Professional Documents
Culture Documents
Presented by:
The Phoenix
Team Members:
Nilesh Surana 10DM_095
Nishant Singh Gahlot 10DM-097
Priya Kanodia 10DM-107
Swati Goyal 10FN-113
Sabeeka Rizvi 10FN-135
Soumya Kaushal 10FN-137
Introduction
Many companies in the world are gradually promoting quality as the central customer value
and regard it as a key concept of company strategy in order to achieve the competitive edge.
Quality improvement decisions are viewed as the catalyst for substantial technological
developments being made in the manufacturing sector.
Quality Costs are a measure of the costs specifically associated with the achievement or non-
achievement of product or service quality –including all product or service requirements
established by the company and its contract with customers and society.
Measuring and reporting the quality cost is the first step in a quality management program.
Quality costs allow us to identify the soft targets to which improvement efforts can be applied.
Quality Tools
The various tools are used to check the quality of the product to define weather the
product is a quality one or not and to take the further necessary actions to bring the
process under control.
Check sheet
Pareto chart
Flow chart
Histogram
Scatter diagram
Control chart
Company Profile
PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and
Beverage Company. One of the largest multinational investors in the country, PepsiCo has
established a business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver
joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes
iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low
calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina
drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based
drinks – Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new
innovation Nimbooz by 7Up. Local brands – Lehar Evervess Soda, Dukes Lemonade and
Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all
Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos
extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and
the recently launched ‘Aliva’ savoury crackers. The company’s high fibre breakfast cereal,
Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to
consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked
in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary
nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee
owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.
PepsiCo’s business is based on its sustainability vision of making tomorrow better than today.
PepsiCo’s commitment to living by this vision every day is visible in its contribution to the
country, consumers and farmers.
Histogram:
Figure 1
Histograms: A histogram is a tool for summarizing, analyzing, and displaying data.
It provides the user with a graphical representation of the amount of variation found
in a set of data. Histograms sort observations or data points, which are measurable
data, into categories and describes the frequency of the data found in each category.
Calculate the size of the class interval. The class interval is the width of each class
on the X axis. It is calculated by the following formula: Class interval = Range /
Number of classes.
Determine the class boundary. They are the largest and smallest data points that
can be included in each class.
Calculate the number of data points (frequency) that are in each class. A tally
sheet is usually used to find the frequency of data points in each interval.
Draw the Histogram, as in Figure 1, and plot the data.
Flow Charts
Purpose: Flow Charts provide a
visual illustration of the sequence of
operations required to complete a
task.
Flow Charts: Flow charting is the
first step we take in understanding a
process. Whether this process is an
administrative or a manufacturing
one, flow charts provide a visual
illustration, a picture of the steps the
process undergoes to complete it's
task. From this picture we can see
how this process and the elements
comprising it, fit into the overall
picture of the business. Every process will require input(s) to complete it's task, and
will provide output(s) when the task is completed. For example, an injection
molding machine requires inputs in the form of raw material and proper machine
settings to be able to produce a proper part. The output of the injection molding
process is the finished part. (See above picture) Flow charts can be drawn in many
styles. They can be drawn by using pictures, engineering symbols, or just squares
and rectangles. Also, flow charts can be used to describe a single process, parts of a
process, or a set of processes. There is no right or wrong way to draw a flow chart.
The true test of a flow chart is how well those who create and use it can understand
it.
Construction of the Flow Chart (General Guide Lines):
* Involving the right people in making the flow chart. This includes people who
actually do the work of the process, supervisors, suppliers to the process, and
customers to the process.
* Flow charts usually require more time to construct than expected. Therefore,
enough time must be allotted to the group members to finish their work.
* Asking questions is the key to the flow charting process. The more questions
everyone asks the better. Here is a list of helpful questions to ask when constructing
a flow chart:
1. What is the first thing that happens?
2. What is the next thing that happens?
3. Where does the output(s) of this operation go?
4. Where does the input(s) to the process come from?
5. How does the input(s) get to the process?
6. Is their anything else that must be done at this point?
Scatter Diagrams
Purpose: To identify correlations that might exist between a quality characteristic
and a factor that might be driving it.
Scatter Diagrams: A scatter diagram is a nonmathematical or graphical approach
for identifying relationships between a performance measure and factors that might
be driving it. This graphical approach is quick, easy to communicate to others, and
generally easy to interpret. Figure 1 below shows a commonly used structure for a
scatter diagram. The data needed to construct the scatter diagram must be collected
in pairs (X,Y). Almost always the performance characteristic, Y, is plotted on the
vertical axis, while the suspected correlated factor, X, is plotted on the horizontal
axis. The point of intersection between the two axes is the average of each of the
sets of data (i.e. the average of all the X's and the average of all the Y's). The
collected data is not for only observing the quality characteristic under investigation
but also observing other factors or causes that might have an impact on the quality
characteristic. For example if we are taking measurements of the surface finish of a
machined part, we will want to take measurements of other factors such as feed rate
and tool condition that could have an effect on our surface finish quality
characteristic.
Constructing the Scatter Diagram:
Step 1: Select the two items you wish to study. The results of the cause-and-
effect diagram could be very helpful in determining which items to select. For
example the two items could be an effect and a related cause.
Step 2: Collect the data. The more data you have more accurate your conclusions
will be. Always remember that the type of data needed to construct the scatter
diagram is paired.
Step 3: Draw the axis of the scatter diagram. Remember that the performance
characteristic in on the Y axis, and the suspected correlated factor on the X axis.
The point of intersection of the two axes is the average of each of the sets of data.
You can also make the origin point (0,0) your intersection point.
Step 4: Plot each set of paired data onto the graph (i.e. (Xo,Yo), (X1,Y1),
(X2,Y2),......,(Xn,Yn), where n is the number of samples taken.
Interpreting the Results: Once all the data points have been plotted onto the
scatter diagram, you are ready to determine whether their exists a relation between
the two selected items or not. When a strong relationship is present, the change in
one item will automatically cause a change in the other. If no relationship can be
detected, the change in one item will not effect the other item. Their are three basic
types of relationships that can be detected to on a scatter diagram:
Pareto Charts Overview
Purpose:
The purpose of the Pareto chart is to prioritize problems - to decide what problems
must be addressed. No company has enough resources to tackle every problem, so
they must prioritize. The purpose of this report is to inform the reader of the Pareto
principles and how it can be applied to the manufacturing environment. I will try to
answer commonly asked questions regarding the Pareto process.
Pareto Principle:
The Pareto concept was developed by the Italian economist Vilfredo Pareto
describing the frequency distribution of any given characteristic of a population.
Also called the 20-80 rule, he determined that a small percentage of any given group
(20%) account for a high amount of a certain characteristic (80%). For instance in
the BYU Law parking lot, there are basically 9 different colors of cars: white, blue,
red, black, tan, silver, brown, yellow, and green. I decided to illustrate the Pareto
principle by the different colors of cars. All colors are not created equally. Out of the
nine different colors, three (red, blue, and white) make up about 64% of the cars.
The same principle can be applied to all aspects of manufacturing. The Pareto chart
is especially helpful in improving manufacturing processes.
Where do I begin?
The important thing is to begin. Start somewhere. Choose a process that is not
producing the yields you would like it to produce. Are there an excess amount of
parts that you are having to rework or scrap? Why? What are the reasons for
scrapping those parts? Make a list of the causes of the problem. Don't worry about
narrowing the list because it will narrow itself. Keep track of the number of
scrapped or reworked parts and what the reason is. In the example above, I wanted
to know what color of car was most popular. I could have also counted cars by their
brand, or their type (compact, subcompact, etc.) It doesn't really matter. As the data
begins to come in, then you can make more decisions.
What do I do next?
After you have collected a sufficient amount of data, chart what you have. In my
example, I used the number of cars. This is a great method. However, you may
want to keep track of the cost of each product failure. For example, if you have a
milling operation, and scratching the surface of the product causes the most reworks,
but it only costs $2 to correct, whereas milling an uneven surface, while occurring
less often, is actually more expensive to correct. That is something that you must
decide, whether to go by cost or total numbers. If you don't know which to choose,
then do both.
There may be times where different products come off the same production line. In
this instance, it may be important to keep charts on the different products. For
instance, there may be 10 scraps out of 10,000 of product A; whereas with product
B, there may be 8 scraps out of 100. If you were to group the whole process
together, the problem with product B might not be discovered. Be aware of
grouping products together that come from the same process.
Now you should have an idea of what problems are most troublesome. There should
be two or three problems that stick out. Focus on those problems causing the
greatest number of reworks or those problems which are the costliest.
After you feel you have improved the process, do another Pareto chart and find out
if your improvements worked. If they did, great! and your Pareto chart shows some
new problems that must be worked on. Continually improve on the problem that is
causing the greatest harm.
Cause-and-Effect Diagrams
Purpose:
One important part of process improvement is continuously striving to obtain more
information about the process and it's output. Cause-and-effect diagrams allow us to
do not just that, but also can lead us to the root cause, or causes, of problems. It is a
tool that enables the user to set down systematically a graphical representation of the
trail that leads ultimately to the root cause of a quality concern or problem.
Cause-and-Effect Diagram:
First developed in 1943 by Mr. Ishikawa at the University of Tokyo, the cause-and-
effect diagram, also known as the fishbone diagram, relates the symptom or problem
under question to the factors or causes driving it. It accomplishes this through a
hierarchical relationship between the effect, the main causes of this effect, and their
subsequent relationship to the sub causes. While a cause-and-effect diagram can be
developed by an individual, it is best when used by a team. A cause-and-effect
diagram consists primarily of two sides. The right side, effect side, lists the problem
or the quality concern under question. While the left side, cause side, lists the
primary causes of the problem. The right hand side can also include a desired effect
the user wishes to achieve. The picture below is an example of a eause-and-effect
diagram. The symptom or Quality Concern is the "Black Spots" that are occurring
in an injection molding process. The main causes that could give rise to the problem
are the machine, the raw material, the method or process procedures, and the human
element. Each of these main causes is composed of sub causes that influence or
effect the quality concern under question. The selection of the headings for the main
causes could be generic, such as Man or Method, or they can be specific such as
Training or Wrong Speed. The important thing is to continually define and relate
causes to each other.
Constructing the Cause-and-Effect Diagram:
Step 1: Select the team members. It is preferable that the team members are
knowledgeable about the quality concern under question. One of the team members
is selected as the team leader (Facilitator). His job is to listen to the ideas presented
by the other team members, capture those thoughts in simple words and write them
on the chart. Also to keep the team members focused on the problem under
investigation.
Step 2: Assuming that the quality concern has been identified, write this concern as
a problem statement on the right hand side of the page, and draw a box around it
with an arrow running to it. This quality concern is now the effect.
Step 3: Brain-storming. The team members generate ideas as to what is causing the
effect. Main causes as well as sub causes are identified. As indicated earlier, the
team could choose generic or specific headings for describing the main causes.
Step 4: This step could be combined with step 3. Identify, for each main cause, its
related sub-causes that might effect our quality concern or problem (our Effect).
Always check to see if all the factors contributing to the problem have been
identified. Start by asking why the problem exists. If a cause is identified, repeat
the question again. When no other causes can be identified, you have likely
identified all the possible causes to the problem.
Step 5: Focus on one or two causes for which an improvement action(s) can be
developed using other quality tools such as Pareto charts, check sheets, and other
gathering and analysis tools. This will depend on the team members themselves on
where and how to start. Agreement between the team members must be based on
consensus.
Check Sheets
Purpose:
Check sheets allow the user to collect data from a process in an easy, systematic,
and organized manner.
Data Collection:
Before we can talk about check sheets we need to understand what we mean by data
collection. Process improvement actions are always based on information obtained
from data collected from the actual process. This collected data needs to be accurate
and relevant to the quality problem being analyzed if we wish for our information
about this problem to also be accurate. Information is based on data. There are
three primary steps that need to be taken before any data can be collected. The first
is to establish a purpose for collecting this data. This is based on the quality
problem that is going to be investigated. Second, we need to define the type of data
that is going to be collected. Data can be collected in two ways: Measurable data
such as length, size, weight, time,...etc., and countable data such as the number of
defects. Which type of data to use again depends on the quality problem being
investigated. The third step is to determine who is going to collect that data and
when it should be collected. Usually one can use statistical guides on when to take
samples, or data points, from a process. As for who is going to collect the data,
what is important is that the person collecting the data understands the purpose of
collecting this data and his role in the data collecting process.
Check Sheets:
Check sheets are some of the most common tools used for collecting data. They
allow the data to be collected in an easy, systematic, and organized manner. Also,
data collected using check sheets can be used as input data for other quality tools
such as Pareto diagrams. There are four main types of check sheets used for data
collection (custom check sheets can also be designed to fit specific needs):
1.Defective Item Check Sheet:
This type of check sheet is used to identify what types of problems or defects are
occurring in the process. Usually these check sheets will have a list of the defects or
problems that may occur in the process. When each sample is taken, a mark is
placed in the appropriate column whenever a defect or a problem has been
identified. The type of data used in the defective item check sheets is countable
data. Table 1 below shows an example of a defective item check sheet for the wave
solder manufacturing process.
Table 1. Wave Solder Defect Count.
Machine 1 Machine 2
Operator A Morning X X
Afternoon XX XXXXXX
Operator B Morning X XX
Afternoon XX XXXXXXXXX
X= Number of times the supervisor is called per day.
Purpose:
To ensure that the process is in control and to monitor process variation on a
continuous basis.
Statistical Process Control:
The development and use of statistics and statistical theories about distributions and
how they vary has become the corner stone of process improvement. More known
as statistical process control, SPC, this method allows the user to continuously
monitor, analyze, and control the process. It is based on the understanding of
variation and how it effects the output of any process. Variation is the amount of
deviation from a design nominal value. Not every product that is produced will
exactly match it's design nominal values. That's why we have tolerances on the
nominal values to judge whether a product is acceptable or not. But the closer we
are to the nominal value the better the product is. Control charts is one SPC tool that
enables us to monitor and control process variation.
Common and Special Cause Variation:
Variation in a process can be caused by, or related to, two types of causes. They are
common or system causes and special or local causes. Special causes are problems
that arise in a periodic fashion. They are somewhat unpredictable and can be dealt
with at the machine or operator level. Examples of special causes are operator error,
broken tools, and machine setting drift. But this type of variation is not critical and
only represents of small fraction of the variation found in the process.
Common causes are problems inherent in the system itself. They are always present
and effect the output of the process. Examples of common causes of variation are
poor training, inappropriate production methods, and poor workstation design. As
we can see, common causes of variation are more critical on the manufacturing
process than special causes. In fact Dr. Deming suggests that about 80 to 85% of all
the problems encountered in production processes are caused by common causes,
while only 15 to 20% are caused by special causes.
Control charts:
Developed in the mid 1920's by Walter Shewhart of Bell labs, this SPC tool has
become a major contributor to the quality improvement process. It allows the use to
monitor and control process variation. It also allow the user to make the proper
corrective actions to eliminate the sources of variation. Even though they require
the user to have some statistical background, the are relatively easy to construct.
There are two basic types of control charts, the average and range control charts.
The first deals with how close the process is to the nominal design value, while the
range chart indicates the amount of spread or variability around the nominal design
value. A control chart has basically three line: the upper control limit UCL, the
center line CL, and the lower control limit LCL. These lines are computed from
samples taken from the production line. Each sample represents a point on the
control chart. A minimum of 25 points is required for a control chart to be accurate.
To better understand the use of a control chart and how it is constructed we present
the following example:
Construction of a Control Chart:
A manufacturing process produces gasket material blanks. In order to better
understand the manufacturing process, it was suggested to the manufacturing
engineer to construct a control chart. After meeting with his team, he decides to
construct a control chart for the thickness of the gasket material blanks. The team
decides to take a sample size of n=4 every have hour and measure the thickness of
each gasket material blank. The average of the four thicknesses is then measured as
well as the range for the four parts. Table 1 below has a list of the X-bar, or
average, of each sample and it's range.
The average= Sum of the thickness for each measured part/ number of parts.
The range= The biggest value in the sample - the lowest value in the sample.
Table 1. The X-bar And Range of Each Sample.
8:30a 9:30a 10:30a 11:30a 12:30p
8am 9am 10am 11am 12pm 1pm
m m m m m
X-
1.25 0.95 0.8 1.0 1.15 0.95 0.95 1.2 1.05 1.0 0.9
bar
rang
0.5 0.45 0.55 0.00 0.25 0.5 0.4 0.65 0.1 0.5 0.35
e
1:30p 2:30p 3:30p 4:30p 5:30p 6:30p
2pm 3pm 4pm 5pm 6pm
m m m m m m
X-
1.15 0.85 1.0 1.25 0.95 1.05 1.0 1.3 1.15 1.0 1.05
bar
rang
0.45 0.5 0.6 0.5 0.55 0.3 0.5 0.35 0.55 0.4 0.4
e
The next step is to construct the three lines of each of the average and range control
charts:
For the Range chart:
The center line = The average of all the sample ranges (R-bar)= 0.425.
UCL= D4*(R-bar)= 2.283*0.425=0.97
LCL=D3*(R-bar)= Zero *0.425= Zero.
Problem Statement:
Application of various quality tools in the bottling of cold drink at the bottling
plant of Pepsico India.
The data collected from the Greater Noida plant of Pepsico. India for the last month is as
follows
The complete process which is followed in a cold drink industry is as shown in the below
diagram.
1. Histogram
2. Pareto Analysis
3. Scatter Diagram
4. Fish Bone Diagram
5. Check Sheet
6. Process Flow Chart
7. Statistical Process Control
1.Histogram:
In the histogram, the data for the faults and the frequency of their occurrence was taken into
consideration
2.Pareto Analysis:
3.Scatter Diagram:
4.Fish Bone Diagram:
Poor Quality
5.Check Sheet:
Defects 1 2 3 4 5 Total
Conclusions:
The conclusions we came up with after the application of the various quality tools on the
complete process of bottling of beverages at the Pepsico India’s plant are as follows
Quality Tools play a very important part in maintaining the quality of goods being
produced
Pepsico should concentrate on reducing the number of defects caused due to the
following processes:
Flat Drink
Improper Mixture