UNIT IV

Operations Management

Acceptance Sampling Defined
• Acceptance Sampling is a form of inspection that is used to determine whether or not goods are coherent with a set standard of quality

What is acceptance sampling?
• Acceptance Sampling
– Statistical quality control technique, where a random sample is taken from a lot, and upon the results of the sample taken the lot will either be rejected or accepted.

Acceptance Sampling • How can this tool be used in your organization? .

When is Acceptance Sampling useful? • When product testing is – expensive – time consuming • When developing new products .

When is Acceptance Sampling useful? • When dealing with new suppliers • When a supplier‟s product has had excellent quality in the past .

Acceptance Sampling method ACCEPTANCE SAMPLING TAKE SAMPLE INSPECT SAMPLE Type title here DECISION ACCEPT LOT REJECT LOT SAMPLE AGAIN DECISION RETURN LOT TO SUPPLIER 100% INSPECTION .

What is acceptance sampling? • – Accept Lot Ready for customers • – Reject Lot Not suitable for customers • Statistical Process Control(SPC) – Sample and determine if in acceptable limits .

Typical Application of Acceptance Sampling • A vendor delivers a product to a manufacturing company – The product is a raw material used by the company .

• A sample of the shipment is taken – Quality characteristics of the units in the sample are inspected. Typical Application of Acceptance Sampling .

Sampling plans involve • Single sampling • Double sampling • Multiple sampling .• Sampling Plans specify the lot size. number of samples • and acceptance/rejection criteria. sample size.

otherwise the whole lot is accepted .Single Sampling Plan • A Single Sampling Plan is one where • A representative sample of n items is drawn from a lot size of N items. • Each item in the sample is examined and classified as good/defective • If the number of defective exceeds a specified rejection number the whole lot is rejected.

CU .upper level of defectives) • Specifies the size of the second sample and the acceptance rejection criteria based on the total number of defective observed in both the first and second sample (CT. size of the initial sample. • Specifies the lot size.lower level of defectives.Double Sampling Plan • A Double Sampling Plan allows the opportunity to take a second sample if the results of the original sample are inconclusive. the accept/reject/inconclusive criteria for the initial sample (CL .total allowable defectives) • It works like the following example .

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• Which Plan you choose depends on . Cost and time . Number of samples needed and number of items in each sample double sampling plan in that . rejection and inconclusive options.Multiple Sampling Plan • A Multiple Sampling Plan is similar to the successive trials are made. each of which has acceptance.

Operating Characteristic Curve (OCC) • An Operating Characteristic Curve (OCC) is a probability curve for a sampling plan that shows the probabilities of accepting lots with various lot quality levels (% defectives). .

Customer Acceptance Levels • Most customers understand that 100% inspection is impractical and are generally willing to accept that a certain level of defectives will be produced. . • Customers want lots with quality better than or equal to the AQL but are willing to live with some lots with quality as poor as the LTPD. • The Lot Tolerance Percent Defective (LTPD) is the upper limit on the percentage of defectives that a customer is willing to accept. • The Acceptable Quality Level (AQL) is the percentage level of defects at which a customer is willing to accept as lot as “good”. but prefer not to accept lots with quality levels worse than the LTPD.

AQL .

LTPD .

…. TQM is the art of managing the whole to achieve excellence. controlling.degree of excellence a product or service provides • Management .TQM • Total . art or manner of planning.made up of the whole • Quality .act. directing. Therefore. Total Quality Management .

Freedom from Failure (Defects) • Consistency (Reduction in Variation) • Continuous Improvement • Quality in Everything We Do .Total Quality Is… • Meeting Our Requirements Customer‟s • Doing Things Right the First Time.

” Total Quality Management . right at the first time. every time.What‟s the goal of TQM? “Do the right things.

and services. systems. products. partners.Another way to put it • At it‟s simplest. TQM is all managers leading and facilitating all contributors in everyone‟s two main objectives: (1) total client satisfaction through quality products and services. people. suppliers. Total Quality Management . and (2) continuous improvements to processes.

Total Quality Management .Productivity and TQM • Traditional view: – Quality cannot be improved without significant losses in productivity. • TQM view: – Improved quality leads to improved productivity.

Continuous Improvement versus Traditional Approach Traditional Approach Continuous Improvement • Market-share focus • Individuals • Focus on „who” and “why” • Short-term focus • Product focus • Innovation • Fire fighting • Customer focus • Cross-functional teams • Focus on “what” and “how” • Long-term focus • Continuous improvement • Process improvement focus • Incremental improvements • Problem solving .

• Top management must provide leadership and support for all quality initiatives. thereby requiring a commitment toward continuous improvement. • Improving quality requires the establishment of effective metrics. • Quality goals are a moving target.Basic Tenets of TQM • The customer makes the ultimate determination of quality. Total Quality Management . • Preventing variability is the key to producing high quality. We must speak with data and facts not just opinions.

and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs. understanding.The three aspects of TQM Counting Customers Culture Tools. and training in their use for analyzing. that define and support quality. expressed by leaders. techniques. Total Quality Management .

Value-based Approach • Manufacturing Dimensions – – – – – – – Performance Features Reliability Conformance Durability Serviceability Perceived quality • Service Dimensions – – – – Reliability Responsiveness Assurance Empathy Total Quality Management .

The TQM System Objective Continuous Improvement Principles Customer Focus Process Improvement Total Involvement Elements Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Total Quality Management .

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