5.POM - Unit-3 Notes
5.POM - Unit-3 Notes
(Quality Management is the act of overseeing all activities and tasks that must
be accomplished to maintain a desired level of excellence. It is also referred to as total
quality management (TQM).)
Quality control is the process of ensuring that products or services meet certain
standards of quality. It involves testing units and determining if they are within the
specifications for the final product. The purpose of the testing is to determine any need
for corrective actions in the manufacturing process.
Quality control can be done at any stage of the production process, from raw
material inspection to finished product testing.
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5. Components/elements/principles of TQM
Components/elements/principles of TQM
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6. ISO (International Organization for Standardization)
Quality control can be done at any stage of the production process, from raw
material inspection to finished product testing.
SQC is the application of statistical methods to monitor and control the quality
during various stages of a production process. SQC methods can be used to identify
and correct problems in the production process and to ensure that products meet
customer requirements.
9. Inspection
Inspection can be done at any stage of the production process, from raw
material inspection to finished product testing It is a fundamental part of quality control,
providing a basis for accepting or rejecting a material.
Inventory management helps companies identify which and how much stock to
order at what time. It tracks inventory from purchase to the sale of goods. The practice
identifies and responds to ensure there’s always enough stock to fulfil customer orders
and proper warning of a shortage.
PART-B
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11. Explain Deming 14-point approach to TQM?
Components/elements/principles of TQM
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(vii) Strategic and systematic approach: A strategic plan that integrates
the quality development, maintenance, and improvement efforts of various
groups in an organization.
(a) Just-in-time (JIT) inventory management: Under this method, raw materials
are ordered just in time to go into production, and finished goods are completed just
in time to be shipped to customers.
(e) ABC analysis: ABC analysis is a method of classifying inventory items into
three categories (A, B, and C) based on their value and importance.
14. Explain the different methods of Quality Control. Give their merits and
demerits.
Methods of QC are:
(i) Inspection
(ii) Statistical Process Control
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(iii) Testing
(iv) FEMA
(v) Six Sigma
(vi) Quality Audits
Merits:
(i) Simple and straightforward to implement.
(ii) Detect a wide range of defects.
Demerits:
(i) Time-consuming and expensive.
(ii) Difficult to identify micro defects.
(iii) Can be disruptive to the production process.
(iv) Doesn’t prevent wastage.
(b) Statistical Quality Control (SQC): SQC uses statistical methods to monitor
and control the quality during various stages of a production process.
Merits:
(i) precision and accuracy
(ii) Identifies problems early
(iii) Saves money
(iv) Improves overall quality
(v) Satisfies customers
Demerits:
(i) Complex method
(ii) Time-consuming
(iii) Prone to human error.
(c) Six-Sigma: Six Sigma is a data-driven quality control method that aims to
improve processes by identifying and eliminating defects. It is a highly structured
methodology that follows a five-step process:
-Define: Define the process to be improved and the specific customer
requirements that must be met.
-Measure: Collect data on the current performance of the process.
-Analyze: Identify the root causes of the defects in the process.
-Improve: Implement solutions to eliminate the root causes of the defects.
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-Control: Monitor the process to ensure that the improvements are sustained.
Merits:
(i) Quality Improvement
(ii) Cost Reduction
(iii) Customer Focus
(iv) Process Optimisation
(v) Data Driven Decision Making
(vi) Reduces defect
Demerits:
(i) Complex Method
(ii) Time Consuming
(iii) Expensive to implement
(iv) Difficult to sustain over time.
(i) Efficient Space Utilization: Optimal use of available space with no wastage
(ii) Flexibility: Ability to adapt to changes in manufacturing operations
(iii) Accessibility: Easy access to manufacturing, maint and servicing facilities
(iv) Economy in Handling: Optimal use of resources for handling materials
(v) Minimum Movement: Direct movement of men and machines to reduce costs
Inventory is the stock of goods or materials that a business holds for the
purpose of selling or producing goods. It can include raw materials, work-in-progress,
and finished goods.
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(i) Raw Materials: These are the basic materials that are used to produce goods.
For example, a furniture manufacturer might have raw materials such as wood, fabric,
and hardware
(ii) Work In Progress (WIP): WIP inventory refers to items in production and
includes raw materials or components and even packing materials.
(iv) Maintenance, repair, and operating (MRO) supplies: These are supplies that
are used to keep equipment and facilities running smoothly. For example, a factory
might have lubricants, cleaning supplies, and spare parts.
Advantages
Disadvantages
(a) Expensive
(b) Complexity
(c) Limited Risk Elimination
(d) System Crashes
(e) Reduced Physical Audits
Inventory turnover is a financial ratio that shows how many times a company
has sold and replaced its inventory over a specific period, usually a fiscal year. It’s
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calculated by dividing the cost of goods sold (COGS) by the average value of inventory
during the period.
(a) Purchase Cost: Total amount a business pays to acquire inventory from
suppliers including transportation and related expenses.
(b) Ordering Costs: Costs associated with placing and receiving orders for
inventory, including order processing, transportation, and inspection upon receipt.
(c) Holding Costs: Costs incurred to hold and store inventory, such as
warehousing, insurance, security, depreciation, and obsolescence.
(d) Stockout Costs: Costs resulting from running out of stock and being unable to
fulfill customer demand, including lost sales, potential customers, and damage to the
company's reputation.
(e) Spoilage Costs: These are associated with perishable inventory that can rot
or spoil if not sold in time.
(a) ABC Analysis: ABC analysis is a method of classifying inventory items into
three categories (A, B, and C) based on their value and importance.
(b) Batch Tracking: Items with similar characteristics are grouped together for
tracking purposes, focusing on factors like expiration dates and defect tracking.
(d) Consignment: Products are held by a supplier until the business sells them,
and payment is made upon sale.
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(f) Days Sales of Inventory (DSI): This measures the average time items stay in
inventory before being sold.
(g) Dropshipping: The supplier ships items directly from its warehouse to the
customer.
(h) Economic Order Quantity (EOQ): This formula shows exactly how much
inventory a company should order to reduce holding and other costs.
(j) FIFO and LIFO: FIFO means moving the oldest stock first. LIFO is the other
way round.
(k) Just-In-Time Inventory (JIT): Under this method, raw materials are ordered
just in time to go into production, finished goods are completed just in time to be
shipped to customers.
(n) Perpetual Inventory Management: This method tracks inventory levels in real-
time.
(o) Safety Stock: Extra inventory held in reserve to ensure availability in case of
unexpected demand or supply issues.
(a) Optimizing Costs: helps minimise holding costs associated with storing
excess inventory and carrying costs like warehousing, insurance, and
depreciation.
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(d) Improve Cash Flow: Money tied up in inventory could be used
elsewhere in business.
(e) Reducing Holding Time: Effective management helps reduce the time
inventory spends in storage, decreasing the risk of obsolescence and ensuring
that products are sold at their highest value.
PART-C
(ii) Features: The product or service should have the features that customers
expect. For example, a smartphone should have a camera and a web browser.
(iii) Conformance: The product or service should meet the specifications that have
been set for it. For example, a piece of furniture should be made to the correct
dimensions.
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(iv) Reliability: The product or service should be reliable and consistent in its
performance. For example, a restaurant should serve food of the same quality every
time.
(v) Durability: The product or service should be durable and last for a reasonable
amount of time. For example, a pair of shoes should not fall apart after a few weeks
of wear.
(vi) Fitness for Use: Quality is also about the fitness of a product or service for a
specific purpose or use. A quality product is not only well-made but also suitable for
its intended use
(vii) Value Addition: Quality adds value to a product or service. Customers are
willing to pay a premium for higher quality.
(viii) Employee Involvement: Employees at all levels play a role in ensuring the
quality of products or services. Employee training, engagement, and commitment to
quality are vital aspects of achieving and maintaining high standards.
(ii) Quality Defined by Company: The company defines its quality standards and
determines whether a particular product is acceptable. This is often based on internal
specifications and standards.
(iv) Accountability: If defects are found, managers identify who is responsible and
hold them accountable.
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(v) Managing with Fear: Managers may use fear to motivate employees,
threatening to discipline or even fire them if they do not meet expectations.
(vi) Accountability of the Few: Only the employees who are directly involved in
producing a product are responsible for its quality in traditional management.
(vii) Acting on Instincts: Supervisors and employees solve problems and act
based on their individual knowledge, skills, and instincts in traditional quality
management.
(i) Six Sigma: Six Sigma is a data-driven methodology that uses statistical
methods to identify and eliminate defects and improve processes.
(v) 5S Methodology: Originating from Japanese terms, the 5S approach (Sort, Set
in Order, Shine, Standardize, Sustain) aims to optimize workplace organization,
efficiency, and safety.
(vi) PDCA Cycle: The Plan-Do-Check-Act cycle is a four-step model for continuous
improvement in business processes. It involves planning, executing, evaluating
results, and implementing necessary changes.
(viii) FMEA (Failure Mode and Effects Analysis): FMEA is a systematic approach to
identify and prioritise potential failure modes in a system, product, or process, enabling
proactive risk mitigation.
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(ix) Quality Function Deployment (QFD): QFD is a methodology that translates
customer requirements into product and process design specifications.
(i) Quality circles: Quality circles are small groups of employees who meet
regularly to discuss and solve quality problems.
(ii) Kaizen: Kaizen is a Japanese philosophy. Kaizen events are held over
a short period of time to focus on improving a specific process
(iii) Six Sigma: Six Sigma is a data-driven methodology that uses statistical
methods to identify and eliminate defects and improve processes.
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(iv) Lean manufacturing: Lean manufacturing is a systematic approach to
identifying and eliminating waste in processes.
The 5S:
(ii) Set in order: Arrange necessary items in a way that is easy to find and use.
(iv) Standardise: Create and follow procedures for maintaining the workplace in a
5S condition
- Improved quality
- Improved Safety
- Cost Reduction
- Customer satisfaction
- Competitive Edge
- Improved employee morale
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Methods of Quality Control:
(a) Statistical Process Control (SPC): SQC use statistical methods to monitor
and control the quality during various stages of a production process.
(g) Quality Tools: Various tools and techniques such as control charts,
histograms, fishbone diagrams, and Pareto charts aid in analyzing data and identifying
issues.
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27. Explain in detail about charts & sampling
Charts and sampling are two important tools to monitor and improve quality.
Charts: Charts are a graphical representation of data that can be used to track trends,
identify areas for improvement, and make decisions about quality control. Some of the
most common types of charts are:
(iii) Pareto charts: Pareto charts are used to identify the most common
problems and most frequently occurring defects. They are based on the Pareto
Principle that 80% of problems are caused by 20% of factors.
Benefits:
(i) Early detection of process deviations
(ii) Timely corrective actions.
(iii) Enhanced product quality
(iv) Enhanced process efficiency
Benefits:
(i) Cost-effective data collection.
(ii) Provides a representative view of the population.
(iii) Quicker process
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28. Briefly explain the various elements of operations planning and
Scheduling system.
Operations planning and scheduling systems (OPSS) are used to plan and schedule
the production or delivery of goods and services. The various elements include:
(a) Demand forecasting: OPSS use demand forecasting to predict future demand
for products or services. This information is used to set production and inventory
targets.
(d) Scheduling: Scheduling is the process of deciding the sequence and timing of
production activities. It involves setting start and end times for each task in the
production process.
(e) Workplace Planning: Workplace planning deals with allocating resources with
priority to work job with the first delivery date.
(f) Shop floor control: Shop floor control is the process of managing the
production process on a day-to-day basis.
Inventory control is the process of tracking and managing the stock of goods
and materials that a business has on hand. It ensures a business maintains an
adequate quantity of stock to meet forecasted demand with minimum holding cost.
Inventory control helps the business in knowing the shortfall and quantities to
be ordered considering the net stock available. Thus, it ensures that enough stocks
are maintained to meet customer needs, at any point in time.
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Methods of Inventory Control
• Just-in-time (JIT) inventory system: Under this method, raw materials are
ordered just in time to go into production, and finished goods are completed just
in time to be shipped to customers. This system can help to reduce inventory
costs, but it requires careful planning and coordination.
• Economic order quantity (EOQ): EOQ is a method for determining the optimal
order quantity for inventory items.
• Two Bin Method: In this method, two bins of inventory are held for each item.
When one bin is empty, it’s time to order the item before the second bin finishes.
30. Explain the concepts of Quality Control Charts (or Simply Control Chart)
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Purpose and Importance of Quality Control Charts:
(i) Helps identify the degree by which products or processes vary from
specifications
(ii) Assist in error correction
(iii) Monitor and control the quality of a production process.
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QUESTION
PART-I
1. Define TQM?
2. Define quality control
3. What are the types of process design?
4. What are the factors affecting process design?
5. Give the components of TQM
6. Demonstrate what you mean by ISO?
7. Explain the term Quality Control?
8. Determine SQC?
9. Illustrate Inspection?
10. Explain Inventory Management?
PART-II
PART-III
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