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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.

2

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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

7

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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