Understanding Quality in Production Management
Understanding Quality in Production Management
Meaning of quality
The ability of product or service to meet customer needs with the objective of minimisation of
defects.
Many manufacturing enterprises are large and have complex manufacturing processes.
Therefore it is not always easy to see directly what the causes are of a particular quality
problem. In fact, even identifying whether a problem exists in the first place is often a complex
task. Where a large number of items is being manufactured e.g. cars, computers, footwear, it is
often not possible to inspect each and every component that goes into their manufacture.
Instead, quality engineers rely on statistical techniques that allow an estimate of the quality of
the parts by only measuring a small proportion of them. The estimate establishes the probability
of the occurrence of a defective item. The goal is to reduce this probability so that it becomes
insignificant.
Six Sigma in Quality Management
Three-sigma variation on each side of the mean was used to determine process capability. This
allows a small margin of error equal to 0.27%. This would mean with Cp=1 that there would be
2.7 defects per thousand items. For many applications this is not satisfactory – consider an
aircraft manufacturer - so a process capability based on plus or minus six sigma is used instead.
This equates to 3.4 defects per million. Companies such as Motorola pioneered this approach
and many companies throughout the world have adopted it as a benchmark.
Where a large number of items are being produced e.g. screws or mobile phones, it is not
feasible to measure or test each one as it is being made. Instead the quality of the process is
controlled by taking a measurement from a sample of the parts made and using methods based
on the concepts shown above to determine the quality of the batch as a whole. How big should
the sample be? The idea is to measure just enough samples to allow an accurate assessment
of the process as a whole. Any more than this amount does not improve the accuracy of the
analysis and any less will result in a reduced confidence in the result. The following simple
calculation allows us to choose a sample size where the standard deviation (sigma) of a
process is known. A large volume of sugar is manufactured and packed daily. To find the mean
value for the weight of sugar a sample of the packets are measured. The larger the sample, the
more certain it becomes that we have a mean that reflects the population as a whole. The
smaller the sample the greater the margin of error that will occur. In this case we are happy to
tolerate a small error if it allows us to measure a reasonable sized sample
Sample size =
e = the error you are prepared to accept, measured as a proportion of the standard deviation
(accuracy)
z = a number relating to the degree of confidence you wish to have in the result.
Quality Control
The advent of mass production during the twentieth century increased the demands upon the
control of product quality. Quality Control emerged during the 1940s and 1950s as organisations
tried to increase profit and reduce cost by the inspection of product quality. Quality control
involves inspecting components after they have been manufactured and rejecting or reworking
any defective ones. There are two problems with this approach:
1. The inspection process just detects non-conforming products – it does not help to prevent
them happening so there is wastage of material and time on scrapped and reworked parts.
Quality Assurance
The success of Japanese manufacturers during the 1960s and 1970s changed the focus from a
quality control to a quality assurance approach. Quality assurance involves more of the
business functions being involved in quality and takes longer to implement. It involves setting up
a quality system and having a documented approach to all procedures and processes that affect
the quality of a product. Prevention is a large part of this process as well as inspection. To
achieve this, all aspects of the production process are involved. The system can be accredited
using international standards such as ISO 9000.
Total Quality Management
The ‘total’ approach to quality management arose from fierce international competition during
the 1980s and 1990s. Everybody in the organisation is involved in developing a quality
improvement and prevention system that is focussed on the needs of the customer through
teamwork. The aim is ‘zero defect’ production.
For TQM to be effective, the involvement of all employees is essential. The employees are
encouraged to participate in problem solving at all levels and to make suggestions for
improvements where necessary. This is called participative problem solving and the employees
are encouraged to ‘take ownership’ of the quality management process throughout the
company. Employees are often organised into Quality Circles or ‘Process improvement teams’
to help achieve this.
Just in Time
Modern products have shortened life cycles, and there is much pressure on manufacturers for a
quick response to the customer. One way of ensuring a quick turnaround time is to hold an
inventory of stock items so that they are available when they are needed. However holding
these items costs money as they need to be bought and stored prior to use. In a climate of rapid
product change, there is a possibility that the inventory items may become obsolete before they
are used, therefore increasing the cost even further. A better approach is to make the
production process leaner and more agile. If the suppliers are coordinated with the
manufacturing company then it is possible to implement what is known as Just in Time
manufacturing.
JIT originated in Toyota in the 1950s and is more than just a means for reducing
inventory. To work properly, the entire production process must be streamlined and
efficient. The underlying concept is ‘eliminate waste’ This means eliminating anything
other than the minimum amount of materials, parts, space, tools or time than is essential.
Case Study
Dell Computers use JIT at their manufacturing plants around the world. A typical Dell plant
allocates just a tiny part of its floor area for incoming parts. In one plant that has a floor area the
size of 23 football fields, the incoming parts area is just 3 metres square – the size of a bedroom
in an average house. A plant will assemble tens of thousands of computers each day. Computer
controlled conveyors move the parts quickly through the plant where components are added to
the computer. Drives, chips and other components are added according to customer order by
workers who respond to red or green lights on component drawers. The assembly process
takes three or four minutes after which the computers are moved to the finishing area where
they are customised, boxed and sent to waiting delivery trucks. Online orders are downloaded
to a factory planning system which generates a production schedule every two hours for the
plant. The system notifies suppliers of Dell’s exact material needs and works out schedule for
assembling the machines depending on the availability of the materials. As the machines are
being built, the parts needed for the next two-hour set of orders are being shipped from supplier
hubs. These are mini-warehouses that are maintained by the suppliers and contain two weeks
worth of components near the Dell factory. The hub has 15 minutes to confirm that the parts
ordered from it are available and 1 hour and 15 minutes to deliver them to the plant.
Kanban Systems: Kanban is the Japanese word for card. Kanbans are used in JIT as part of a
‘pull’ system that is used to regulate flow of the materials and component parts through the
manufacturing system. A major problem in assembling a complex item is the coordination of the
parts and sub-assemblies as they move along the production line. With a car, these amount to
dozens of subassemblies consisting of thousands of components.
Focus on Customers
Under TQM, your customers define whether your products are high quality. Customer
input is highly valued because it allows a company to better understand the needs and
requirements in the manufacturing process. Customer surveys may reveal insufficient
durability of goods. This input is then fed back into TQM systems to implement better
raw material sourcing, manufacturing processes, and quality control procedures.
Commitment by Employees
Employees must buy into the processes and system if TQM is going to be successful.
This includes clearly communicating across departments and leaders what goals,
expectations, needs, and constraints are in place. A company adopting TQM principles
must be willing to train employees and give them sufficient resources to complete tasks
successfully and on time. TQM also strives to reduce attrition and maintain
knowledgeable workers.
Improve Continuously
A company should gradually evolve and strive for incremental, small improvements as it
learns more about its customers, processes, and competition. This concept of
continuous improvement helps a company adapt to changing market expectations. It
allows for greater adaptability to different products, markets, customers, or regions.
Continuous improvement also drives and widens the competitive advantage that a
company has built over related companies.
Adherence to Processes
TQM’s systematic approach relies heavily on process flowcharts, TQM diagrams, visual
action plans, and documented workflows. Every member engaged in the process must
be aware and educated on their part of the process to ensure proper steps are taken at
the right time of production. These processes are then continually analyzed to better
understand deficiencies in the process.
Data Utilization
The systematic approach of TQM only works if feedback and input are given to evaluate
how the process flow is moving. Management must continually rely on production,
turnover, efficiency, and employee metrics to correlate the anticipated outcomes with the
actual results.
TQM relies heavily on documentation and planning, and only by utilizing and analyzing
data can management understand if those plans are being met.
Integrate Systems
One way to utilize data is to integrate systems. TQM strategies believe systems should
talk to each other, conveying useful information across departments and making smart
decisions.
When goods or inventory are used in one area, another department should have
immediate access to that enterprise resource planning (ERP) information. TQM strives
to allow everyone to be on the same page at the same time by linking data sources and
sharing information across systems.
Communication
Data may transfer between departments freely, but there is a human element to
coordinating processes and making sure an entire production line is operating efficiently.
Implementation of TQM
TQM is a unique process. There is not a specific formula for implementing a system that
suits every business and each type of industry. But you can create a checklist of issues
that might suit your enterprise and proceed with them in chronological order. Some may
suit your business, while others will not. Select those that you think will provide an
advantage.
● Identify your company’s existing culture, its core values, and its systems.
● Use this information to create a system that will serve as your master plan.
● Establish what your customers and clients want and what they expect from your
business. Determine how to best meet these expectations and needs.
● Create a team of management and employees to guide and implement your
goals, and include these efforts in your daily business management process.
● Consistently gather feedback from employees and customers to gauge your
progress.
A company must fully engage TQM principles to fully reap the benefits of TQM. This
requires substantial buy-in from every department across an organization. This level of
commitment is very difficult to achieve, requires substantial financial investment, and
necessitates all levels of management to engage in TQM.
The conversion to TQM may be lengthy, and workers may feel resistant to change. A
company may be required to replace processes, employees, equipment, or materials in
favor of an untested, partially developed TQM plan. More skilled workers may decide to
leave the company if they feel TQM processes don’t appropriately utilize their skill sets.
Pros
● Delivers stronger, higher-quality products to customers
● Results in lower company-wide costs
● Minimizes waste throughout the entire production and sale process
● Enables a company to become more adaptable
Cons
● May require substantial financial investment to convert to TQM practices
● Often requires conversion to TQM practices over a long period of time
● May be met with resistance to change
● Requires company-wide buy-in to be successful
Scatter Diagram
Scatter Diagram or scatter plot is a statistical quality control tool. The scatter
diagram serves the same purpose as the fishbone diagram while establishing
a relationship between the causes and the overall effect. These are depicted
as variables – X and Y and are used by quality management professionals to
analyze the relationship between the two variables. After establishing the
relation, professionals can start working toward finding the solution to the
problems. Professionals can use any number of independent and dependent
variables to create a scatter plot.
Histogram
Histogram was introduced by Karl Pearson. A histogram is a bar graph that
shows the frequency distribution on each bar. It is used to study the areas of
improvement that are needed at any given point in time in the production
process. Quality professionals use this tool for studying various data like days
of the week, physical measurements, the time needed to complete tasks, etc.
Furthermore, Histogram helps in analyzing and interpreting the actions of
various data sets to control quality.
Control Chart
This quality control tool is also called the Shewhart chart after Walter A.
Shewhart. A Control Chart is a statistical chart used to determine the stability
and predictability of the process over time. It helps in reducing process
variation by comparing the current data to historical data. Moreover, Control
Chart helps in decision making for process improvement goals.
Pareto Chart
This QC Tool named after Vilfredo Pareto is used to determine the biggest
contributors to a particular problem. Identifying these factors will help quality
management professionals adjust to the causes and rectify the problem
easily. Pareto chart is represented in a combination of bar graph and line
graph. The 80-20 rule, which claims that 20% of the key factors account for
80% of an issue, is the foundation of the Pareto chart. The remaining 20% of
the problem is caused by small elements that together account for 80% of the
problem.
Check Sheet
Professionals utilize check sheets to collect quantitative or qualitative data.
This quality control tool is called a tally sheet when it’s used for collecting
quantitative data. The purpose of a check sheet is to list important data or
information in a table and check their status. This helps in understanding the
progress of the production process, find patterns, and solve problems.
Stratification
This quality control and assurance tool is also called a flowchart or run chart.
Stratification divides data into categories and classifies them into groups.
Depicting data in a visual representation helps quality professionals derive
meaningful information from them, ultimately leading to process
improvement. Moreover, Stratification improves understanding of the process,
and identifies inefficiencies or bottlenecks.
Statistical Quality control
Statistical quality control, the use of statistical methods in the monitoring and
maintaining of the quality of products and services. One method, referred to
as acceptance sampling, can be used when a decision must be made to accept
or reject a group of parts or items based on the quality found in a sample. A
second method, referred to as statistical process control, uses graphical
displays known as control charts to determine whether a process should be
continued or should be adjusted to achieve the desired quality.
Statistical process control
Disadvantages
Time requirements
While the emphasis of statistical process control is on early detection,
implementing the system in a manufacturing set up can take a long time.
Additionally, the process of monitoring and filling out charts is time consuming.
Since the system has to be integrated into an existing framework, training of
personnel is required which takes time.
Cost considerations
Statistical process control is also an expensive affair and requires that a
company signs a contract with a service provider and invests in training
resources and materials.
Quality measurements
A problem with statistical process control is that it detects when there is
non-conformance in the process protocol, but it does not say how many
products may be defective up until that point.
SQC vs SPC
This section provides the measures which are required to design a sampling
plan.
1. Acceptable Quality Level (AQL): The poorest level of quality for the
supplier‟s process that the consumer would consider to be acceptable as a
process average. The AQL is a percent defective, which is the minimum
requirement for the quality of the producer's product. Sampling plan should be
designed with a high probability of accepting a lot that has a defective level
less than or equal to the AQL. The probability of acceptance of a lot with a
process average equal to the AQL is normally set at 0.95. 2.
[Link] Tolerance Percent Defective (LTPD): It is a level of quality routinely
rejected by the sampling plan. It is the poorest level of quality (percent
defective) that the consumer is willing to accept in an individual lot. The LTPD
is not a characteristic of the sampling plan, but is a level of quality specified by
the consumer. Alternate names for LTPD are the rejectable quality level and
the limiting quality level.
3. Type I Error (Producer's Risk): Rejecting the null hypothesis when it is true
is called type I error. The probability of committing type I error is denoted by .
It is the level of significance for hypothesis testing. Theproducer suffers when
this error occurs, because a lot with acceptable quality is rejected.
7. Average Total Inspection (ATI): The average number of units inspected per
lot including all units in rejected lots.
10. Operating Characteristic (OC) Curve: This curve is the primary tool for
exhibiting and examining the properties of acceptance sampling plan. OC
curve plots the probability of accepting the lot Pa along y -axis versus the
percent defectives p along x -axis. The OC curve measures the performance
of an acceptance-sampling plan. It shows the probability that a lot submitted
with a certain fraction defective will be either accepted or [Link] curves
are classified into two types as per ANSI/ASQC standard (1987), they are i)
Type A OC curve and ii) Type B OC curve. Type A OC curve is the most
suitable one when samples are drawn from a unique lot or isolated lot or a lot
from the isolated sequence. The probability of accepting a lot is defined as a
function of lot proportion defective for a given acceptance sampling plan as
used under Type A OC curve. This OC curve represents the probability of
accepting a lot as a function of process proportion defective for a given
sampling plan. Type B OC curve is for continuous stream of lots.
SIX SIGMA
The graph of the normal distribution below underscores the statistical assumptions of
the Six Sigma model. The higher the standard deviation, the higher is the spread of
values encountered. So, processes, where the mean is minimum 6σ away from the
closest specification limit, are aimed at Six Sigma.
Brainstorming
Brainstorming is the key process of any problem-solving method and is often utilized
in the "improve" phase of the DMAIC methodology. It is a necessary process before
anyone starts using any tools. Brainstorming involves bouncing ideas and generating
creative ways to approach a problem through intensive freewheeling group
discussions. A facilitator, who is typically the lead Black Belt or Green Belt, moderates
the open session among a group of participants.
This technique helps to get to the root cause of the problems under consideration and
is used in the "analyze" phase of the DMAIC cycle.
In the 5 Whys technique, the question "why" is asked, again and again, finally leading
up to the core issue. Although "five" is a rule of thumb, the actual number of questions
can be greater or fewer, whatever it takes to gain clarity.
This is the process used to capture the "voice of the customer" or customer feedback
by either internal or external means. The technique is aimed at giving the customer the
best products and services. It captures the changing needs of the customer through
direct and indirect methods. The voice of the customer technique is used in the
"define' phase of the DMAIC method, usually to further define the problem to be
addressed.
The 5S System
This technique has its roots in the Japanese principle of workplace energies. The 5S
System is aimed at removing waste and eliminating bottlenecks from inefficient tools,
equipment, or resources in the workplace. The five steps used are Seiri (Sort), Seiton
(Set In Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).
The Kaizen technique is a powerful strategy that powers a continuous engine for
business improvement. It is the practice continuously monitoring, identifying, and
executing improvements. This is a particularly useful practice for the manufacturing
sector. Collective and ongoing improvements ensure a reduction in waste, as well as
immediate change whenever the smallest inefficiency is observed.
Benchmarking
This technique's name comes from the Japanese phrase meaning "to avoid errors," and
entails preventing the chance of mistakes from occurring. In the poka-yoke technique,
employees spot and remove inefficiencies and human errors during the manufacturing
process.
Value Stream Mapping
The value stream mapping technique charts the current flow of materials and
information to design a future project. The objective is to remove waste and
inefficiencies in the value stream and create leaner operations. It identifies seven
different types of waste and three types of waste removal operations.
KAIZEN
Kaizen is a Japanese term meaning change for the better or continuous improvement. It
is a Japanese business philosophy that concerns the processes that continuously
improve operations and involve all employees. Kaizen sees improvement in productivity
as a gradual and methodical [Link] concept of kaizen encompasses a wide range
of ideas. It involves making the work environment more efficient and effective by
creating a team atmosphere, improving everyday procedures, ensuring employee
engagement, and making a job more fulfilling, less tiring, and safer.
Some of the key objectives of the kaizen philosophy include quality control,
just-in-time delivery, standardized work, the use of efficient equipment, and
the elimination of [Link] overall goal of kaizen is to make small changes
over a period of time to create improvements within a company. That doesn't
mean alterations happen slowly. The kaizen process simply recognizes that
small changes now can have huge impacts in the future.
● Increased productivity
● Reduced waste
● Better management of resources
● Improved quality
● Better safety
● Lower costs
● Higher customer satisfaction
● Improved cooperation and communication
● Higher employee satisfaction and morale
5 Elements of Kaizen
The five kaizen elements or principles are: know your customer, let it flow, go
to gemba, empower people, and be transparent. People also sometimes ask
what kaizen 5S refers to. It's a process often used in lean manufacturing and
relates to five steps of improvement: Sort, Set in Order, Shine, Standardize,
and Sustain. A 5S event follows each of these steps one day at a time.
Additional approaches to the Kaizen cycle exist, such as one that is
condensed into four steps -- plan, do, check, act, or PDCA. It is also known as
the Shewhart cycle or Deming cycle.
Kaizen 5S framework
Kaizen disadvantages
● Companies with cultures of territorialism and closed communication
may first need to focus on cultural changes to create a receptive
environment.
● Short-term Kaizen events may create a burst of excitement that is
shallow and short-lived and, therefore, is not sustained.