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TRANSCRIPT
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Control -The activity of ensuring conformance to
requirements and taking corrective action when necessaryto correct problems.
Importance - Daily management of processes Prerequisite to longer-term improvements
Quality Control-The process of control where the management
tries to conform the quality of the product in accordance withthe predetermined standards and specifications.
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To asses the quality of raw materials and finished goods. To ensure whether the product conforms to the pre-determined
standards and specifications. To locate the reason for deviation and take remedial steps. To suggest suitable improvements. To develop quality consciousness. To asses various techniques of quality control. To reduce wastage.
Principles ofQuality Control
V
ariable quality of manufactured goods with an upward trend undercompetitive manufacture conditions. Control of quality increases sales, decreases costs. The conformance of a finished product to its design specification and
standards should be accomplished by avoiding the production of non-conforming material.
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Quality Policy andQuality Manual
Contract management, design control and purchasingProcess control, inspection and testingCorrective action and continual improvementControlling inspection, measuring and test equipment (metrology,measurement system analysis and calibration)Records, documentation and audits
Advantages of quality control system
Reduction in cost Improvement in morale of employees Maximum utilization of resources Increase in sales Consumers satisfaction Minimize variations
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Statistical quality control is the application ofstatistical technique to determine how far the product conformsto the standards of quality and precision and to what extend itsquality deviates from the standard quality.
Techniques of statistical quality control Control chart AcceptanceSampling
Benefits of StatisticalQuality Control It saves on rejection It maintains high standard of quality Reduces expenses of inspection Ensures standard price Sense of responsibility among workers
StatisticalQuality Control
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6
Lot received for inspection
Sample selected and analyzed
Results compared with acceptance criteria
Accept the lot
Send to production
or to customer
Reject the lot
Decide on disposition
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Merits Provides an assessment
of risk
Inexpensive and suitedfor destructive testing
Requires less time thanother approaches
Requires less handling Reduces inspector
fatigue
Demerits:
Does not make sense for
stable processes
Only detects poor
quality; does not help toprevent it
Is non-value-added
Does not help suppliersimprove
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1. Receiving Inspection2. Decentralized Inspection3. Centralized Inspection4. Trail run Inspection
5. F
irst offInspection6. Pilot-piece Inspection7. Tool Inspection8. Working Inspection9. Operation Inspection10. Final Inspection
11. Inspection by self control12. Percentage Inspection
13. Efficiency Inspection14. Endurance Inspection15. Destructive Inspection16. Product Inspection1
7. T
ests allied to completeInspection18. Piecework Inspection19. Remedial & Preventive
Inspection20. Materials Inspection
21. Work-In-Processlnspection22. Final Inspection23. Functional Inspection24. Sampling Inspection Plan
or Acceptance sampling
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Advantages No chances of collusion between production men and inspectors. Accurate counting is done for good and bad items. Sophisticated instruments can be used.
Disadvantages Errors are not quickly resolved.
Requires more material handling. Larger work-in-progress inventory may be required. Not suitable for heavy and unwieldy components.
Inspection is done at one place. All items are brought at the centralized place forinspection
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Advantages Production delays defective work are reduced Handling cost is reduced Helps to increase the rate of production Its ideal for products which are large and weigh more
Disadvantages
Less freedom of movement to the operator Sufficient space is not available for inspection Work-in-process is scattered resulting in inspection difficulties Dust, vibration, noise and other floor conditions are less suitable for
close inspection
Inspection is done on the machines or at shop floor. The measuring instruments are takento the job
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It is a day-to-day graphical representation ofthe measured or otherwise judged qualitycharacteristics of the items or samples.
It is a diagnostic tool. It is dynamic in nature. It depicts any change in the characteristics of the
item from the start of the production.
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It is constructed to show the fluctuations of the means of samples about the mean of the process andcan be used to determine whether or not the fluctuations are due to random causes or to an assignablecause.
When used along the r-chart, it tells when to leave the process along and when to chase and go for thecause leading to variation.
It secures information in establishing or modifying processes, specifications or inspection proceduresand
It can control the quality of incoming material. The control limits of
n is the number of observations
k is the number of subgroups
Upper control limit:
Lower control limit:
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It can be a fraction defective chart or % defective chart(100p).
Each item is classified as good (non-defective) or bad (defective). This chart is used to control the general quality of the component part and it checks if the fluctuation in
product quality are due to chance cause alone.
Calculation and plotting
The control limits for this chart type arewhere is the estimate of the long-term process mean established during control-chart setup. Naturally,
if the lower control limit is less than or equal to zero, process observations only need be plotted against
the upper control limit. Note that observations of proportion nonconforming below a positive lower
control limit are cause for concern as they are more frequently evidence of improperly calibrated test
and inspection equipment or inadequately trained inspectors than of sustained quality improvement.
Some organizations may elect to provide a standard value for p, effectively making it a target value for
the proportion nonconforming. This may be useful when simple process adjustments can consistently
move the process mean, but in general, this makes it more challenging to judge whether a process is
fully out of control or merely off-target (but otherwise in control).
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Logistics is the management of the flow of goods, informationand other resources between the point of origin and the point of
consumption in order to meet the requirements of consumers(frequently, and originally, millitary organizations).
Logistics involves the integration of information, transportation,inventory, warehousing, material handling, and packaging, andoccasionally security. Logistics is a channel of the supply chain
which adds the value of time and place utility.
Today the complexity of production logistics can be modeled,analyzed, visualized and optimized by plant simulation software.
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Six Sigma is a business management strategy originallydeveloped by Motorola, USA in 1981.As of 2010, it enjoyswidespread application in many sectors of industry.
A six-sigma process is one in which 99.99999% of the productsmanufactured are statistically expected to be free of defects.Motorola set a goal of "six sigmas" for all of its manufacturingoperations, and this goal became a byword for the management
and engineering practices used to achieve it.
SixSigma seeks to improve the quality of process outputs byidentifying and removing the causes of defects (errors) andminimizing variability in manufacturing and business processes.
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18
Sigma
Level
Defects Per Million
Opportunities
Rate of
Improvement
1 WW 690,000
2WW 308,000 2 times
3WW 66,800 5 times
4WW 6,210 11 times
5WW 230 27 times
6WW 3.4 68 times
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DEFINITION:The first step in any SixSigma is to clarify the problem and narrow
its scope in such a way that measureable goals can be achieved within a fewmonths. Then a team is assembled to examine the process in detail, suggest
improvements, and implement those recommendations. In themanufacturing world, project managers begin by defining what constitutesa defect and then establish a set of objectives to reduce their occurrence.
MEASUREMENT:In the second step of a SixSigma project, the team gathers data
and prepares it for high-level analysis.
ANALYSIS:Once a process has been mapped and documented, and the quality
of the hard supporting data has been verified, theSixSigma team can begin
the analysis of control.
Five steps in six sigma
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IMPROVEMENT:
Recommend, decide and implement
improvements.
CONTROL:
In the final stages of a SixSigmaproject, the team creates controls. These are
enabling the company to sustain and extend
the improvements.
Package
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Just In Time Purchasing is purely the technique of eliminatingthe wastes in purchase functions by developing long term,mutually beneficial relationship, with fewer but better supplies.
It aims at: eliminating wastes in the purchase process e.g., order
processing costs, follow up costs, etc. eliminating wastes at suppliers end.
eliminating purchased inventory.
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Suppliers facilities are the extension of buyers ownfacilities
Long term and mutually beneficial relationship with fewer
but better suppliers are necessaryDelivery lot size should be just enough to satisfyimmediate higher level requirement
Rejections interrupt supply chain and hence must beeliminated
Buyer and seller jointly identify problems and activitiesthat do not add value and initiate action to achievecontinuous improvement
Fundamental Principles ofJIT Purchasing:
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PurchasingActivity
Purchase lot sizeSelectingsupplierEvaluating
supplier
Receivinginspection
Negotiating and
bidding process
Determiningmode of
transportation
JITPurchasing
Small with frequent deliveriesSingle source, nearby area,long-term contractEmphasis on product quality,
delivery performance,price but0% rejection from supplier
Counting and receivinginspection of incoming parts isreduced and eventuallyeliminated
Primary objective is to achieveproduct quality through a long
term contract and fair priceConcern for both inbound &
outbound freight, on timedelivery.
Traditional Purchase
Large batches with less frequentdeliveriesMultiple sources, short-termcontract
Emphasis on product quality,delivery performance,price but
about 2% rejectionBuyer is responsible for receiving,counting and inspecting allincoming parts
Primary objective is to get the
lowest possible price
Concern for outbound freight and
lower outbound costs.
JITPurchase Vs.Traditional Purchase
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PurchasingActivity
Productspecification
Paper work
Packaging
JITPurchasing
Loose specifications
Less formal paper work
Small standard containers used to
hold exact quantity, precisespecifications
Traditional Purchasing
Rigid specifications
Requires great deal of timeand formal paper work
changesRegular packaging for every
part type and part numberwith no clear specifications on
product content
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JIT System of inventory control, originally developed by Taiichi Oknoimplies that the firm should maintain a minimum level of inventory andrely on suppliers to provide parts and components just-in-time to meetassembly requirements.
This systems may be a contradiction to the traditional system ofinventory or the just-in-case system which believes in maintaining ahealthy level of safety stock.
JIT System requires an integration of the following:1. A strong and dependable relationship with suppliers located in the
vicinity2. A reliable transport system3. An easy physical access and convenient layout of docks and storage
areas
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1.Flow Layout2.Smoothed build-up rate3.Mixed model scheduling4.Small lots and minimum set-up time5.Buffer stock removal6.Kanban Card7.Quality8.Product and Process Simplification9.Standard Container
10.Preventive maintenance11.Flexible work force12.Organization in modules or cells13.Continuous Improvement14.JIT Purchasing15.Pull and Push Systems
Basic Elements Of JITInventory
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Reduction in Production Cost Improve quality
Quick alternative designProductivity improvement
Characteristics of JIT:Product orientationShort-term objectivesNo common company objectivesEach department functions differently.
Benefits ofJIT
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Differences between Traditional method and JIT:
FACTOR
QualityWorkers-Managers-Engineers
RelationshipE
rrors
InventoriesLot size
Queue
Automation
Cost Reduction
Lead times
TRADITIONALMETHOD
Quality has costManagers are experts, Workersexecute their orders
E
rrors are eliminated by inspection
Always in stock
Mass production
Queues at production stations help
bettermachine utilizationSubstitutes labor
Tools: high machine utilization, labor
reduction
Increased delivery lead time
JIT
Quality is freeWorkers are experts,Managers & Engineers arefacilitators
Concept of zero defects.
Learn from errorsLow inventories
Small lot sizesAgainst queue formation
For consistency in qualityTools: accelerated flow of
product due to reduction inlead time
Decreased delivery leadtime
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FactorFlexibility
Line & Staff
functionsLabor
Breakdowns
Purchasing
Implementation
Traditional MethodAt the cost of excess capacity,
generalpurpose equipment,accumulation of inventories &
overheadSeparated
Retrenchment when demand falls
Accepted as routineFrommultiple vendors
Depends on attitude towardswork
JITBy reducing all lead times
Line workers performminimum
staff functionsRelocation to other areas
Preventivemaintenance
Purchase in small lots. Supplier
evaluation is stringentDepends on attitude towardswork
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SUPPLY CHAIN MANAGEMENT
" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier
Management
Schedule /
ResourcesConversion
Stock
Deployment Delivery
Customer
Management
Leads to Business Process Integration
Material Flow
Infor ation Flow
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Supply chain is the system by which organizations
source, make and deliver their products or servicesaccording to market demand.
Supply chain management operations and
decisions are ultimately triggered by demandsignals at the ultimate consumer level .
Supply chain as defined by experiencedpractitioners extends from suppliers suppliers to
customers customers.
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SUPPLYCHAIN INCLUDES :
MATERIAL FLOWS
INFORMATION FLOWS
FINANCIAL FLOWS
SUPPLYCHAIN MANAGEMENTIS FACILITATEDBY:
PROCESSES
STRUCTURE
TECHNOLOGY
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Supply Chain Structure
Information Flow
Raw Materials
RETAILERFACTORY DC RDCSUPPLIER
Finished Goods
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SUPPLY CHAIN ELEMENTS
Supply Chain Design
Resource Acquisition
Long TermPlanning (1Year ++)Strategic
Production/ Distribution Planning Resource Allocation
MediumTermPlanning (Qtrly,Monthly)Tactical
Shipment Scheduling
Resource Scheduling
Short TermPlanning (Weekly,Daily)Operational
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Supply Chain Goals
Efficient supply chain management must
result in tangible business improvements.
It is characterized by a sharp focus on Revenue growth
Better asset utilization
Cost reduction.
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Meaning and Definition:Total Quality Management is an
enhancement to the traditional way of doing business.
It is the art of managing the whole to achieveexcellence.TQM is a total organizational approach for
meeting and exceeding customers expectations,
involving all employees of an organization and usingquantitative methodsquantitative methods to continuously improve theorganization's processes, products and services
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TQM requires the whole of the organization to adopt the culture ofquality. In a TQM organization, quality will dictate the decisions,tasks and processes.
TQM is committed at all levels within every department or function to
continuously improve quality.
The 4 basic components of TQM are:1. Put customers first2. Make continuous improvement3. Aim for zero defects
4. Training and Development
Putting Customers first:A quality product or service satisfies customers needs
and expectations. If not so, their expectations will not be satisfiedand consequently quality will not be achieved.
BASIC COMPONENTS
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Initiatives:Undertaking market research1. Looking after all customers whether internal or external2. Listening to customer views and opinions
Make Continuous Improvement:The Japanese term kaizen believes that there are no limits tocontinuous improvement. This means that a TQM organization willcontinuously strive to improve their product/service and increase qualitystandards.
Aim for zero defects:There are a number of reasons behind the aim to eradicate defects.oDefects are expensive because they will lower the customersconfidence in the productoIt is more expensive to rectify defects than it is to prevent themoccurring in the first place
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Training & Developement: An organization will need to train theiremployees to ensure that they understand the principles of TQM
In a TQM organization, employees will need to understand howTQM is to be achieved or maintained and how they as an employee
will ensure that the organization emulates TQM.
Characteristics ofTQM:
Quality-centeredCustomer-focusedFact-basedTeam-drivenSeniormanagement-ledprocess
Principles OfTQM:Total quality improvementWorld-class qualityContinuous quality
improvementTotal service qualityTotal quality leadership
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Performance
Rugged Design
FinishStyle
Reliability
Aroma
Serviceability
Versatility
Interchangeability
Maintainability
Size
Safety
Operatibility
ColourShape
Life
Efficiency
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Strategic Tools for
Quality ControlCheck Sheet
Pareto Chart
Cause & Effect Diagram
Flowchart
Histogram
Scatter Diagram
Control Chart
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1. AffinityDiagram
2. RelationsDiagram
3. SystematicDiagram
4. MatrixDiagram
5. Matrix data AnalysisDiagram
6. ProcessDecision
7. ArrowDiagram
-Used to organize abstract thinking
about a problem
-Used for determining causalitiesamong parts of a problem
-A planning tool
-Used to organize data in matrices
-Principles Component Technique onmatrix data
-Selection of right process byevaluating alternatives
-Used to do what if-ing on flow of
process
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Team Members:Sowmya Ravi
Sukanya.CTrisha Agarwal
Uma Rungta