as OC curve

0.95
OC curve

Probabality
of
acceptance

0.10

AQL=0.1 LTPD=0.5

Actual percentage defective

Average Outgoing Quality level (AOQL) is the percent defectives after lots are accepted
and replacement of all defective items on rejected lots.

Single sampling
Sample is taken only once. If the no. of defects are more than acceptable then the lot is
rejected and 100 % inspection is carried out.
Double sampling
Depending on the number of defectives in the first sample , second sample is drawn and
decision is taken. Therte will be an acceptance number c1 and a rejection number c2
fixed during the first sampling. If the value is between this , second sample is taken
Sequential sampling
Allows more samples to be drawn based on number of defectives in the previous sample
.until the lot is accepted or rejected

Quality Circles

Quality circle (QC) is a small group of people who carry out quality improvement
activities within their work area. The group may consist of 3 to 5 person normally.
Features of Quality circles are:
 1. QC activities performed by operating level employees.
2. Voluntary participation
3. Small group of persons in the same work area or doing similar type of work
4. Identify, define and solve problems related to work area
5. QC members meet regularly( every week for an hour in normal)
6. Leads to improved performance I the work area
7. motivates and enriches work life
8. Nature of the problems are of such that they can be solved by themselves with
little help form management
9. Good work is recognized by management

Quality circles originated in Japan and has spread to other countries. Some of the
organisations in India which have very active QC circles are BHEL, BEL, Canara Bank,
Indian airlines, Apollo Hospital.

Quality Circle Forum of India ( QCFI), a Non-profit national body , Promotes Quality
circle movement in India. It has more than 2500 members and more than 25 chapters in
various locations in India. QCFI organises Quality circle conventions. QC presentations
by circle members and awards are a part of the convention.

Some of the don’ts in QC circles:

• QC members should not be chosen by management
• Problems should not be given by management
• Management persons should not be members.

Problems taken up by QC s are not restricted to Quality. Productivity improvements, cost

reduction, safety, Housekeeping etc. could also be taken up. QCs are not forum for airing
grievance or demands. Quality circles are not replacement for task forces, suggestion
schemes,

Key benefits of Quality circles are:

1. Improved quality, productivity, cost reduction, House keeping, safety etc. which
are the objectives for improvement
2. Improvement of Human relations in work area
3. Effective team work
4. Improved communication between employees and management
5. Problem solving capabilities of members
6. Leadership development among members

Implementation of QCs
Top management must inform their decision to all employees about the implementation
of QC program
Steering committee to be formed with members from various departments
Steering committee should define:
• Goals of QC program
• Long rage plan for programs
• Select facilitator and commit resources
• Encourage and provide resources for QC meetings
• Participate in QC presentations

Facilitator: Facilitator forms the link between top management and QCs. Some of the
duties of facilitator are:
• Co-ordination of training activities for members.
• To get support from top management and steering committee
• To provide resources.

Circle leader: Circle leader is the leader of the circle and must:
 Inform status of activities to management
 conduct meetings regularly
 Monitor circle activities with regard to plan
 Maintain enthusiasm and motivate members

Circle members: Circle members must participate actively in meetings and discussions.
They should develop a good attitude towards Quality, productivity and improvements.

Five major steps in implementation of QC program are

• Top management orientation
• Training for middle management
• Training for facilitator, leaders and members
• Pilot testing in selected areas
• Company –wide implementation

Subjects for training for Quality circle include:

• Back ground and concept of Quality circles
• Structure of QC
• Problem solving methodology
• 7 QC tools
• Mock circle meetings
• Presentation skills

Total Quality management

 TQM is a Management philosophy and company practices that aim to harness the
human and material resources in most effective way to achieve objectives of the
organization

Total in “Total Quality management” means

• All Interested parties are considered
• All requirements are addressed
• All activities of the organization are covered
• All employees are involved

TQM-Fundamental concepts

Commitment
Commitment to TQM by top management is essential. Promotion of this
concept at all levels and all activities of the organization is fundamental for
success. Every one should be aware of his/her customers (internal and
external)
Customer satisfaction
Understanding customer needs and expectations and striving to meet them
should be the key objective
Quality losses
Quality looses are losses caused by the failure to utilize most effectively the
potential of human, financial and material resources in a process.
• loss of customer satisfaction
• Loss of opportunity to add more value to customers,
organization and society
• Loss due to waste or misuse of resources
•
Participation by all
Abilities of all members in the organization should be fully and effectively
utilized.

Process measurements
Process measurements to be applied to all organization activities

Continuous improvements
The means of improvement to people and processes performance need to be
Continually sought and monitored.

Problem identification
Provision for identification and resolution of potential and existing problem son a
continuing basis is essential
 Alignment of corporate objectives and individual attitude
Removal of prejudices and restrictive approvals that inhibit effectiveness of the
organization needs continuous attention

Personal accountability
Recognition of individual responsibility and authority should be accepted by all

Personal development
There should be continuous appraisal, training and development of individuals at all
levels

TQM- implementation
1. Policy and strategy of the organization

Mission
Establish mission statement, corporate objectives, strategy for achieving these
objectives and a business plan.
Leadership and commitment
Have visible and sustained commitment starting from chief executive and
extending to every member.
Divisional objectives
Establish objectives for each level of organization with roles and responsibilities

2 Management of the organization

Organization structure
Establish effective organization structure
Management system
Establish, audit and keep under review an effective management system
Information system
Establish a planned information system through out the organization

3 Improvement of the organization

Working environment
Structure Physical environment and relationships between individuals and the
organization
1Measurement of performance
Establish measures of performance of individuals or teams involved in each
process
Improvement objectives
Improvement goals to be closely integrated with corporate objectives
Improvement plans
Establish plans for improvement of products, service or process quality, safety,
environment impact, dependability and customer satisfaction at all levels
Monitor and review
Ensure that all plans, targets, and measure compliment each other.
 Review results of improvement plans to measure effectiveness
Some recent trends in TQM
Improve customer satisfaction
Implement auditable Quality
management system
Improve environmental performance
Improve safety and Hygiene
Enhance social responsibility
Identify Improvement opportunities
Extensive use of tools and techniques
in problem solving
Improve supplier performance
Reduce lead time
Reduce inventory, reduce lead times
Effect Quantum leap/ break through
improvements
Participation by all employees
Improve product quality
Improve planning process
Barriers in implementation of TQM
Implement ISO9001, QS9000, TS16949,
AS9000 as applicable
Implement ISO 14001
Implement OSHAS 18001/ ISO 15001
Implement SA 8000
Conduct value stream mapping
7 QC tools
7 Management tools
Supplier QMS development
Flexible Manufacturing systems
Computerization
Use of information technology
JIT system
Integration of suppliers
Bench marking, Six sigma initiatives
Business process re-engineering
Total productive maintenance(TPM)
Lean manufacturing
Suggestion schemes
5S House keeping
Quality circles
Quality teams
Quality function deployment
Design of Experiments
Policy deployment ( Goals, objective, Tasks)
Barriers to implementation of TQM may be divided into two groups. Both of them
can be tackled by systematic education, training and participation.

Organizational barriers
These consist of lack of senior management commitment, unwilling ness and non-
involvement of middle level management. Staff treating themselves as experts and
not amenable to suggestions from line people..

Behavioral barriers
These may be also called as attitudinal barriers. Artificial organizational structures,
negative attitude to changes and improvements, dislike because of previous
experiences arte some of the factors.

Effects of TQM implementation in a company

# Aspect Before After

1 Top management Not visible Highly visible
commitment
2 Policy clarity No policy Transparent , detailed
3 Participation in Very few persons All levels
improvements
4 Involvement of people < 10% >80%
5 Communication No or poor Effective
communication communication at all
levels
6 Recognition Seldom Always
7 Customer satisfaction low high
8 Cost of poor quality high Very low
9 Training activities Almost nil Continuous, every one
10 Performance Not focused Focused and targeted
measurements
11 Business results Stagnant or declining Steady improvement
12 Suppliers Outsiders keep them in Willing to work as
dark, squeeze them. extension of the
company