OM CH-5 Best

CHAPTER FIVE
QUALITY MANAGEMENT AND

CONTROL
5.1 MEANING AND NATURE OF QUALITY
• Different meaning could be attached to the word quality
under different circumstances.
• The word quality does not mean the quality of manufactured
product only.
• Quality of product/service as the degree in which it fulfills
the requirement of the customer.
• It involved the established measurement standards, the use of
proper material, selection of suitable manufacturing process.
Dimensions of Quality
• Performance: main characteristics of the product or services.
• Aesthetics: appearance, feel, smell, taste
• Special feature: extra characteristics.
• Conformance: how well a product or service corresponds to
the customer's expectation
• Safety: risk of injury or harm
• Reliability: consistency of performance.
CONT…
• Durability: the useful life of the product or service.
• Perceived quality: indirect evaluation of quality (e.g.
reputation)
• Service after sale: handling of complaints or checking on
customer satisfaction.
Dimension of Quality: Service
• Time and timeliness: How long a customer waits for service?
• Completeness: is everything customer asked for provided?
• Courtesy: politeness, respect, consideration, and friendliness.
• Consistency: Is the same level of service provided to each

customer each time?
• Accessibility and convenience: -involves approachability and ease
of contact.
• Accuracy: is the service performed right every time?
• Responsiveness: how well does the company reach to unusual

situation?
5.2. OVERVIEW OF TQM
• Total Quality Management is a philosophy that involves each
and every individual in an organization in a continual effort to
improve quality and achieve customer satisfaction.
• Its prime objective of increase in revenue/benefit as well as a
continuous relationship with the customer.
• Identify the role played by various departments and interfaces
of the organization.
COST OF QUALITY
• The cost of quality may be divided in to two components:
control cost and failure cost.
A. Control cost
• This can be done in two ways (prevention and appraisal)
I. The prevention cost
• Costs associated with preventing defects before they happen
 Information Costs (acquiring and maintaining data related
to quality )
CONT…
 Cost involved with training and retraining of operators,
supervisors and other staffs.
 Cost of research and development efforts, so as to
maintain high quality products.
 Cost of redesigning the process to remove the cause of
poor quality etc….
II. The appraisal (inspection)
• Costs incurred in assessing the level of quality attended by the
operating system.
CONT…
 Cost of testing or inspecting incoming raw materials
 Cost of providing and maintaining laboratory services for
the purpose of inspection
 Cost of process control test or stage inspection.
 Cost of product inspection
 Cost of maintenance and calibration of test and inspection
equipment etc…
B. Failure Cost
• It can be internal or external failure cost.
CONT…
I. The internal failure
• Result from defects that are discovered during the
production of a product or services.
 Cost of scrap or rejections produced
 Cost of rework or corrective operations
 Cost involved in fault investigation, trouble shootings,
defect analysis
 Loss in capacity of production due to rejection produced.
CONT’D
II. The external failure cost
• Costs arise when a defect is discovered after the customer has
received defective products or services.
 Loss of future orders due to loss in its prestige
 Cost involved in attending to customers complaints
(warranty charges, returned merchandises, complaints ….)
 Litigation costs (legal fees, time and effort of handling
court issues)
5.4 Statistical Quality Controls
• Two distinct types of statistical methods are available:
acceptance sampling and process control.
I. Acceptance sampling
• Decision to accept or reject a lot of materials is made on the
basis of random sample drawn from the lot.
• Formally, we let: n= sample size, c= acceptance number, x=
number of defective units found in the sample.
If x  c, accept the lot
If x c, reject the lot
CONT’D
Example
• Suppose we have a lot of 10,000 items and we decided to take a
random sample of 100 items (n=100). We inspect the 100 items
and find 3 defectives(x=3). Assume the acceptance number in
this case is 2(c=2). Since the number of defective units in the
sample exceeds the acceptance number, the lot of 10,000 units
will be rejected.
CONT’D
II. Process quality control system
• The processes used to produce them contain many sources of

variation (common or random and assignable causes).
• Common causes of variation (Purely random)
• Assignable causes/special cases (avoidable)

• Process quality can be evaluated in two ways.
 Measure of variables (weight, length, volume or time)
 Measure of attribute (counted rather than measured )
CONT’D
A. Process control with attribute measures: using P charts
𝑃 = 𝑡ℎ𝑒 𝑠𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑠𝑎𝑚𝑝𝑙𝑒 𝑛𝑜.𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒.

• To get the center line and control limits of the ‘P’ control chart
𝑈𝐶𝐿= 𝑝+ 3ඥ (( 𝑃 (1 − 𝑃) ))/( 𝑛)
𝐿𝐶𝐿= 𝑝− 3ඥ ( 𝑃 (1 − 𝑃) ))/( 𝑛)
• If the sample percentage falls within the control limits, no
action is taken. If the sample percentage falls outside the
control limits, the process is stopped
CONT’D
Example
Suppose samples of 200 cards are taken from a key punch
operation at 2 hours intervals to control the keypunch
process. The percentage of cards in error for the past 10
samples is found to be 0.7, 1.2, 1.6, 2.0, 1.0, 0.8, 1.8, 1.5, 0.9,
and 1.2 percent. Is the process out of control?
CONT’D
Sample percentages yields a –p=1.27 percent or 0.0127 (sum of all samples divided by sample
number i.e.10)
𝑈𝐶𝐿= 0.0127+3 ට = 0.0364

0.0127(1−0.0127)
200
0.0127(1−0.0127)
𝐿𝐶𝐿= 0.0127 − 3 ඨ = −0.0110
200
CONT’D
Since all sample points are found to be in the control, these 10 samples can be used to establish
the centre line and control limits.
3.64 UCL
*
*
* * CL
1.27 * *
* * *
0 * LCL
CONT’D
B. Process control with variable measures: using X and R charts
• R-charts: A range chart, or R-chart is used to monitor process
variability.
The control limits for the R-chart are
Sample range
UCL= D4 R and LCL= D3 R & R = no. of sample
Where, R= average ranges and is the central limit of the control chart
D3 & D4 = constant that provide 3 standard deviation limits for a given sample.
Values for D3 & D4 are contained in the quality control table

CONT’D
• X– Charts: an X charts (read ‘X’ -bar chart) is used to measure
the mean or average.
The control limits for the x bar chart are:
sample mean
UCL = X + A2 R and LCL = X - A2 R X = no. of sample
A2 is constant to provide three sigma limits for the sample mean and changes as sample size
changes.
CONT’D
Example
• The management of ABC industry concerned about the
production of a special metal screw used by company’s
customers. The diameter of the screw is critical. Data from
five samples are shown in the accompanying table. The
sample size is 4.
Required
• Is the process out of control?
CONT’D
Observation
Sample 1 2 3 4
No.
1 0.5014 0.5022 0.5009 0.5027
2 0.5021 0.5041 0.5024 0.5020
3 0.5018 0.5026 0.5035 0.5023
4 0.5008 0.5034 0.5024 0.5015
5 0.5041 0.5056 0.5034 0.5047
CONT’D
Solution
The data are shown in the following table.

__
Data for the X and R charts: observation of screw diameters (in inch)
Observation __
Sample no. 1 2 3 4 R _X
1 .5014 .5022 .5009 .5027 .0018 .5018
2 . 5021 .5041 .5024 .5020 .0021 .5027
3 .5018 .5026 .5035 .5023 .0017 .5026
4 .5008 .5034 .5024 .5015 .0026 .5020
5 .5041 .5056 .5034 .5047 .0022 .5045
Average .0021 .5027
CONT’D
Step2. To constructs the R chart, select the appropriate constant
from the table for sample size 4(D4=2.282 &D3=0) .The
control limits are:
Sample range
UCL= D4 R and LCL= D3 R & R = no. of sample
UCL= 2.282(.0021) =0.00479 inches & LCL = 0(0.0021)=0 inch.

CONT’D
Step3. Plot the range on the R charts as shown below.
UCL=.00479
* __
* * CENTRE (R) = 0.0021
*
*
LCL=0
CONT’D
Ste 4. Now construct the X chart for the process average.
(sample size 4(A2=0.729))
sample mean
UCL = X + A2 R and LCL = X - A2 R X = no. of sample
𝑈𝐶𝐿 = 0.5027+ .729(.0021) = .5042 𝑖𝑛𝑐ℎ𝑒𝑠 and
LCL= .5027-.729(.0021) =.5012.

CONT’D
Step6. Plot the sample means on the control chart as shown above for X chart.
*
UCL=.5042
__
* * CENTRE (X) = 0.5027
*
*
LCL=0.5012
In this case the mean of sample 5 falls above the upper control limit, indicating that the process
average is out of control and that assignable cause must be explored.

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CHAPTER FIVE

QUALITY MANAGEMENT AND

• Completeness: is everything customer asked for provided?

• Courtesy: politeness, respect, consideration, and friendliness.

• Consistency: Is the same level of service provided to each

• Responsiveness: how well does the company reach to unusual

• The processes used to produce them contain many sources of

• Common causes of variation (Purely random)

• Assignable causes/special cases (avoidable)

𝑃 = 𝑡ℎ𝑒 𝑠𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑠𝑎𝑚𝑝𝑙𝑒 𝑛𝑜.𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒.

𝑈𝐶𝐿= 0.0127+3 ට = 0.0364

Values for D3 & D4 are contained in the quality control table

The data are shown in the following table.

UCL= 2.282(.0021) =0.00479 inches & LCL = 0(0.0021)=0 inch.

𝑈𝐶𝐿 = 0.5027+ .729(.0021) = .5042 𝑖𝑛𝑐ℎ𝑒𝑠 and

LCL= .5027-.729(.0021) =.5012.

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