Fall 2011 (August 2011

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Master of Business Administration- MBA Semester 3 “Total Quality Management” Specialization QM0013-Quality Management Tools (4 credits)
(Book ID: B1243)

ASSIGNMENT- Set 1 Marks 60
Note: Each Question carries 10 marks. Answer all the questions.

1. What is meant by Quality Control and Quality Assurance? Quality Control: Quality Control activities include inspection and testing of the products or services after they are produced and just before their delivery to the customers. The inspection and testing activities are carried out to check conformity of the product with specifications / requirements. If any of the products are not in conformance with the specifications, they are quarantined / segregated and the actions as specified (repair, re grade, scrap) are initiated. Quality Assurance: Quality Assurance refers to planned and systematic production processes that provide confidence in a product's suitability for its intended purpose. It is a set of activities intended to ensure that products (goods and/or services) satisfy customer requirements in a systematic, reliable fashion. Quality assurance covers all activities from design, development, production, installation, servicing and other associated activities. This introduces the rule ”Right first time”. PDCA (Plan- Do- Check – Act) approach is the most widely used concept in Quality Assurance. Quality Assurance is about improving and stabilizing the production and associated processes to eliminate or limit the defects from occurring, while the Quality Control is about inspection and testing and preventing the defects from getting delivered to the customers. However, QA does not necessarily eliminate the requirement for Quality control in terms of inspection and testing. 2. Describe the various methods for gathering information. Survey is a method of gathering information directly from people about their feelings, motivations, plans, beliefs, experiences, and backgrounds. Standard surveys often generate the data to answer, “How will we know that a change is an improvement?” Various types of surveys are used for data collection

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process. The process of answering questions posed in the planning phase of a project or process is done by data collection. There are several types of more formal surveys that can obtain both qualitative and quantitative data: Written surveys Surveys are in the form of written or printed forms used in gathering information on some subject. In the form, a set of questions are posed to one or more persons. The written survey is used to obtain standardised information. Personal Interviews Personal interview is one of the common methods used to individually gather information. There are two types of personal interviews – unstructured or informal interview and structured or standardised interview. Group Interviews Group interview involves a group of people who are in research team and people who use the results of these researches. Group usually consists of two or seven people in it. Observation It is an activity where the information is gathered from the outside world through senses. The method of collecting information through observation is very flexible. Benchmarking is a name given to the various approaches used to obtain information on performance and approaches from other organisations. It is the process of identifying, understanding, and adapting excellent practices from other organisations that are considered to be the best. It also measures the internal processes of these organisations. Creativity methods include tools and approaches to develop new ideas on the basis of different thinking. Specific creativity tools can be used in both problem-solving activities and generation of fundamental change in products (services) and processes. Producing new perceptions, ideas, and concepts is very often a necessity to develop changes that improves the system beyond historical levels.

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3. What is meant by ‘Voice of Customer’? How do you capture ‘voice of customer’? Service providers or product companies tend to think of their services or products in terms of attributes and features. The consumers are not so interested in attributes or features of the services or products they buy. They tend to be more concerned about the consequences of using these services or products. Attributes are the theoretical or physical characteristics of the services or products. Consequences, on the other hand, are the results of using these services or products. Attributes are generally objective and measurable while consequences are subjective. The process used to conform to the requirements and feedback from the customer in order to provide tremendous service or product quality is called as VOC1. This process is all about being practical and constantly innovative to capture the changing requirements of the customer with time. The ‘Voice of the customer’ is the expression used to portray the stated and unstated requirements of the customer. It supports customer focused strategies and organisations. Traditional customer research is based on polling method. This supports push sale strategy designed to force products and services to customers regardless of customer needs or requirements. This is the method used so frequently in political contests and advertising research. The pull strategy is now used more extensively in the industry. The success of the pull strategy largely depends on the ability of the customer relationship personnel, their strengths and weaknesses and a proper evaluation of the performance of the product, service or programme with the customer. The approach adopted here is different from the traditional or conventional research. The data gathered is used to identify the quality attributes needed for a supplied component or material to incorporate in the process or product. Quality can be defined as gathering customer wants and providing higher values. Meeting customer needs requires those needs to be understood. Direct discussion or interviews, surveys, customer specifications, Capturing the Voice of the Customer (VOC) Establishing a product plan is the first step to seeking the voice of the customer. The product is conceived based on requirements of a market and the customers in that market. This is termed as target market. Next, it is necessary to capture the changing needs of the market and the customers in that market. To identify the changing needs, a suitable plan must always be available. The plan is as follows: o Identify the target customers o Reach the customers to capture their needs o Use appropriate mechanism to collect customer needs o Frame a time schedule and estimation of resources needed to capture the VOC Customer voices are dissimilar. There are a variety of requirements in consumer markets. In industrial and government markets there are multiple customer voices within individual buying units. There are multiple customer voices within a single organisation, such as the voice of the secure organisation, user, supporting or maintenance organisation. To develop a successful

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product, these diverse voices must be considered, collected and balanced to develop a successful product. Traditionally, marketing has had responsibility of defining customer needs and product requirements. This isolates the customer from the product engineer and the other departments related to product development. This prevents them from gaining a first hand understanding of customer needs. Direct involvement of the product development personnel is essential in understanding customer needs. This direct involvement by product development personnel provides them a better understanding of customer needs, environment of the customer or market and how the products are used. Further, it enables product development personnel to:  Identify themselves with the customer  Minimise hidden knowledge  Overcome technical superiority  Provide a better perspective for development decisions These practices have resulted in fundamental and elementary insight, for example, engineers of highly technical products recognise and appreciate the importance of customers’ need for ease of use and durability of the product rather than the latest technology. When a company has a small base of direct relationship with customers, it is desirable and in many respects sensible to have a customer representative in the product development team. Alternatively, mechanisms such as focus groups are used when the customer base is large to ensure on-going feedback over the development cycle. Current customers as well as potential customers are considered and included in the focus group. This customer involvement is useful to initially define requirements, answer questions and provide input during development, and express meaningful opinions or critique a design or sample. The dimensions of focus group, large customer base, small customer base, customer awareness of what they are looking for in the product and their abilities to express their opinions at the design or prototype stages brings up the relevant and important question on the number of customers to be approached in surveys. This number depends on the complexity of the market, diversity of the market and product use. If the product is aimed at current market, current customers are the first source of information. In addition, it is important to talk with potential customers. Potential customers are the ones who are new and show interest towards a product or service. If the product is aimed at new market, they are the primary source of information. In addition, it would be wise to talk to customers of the competitors. They provide a good source of information on strengths of the competing products and why they prefer the competing products. Lead customers are a special class of customers who provide important insight, particularly with new products. They are the most advanced users of the product. They push the product to its limits, or adapt an existing product to new uses. During customer discussions, it is essential to necessarily identify the basic needs of the customer. Frequently, customers try to express product insight in terms of ‘how’ their needs can or should be satisfied and not in terms of ‘what’ their needs are. It is quite possible that customers want

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something but are unable to express their needs. This limits consideration of development alternatives. Development and marketing personnel need to ask ‘why’ until they understand the need of the customer. This is done by breaking down general requirements into more specific requirements by questioning what is needed. To prevent uncertainty and to ensure distinct clarity in understanding, it would be sensible to politely change, question and seek clarifications on customer requirements until they make sense. While doing this part of the query, utmost care should be taken to prevent a thought in the mind of the customer that the customer is not being teased or made a laughing stock. All customer needs are not equally important. Therefore, ranking and paired comparisons is used to prioritise customer needs. The objective is to understand the level of satisfaction a customer derives from the fulfilment of a particular need and the influence it can have on the purchase decision. Apart from understanding customer needs, it is also important to understand customer’s perspective on the competition relative to the proposed product. 4. Define the term ‘reliability’. What is its relevance in Quality? Mention the various mathematical measures of reliability. Reliability1 is a probability of a device (system, vehicle, machine, product or service) performing its purpose (its intended function) adequately for a specified period of time under specified operating conditions encountered. Reliability may be defined in several ways. Some of the definitions are as follows:  The idea that something is fit for a function with respect to time.  The capacity of a device or system to perform as designed.  The resistance to failure of a device or system.  The capacity of a device or system to perform an essential function under stated conditions for a specified period of time.  The capability of something to ‘fail well‘ (fail without catastrophic consequences). Reliability Engineers depend greatly on statistics, probability theory, and reliability theory. Many engineering techniques or skills are used in reliability engineering, such as reliability prediction, Weibull analysis, thermal management, reliability testing and accelerated life testing. Because of the huge number of reliability techniques, their expense and the varying degrees of reliability are required for different situations; most projects develop a reliability programme plan to specify the reliability task that will be performed for that specific system. The functions of reliability engineering are to develop the reliability requirements for the product, establish an adequate reliability program, and perform appropriate analyses and tasks to ensure that the product meets its requirements. These tasks are managed by a reliability engineer. Reliability engineer usually holds an accredited engineering degree and has specific education and training in certain streams. Reliability engineering is closely related with maintainability engineering and logistics engineering. Many problems from other fields like security engineering are also approached using reliability engineering techniques. There are many types of engineering that make use of reliability engineers and use the tools and methodology of reliability engineering. Some examples are listed below:  System engineers design and develop complex systems having a specified reliability.

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 Mechanical engineers design a machine or system with a specified reliability.  Automotive engineers have requirement of reliability for the automobiles and their components which they design.  Electronics engineers design develop and test their products for reliability requirements.  In software engineering and system engineering, reliability engineering is the sub-discipline of ensuring that a system (or a device in general) performs its intended functions when operated in a specified manner for a specified length of time. Reliability engineering is performed during the complete life cycle of a system, including development, test, production and operation. Mathematical Measures for Reliability Different methods are used to measure reliability mathematically. Failure analysis, strength testing and stress testing are various methods. Success-Failure Model One approach to construct a reliable model for a device or a product is to conduct an experiment of operating the device for a specified time under specified conditions. The possible outcome of this experiment can be recorded as simply ‘Success’ or ‘Failure’. If this experiment is conducted many number of times (n), the sum of the outcomes represents the number of successes (r). The value of r is derived by the ‘Binomial Probability Law’ in the following equation: q = (1-p) where q = probability of failure and p = probability of success. This experiment is extensively used to know the actual function of a system or a part of the system, before freezing the design. A simple example that uses this approach is the operation of limit switches. Failure Model Another approach adopted to construct a reliable model for a device or a product is to consider the experiment of operating a device under specified conditions until failure of the device occurs. The outcome is noted as the time at which the failure occurs. This experiment can be conducted on old devices or repaired ones, but the evaluation criteria differ as the conditions stipulated are different. The distribution of time of failure of a product or a part of a product can be characterised by any or the combination of the following functions:  Cumulative Distribution Function  Probability Density Function  Survival Function (Reliability Function)  Hazard Function Operating Time versus Age

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The failure law of a device has to refer to the age of the device. Hence the previously mentioned definition can be applied to new devices only. Repairable versus Non-Repairable Devices This is applied to those which have not failed by age, or where repair is assumed to return the device to the operating condition. If repair process increases the proneness to failure, the original failure law for failed devices would have to be supplemented with failure law of the repaired device. Bathtub Failure Rate Characteristics The output of a manufacturing process contains some substandard or defective items. A few of these defectives, called freaks, escape inspection, and test procedures and will be installed in service along with normal devices. Freak devices tend to fail early and hence the failure rate tends to decrease with time as the proportion of freak devices in the population decreases. On the other hand, after an extended period of service, failure factors such as wear and fatigue cause the failure rate of the device to increase and hence throughout the operating period some device will fail for unknown reasons which is termed as ‘ chance causes’. Bathtub Curve (Hazard Functions) The bathtub curve is widely used in reliability engineering. It is used to describe a particular form of the hazard function which consists of three parts:  Decreasing failure rate, known as early failures  Constant failure rate, known as random failures  Increasing failure rate, known as wear-out failures. The name is driven from the cross-sectional shape of a bathtub. Weibull Failure Model When it is desired to investigate the actual shape of the failure rate characteristic rather than determine only its average value, a more general mathematical model than the constant failure rate model is required and Weibull model is adopted. Here the failure is not independent of age, but is a power function of time. Strength and Stress Model An alternate approach to obtain the estimates for the success-failure probabilities for mechanical parts is through the use of strength and stress distribution. To avoid failure, the strength of a part is designed to exceed the applied load. The traditional approach is to achieve the necessary balance of load strength parameters through the use of safety factor. Accelerated Life Test model is a type of time-varying stress model Accelerated Life Test Model Approximating the time to failure distribution or long term performance of components of high reliability products is particularly difficult. Most products are designed to operate without failure

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for years or decades. Thus, we can expect that few units will fail in a test of practical length at normal use conditions. 5. Write brief note on the following: Quality loss function  Taguchi offers a definition of quality in terms of the Loss function: “Quality loss is the financial loss imparted to society after a product is shipped”.  Societal loss includes failure to meet customer requirements, deviation from ideal performance, etc. The aggregate of all losses namely a) the loss incurred by customers through shorter life cycle, increased maintenance costs, repair costs, etc, b) the loss incurred by the company like increased scrap cost, reworks, warranty costs, damages etc, and c) loss to the society say pollution, safety etc, spent on unusable products or toxic products, will all add to the total loss to society.  Loss is measured in monetary units and is related to quantifiable product characteristics. For example, if two products that are designed to perform the same function both meet most specifications, but may impart different type of losses to society. Therefore merely meeting specifications does not mean the better quality, but societal loss indicates poor measure of quality.  Taguchi asserts that the quality of a product is reflected by the key performance characteristics of a product. The target value for these performance characteristics are prescribed by the designer. It is proved that a high quality product that is performing near the target values throughout its life cycle, continues to satisfy the customer under specified operating conditions.  Japanese companies are using loss function to justify quality improvement. Loss function offers a way to quantify the benefits achieved by reducing variability around the target value. Here the quality means low cost as well as uniformity around target value.  Taguchi‟s „Loss Function‟ shown below is parabolic in nature of the performance characteristics in X axis Vs the Loss to the society in Y axis.  Taguchi has shown that a) The target value (T) is the value at which the product functions best. Any deviation from that value T on either direction meant an incremental deterioration of performance. This deterioration-„d‟ is the incurred loss. When evaluated as a cost, it is passed on to the next customer and ultimately both the company and society would incur this loss in some way or the other b) Close to the target value, the loss is minimal. As the loss curve is Parabolic, the deviation increases to a point where the customer would find it beyond his tolerance band [CTB] c) Society will always right in rewarding or punishing the firm for its societal savings or the loss respectively. The manufacturing companies should restrict the societal loss to the bare minimum. This can be achieved through sound management decisions on Quality and cost of the product.

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 Loss from the performance variation (L) is directly related to the square of the deviation (D) of the performance characteristics (X) from its target value (T). Loss = L = D square x C, Where, D=deviation from the target and C = Cost constant & is the cost to society due to the deviation. Further, D=X-T, Where X=Actual value of quality characteristics and T= Target value of Quality characteristics.  The above formula represents the financial loss through a quadratic relationship. In industrial engineering, the quality costs are represented by the number of items outside the specification multiplied by the cost of rework or scrap.  Quality Loss Function technique and its analysis of limiting the deviation from the target value should be considered during the early stages of the product design and changes required are incorporated as early as possible to avoid the subsequent losses.. This may also help the designer to detect if the product is over designed.  Taguchi insisted that manufacturers should work to minimize the loss which would certainly enhance their brand reputation, win markets and generate profits. Robust Design  Taguchi's contribution is significant in the area of „Robust Design ‟ for product developments.  Robust Design focuses on improving the fundamental function of the product or process.  Constant adjustments in production machines to achieve consistency in quality is not effective, instead, design of products should be robust enough to function while permitting certain variations in the production processes.  Robust Design is the most powerful method available to reduce product cost, improve quality, and productivity apart from simultaneously reduce developmental time.  Taguchi methodology is fundamentally a prototyping technique that enables designers to provide a robust design to sustain repetitive manufacturing with all the functionality for the customer.  Many companies around the world have saved hundreds of millions of dollars by using the Robust designs whether it is automobiles, or telecommunications, or electronics, or software 6. Define “Quality Function Deployment (QFD)”? What are the features of QFD? Quality Function Deployment has been known in the western world for the last twenty years. Let us have an overview of the evolution and approach of QFD in product design and development. Below are some facts about the evolution of QFD:  Dr. Mizuno and Professor Emeritus of Tokyo Institute of Technology1 are credited with initiating Quality Function Deployment.  Yoji Akao and Shigeru Mizuno published the first work regarding the design considerations that could be deployed to every element of competition in 1978.

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 First application of QFD was used in Mitsubishi Heavy Industries and Bridgestone Tires in the 1970‟s. They used Quality charts to pool up the customer requirements for considerations while designing the product.  QFD was successfully implemented by Toyota in the production of mini-vans, where they achieved 10% reduction in start-up cost in 1979, 38% in 1982 and cumulative 61% by April 1984.  In US, QFD was first introduced by Xerox in 1984 and then found wide application in leading companies like Digital Equipment, Texas Instruments, Hewlett-Packard, AT & T, Ford, Chrysler, General Motors, and Procter & Gamble.  ‟House of Quality‟ is a basic design tool for QFD which is successfully deployed by Japanese manufacturers of consumer electronics, IC Chips and synthetic rubbers. Special Features of QFD QFD is used to translate requirements of customers into engineering specifications. Some of the special features of QFD are as follows:  Focuses on customer expectations or requirements and is often referred as the voice of the customer.  Translates customer expectations into technical characteristics. This process consists of following activities: o Product planning o Part development o Process planning o Production planning o Service industries  Enables the design phase to concentrate on the customer requirements and thereby spends less time on redesign and modification using traditional means, thus saving development cost.  Helps identify new and quality technology and job functions to carry out operations.  Provides previous references to enhance future technology and prevent design errors.  Defines a process for developing products or services as it is the most developed practical process and a planning tool.  Performs competitive analysis, which leads the company to find ways to sustain in the competitive world. This analysis improves performance measure of the company.  Provides a way to set targets. Engineers use the data to focus on product design features. Improving product quality using marketing strategies and operations is crucial. Therefore QFD encourages inter-functional communication for improving the quality of products and services. While designing, the features are also compared with similar products in the market. QFD is primarily a set of graphically oriented planning matrices that are used as the basis for decisions affecting the product development cycle. Results of a QFD are measured on the basis of cost, quality, and number of designs, engineering changes and time to market. It is considered as a perfect blueprint for quality by design. QFD is the most developed practical process and is a planning tool that defines a process for developing products or services. Proper implementation of QFD improves engineering knowledge, productivity, and quality and reduces cost, product development time and engineering changes.

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Master of Business Administration- MBA Semester 3 “Total Quality Management” Specialization QM0013-Quality Management Tools (4 credits)
(Book ID: B1243)

ASSIGNMENT- Set 2 Marks 60
Note: Each Question carries 10 marks 1. What are check sheets? Illustrate with an example. Check sheets are used to find out the rate of occurrence of a particular event or issue. Check sheets are mainly used to trace data in the form of a matrix chart in which one variable is used for sampling and the other is the event that is examined. The functions of a check sheets are: • • • • • • • • • • • Data collection to establish the decision. To signify data of occurrences and their incidence rate. To know the preceding and proceeding methods and associated problems. To allow evaluation of data with regards to different time period, rates etc. A typical factory check sheets have the below mentioned functions: Development procedure distribution check Faulty item check Faulty location check Faulty cause check Confirmation check Others

a) Check Sheet No. 1

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A typical creation check sheet is illustrated below in the table 10.2 which indicates the frequency, dimensions, quantity in each dimensions and the distribution of the process characteristics. For dimensions to be accomplished from this method, say within 1.8 to 2.3 as per the design requirements, 9 elements are noticed below the range and 19 elements above the upper limit.

b) Check sheet-2: Work sampling check sheet From the table 10.3 shown below, it can be found that processing and planning data represents about 77% of the overall activity of a specific component number although it is a recognised process of operation. In this manner, any check with data will form a source for decision making on that specific technique or the element. c) Check Sheets-3: Check Sheets and Graphs These are created to generate the results of regular verifying of the situation. Check sheets are of different deigns which are shown as occurrence pattern. Graphs consist of single and multiline bar charts, element or separated bar charts, and pie-chart figures, which provide optical display of source-wise inputs to variations or faults in quality, which are essential for assessment and enhancement activity. 2. What is FMEA? Write a brief note on Risk Priority Number. FMEA is a means of identifying or investigating potential failure modes and related causes. They can be any of the following: • • • Applied to an early concept selection and design phase and then progressively refined and updated as the design evolves. Helpful in identifying all possible causes, including root causes in some cases and also helpful in establishing relationship between causes. Used as a tool in the improvement of the design of any given product or process. FMEA is a simple and powerful procedure to use and look ahead, foresee and eliminate probable failures. It helps spot and recognizes areas of weakness and takes precautionary measures to prevent and correct them in the primary conceptual and creative stage of all products and processes. It is a structured approach that is easy to put into operation. FMEA is used for identifying potential failure modes and to determine their effect on the operation of the product, and identifying actions to lessen the failures. A

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crucial step is predicting what might go wrong with a product. Predicting every failure mode is not possible. To overcome this, the development team formulates an extensive list of potential failure modes. This needs to be developed with the help of some inputs. There are two levels of input data in FMEA, primary and secondary levels. Typical examples of primary inputs include the following: • • • • • • • • Field and test failures Problem solving records and case studies Customer surveys Rebuilding or remanufacturing input

Typical examples of secondary input include the following: Service replacement parts Competitive product data Service information Quality function deployment studies

Risk Priority Number (RPN) does not play an important role in the choice of an action against failure modes. They are the initial values in the evaluation of these actions. The RPN can be calculated by multiplying these 3 numbers: RPN = S (severity) x O (occurrence) x D (detection).This has to be done for the entire process or design. Once this is done, it is easy to determine the areas where the FMEA has to be applied. .The failure modes that have the highest RPN are given the highest priority for corrective action. Failure modes with the highest severity numbers are not always given higher priority. There could be less severe failures, which occur more frequently and are less detectable. After these values are allocated, relevant actions with targets, responsibility and dates of implementation are noted. These actions include inspection, testing or quality procedures, redesign (such as selection of new components), adding more severance and limiting environmental stresses or operating range. Once the actions have been implemented in the design or process, the new RPN is calculated, to confirm the improvements. These tests results are often depicted in

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graphs, for easy visualisation. As and when a design or a process changes, an FMEA has to be updated. The formula used to calculate reduction in RPN is % Reduction RPN= (RPNi –RPNr)/RPNi

3. When do you use Quality Control Charts? What are the types of Control charts? Quality control charts, are also known as Shewhart charts. It is a problem solving statistical tool that indicates whether the system is in or out of control, as established by calculated control limits. It is also defined as the statistical method for differentiating between common and special cause variation demonstrated by various processes. Quality control charts are used to: • • • • • Analyse and understand process variables. Determine process capabilities. Monitor effect of the variables on the difference between target and actual performance. Sustain process control and classify special and common causes of variation. Develop processes by showing the good effects of change in processes.

A control chart is a particular kind of run chart that allows important change to be distinguished from the normal change in the process. Control chart can be seen as part of a purpose and controlled approach that allows taking proper decisions concerned with controlling of the process. It also includes whether to change process control parameters or not. Process parameters cannot be adjusted for a process that is in control as this causes deterioration of process performance. The control chart is one of the seven basic tools of quality control. There are two basic types of control charts depending on the number of processes to be

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examined. The first type is called as univariate control chart, which is a graphical display chart of one quality feature. The second type is called as a multivariate control chart, which is a graphical display of a statistic that describes more than one quality feature. Control charts specify upper and lower control limits. They frequently include a central average line, to help detect trend of plotted values. If all data points are within the control limits, variations in the values may be due to a common cause and process is said to be 'in control'. If data points fall outside the control limits, variations may be due to a special cause and the process is said to be out of control. Types of Quality Control Charts A control chart is most efficient when used for recurring processes that are significant to an organisation and for which information can be acquired. Control charts are mainly categorised into two types: • Variables control charts: These are used for quantitative measurements. Example: height, weight, or thickness. The X - R Chart is a type of variable control chart. • • • • • • Attributes control charts: These are used for qualitative measurements. Example: accept/reject. Attributes control charts are sub divided into: Np chart: This chart is used for countable measurements. Example: Number of parts which are defective. P chart: This chart is used to measure percentage. Example: Percentage of parts those are faulty. C chart: This chart is used to measure faults in units of consistent size. Example: Number of imperfections in glass panes. U chart: This chart is used to measure faults in units of inconsistent size. Example: Number of imperfections in a portion of material. X-bar/R chart: This chart was first used by Six Sigma in the industrial sector. X-bar/R chart is mainly used in such a situation. It is logical to presume that the variation in output is negligible for data taken from a short time period, as the instrument settings and the employees working on those machines do not differ. The X-bar/R chart offers most

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favourable results in such circumstances. Example: Consider the measurement of plywood sheets are measured and recorded. • EWMA chart: This is the Exponentially Weighted Moving Average (EWMA) chart. It gives information more rapidly regarding shifts in process performance. This chart is the best when recognising a process shift rapidly. Example: when analysing the extent of contamination in the public water supply; if the contaminants are not examined quickly, the physical condition of the public will be at risk. • CUSUM control chart: It is the cumulative sum control chart which is a data analysis method used to find out whether the measurement process has gone out of statistical control. In statistical quality control, the CUSUM chart is a sequential analysis technique. It is characteristically used for supervise change detection. • Three-Way chart: Three-Way control chart is used for controlling the mean of a process when the batch-to-batch variation is much greater than the within-batch variation. These two sources of variation are usually examined along with standard batch sample means. Even though the Three-Way chart was initially created for generally circulated process data, its robustness to violation of the normality assumption is the main theory. • Time series models: Time series models are a sequence of data points, measured typically at successive times spaced at regular time intervals. 4. Write a brief note on the following: a. Affinity diagram The Affinity diagram categorises a great number of data into their natural relationships. It was created in the 1960s by Japanese anthropologist Jiro Kawakita and is sometimes referred to as the KJ Method. Even though, it is one of the most extensively used of the Japanese management and planning tools, it was not initially proposed for quality management. The affinity diagram was created to find out consequential groups of ideas within an unprocessed list. By following this, it is essential to allow the groupings appear naturally. Generally, an Affinity diagram is used to improve a brainstorm into the one that makes sense and can be utilised effortlessly. Out of seven new QC tools, Ishikawa2 suggests Affinity diagram, when facts are vague and need to be structured. It is mainly used when pre-existing ideas or concepts need to be overcome, when ideas need to be explained, and when team

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spirit is to be formed. The data is then structured step by step from the bottom up into significant groups. The Affinity diagram makes employees to work more creatively and also teaches how to fix problems effectively. It may be used in situations that are unidentified or unfamiliar by a team. It helps team members to have complete knowledge of the area of analysis. b. Tree diagram The Tree diagram was initiated by Shigeru Mizuno. It is one of the Seven Management and Planning Tools illustrated by Shigeru Mizuno. This diagram discovers the different tasks that must be carried out to attain a given objective. It gives a better understanding of the scope of a project, which in turn allows team to focus on specific tasks that are needed to get something done. Tree diagram is also called as methodical diagram, tree analysis, analytical tree and hierarchy diagram. It is an examination tool for breaking down higher level objectives of a team into many levels of progressively more comprehensive and precise actions that need to be performed in order to accomplish the fixed goal. As the name suggests, the tree diagram includes branches that indicate the actions essential at each level of detail. These branches further divide into minor branches that simplify these actions into more precise actions. The branching out goes on until the required level of detail is attained. 5. What is a process? Explain the concept of process mapping with an example. A process is defined as a set of activities that takes in one or more kinds of input and creates an output that is of importance to the people, who are served by the activities. A work process usually has a set of steps, tasks, or activities, and has a beginning and an end. It often yields either a tangible product or an intangible service as the output, using the given input. The process adds value to the inputs. The following example of typical list of processes found within organisations:  Selling a product or service  Repairing or maintaining a product  Processing Warranties Few processes deliver an output to their external customers and few others execute the process within an organisation, to the internal customers or departments. Most of the organisations have similar process internally, but the external processes differ because, they cater to different requirements of various customers. Executives tend to focus on large cross functional processes, when process improvement is considered, as these processes impact the business and the organisation the most. The best method to implement this is, to begin with smaller micro processes that when improved one by one, adds up to a cross functional macro improvement.

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Process mapping is an important visual display that represents, ‘who does what’ within an organisation. It helps to identify the best performance measures and the major opportunities for improvement. Process mapping is used by the Six Sigma, black belt, or green belt. It helps in two important aspects of the Six Sigma method. They are: 1. It helps in the initial stage of the process where, a true analysis of how things are done currently is developed. This is very important to create an objective case for process improvement. 2. It helps in the improvement stage. This stage is essential to prototype, experiment, communicate, and ultimately explain how process improvements affect the new methods adopted to do things. To document a process, an enterprise can use the distributed mapping methodology. This method helps to complete the mapping phase quickly, with the most accurate results. It also ensures total staff buy-in and ownership of the final result. There are four major steps in process mapping. They are: 1. Process identification: Acquiring a complete knowledge of all the steps in a process. 2. Information gathering: Recognising the objectives, risks, and key controls in a process. 3. Interviewing and mapping: Designing the actual maps by analysing the individual’s point of view in the process. 4. Analysis: Analysing the process using the tools and approaches to make the it run more effectively and efficiently.

• It is very important for the process mapping to be perfect, accurate, fast, and involve a high degree of staff ownership. In the sporting business, we can look for other situations that have the same three critical success factors. To analyse the importance of accuracy let us consider an example, in the pit stop required by Formula One cars during a race, accuracy is definitely mandatory. The incorrect position a wheel or tightened nut could result in the death of the driver. Speed is the essence in the race; fractions of a second can make the difference between winning and losing the race. Ownership is a critical factor, each member of the pit

Fall 2011 (August 2011)

stop team must know exactly what is expected of them, and feel the responsibility for doing a good job. Now, consider two different Formula One pit stop teams. One is called the centralised team, the other the distributed team. The centralised team follows a process as listed below: • When the car arrives, the chief engineer jacks the car up. • The engineer then goes to each wheel in turn, removes the old one and fits the new one. • Then the car is filled with fuel before removing the jack. This process normally takes about three minutes. The distributed team follows a process as listed below: • One jacks the car up. • Four others take a wheel each, to remove old one and replace it with a new one. • Yet another person refuels the car. It takes approximately ten seconds to complete this process. This process has a specialist stationed at each position. From the above example, it is clear that the distributed process is more beneficial. Let us look at the benefits of using a distributed process mapping in an organisation, the benefits are as follows: By using experts, a high degree of accuracy can be gained, as they know the inside and outside of a process. By spreading the work load and performing the processes in parallel, the process can be accomplished quickly. By assigning ownership of the task to the experts, the experts will be genuinely committed and feel the responsibility for doing the job right. 6. Write brief note on the following: Business Excellence Models Business excellence models are frameworks which help organisations focus on their goals and actions in a structural and systematic method that result in increased performance. The models generally focus on all the areas and dimensions of an organisation and particularly on the dimensions which increase performance. These models are accepted worldwide as:  Frameworks to provide assistance with the adoption of business principles  An valuable method to measure how effective these adoptions have been Baldrige Model

Fall 2011 (August 2011)

The Baldrige Model has advanced from a TQM model to a fully systematic performance excellence framework over the past decade. The Baldrige criteria for performance excellence are as follows:  Leadership  Strategic planning  Customer and market focus  Measurement, analysis and knowledge management  Workforce focus  Process management  Business results which include customer, product and service, financial and market, organisational effectiveness and governance, and social responsibility results EFQM Excellence Model European Foundation of Quality Management (EFQM) developed the EFQM Excellence model. This model is based on nine criteria which are used to measure the effort put forth by an organisation towards achieving excellence. The nine criteria are as follows:  Leadership  Policy and strategy  People  Partnerships and resources  Processes  Customer results  People results  Society results  Key performance results Challenges in Using Business Excellence Models Business Performance Improvement Resource (BPIR) addresses two main challenges faced by those who use business excellence models. These issues are outlined as follows: 1. The first challenge is that the criteria in the models contain several questions that require responses on how or what is done in particular areas of focus. These questions are designed in a way that they are relevant to a general organisation since these criteria cannot be deduced for specific circumstances without spending a large amount of time reading around the model. Many organisations with a short term focus find it difficult to spend a lot of time reading the model and answering every query. Excellence model consultants are working on this challenge. 2. The second and main challenge is that none of the models provide solutions. Analysing the criteria mentioned in the models and responding with the practices or results is supposed to provide guidance to the organisation. However, there is no specific advice given on how to improve performance. The user has to find ways to improve the weak areas that are identified.

Fall 2011 (August 2011)

Business Process Re-engineering Techniques such as Business Process Reengineering (BPR) and balanced scorecard emerged in the 1990s. These techniques influenced the development of various excellence models. The scorecard being the greater BPR brought in an approach called Green Field to redesign the major business processes by challenging basic assumptions and accepting change. The BPR aims at bringing about a change in performance, cost, quality, and customer satisfaction. The balanced scorecard is a measurement system that enables the conversion of strategy into action by identifying the cause and effect relationships that deliver the desired strategic results. The BPR attempts to link the people dimensions of learning and growth to the process issues of quality and time, then to the customer dimensions of delivery and loyalty and finally to financial outcomes such as return on capital employed (ROCE). Every excellence framework includes this basic conceptual thinking. With the decline of TQM programmes in some countries, a subsequent quality concept called Six-Sigma saw a drastic increase in application. The concept of Six-Sigma is not new. It can be traced back to Motorola in the early 1980s. Six-Sigma is a methodology to improve the processes of an organisation based on accurately gathered data and analysis performed. This approach mainly focuses on helping the organisations to produce better, faster and cheaper products and services by improving the capability of processes to meet the customer needs. It also identifies and removes costs that do not add any value to the customers. Six-Sigma cuts down the cost but retains or improves the value to customers. The core concepts of excellence are:  Leadership: The leadership qualities which are key to excellence.  Customer focus: It is the customers who judge the product quality and the service delivery. To have a hold on the customers, organisations analyse the current and the future needs of the current and probable customers. The opinion of the customer is very essential in the design of the product and processes.  Strategic alignment: The excellence model emphasises on strategic development, alignment and planning. The TQM-type programmes lack the strategic integration which usually results in bolt-on quality programmes. In this context, the excellence approaches can be differentiated with the TQM-type programmes.  Organisational learning, improvement and innovation: An important aspect in an excellence approach is to encourage individual and organisational learning, improvement and innovation. This can be achieved by sharing knowledge and information among individuals.

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 People focus: The success of an organisation depends on the creativity, skills, knowledge and the motivation of its people. Respecting the employees and motivating them is very essential for the growth of an organisation.  Partnership development: Organisations have to develop partnerships with external partners (including customers, suppliers and educational organisations). The partnerships must be long-term and mutually beneficial.

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