Unit-2

1
Lecture-11

2
Quality
 Conformance
 Durability
 Serviceability
 Aesthetics
 Safety
 Other perceptions

3
Design quality
Review design documentation for conformance to
design standards.
Audit the release & distribution of design documents
.
Provide information on previous quality problems for
product designs or current product improvements.
Validate the accuracy & completeness of design
proof tests & qualification tests.
Assist in the evaluation of customer requirements to
get clear understanding of the product quality
objectives

4
Lecture-12

5
Quality at Source
Every worker’s job becomes a quality
control station. The worker is
responsible for inspecting his own work,
identifying any defects & reworking
them into non-defectives & correcting
any cause defect.
SQC techniques are used to monitor the
quality of parts produced at each work
station, and easy-to-understand charts &
graphs are used to communicate
progress to workers and managers.
6
Quality at Source
Each worker is given the right to stop the
production line to avoid producing defective
parts.
Worker & managers are organised into Quality
Circles – groups of people who analyse quality
problems, work to solve the problems &
implement programs to improve product quality.

7
COST OF QUALITY
The costs include:
a) Internal failure cost
b) External failure cost
c) Appraisal cost
d) Prevention cost

8
Cost of Quality
Quality increases profits and reduces costs.
Costs of poor quality are generally classified
into 4 broad categories.
Juran defines 3 quality zones.
“Zone of improvement projects” lies below the
optimum quality level.
‘Zone of perfectioninsm” lies above the point of
minimum total quality costs.
“ Zone of indifference” the area of minimum
total quality costs.

9
Cost of quality

10
Prevention Cost
QC administration & system planning
Quality training
Quality planning
Special processes planning
Quality data analysis
Procurement planning
Vendor surveys
Quality measurement & control equipment

11
Appraisal Costs
Quality audits
In-process testing
Checking labour
Laboratory or other measurement services
Calibration & Set up for test & inspection
Test & material inspection
Maintenance & calibration
Field testing
Incoming , in process, final inspection
12
Internal Failure Costs
Scrap, at full shop cost
Rework, at full shop cost
Scrap and rework. Fault of vendor
Material procurement
Material review activity
Repair and troubleshooting

13
External Failure Costs
Complaints and loss of customer goodwill
Warranty costs
Field maintenance and product service
Returned material processing & repair
Replacement inventories
Strained distributor relations
Trade concessions

14
Lecture-13

15
Zero Defects
“Zero defects” phrase was coined by Philip
Crosby in his 1979 book titled, “Quality is free”.
It is a business practice which aims to reduce &
minimise the number of defects & errors in a
process and to do things right the first time. The
ultimate aim will be to reduce the level of
defects to zero.
With a philosophy of Zero Defects you can
increase profits both by eliminating the cost of
failure and increasing revenues through
increased customer satisfaction.

16
Zero Defects
More recently concept of zero defects has
lead to the creation & development of 6-
sigma pioneered by Motorola and now
adopted worldwide by many organizations.
Six sigma indicates 3.4 defectives per million
parts.
 Philip B. Crosby believed that performance
standard should be zero defects. Zero defects
means that errors should not be expected or
accepted as inevitable.

17
……contd.
Through a system of quality costing Crosby
provided that measurement of quality is the
price of non-conformance. Quality cost data
With a philosophy of Zero Defects you can
increase profits both by eliminating the cost
of failure and increasing revenues through
increased customer satisfaction.

18
Zero Defects
Zero defects require a top down
approach.
Understand what your customers
expect in terms of quality.
Zero defects require a proactive
approach. If you wait for flaws to
emerge you are too late.
Create quality improvement teams.
Zero defects must be integrated with
the corporate culture.
19
Zero Defects
Learn Poka-yoke.
Monitor your program. Build mechanism
into your systems that provide continuous
feedback.
Encourage members of your team to think
about how they can achieve zero defects &
reward them when they are successful.
Measure your quality efforts. Take baseline
measurements so understand the cost of
defects in your organisation & measure
the benefits achieved in eliminating them.
20
Lecture-14

21
Kaizen/ Continuous improvement
Continuous improvement as practiced by
Japanese firms is called Kaizen.
Kaizen seeks continual improvement of
machinery, materials, labour utilization, and
production methods through applications of
suggestions and ideas of company teams.

22
Kaizen
Under the maintenance function:
Kaizen requires the management to first
establish policies, rules, directives and
standard operating procedures and then
Work towards ensuring that everybody
follows them
This is achieved through a combination of
discipline and motivational measures.

23
…..contd.
Under the improvement function
Kaizen works continuously towards revising
the current standards.
Once they have been mastered, higher
standards are established

24
….contd.
Kaizen signifies small improvements as a
result of co-ordinated continuous efforts by
all employees.
The suggestion system is an integral part of
an established management system that aims
at involving employees in Kaizen.
The number of workers suggestions is
regarded as important criteria in reviewing
performance.

25
Kaizen
Kaizen strategy ‘Quality Circles’ is also part of
the Kaizen system.
Kaizen requires on the job training of the
workers. It ensures that every worker has
through understanding of:
 The needs of those who use and/or pay for
the product or services;
 How to meet the needs
 How to improve the system’s ability to meet
those needs

26
Lecture-15

27
BENCHMARKING
Benchmarking is systematic & continuous
measurement process: a process of
continuously measuring and comparing an
organizations business processes against
process leaders anywhere in the world to
gain information which will help the
organization to take action t improve its
performance.

28
BENCHMARKING PROCESS
Application of benchmarking involves four key
steps:
(1) Understand in detail existing business
processes,
(2) Analyze the business processes of others,
(3) Compare own business performance with
that of others analyzed
(4) Implement the steps necessary to close the
performance gap.

29
Types of Benchmarking
1. Competitive Benchmarking:
2. Process Benchmarking
3. Functional Benchmarking
4. Internal Benchmarking
5. External Benchmarking
6. International Benchmarking

30
Benchmarking helps in
Benchmarking is the process of identifying
‘best practice’ in relation to both products
and the processes by which those products
are created and delivered.
Are there lessons to be learned from others?
Understand and evaluate the current position
of a business or organization in relation to
‘best practice’ and identify areas and means
of performance improvements.

31
Benchmarking helps in
Benchmarking provides a clear signal of
success or failure of the firm’s competence to
compete effectively in the competitive arena.
Benchmarking is often used to identify and
develop core competencies and competitive
advantage.

32
Lecture-16

33
Poka-Yoke
‘Poka-yoke’ is Japanese for ‘mistake-proofing’.
These devices are used either to prevent
special causes that result in defects, or to
inexpensively inspect each item that is
produced to determine quality.
A poka-yoke device is any mechanism that
either prevents a mistake from being made or
makes the mistake obvious at a glance.

34
Poka-yoke: Example
Shigeo Shingo gave this example: Suppose a worker
must assemble a device that has two push-buttons.
A spring must be put under each button. Sometimes
a worker will forget to put spring under the button
and a defect occurs. If the worker uses a small dish
to count out the two springs & after assembly is
complete if a spring remains in the dish, an error
has occurred. The worker knows a spring has been
omitted and can correct the omission immediately.
Poka-yoke device suffices in simple situations, but
has limitations when the manufacturing system
increases in complexity.
35
Poka-Yoke: Types
3 types of Poka-yoke for detecting and preventing
errors in a mass production system.
The Contact method identifies product defects by
testing the products shape, size, colour or other
physical attributes.
The fixed-value (or constant number) method
alerts the operator if a certain number of
movements are not made.
The motion-step (or sequence) method
determines whether the prescribed steps of the
process have been followed
36
Poka-yoke
When a defect is predicted or an error
detected:
The process is shut down
A control prevents from going ahead
A warning is sent

37
Quality Awards
A number of awards are given to individuals, groups
and companies world over in order to encourage and
motivate them to continue their efforts for quality
improvement.
Malcolm Baldrige National Quality Award (MBNQA)
Seven criteria:(1) Leaderships (2) Information &
Analysis (3)Strategic Quality Planning (4) Human
resource development & management (5) Management
of process quality (6) Quality & operational results (7)
Customer focus & satisfaction
Achievement under these 7 pillars of the awards must
be total.

38
Quality Awards
The Deming Prize : (1951)Dr.W. Edwards Deming
The Deming prizes are awarded for excellence in the
systematic application of total quality management.
JUSE are the administrators of the prize process.
The European Quality Awards:
The Criteria:The enablers group: Leadership, Policy &
Strategy, People management, resources, processes
Result group: Customer satisfaction, people
satisfaction, impact on the society, test the business
results.
TEQA Criteria of assessment for award is applicable to
all countries in the European Common Market.

39
Lecture-17
Statistical Quality Control
Quality control: An approach to prevent the
defects than detecting the defects.
Quality Assurance: Activity of providing
adequate confidence that a product or service
will satisfy given requirement for quality.
SQC: Application of statistical techniques to
accept or reject products already produced or
to control the process while it is being carried
out.

41
SQC
Variations arise due to 2 types of causes:
Chance causes
Assignable cause

SQC is done through :

CONTROL CHARTS
Acceptance Sampling

42
Process Control
Chart
Out of control
Upper
control
limit

Process
average

Lower
control
limit

1 2 3 4 5 6 7 8 9 10
Sample number

43
 A Process Is in
Control If …

1. … no sample points outside limits

2. … most points near process average
3. … about equal number of points above
and below centerline
4. … points appear randomly distributed

44
Lecture-18

45
Types of Control Charts
a. Control charts for variables
b. Control charts for attributes

 (X,R) charts
 (X,R) charts are applicable to Variable type of
data
 ‘np’ chart, ‘p’ chart, ‘c’ chart , ‘u’ chart are
applicable to attributes.

46
Construction of X-bar & R-chart
Choice of variable (X) - choose the characteristic
which gives maximum possible scope for cost
reduction through process control.
Selection of rational sub groups.
Choice of frequency: Frequency is the time
interval between successive measurements of
quality characteristic.
Collect about ‘k’ number of subgroups
For each sub-group, calculate mean X-bar; mean
X-bar= ∑ X-bar/n & Range; R- X(max)-X min

47
Construction of X-bar & R-chart
Calculate average of different ranges for ‘k’ sub-
groups.
Test for homogeneity: Compare all individual
average values for ‘k’ subgroups with the values of
Upper control limit of X-bar chart and lower control
limit. If these individual average values fall in between
the values of control limits, process is in control.
If the subgroups are not homogeneous, remove the
sample results which are out of the range limits and
compute modified average of ranges, modified upper
control limit and modified lower control till
homogeneity is obtained.

48
Construction of X-bar & R-chart
 Calculate control limit, upper control limit and lower
control limit for X-bar chart.
 Test for homogeneity: R-chart; compare all individual
range values for ‘k’ subgroups with the values of Upper
control limit and lower control limit. If these individual
range values fall in between the values of upper control
limit and lower control limit of R-bar chart, the process
is in control.
 If the subgroups are not homogenous, remove the
sample results which are out of the limits and compute
modified upper control limit and modified lower control
limit till homogeneity is obtained.

49
Lecture-19

50
 x-bar Chart Example
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

Example 15.4
51
x- bar Chart Example
(cont.)

= x 50.09
x= = = 5.01 cm
k 10

=
UCL = x + A2R = 5.01 + (0.58)(0.115) = 5.08
=
LCL = x - A2R = 5.01 - (0.58)(0.115) = 4.94

Retrieve Factor Value A2

52
 5.10 –

5.08 –
UCL = 5.08
5.06 –

5.04 –

5.02 – x= = 5.01
Mean

5.00 –

4.98 –
x- bar Chart 4.96 –
Example LCL = 4.94
4.94 –
(cont.)
4.92 –
| | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

53
R- Chart
UCL = D4R LCL = D3R

R
R=
k
where
R = range of each sample
k = number of samples

54
 R-Chart Example
OBSERVATIONS (SLIP-RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

Example 15.3
55
 R-Chart Example (cont.)

R 1.15 UCL = D4R = 2.11(0.115) = 0.243

R= = = 0.115
k 10 LCL = D3R = 0(0.115) = 0

Retrieve Factor Values D3 and D4

Example 15.3
56
R-Chart Example (cont.)
0.28 –
0.24 – UCL = 0.243
0.20 –
Range

0.16 – R = 0.115
0.12 –
0.08 –
0.04 – LCL = 0
| | | | | | | | | |
0–
1 2 3 4 5 6 7 8 9 10
Sample number

57
Lecture-20

58
Construction of p-chart (fraction defective
chart)
The data collected gives sample size (n1, n 2, ………
n k) for k subgroups and values of number of
defectives ( c1, c2, ……..ck) for k sub groups.
Fraction defective for each sub group are
calculated as … p 1= c 1/ n 1 , p 2 = c 2 / n2 ,
……………..p k= ck / n k
_
Central line p = ∑ p/k = p1+ p2 +……p k/ k
_ _ _
Upper Control limit = p + 3 √ p (1- p) / n
_ _ _
Lower Control limit = p - 3 √ p (1- p) / n
59
P-chart
Type I error: This is an error in sampling
inspection. A sample from the output of a
process may lead to the conclusion that the
process is out of control when in fact it is
operating as intended.
Type II error: It occurs when the process is
not working as intended, but sampling error
causes one to infer that the process is
satisfactory.

60
SQC
Advantages:
Assignable causes signifying deviations in
quality are detected & rectified. Costly rework,
rejection, and scrap are avoided.
Avoidance of the risk of accepting the bad lots.
SQC avoids inspection of the entire lot, only
samples are inspected.
It ensures the maintenance of high standards
of quality and enables the users to build up
their goodwill.

61
Importance or benefits of SQC
1. It saves on rejection.
2. It maintains high standards of quality
3. Reduces expenses of inspection.
4. Ensures standard price.
5. Feelings of responsibility among the
workers.
6. Reduces monotony & unnecessary fatigue
of inspection.

62
Terms used in SQC
Variables
Attributes
Chance causes of variation
Assignable causes of variation
Type I error
Type II error
Acceptable quality level (AQL)
Lot Tolerance Per cent Defective (LTPD)

63
Terms used in SQC
Producer’s risk (α)
Consumer’s risk (β)
Average outgoing quality (AOQ)

64
Six Sigma
SIGMA LEVEL Yield % Defects per million
Opportunities
1 30.9 6,90,000

2 69.2 3,08,537

3 93.3 66,807

4 99.4 6,210

5 99.98 233

6 99.9997 3.4
65
Lecture-22

66
), size of the sample to be assessed (n), the acceptance number (c), i.e., the number of defects permissible in the observed sample and

Acceptance Sampling
Sampling plan: A sampling plan describes
the lot size (N), size of the sample to be
assessed (n), the acceptance number (c), i.e.,
the number of defects permissible in the
observed sample and whether it is a single
sampling or a multiple sampling plan.

67
AQL & LTPD

Acceptable Quality Level (AQL) is the

percent defect that the buyer is willing to
tolerate in the lot delivered by the supplier..
 Lot Tolerance Percent Defective (LTPD)
is the worst quality beyond which the
manufacturer is not willing to accept the
incoming lot. In our earlier example, the
manufacturer may say, in the worst case, he
may not want to have a lot with more than 10
percent defective.

68
Lecture-23

69
OC Curve

70
Operating
We plot Characteristics
a curveCurve (Or OC Curve)
between the % defectives in
the lot and the probability of acceptance of the
lot, under any given sampling plan known as
the OC curve.
The procedure sends a lot of Acceptable
Quality Level (AQL), (given in percent
defectives) which can get rejected, the chance
or probability of this being the Procedures
Risk (PR) ,whereas on the other hand the
customer ( manufacturing plant) faces the risk
of accepting lots as bad as the LTPD (Low
Tolerance Percent Defective), the probability
of acceptance of such lots being the
Consumer’s risk (CR). 71
Contd…
Producer’s Risk ( α ) : The risk of getting a
sample which has a higher proportion of
defectives than the 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 use of a particular sampling plan.
While using acceptance sampling plans,
producers hope to keep this risk (α) as low as
5%.

72
Consumer’s risk (β):
Risk of getting a sample which has lower
proportion of defectives than the lot as whole
& thereby accepting a bad lot as a good lot
i.e. it is the probability that a lot with a
percentage of defectives equal to LTPD will
be accepted by the sampling plans, while
using sampling plans, consumers want to
keep this risk (β) as low as 10%.

73
Average outgoing quality (AOQ) :
In a production process, if lots that are
produced have an average fraction defective
‘p’ and if some of the lots which are rejected
based on sample evidence are inspected 100
% and the defective units are either simply
removed or replaced with non defective ones,
the average quality of the outgoing lots after
inspection improves. This average level of
quality leaving the inspection operation is
called average outgoing quality.

74
Quality Circles
Dr Ishikawa developed quality control circles.
“A small group of employees who meet
regularly to undertake work-related projects
designed to improve working conditions, spur
mutual self development and to advance the
company, all by using quality control
concepts.

75
Quality Circles
Circles work in the following way:
A small number of volunteer workers from the
unit of an organization form a group called the
quality circle.
The circle can be led by ANY person, be it a
supervisor or a worker.
The circle has regular meetings to discuss how
the tasks can be done effectively or how to
solve quality problem in the operations.

76
Quality Circles
If possible, the circles go ahead and implement
their own ideas.
If there is a lack of resources or insufficient
empowerment to do the job they approach the
management & request them to act upon the
suggestions being put forward.
This approach encourages greater involvement
of all employees for quality implementation.

77
ISO 9000
ISO 9000 is a generic set of standards that
enable organizations to build quality
management and assurance systems.
International organization for standardization
,IOS is a network of the national standard
institutes of 146 countries, on the basis of
one member per country, with a Central
Secretariat in Geneva, Switzerland that
coordinates the system.

78
ISO 9000
ISO-9000 sets out that the company can
establish , document and maintain an
effective & economic quality system which
will demonstrate to the customers that the
company is committed to quality & is able to
meet their quality needs.
Organizations certified under the ISO 9000
standard are assured to have quality equal to
their peer organisations.

79
ISO 9000
ISO standards contribute to making the
development, manufacturing and supply of
products and services more efficient, safer and
cleaner.
They provide governments with a technical
base for health, safety and environmental
legislation.
ISO standards also serve to safeguard
consumers and users of products and services.
ISO 9000 standards is becoming a necessity for
international competitiveness.
80
ISO 9000
ISO 9000 is primarily concerned with ‘quality
management’.
It pertains to what the organization does to
fulfill the customer’s quality requirements &
the applicable regulatory requirements.
Further the certification aims to enhance
customer satisfaction & achieve continual
improvement of the organization.

81
……contd.
ISO 14000 family is concerned with
‘environmental management’.
This addresses what the organization does to
minimize harmful effects on the environment
caused by its activities.
ISO standards are generic in the sense that
same standards can be applied to any
organization, large or small, whatever its
product or service, in any sector of activity
and whether it is a business enterprise,
public administration or a government
department.
82
……contd.
The standards only require that the suppliers
have a verifiable process in place to ensure
that it consistently produces what it says it
will produce, thus providing confidence to
customers & the company management that
certain principles of good management are
followed.

83
Lecture-24

84
Total Quality Management
Total Quality Management can be defined as
“ managing the entire organization so that it
excels in all dimensions of products &
services that are important to the customer.
TQM is a process approach and it is a
management strategy.

85
Total Quality Management
TQM can be defined as an organization-wide
effort to develop the required systems, tools,
techniques, skills and mindset to establish a
quality assurance system that is responsive to
emerging market needs.
Such an effort will provide distinctive
advantages to a firm & will enable it to
compete effectively in the market.

86
…contd.
A good TQM program consists of the
following elements:
Role of the top management
Employee involvement for continuous
improvement
Addressing the training requirements of
employees
Tools and techniques for quality assurance and
continuous improvement

87
TQM…..Role of the Top
Management
 ‘Total’ connotes ‘everyone’,
‘everywhere’ and ‘every time’.
 It involves everyone from CEO to the

janitor, the responsibility for quality

shifts to the production workers.
Problem solvers

Management as filter Management

As enabler
Workers as problem
Workers solvers
88
88
…..contd.
 In TQM, focus of middle & top
management shifts to one of
facilitating production workers in
maintaining quality assurance. It calls
for shifting of process ownership to the
workers & their supervisors.
 Top management has to play an

important role in ensuring that ‘every

time’ is followed in letter and spirit.
89
89
…..contd.
 Top management also needs to play a
vital role in communication. They
should not miss even a single
opportunity that comes their way to
demonstrate their support &
involvement in TQM implementation
process.
 A well defined quality policy signals the

seriousness of an organization &

nature of its commitment to various 90
90
Addressing training requirements
 Successful TQM programs demand
substantial investment in
communication.
 Communicating the need for

alternative procedures, new methods

of empowerment & benefits that
accrue to the organization.
 Educating all the employees in using

new quality control tools & techniques

to be adopted for quality management.91
91
Quality management Tools
Purpose of the tool Quality control tools Management tools

Highlighting problems Control charts

Identifying specific Histograms, Check sheets

improvement opportunities Pareto diagrams, Scatter

diagrams, Graphs
Fish
bone diagram
Analyzing problems &  Affinity diagram
their root causes CEDAC
Relationship diagram

Operational planning for Tree diagram, Matrix

building quality into diagram, Matrix data
products/services analysis, PDPC
Arrow diagram, Poka yoke

92
92
……contd.
Quality function
Strategic planning
deployment
Quality costing

93