Maintenance and Quality Management

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Module V Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin Module –V: Maintenance Management Function – Types of Maintenance – Total ProductiveMaintenance (TPM). Statistical Quality Control (SQC). Cost of Quality (COQ). ISO 9000 certification. Total Quality Management. MAINTENANCE MANAGEMENT Maintenance Management is planning, organizing and controlling maintenance activities such that the overall maintenance cost is minimum. Benefits of Maintenance Management Objectives of Maintenance 1. To prevent Breakdown 2. Ensure operational safety 3. Ensure Operational Efficiency 4. Reduce cost 5. Reduce Idle hours- Component Malfunction 6. Prevent rapid wear of components Benefits of Maintenance Management The production capacity of the facility is almost unaffected due to well maintained machines and thus, lesser breakdowns. Production cost can be kept minimum as lesser breakdowns of equipment means less opportunities for workers being idle Quality of products and services remains unaffected due to proper maintenance of equipment, thus reducing the possibility of variation in the output Life of facilities and equipment increases due to proper maintenance The delivery schedules of customers are not disrupted due to unexpected breakdowns, leading to customer satisfactions The Possibility of sudden breakdowns of equipment resulting in safety hazards to workers is minimized.

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maintenance and quality management

Transcript of Maintenance and Quality Management

  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    Module V: Maintenance Management Function Types of Maintenance Total ProductiveMaintenance (TPM). Statistical Quality Control (SQC). Cost of Quality (COQ). ISO 9000 certification. Total Quality Management. MAINTENANCE MANAGEMENT

    Maintenance Management is planning, organizing and controlling maintenance activities such that the overall maintenance cost is minimum.

    Benefits of Maintenance Management

    Objectives of Maintenance

    1. To prevent Breakdown

    2. Ensure operational safety

    3. Ensure Operational Efficiency

    4. Reduce cost

    5. Reduce Idle hours- Component Malfunction

    6. Prevent rapid wear of components

    Benefits of

    Maintenance

    Management

    The production capacity of the

    facility is almost unaffected due

    to well maintained machines and

    thus, lesser breakdowns.

    Production cost can be kept

    minimum as lesser breakdowns of

    equipment means less opportunities

    for workers being idle

    Quality of products and services

    remains unaffected due to proper

    maintenance of equipment, thus

    reducing the possibility of

    variation in the output

    Life of facilities and equipment

    increases due to proper

    maintenance

    The delivery schedules of

    customers are not disrupted due to

    unexpected breakdowns, leading

    to customer satisfactions

    The Possibility of sudden

    breakdowns of equipment

    resulting in safety hazards to

    workers is minimized.

  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    7. Eliminate defects.

    Maintenance Functions

    Maintenance functions can be grouped in two categories Basic functions and Composite

    functions

    Basic Functions

    1. Replace To remove an unserviceable item and install a serviceable counterpart in its

    place\

    2. Repair- The application of maintenance services including fault location troubleshooting,

    removal installation, and disassembly/ Assembly procedures, and maintenance actions to

    identify troubles and restore serviceability to an item by appropriate corrections.

    3. Overhaul- That maintenance effort prescribed to restore an item to a completely

    serviceable/operational condition.

    4. Rebuild- It consists of those services/actions necessary for the restoration of

    unserviceable equipment to a like new condition in accordance with original

    manufacturing standards.

    5. Service/ Lubricate- Operations required periodically to keep an item in proper operating

    condition ie to clean, to preserve, to drain, to paint or replenish fuel, lubricants, chemical

    fluids or gases.

    6. Inspect/ check- To determine the serviceability of an item by comparing its physical,

    mechanical, and /or electrical characteristics with prescribed standards.

    7. Test To verify serviceability by measuring the mechanical or electrical characteristics

    of an item and compare those characteristics with prescribed standards.

    8. Adjust- To maintain, within prescribed limit, by bringing into proper or exact position, or

    by setting the operating characteristics to specified parameters.

    9. Align- To adjust specified variable elements of an item to bring about optimum or desired

    performance.

    10. Calibrate- To determine and cause corrections to be made or to be adjusted on

    instruments or test, measuring and diagnostic equipment used in precision measurement,

    using a certified standard instrument.

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    11. Measure The act or process of ascertaining the extend, dimension or quantity of

    something. Like the extend of wear and tear, elongation,

    12. Winding- Provide a symmetrically laid electrical conduction path in any device like the

    motor winding.

    13. Install- The act of seating or fixing into position an item, part or module in manner to

    allow proper functioning of an equipment or system.

    Composite functions

    1. Protecting building, structures, plants, and factories.

    2. Reducing downtime and increasing availability.

    3. Analyze failures and arrange their elimination.

    4. Forecast maintenance spares, tools consumables etc

    5. Economy in maintenance department

    6. Ensure safety in installations.

    7. Cost reduction and cost control.

    8. Prepare maintenance budgets.

    9. Waste reduction and waste recovery.

    10. Improving technical communication

    11. Training of maintenance personnel on related job.

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  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    3. Could lead to reduction in the reliability of the machine as breakdown maintenance concentrated on the failure and its obvious reason rather than the root cause.

    Preventive Maintenance

    Maintenance work is done at predetermined time or on the basis of other criteria like

    Fixed no. of cycles of operations Usage hours Cumulative output

    The basis assumption is that the failure of equipment is dependent on time in a predictable way.

    ADVANTAGES

    1. Less unexpected shutdowns

    2. Less consequential secondary damages ( damages caused on other components due to

    failure of an equipment)

    3. Better Utilization of manpower and maintenance resources ( as the activity can be

    properly planned in advance)

    4. Reduced Overtime costs

    5. Better equipment condition hence less rejects and reworks

    6. Improved safety and quality

    DISADVANTAGES

    1. Does not ensure full protection against unexpected shutdowns. In spite of regular

    preventive maintenance unexpected shutdowns can occur.

    2. Some maintenance may not be necessary.

    3. Periodic maintenance may increase running in failures. Running in failures are failures

    that occur when new components are put in operation for the first time. The components

    replaced during preventive maintenance can fail prematurely thus defeating the very

    purpose of preventive maintenance.

    Predictive Maintenance

    1. Also known as condition based Maintenance. The condition of the equipment is

    monitored regularly and equipment is taken for maintenance if the condition indicates a

    likely hood of equipment failure.

    2. Equipment maintained when measurements indicate incipient failure.

    Condition Monitoring

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    1. Condition may be determined continuously or at regular intervals.

    2. Condition could be vibration, debris analysis, temperature, quality of product etc.

    ADVANTAGES

    Fairly effective protection from unexpected shutdowns.

    Equipment rarely stopped for unnecessary maintenance.

    Could help in reducing the stress on the machinery in case of an incipient failure

    Could be used to check the quality of maintenance.

    DISADVANTAGE

    Has certain amount of subjectivity which could lead to the risk of planning maintenance

    too early or too late.

    Is justified only when the benefits are larger than the cost of monitoring. ( Monitoring

    instruments, Analyses etc.)

    TOTAL PRODUCTIVE MAINTENANCE

    TPM is a philosophy of continuous improvement that creates a sense of ownership in the

    operators and other connected persons for the machines. It combines the traditional practices of

    preventive and predictive maintenance with total quality control and total employee

    participation/ involvement to create a culture where operators develop ownership of their

    equipment and become full partners with maintenance, engineering and management etc to

    ensure that equipments operate properly everyday at required time.

    The three different words of TPM can be defined as following

    Total

    1. All employees are involved in it.

    2. It aims to eliminate all breakdowns, defects and accidents.

    Productive

    1. Many actions are performed while production goes on.

    2. Troubles for production are minimized, if not eliminated.

    Maintenance

    1. Check Clean, lubricate and repair.

    2. Keep Machine in good condition.

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    The concept of Productive Maintenance was first introduced by M/s Nihon Denso Co. Japan in

    the year 1971 and was subsequently promoted to national level in Japan in 1983, by Japanese

    Institute of Plant maintenance.

    Features / Principles of TPM

    Some of the features / principles considered for successful TPM are as following

    Increase Overall Equipment Effectiveness ( OEE) The operator is the best condition monitor. Involves all departments such as operations, maintenance, connected planning groups,

    material management, quality, finance and administration.

    Involves the participation (up-to required level) of members of all groups from management level to shop-floor worker level.

    Provides training to upgrade operation and maintenance skills. Generally promotes small autonomous group concept for better motivation and

    coordination:

    Establishes a total system of completer maintenance and upkeep of the equipments, generally covering the entire plant life cycle; etc.

    Components or pillars of TPM

    Following are the basic eight basic components or pillars of TPM

    1. Autonomous Maintenance ( Jishu Hozen)

    2. Equipment and process improvement, using KAIZEN

    3. Planned Maintenance

    4. Early management of new equipment

    5. Process quality Management and Quality Maintenance

    6. Education and Training

    7. TPM in administrative and support departments

    8. Safety and environmental Management

    1. Autonomous Maintenance

    It promotes small autonomous group concepts, involving operation, maintenance and all

    connected disciplines to required degree. In order to increase the operators knowledge,

    participation and responsibility for their equipment, following steps are taken-

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    1. Train the operators to close the gap between them and the maintenance staff making it

    easier for both to work as one team( flexible operator)

    2. Change the equipment so the operator can identify any abnormal conditions and measure

    deterioration before it affects the process or leads to a failure.

    3. Operator to perform initial cleaning and inspection: take counter measures for the causes

    and effects of dirt and dust; prove covers and other protective or self cleaning devices.

    4. Other counter measures- In-accessible regions had to be reached easily. Instead of

    opening a door for inspecting the machine, acrylic sheets can be used.

    5. Establish cleaning and lubrication standards and operator to carryout minor lubrication

    and monitor lubrication gadgets.

    6. Eliminating the defects at source through active employee participation.

    7. Autonomous inspection, including continuous monitoring and changing frequencies and

    points and items for cleaning and inspection, depending on the results and experience.

    8. Work environment is modified such that there is no difficulty or time loss in getting any

    item.

    9. Autonomous management- OEE (Overall Equipment efficiency) and OPE (Overall

    production efficiency) and other PM targets must be achieved by continuous

    improvement through Kaizen, PDCA( Plan, Do , Check, Act) cycle must be implemented

    for Kaizen.

    2. Equipment and Process improvement, Using Kaizen

    The objective of this component (pillar) is to maximize efficiency by eliminating waste and

    manufacturing losses. Basically kaizen is for small improvements, but is carried out on a

    continual basis and involve all people in the organization. Kaizen is the opposite of big

    spectacular innovation. It requires little or no investment. The principle behind is that a very

    large number of small improvements are more effective in an organizational environment than a

    few improvements of large value.

    TPM identifies following major sources of losses and then works systematically to eliminate

    them.

    A) Losses that impede equipment efficiency( Equipment losses) a. Downtime losses

    i. Equipment failure/ breakdowns

  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    ii. Setup and adjustments

    iii. Scheduled downtime loss

    iv. Consumable breakage/ Change loss ( cutting blade loss etc)

    b. Speed loss i. Minor stopping / idling

    ii. Reduced speed

    c. Quality loss

    i. Process errors

    ii. Rework / Scraps

    B) Losses that impede human efficiency ( Manpower loss) i. Cleaning and checking

    ii. Waiting for instructions

    iii. Waiting for materials

    iv. Waiting quality confirmation

    v. Measurement and adjustment loss

    C) Losses that impede effective use of production resources ( Material loss) i. Material Yield loss

    ii. Energy Loss

    iii. Consumable material loss( Die, Jig, and tool breakage loss etc.)

    3. Planned Maintenance

    Objective of this component (Pillar) is to establish preventative, predictive maintenance systems

    for equipment and tooling. Natural life cycle of individual machine elements must be achieved

    for trouble free working, producing defect-free products for total customer satisfaction, by

    planned maintenance. (Corrective, preventive, predictive, maintenance prevention) Correct

    operation, correct set-up, proper cleaning, proper lubrication, necessary retightening, feedback

    and repair of minor defects and quality spares etc are specifically taken care of.

    4 Early Management of new equipment

    The objective of this component is

    1. To establish a system to shorten/ minimize the time for new equipment or product

    development.

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    2. System shortens the start-up, commissioning and stabilization time for quality and

    efficiency.

    3. New equipment needs to be

    a. Easy to operate

    b. Easy to clean

    c. Reliable and easy to maintain

    d. Have quick set-up times

    e. Have easily visual and approachable built-in test equipment and condition

    monitoring equipment.

    f. Operate at lowest life cycle cost.

    5. Process Quality Management and Quality Maintenance

    This component (Pillar) calls for a process for controlling the condition of equipment and

    machineries that affect variability in product quality and drives defect free products. Its

    objective is to set and maintain conditions of equipments to accomplish zero defects as

    the quality rate of any product has a direct correlation with

    Material condition Equipment condition and precision Production methods Process parameters.

    6. Education and Training

    TPM is a continuous learning process. It is aimed to have multi-skilled revitalized employees

    whose morale is high and who is eager to come to work and perform all required functions

    effectively and independently. Education and training is given to operators/workmen to upgrade

    their skill. There are following four knowledge stages of a workman about a job

    Stage 1 Do not know

    Stage 2 Know the theory, but cannot do

    Stage 3- Can do the job but cannot teach

    Stage 4 Can do the job and can teach also.

    The prerequisite of for this component (Pillar) is checking the present status of education,

    training and skills of the available men and setting priorities and policies for improvement.

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    7. TPM in administrative and support departments (Office TPM)

    Administrative and support departments can be seen as process plants whose principal taks are to

    collect, process and distribute information. The aim of this component is to improve

    productivity, efficiency in the administrative and support functions and identify and eliminate

    losses. This includes analyzing processes and procedures towards increased office automation.

    Office TPM addresses many major losses, few of those are

    1. Processing loss

    2. Cost losses in areas like procurement, accounts, marketing , sales leading to high

    inventories

    3. Communication loss

    4. Idle loss and set up loss

    5. Office equipment breakdown

    6. Communication channel breakdown

    7. Time spent on retrieval of information

    8. Non availability of correct on line stock status.

    9. Customer complaints due to logistics.

    10. Expenses on emergency dispatch/ purchases etc.

    8. Safety and Environmental Management

    Assuring safety and preventing adverse environmental impacts are important priorities of any

    TPM effort. In this area focus is on to create a safe workplace and a surrounding area that is not

    damaged by the processes or procedures. This component (Pillar) will play an active role in each

    of the other pillar on a regular basis.

    Aims and Targets

    Zero Accidents, Zero health hazard/ damage and Zero fire etc.

    The 5-S concept (Sort, Clean (Seiton), Set in order, standardize, and sustain/Progress)can also be

    considered as an important component of TPM

    Benefits of TPM

    1. Increased equipment productivity

    2. Increased plant capacity

    3. Reduced equipment downtime

    4. Lower maintenance and production cost

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    5. Immediate attention of smaller problems to prevent its aggravation.

    6. Approaching zero equipment caused defects.

    7. Reduced inventory levels and inventory carrying costs in all parts of the supply chain.

    8. Better utilization of work area and improved productivity of employees

    9. Enhanced job-satisfaction and

    10. Increased Return on Investment.

    QUALITY MANAGEMENT

    Quality

    Statistical Quality Control-

    Statistical quality control is the set of statistical tools used by Quality professional. It can be

    classified broadly into 3 categories

    1. Descriptive Statistics Are used to describe quality characteristics and their relationships. Included are statistics such as mean, standard deviation, range and a

    measure of distribution of data.

    2. Statistical Process Control (SPC) Involves inspecting a random sample of the output

    from a process and deciding whether the process is producing products that fall within a

    predetermined range. SPC answers the question whether the process is functioning

    properly or not.

    3. Acceptance sampling Is the process of inspecting randomly inspecting a sample of

    goods from a lot and deciding whether to accept or reject the lot based on the result.

    Acceptance sampling determines whether a batch of goods should be accepted or

    rejected.

    The tools in each of these categories provide different types of information for use in analyzing

    quality. Descriptive statistics are used to describe certain quality characteristics, such as the

    central tendency and variability of observed data. Although descriptions of certain characteristics

    are helpful, they are not enough to help us evaluate whether there is a problem with quality.

    Acceptance sampling can help us do this. Acceptance sampling helps us decide whether

    desirable quality has been achieved for a batch of products, and whether to accept or reject the

    items produced. Although this information is helpful in making the quality acceptance decision

    after the product has been produced, it does not help us identify and catch a quality problem

  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    during the production process. For this we need tools in the statistical process control (SPC)

    category.

    All three of these statistical quality control categories are helpful in measuring and evaluating the

    quality of products or services. However, statistical process control (SPC) tools are used most

    frequently because they identify quality problems during the production process. For this reason,

    we will devote most of the chapter to this category of tools. The quality control tools we will be

    learning about do not only measure the value of a quality characteristic. They also help us

    identify a change or variation in some quality characteristic of the product or process.

    Variations from predetermined standards lead to quality issues. Two kinds of causes lead to

    variations: Natural or random causes of variations and Assignable causes of variations. Natural

    or random causes are neither identifiable nor explainable. They occur purely by chance. The

    second type of causes of variations can be precisely identified and eliminated. These are called

    the Assignable causes of Variations. Examples of this type of variations are poor quality in raw

    materials, an employee who needs training, a machine that needs repair. In each of these

    examples the problem can be identified and corrected.

    Variables and attributes: The measures used by operations to describe quality characteristics

    are of two types: variables and attributes. Variable measures are those that can be measured on a

    continuously variable scale (for example, length, diameter, weight or time). Attributes are those

    which are assessed by judgment and are dichotomous, ie. have two states (for example, right or

    wrong, works or does not work, looks OK or not OK- deal or no-deal !).

    Table below categorizes some of the measures which might be used for the quality

    characteristics of a car.

    Some variable and attributes of a car

    Quality characteristic Variable Attribute

    Functionality Acceleration and braking

    characteristics from test bed

    Is the ride quality satisfactory?

    Appearance Number of blemishes visible

    on car

    Is the colour to specification

    Reliability Average time between faults Is the reliability satisfactory

    Durability Life of the car- x years Is the useful life as predicted

  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    Quality characteristic Variable Attribute

    Recovery Time from fault discovered to

    fault repaired

    Is the serviceability of the car

    acceptable

    Contact Level of help provided by

    sales staff (1 to 5 scale)

    Did customers feel well served

    (yes or no)?

    DESCRIPTIVE STATISTICS

    Descriptive statistics can be helpful in describing certain characteristics of a product and a

    process. The most important descriptive statistics are measures of central tendency such as the

    mean, measures of variability such as the standard deviation and range, and measures of the

    distribution of data.

    STATISTICAL PROCESS CONTROL Statistical process control methods extend the use of descriptive statistics to monitor the quality

    of the product and process. There are common and assignable causes of variation in the

    production of every product. Using statistical process control we want to determine the amount

    of variation that is common or normal. Then we monitor the production process to make sure

    production stays within this normal range. That is, we want to make sure the process is in a state

    of control. The most commonly used tool for monitoring the production process is a control

    chart. Different types of control charts are used to monitor different aspects of the production

    process.

    A control chart (also called process chart or quality control chart) is a graph that shows whether a

    sample of data falls within the common or normal range of variation. A control chart has upper

    and lower control limits that separate common from assignable causes of variation. The common

    range of variation is defined by the use of control chart limits. We say that a process is out of

    control when a plot of data reveals that one or more samples fall outside the control limits

  • Module V

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  • Module V

    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    on a number of different values. Other examples are the weight of a bag of sugar, the

    temperature of a baking oven, or the diameter of plastic tubing

    A control chart for attributes, on the other hand, is used to monitor characteristics that have

    discrete values and can be counted. Often they can be evaluated with a simple yes or no decision.

    Examples include color, taste, or smell. The monitoring of attributes usually takes less time than

    that of variables because a variable needs to be measured (e.g., the bottle of soft drink contains

    15.9 ounces of liquid). An attribute requires only a single decision, such as yes or no, good or

    bad, acceptable or unacceptable (e.g., the apple is good or rotten, the meat is good or stale, the

    shoes have a defect or do not have a defect, the lightbulb works or it does not work) or counting

    the number of defects (e.g., the number of broken cookies in the box, the number of dents in the

    car, the number of barnacles on the bottom of a boat).

    Statistical process control is used to monitor many different types of variables and

    attributes.

    Control Charts for Variables

    1. Mean Charts : A mean chart is also known as the x-bar Chart . It is used to monitor

    changes in mean of a process

    The chart is constructed using the following parameters

    Center line = the mean

    UCL = + zx LCL = - zx Where is the average of the sample means

    Z = standard normal variable ( 2 for 95.44% confidence and 3 for 99.74 confidence

    x = Standard deviation of the distribution of sample means.

    2. Range Chart or chart. Range (R) charts are another type of control chart for variables. Whereas x-bar charts measure

    shift in the central tendency of the process, range charts monitor the dispersion or variability of

    the process. The method for developing and using R-charts is the same as that for x-bar charts.

    The center line of the control chartis the average range, and the upper and lower control limits

    are computed as follows:

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    CL =

    UCL = D4

    LCL = D3 Where the values for D3 and D4 are obtained from tables.

    Control Charts for Attributes

    Control charts for attributes are used to measure quality characteristics that are counted rather

    than measured. Attributes are discrete in nature and entail simple yes-or-no decisions. For

    example, this could be the number of nonfunctioning lightbulbs, the proportion of broken eggs in

    a carton, the number of rotten apples, the number of scratches on a tile, or the number of

    complaints issued. Two of the most common types of control charts for attributes are p-charts

    and c-charts.

    P-charts are used to measure the proportion of items in a sample that are defective. Examples are

    the proportion of broken cookies in a batch and the proportion of cars produced with a

    misaligned fender. P-charts are appropriate when both the number of defectives measured and

    the size of the total sample can be counted. A proportion can then be computed and used as the

    statistic of measurement. C-charts count the actual number of defects. For example, we can count

    the number of complaints from customers in a month, the number of bacteria on a petri dish,

    or the number of barnacles on the bottom of a boat. However, we cannot compute the proportion

    of complaints from customers, the proportion of bacteria on a petri dish, or the proportion of

    barnacles on the bottom of a boat. The center line is computed as the average proportion

    defective in the population, . This is obtained by taking a number of samples of observations at

    random and computing the average value of pacross all samples. To construct the upper and

    lower control limits for a p-chart, we use the following formulas:

    CL = Average proportion defective in the population

    UCL = + zp

    LCL = - zp Where z is the standard normal variable is the sample proportion defective p is the standard deviation of the average proportion defective

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    For constructing C-chart we use the following formula

    CL = Is the average number of defects

    UCL = + z

    LCL = - z Where Z is the standard normal variable.

    ACCEPTANCE SAMPLING

    Acceptance sampling is the third branch of Statistical Quality control, which refers to the process

    of randomly inspecting a certain number of items from a lot or a batch in order to decide whether

    to accept or reject the entire batch. The difference between Acceptance sampling and Statistical

    process control is that Acceptance sampling is done either before or after a process rather than

    during a process.

    Acceptance sampling is used when inspecting every item is not physically possible or would be

    overly expensive, or when inspecting a large number of items would lead to errors due to worker

    fatigue. This last concern is especially important when a large number of items are processed in a

    short period of time. Another example of when acceptance sampling would be used is in

    destructive testing, such as testing eggs for salmonella or vehicles for crash testing. Obviously, in

    these cases it would not be helpful to test every item! However, 100 percent inspection does

    make sense if the cost of inspecting an item is less than the cost of passing on a defective item.

    the goal of acceptance sampling is to determine the criteria for acceptance or rejection based on

    the size of the lot, the size of the sample, and the level of confidence we wish to attain.

    Acceptance sampling can be used for both attribute and variable measures, though it is most

    commonly used for attributes.

    Sampling Plan

    A sampling plan is a plan for acceptance sampling that precisely specifies the parameters of the

    sampling process and the acceptance/rejection criteria. The variables to be specified include the

    size of the lot (N), the size of the sample inspected from the lot (n), the number of defects above

    which a lot is rejected (c), and the number of samples that will be taken.

    There are different types of sampling plans. Some call for single sampling, in which a random

    sample is drawn from every lot. Each item in the sample is examined and is labeled as either

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    good or bad. Depending on the number of defects or bad items found, the entire lot is

    either accepted or rejected.

    Another type of acceptance sampling is called double sampling. This provides an opportunity

    to sample the lot a second time if the results of the first sample are inconclusive. In double sampling we first sample a lot of goods according to preset criteria for definite acceptance or rejection. However, if the

    results fall in the middle range,

    In addition to single and double-sampling plans, there are multiple sampling plans.Multiple

    sampling plans are similar to double sampling plans except that criteria are set for more than two

    samples.

    Operating characteristic Curves ( OC Curves)

    Different sampling plans have different capabilities for discriminating between good and bad

    lots. At one extreme is 100 percent inspection, which has perfect discriminating power.

    However, as the size of the sample inspected decreases, the chance of accepting a defective lot

    increases.We can show the discriminating power of a sampling plan on a graph by means of an

    operating characteristic (OC) curve. OC curve shows the probability or chance of accepting a

    lot given various proportions of defects in the lot.

    Producers risk is the chance of rejecting a lot even though the percentage defective is less than

    the Acceptable Quality Limit.( AQL). AQL is the max percentage defective that the consumers

    are willing to accept.

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    Consumers risk is the probability of accepting a lot even though the percentage defect is larger

    than the Lot Tolerance Percentage defect( LTPD). Even if the no. of defects is higher than AQL

    consumers would tolerate a few more defects until it reaches a threshold limit. This upper limit

    above which the percentage defects cannot be tolerated is called LTPD.

    Statistical Quality Control in Services

    Statistical quality control (SQC) tools have been widely used in manufacturing organizations for

    quite some time. Manufacturers such as Motorola, General Electric, Toyota, and others have

    shown leadership in SQC for many years. Unfortunately, service organizations have lagged

    behind manufacturing firms in their use of SQC. The primary reason is that statistical quality

    control requires measurement, and it is difficult to measure the quality of a service. Remember

    that services often provide an intangible product and that perceptions of quality are often highly

    subjective. For example, the quality of a service is often judged by such factors as friendliness

    and courtesy of the staff and promptness in resolving complaints. A way to measure the quality

    of services is to devise quantifiable measurements of the important dimensions of a particular

    service. For example, the number of complaints received per month, the number of telephone

    rings after which a response is received, or customer waiting time can be quantified. These types

    of measurements are not subjective or subject to interpretation. Rather, they can be measured and

    recorded. As in manufacturing, acceptable control limits should be developed and the variable in

    question should be measured periodically.

    Another issue that complicates quality control in service organizations is that the service is often

    consumed during the production process. The customer is often present during service delivery,

    and there is little time to improve quality. The workforce that interfaces with customers is part of

    the service delivery. The way to manage this issue is to provide a high level of workforce

    training and to empower workers to make decisions that will satisfy customers.

    COST OF QUALITY- The Costs associated with quality ( for ensuring quality and the cost of

    poor quality) is called the cost of quality. There are four broad categories of cost of quality-

    1. Prevention

    2. Appraisal

    3. Internal failure

    4. External failure

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    Operations Management Notes ( Pvt Circulation Only) Compiled by Santhosh.S, Associate Professor, SCMS Cochin

    1. Prevention Cost The cost incurred to prevent a quality failure is prevention cost. It includes cost of training, planning, designing, equipping a quality control program, cost of

    measurements, vendor certification, equipment maintenance etc.

    2. Appraisal Cost Cost of evaluating, measuring, or inspecting for quality at plant or at the field is the appraisal cost. It is cost of inspection, testing, and other tasks to ensure that the

    product or process is acceptable.

    3. Internal Failure cost- Costs attributable to errors and defects in production at plant. Cost for defects incurred within the system: Scrap, rework, repair.

    4. External Failure cost- Costs for defects that pass through the system: Customer warranty, replacements, loss of customer or goodwill, handling complaints and product repair.

    The following topics please consult your assignment write up and do an independent study

    ISO 9000 CERTIFICATION

    TOTAL QUALITY MANAGEMENT

    TPM