Unit- 5

Role of Quality Control in Production Management

Quality control is a process through which a business seeks to ensure that product quality is
maintained or improved and manufacturing errors are reduced or eliminated. It requires the
business to create an environment in which both management and employees strive for perfection.
This is done by training personnel, creating benchmarks for product quality, and testing products to
check for statistically significant variations.

A major aspect of quality control is the establishment of well-defined controls. These controls help
standardize both production and reactions to quality issues. Limiting room for error by specifying
which production activities are to be completed by which personnel reduces the chance that
employees will be involved in tasks for which they do not have adequate training

Characteristics of Quality Control

 The process adopted to deliver a quality product to the clients at the best cost.

 A goal is to learn from other organizations so that quality would be better each time.

 To avoid making errors by proper planning and execution with the correct review process.

Quality Control is used in all phases of business but is extremely relevant in engineering and
manufacturing in developing systems to ensure products or services. Quality control is used to meet
customer requirements and is vital in the manufacturing part of businesses.

Methods of Quality Control

 Quality Assurance: this method covers activities such as development, design, production,
servicing, and production Quality assurance can also cover areas of management
production, inspection, materials, assembly, services and other areas related to the quality
of the product or service.

 Failure Testing: This method involves testing a product until it fails It can be placed under
different stages such as humidity, vibration, temperature, etc. This method will expose the
weaknesses of the product in question.

 Statistical Control: almost all manufacturing companies use statistical control. This process
involves randomly sampling and testing a portion of the output.

 Company Quality: With management leading the quality improvement process and other
departments following, a successful product or service will emerge.

 Total Quality Control: The measures used in cases where sales decrease despite the
implementation of statistical quality control techniques or quality improvements.

Quality Control in Production Management

Quality Control (QC) may be defined as a system that is used to maintain a desired level of quality in
a product or service. It is a systematic control of various factors that affect the quality of the
product. It depends on materials, tools, machines, type of labor, working conditions etc. QC is a
broad term, it involves inspection at particular stage but mere inspection does not mean QC. As
opposed to inspection, in quality control activity emphasis is placed on the quality future production.
Quality control aims at prevention of defects at the source, relies on effective feedback system and
corrective action procedure. Quality control uses inspection as a valuable tool.

According to Juran “Quality control is the regulatory process through which we measure actual
quality performance, compare it with standards, and act on the difference”. Another definition of
quality control is from ANSI/ASQC standard (1978) quality control is defined as “The operational
techniques and the activities which sustain a quality of product or service that will satisfy given
needs; also the use of such techniques and activities”.

Alford and Beatty define QC as “In the broad sense, quality control is the mechanism by which
products are made to measure up to specifications determined from customers, demands and
transformed into sales engineering and manufacturing requirements, it is concerned with making
things right rather than discovering and rejecting those made wrong”.

Types of Quality Control

QC is not a function of any single department or a person. It is the primary responsibility of any
supervisor to turn out work of acceptable quality. Quality control can be divided into three main
sub-areas; those are:

1. Off-line quality control,

2. Statistical process control and

3. Acceptance sampling plans.

1. Off-line quality control:

Its procedure deal with measures to select and choose controllable product and process
parameters in such a way that the deviation between the product or process output and the
standard will be minimized. Much of this task is accomplished through product and process
design.
Example:
Taguchi method, principles of experimental design etc.

2. Statistical process control:

SPC involves comparing the output of a process or a service with a standard and taking
remedial actions in case of a discrepancy between the two. It also involves determining
whether a process can produce a product that meets desired specification or requirements.
On-line SPC means that information is gathered about the product, process, or service while
it is functional. The corrective action is taken in that operational phase. This is real-time
basis.

3. Acceptance sampling plans:

A plan that determines the number of items to sample and the acceptance criteria of the lot,
based on meeting certain stipulated conditions (such as the risk of rejecting a good lot or
accepting a bad lot) is known as an acceptance sampling plan.

Steps in Quality Control

Following are the steps in quality control process:

1. Formulate quality policy.

2. Set the standards or specifications on the basis of customer’s preference, cost and profit.
 3. Select inspection plan and set up procedure for checking.

4. Detect deviations from set standards of specifications.

5. Take corrective actions or necessary changes to achieve standards.

6. Decide on salvage method i.e., to decide how the defective parts are disposed of, entire
scrap or rework.

7. Coordination of quality problems.

8. Developing quality consciousness both within and outside the organization.

9. Developing procedures for good vendor-vendee relations.

Objectives of Quality Control

Following are the objectives of quality control:

1. To improve the company’s income by making the production more acceptable to the
customers, i.e., by providing long life, greater usefulness, maintainability etc.

2. To reduce companies cost through reduction of losses due to defects.

3. To achieve interchangeability of manufacture in large scale production.

4. To produce optimal quality at reduced price.

5. To ensure satisfaction of customers with productions or services or high quality level, to

build customer goodwill, confidence and reputation of manufacturer.

6. To make inspection prompt to ensure quality control.

7. To check the variation during manufacturing.

The broad areas of application of quality control are incoming material control, process control and
product control.

Benefits of Quality Control

 Improving the quality of products and services.

 Increasing the productivity of manufacturing processes, commercial business, and

corporations.

 Reducing manufacturing and corporate costs.

 Determining and improving the marketability of products and services.

 Reducing consumer prices of products and services.

 Improving and/or assuring on time deliveries and availability.

 Assisting in the management of an enterprise.

Seven Tools for Quality Control

To make rational decisions using data obtained on the product, or process, or from the consumer,
organizations use certain graphical tools. These methods help us learn about the characteristics of a
process, its operating state of affairs and the kind of output we may expect from it. Graphical
methods are easy to understand and provide comprehensive information; they are a viable tool for
the analysis of product and process data. These tools are effect on quality improvement. The seven
quality control tools are:

1. Pareto charts

2. Check sheets

3. Cause and effect diagram

4. Scatter diagrams

5. Histogram

6. Graphs or flow charts

7. Control charts

1. PARETO CHARTS
Pareto charts help prioritize by arranging them in decreasing order of importance. In an
environment of limited resources these diagrams help companies to decide on the order in
which they should address problems. The Pareto analysis can be used to identify the
problem in a number of forms.

a. Analysis of losses by material (number or past number).

b. Analysis of losses by process i.e., classification of defects or lot rejections in terms of

the process.

c. Analysis of losses by product family.

d. Analysis by supplier across the entire spectrum of purchases.

e. Analysis by cost of the parts.

f. Analysis by failure mode.

Example:
A Pareto chart of reasons for poor quality. Poor design will be the major reason, as indicated by 64%.
Thus, this is the problem that the manufacturing unit should address first.

G. Poor Design

H. Defective Parts

I. Operator Error

J. Wrong Dimensions

K. Surface Abrasion

L. Machine Calibrations

M. Defective Material

2. CHECK SHEETS
Check sheets facilitate systematic record keeping or data collection observations are
 recorded as they happen which reveals patterns or trends. Data collection through the use
of a checklist is often the first step in analysis of quality problem. A checklist is a form used
to record the frequency of occurrence of certain product or service characteristics related to
quality. The characteristics may be measurable on a continuous scale such as weight,
diameter, time or length.

Pareto chart

Example:
The table is a check sheet for an organization’s computer related problems.

Checklist

3. CAUSE AND EFFECT DIAGRAM

It is sometimes called as Fish-bone diagram. It is first developed by Kaorv Ishikawa in 1943
and is sometimes called as Ishikawa diagram. The diameter helps the management trace
customer complaints directly to the operations involved. The main quality problem is
referred to Fish-head; the major categories of potential cause structural bones and the likely
specific causes to ribs. It explores possible causes of problems, with the intention being to
discover the root causes. This diagram helps identify possible reasons for a process to go out
 of control as well as possible effects on the process.

Fishbone diagram

4. SCATTER DIAGRAM (SCATTER PLOTS)

It often indicates the relationship between two variables. They are often used as follow-ups
to a cause and effect analysis to determine whether a stated cause truly does impact the
quality characteristics.

Scatter diagram

Example:
The plots advertising expenditure against company sales and indicates a strong positive relationship
between the two variables. As the level of advertising expenditure increases sales tend to increase.

5. HISTOGRAM (OR) BAR CHARTS

It displays the large amounts of data that are difficult to interpret in their raw form. A
histogram summarizes data measured on a continuous scale showing the frequency
distribution of some quality characteristics (in statistical terms the central tendency and the
dispersion of the data).

Histogram
Often the mean of the data is indicated on the histogram. A bar chart is a series of bare representing
the frequency of occurrence of data characteristics, the bar height indicates the number of times a
particular quality characteristic was observed.

6. FLOW CHARTS (OR) GRAPHS

It shows the sequence of events in a process. They are used for manufacturing and service
operations. Flow charts are often used to diagram operational procedures to simplify the
system. They can identify bottlenecks, redundant steps and non-value added activities. A
realistic flow chart can be constructed by using the knowledge of the person who are
directly involved in the particular process. The flow chart can be identifies where delays can
occur.

Flowchart

7. CONTROL CHARTS
It distinguishes special causes of variations from common causes of variation. They are used
to monitor and control process on an ongoing basis. A typical control chart plots a selected
quality characteristic found from sub-group of observations as a function of sample number.

Characteristics such as sample average, sample range and sample proportion of non-conforming
units are plotted. The centre line on a control chart represents the average value of characteristics
being plotted. Two limits know as the upper control limit (UCL) and lower control limit (LCL) are also
shown on control charts. These limits are constructed so that if the process is operating under a
stable system of chance causes, the problem of an observation falling outside these limits is quite
small. The following figure shows a generalized representation of a control chart.

Control chart shows the performance of a process from two points of view. First, they show a
snapshot of the process at the moment the data are collected.

Second, they show the process trend as time progresses. Process trends are important because they
help in identifying the out-of-control status if it actually exists. Also, they help to detect variations
outside the normal operational limits, and to identify the cause of variations. Fig. shows a
generalized representation of a control chart.
Control charts

Causes of Variation in Quality

The variation in the quality of product in any manufacturing process is broadly classified as:

A. Chance causes

B. Assignable causes.

A. CHANCE CAUSES
The chance causes are those causes which are inherit in manufacturing process by virtue of
operational and constructional features of the equipments involved in a manufacturing
process.
This is because of

1. Machine vibrations

2. Voltage variations

3. Composition variation of material, etc.

They are difficult to trace and difficult to control, even under best condition of production. Even
though, it is possible to trace out, it is not economical to eliminate. The chance causes results in only
a minute amount of variation in process. Variation in chance causes is due to internal factors only
the general pattern of variation under chance causes will follow a stable statistical distribution
(normal distribution). Variation within the control limits means only random causes are present.

B. ASSIGNABLE CAUSES
These are the causes which creates ordinary variation in the production quality. Assignable
cause’s variation can always be traced to a specific quality. They occur due to

1. Lack of skill in operation

2. Wrong maintenance practice

3. New vendors

4. Error in setting jigs and fixtures

5. Raw material defects

Variation due to these causes can be controlled before the defective items are produced. Any one
assignable cause can result in a large amount of variation in process. If the assignable causes are
present, the system will not follow a stable statistical distribution. When the actual variation exceeds
the control limits, it is a signal that assignable causes extend the process and process should be
investigated.

Quality Circle:

Quality circle is a participant management method in which a team of employees works towards
solving and defining a problem that is related to the performance or quality of a product.

It is an integral part of enterprise management where small teams of six to twelve members come
forward voluntarily to form a quality control circle.

The group meet regularly and have discussions about quality problems. They are also responsible for
investigating causes and suggesting viable solutions so that corrective actions can be undertaken.

Meaning of quality circle

Quality circle is defined as a group of workers, who work voluntarily to improve and
develop products in an organization related to the production process, material wastage, quality of
finished, semi-finished goods and raw materials, energy consumption, maintenance, safety, and
delay.

It also solves problems related to any of them. Other names like often address the quality circle

 Productivity Circles

 Human Resources Circles

 Excellence Circles

 Action Circles

 Small Groups

Features of quality circle

1. It is a voluntary group, and the initiative to join the quality circle rests with the interested
party. People are invited to join the circle but not compelled or forced.

2. The size varies from six to twelve members, although everyone belongs to a specific work
area. Sometimes they consult specialists from other areas to gain his perspective and find
appropriate solutions. Emphasizes on a small group to maintain harmonious relations and
apt coordination between members.

3. The meetings are held at periodic intervals to discuss and contemplate about the related
issues. Sometimes it is a weekly activity, and at other times the timing can shift as per the
requirement. It is the quality circle members who decide the frequency of the meeting and
its timings to suit every member. Often it is the need of the hour that decides about the
frequency and time limit of these meetings.

4. An organization may have several quality circles depending upon its requirement. As it is a
work-related group, more often, it is their supervisor who takes up the mantle of leadership.
 5. Every quality circle has its point of reference and problems and is restricted to its specific
product or service. They do not interfere in the working of other quality circles.

6. It is adept at solving issues and offering an apt solution. The quality circle collects data,
identify and analyze, and lastly come to a solution after several discussions amongst the
members. The final idea is presented to the management by the group and not the leader
alone. The best thing about a quality circle is that it is a meticulously thought-about process
and is rare for management to reject it out-of-hand.

7. The quality circle, as the name suggests, identifies analyses, and solves related problems.
The members arrange the meeting as per the demand and requirement.

Objectives of quality circle

1. Identify and analyze problems

2. Work towards the development and improvement of the organization

3. Utilize and enhance human resources

4. Improve the quality of products

5. Reduce costs and enhance productivity

6. Solve problems specific to a product or service

7. Improve conflict and inter-personal resolution

8. Utilize innovative and imaginative skills of an individual

9. Developing work interest

10. Job involvement

11. Enhance problem-solving abilities

12. Improve communication

13. Promote leadership skills

14. Promote personal development

15. Reduce errors

16. Promote cost reduction

17. Participation in the management process

Structure of quality circle

1. Steering committee

It is headed by the senior executive and has representatives from human resources development
and top-level personnel. The steering committee is the one that drafts and establishes various plans
and policies in place and directs the program towards the right path.

2. Coordinator
The coordinator is generally the administrative officer who supervises the work and administer the
program

3. Facilitator

He is the supervising officer who coordinates the working of numerous quality circles via the circle
leaders

4. Circle leaders

He organizes the activities, gives direction to the members and conducts the activities of quality
leaders.

Advantages of quality circle

 A quality circle generates creative ideas that result in an innovative solution

 It increases the productivity, production, and quality of products and services in an

organization

 A quality circle is a happy group that works voluntarily. Its harmonious tendency is carried
back to the organization

 Increases customer satisfaction as everyone is working to improve the quality of products

and services

 Works towards reducing the production cost

 It brings a calm and soothing ambiance as it tries to identify and solve problems in an
effective manner

 Quality circle offers motivation to other employees to work for the betterment of the
organization and infuses team spirit

 Improves the image of employees as they are doing commendable work voluntarily for the
betterment of the organization and ultimately, the workforce.

 Improves the ability of the members in making viable decisions

 Quality circle helps to improve communication in the organization

 It improves leadership skills and encourages problem-solving ability.

 Builds inner confidence and trust

 Enhances corporate pride because of the sense of belonging

 Works towards a better relationship between managers and employees.

Disadvantages of quality circle:

1. Operational problems in the organization can cause delays and ultimately fail the process
maintained by the quality circle

2. Lack of participation can cause the failure of a quality circle

3. If the members are not suited and qualified for the post, it can result in wrong decisions
 4. It is important to keep a positive approach, but if any member is unable to maintain his
equilibrium in case of adverse conditions then the quality circle will fail in its intentions

5. As it is a voluntary group, a member can opt-out of it anytime

6. In case the group has a strong-willed member he may try to roughshod over others

7. Sometimes a quality circle may be involved in useless issues thus wasting time, energy and
effort of the members

8. It grabs the limelight and is often envied by other employees who do not have the time to
join such circles

9. It can cause issues with departmental managers as they do not like to see the quality circle
gaining prominence and recognition

10. The fluctuating demand for work can cause a problem in finding a convenient time for the
meeting

11. If the circle feels that the management is not listening to their suggestions, it can cause a
dampening and demoralize effect on the members.

12. Circle members – The members are the ones that make quality circle a possibility. Without
them, there will be no circle or any related activities.

Developing a quality circle

1. Starting phase

It is important to make people in your organization aware of the concept of the quality circle.
Everyone should have a basic knowledge about its implication and impact on the members as well as
the company.

It becomes doubly important as participation is voluntary. Once people start understanding its basic
concept only then will they show their enthusiasm in joining it? The company can play its part by
offering required training to the interested person to hone and develop their participation skills.

2. Constitution of Quality circle

Quantity circle members belong to the same work area, and their participation is voluntary. The
constitution includes steering committee, coordinators, facilitators, circle leaders, and circle
members who work for the ultimate benefit of the company.

3. Initial problem-solving

Problem-solving includes data collection carried out via records, self-suggestions, and contacting
employees. It also includes data analysis that establishes the reason for the issue.

Lastly is problem-solving, which involves the participation of members regularly so that they can put
forward their suggestions and viable inputs.

4. Presentation and approval

The members as a whole present the solution to the management either orally or as a project
report/assignment. The presentation improves communication between the workers and the
management so that later on, they can work in tandem.
5. Implementation

The final phase in developing a quality circle is the implementation. The relevant groups are assigned
with vital activities depending upon the suggestions to form a viable quality circle.

What is Just-in-Time (JIT)?

Just-in-time, or JIT, is an inventory management method in which goods are received from
suppliers only as they are needed. The main objective of this method is to reduce inventory holding
costs and increase inventory turnover.

Importance of just-in-time

Just in time requires carefully planning the entire supply chain and usage of superior software in
order to carry out the entire process till delivery, which increases efficiency and eliminates the scope
for error as each process is monitored. Here are some of the important effects of a just-in-time
inventory management system:

Reduces inventory waste

A just-in-time strategy eliminates overproduction, which happens when the supply of an item in the
market exceeds the demand and leads to an accumulation of unsalable inventories. These unsalable
products turn into inventory dead stock, which increases waste and consumes inventory space. In a
just-in-time system you order only what you need, so there’s no risk of accumulating unusable
inventory.

Decreases warehouse holding cost

Warehousing is expensive, and excess inventory can double your holding costs. In a just-in-time
system, the warehouse holding costs are kept to a minimum. Because you order only when your
customer places an order, your item is already sold before it reaches you, so there is no need to
store your items for long. Companies that follow the just-in-time inventory model will be able to
reduce the number of items in their warehouses or eliminate warehouses altogether.

Gives the manufacturer more control

In a JIT model, the manufacturer has complete control over the manufacturing process, which works
on a demand-pull basis. They can respond to customers’ needs by quickly increasing the production
for an in-demand product and reducing the production for slow-moving items. This makes the JIT
model flexible and able to cater to ever-changing market needs. For example, Toyota doesn’t
purchase raw materials until an order is received. This has allowed the company to keep minimal
inventory, thereby reducing its costs and enabling it to quickly adapt to changes in demand without
having to worry existing inventory.

Local sourcing

Since just-in-time requires you to start manufacturing only when an order is placed, you need to
source your raw materials locally as it will be delivered to your unit much earlier. Also, local sourcing
reduces the transportation time and cost which is involved. This in turn provides the need for many
complementary businesses to run in parallel thereby improving the employment rates in that
particular demographic.

Smaller investments
In a JIT model, only essential stocks are obtained and therefore less working capital is needed for
finance procurement. Therefore, because of the less amount of stock held in the inventory, the
organization’s return on investment would be high. The Just-in-time models uses the “right first
time” concept whose meaning is to carry out the activities right the first time when it’s done,
thereby reducing inspection and rework costs. This requires less amount of investment for the
company, less money reinvested for rectifying errors and more profit generated out of selling an
item.

How does just-in-time work?

The above image shows how a just-in-time model works. First, a customer places an order with the
manufacturer. When the manufacturer receives the order, they place an order with their suppliers.
The suppliers receive the order and then supply the manufacturer with the materials needed to
meet the customer’s order. The raw materials are then received by the manufacturer, assembled,
and sold to the customer.

Drawbacks of just-in-time

Even though the just-in-time model saves a lot of costs for businesses that use it, it also has a few
drawbacks:

1. Just-in-time makes it very difficult to rework orders, as the inventory is kept to a bare minimum
and only based on the customers’ original orders.

2. The model is dependent on suppliers’ performance and timeliness, which are hard to ensure.
Additionally, the manufacturer needs to be able to cover any sudden increases in the price of raw
materials, since they cannot wait to order during better pricing.

3. Since the JIT model requires a lot of shipping back and forth between the supplier, manufacturer,
and customer, it can have detrimental effects on the environment due to over consumption of fossil
fuels and packaging.

4. In case of disruptions, a JIT model can have a major impact on the business. Since there is no
excess stock to fall back on, sales may come to a halt.

5. A just-in-time system needs to be carefully tracked and organized, which will be hard if you are
doing it manually. Software should be adopted as it makes the whole process more manageable.
Even though a good software helps you it can be a bit tricky and/or expensive to adopt a new
software system and train your personnel accordingly to use the same.

Therefore, just in time saves you a lot of costs which would otherwise be tied up as inventory
holding cost. At the same time just in time should be executed carefully so that your business does
not face loss in times of unpredictable events.

What Is Total Quality Management (TQM)?

Total quality management (TQM) is the continual process of detecting and reducing or eliminating
errors in manufacturing, streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with training. Total quality
management aims to hold all parties involved in the production process accountable for the overall
quality of the final product or service.

TQM was developed by William Deming, a management consultant whose work had a great impact
on Japanese manufacturing. While TQM shares much in common with the Six Sigma improvement
process, it is not the same as Six Sigma. TQM focuses on ensuring that internal guidelines and
process standards reduce errors, while Six Sigma looks to reduce defects.

KEY TAKEAWAYS

 Total quality management (TQM) is an ongoing process of detecting and reducing or

eliminating errors.

 It is used to streamline supply chain management, improve customer service, and ensure
that employees are trained.
 The focus is to improve the quality of an organization's outputs, including goods and
services, through the continual improvement of internal practices.

 Total quality management aims to hold all parties involved in the production process
accountable for the overall quality of the final product or service.

The key principles of Total Quality Management

Commitment from the management

 Plan (drive, direct)

 Do (deploy, support, and participate)

 Check (review)

 Act (recognize, communicate, revise)

Employee Empowerment

 Training

 Excellence team

 Measurement and recognition

 Suggestion scheme

Continuous Improvement

 Systematic measurement

 Excellence teams

 Cross-functional process management

 Attain, maintain, improve standards

Customer Focus

 Partnership with Suppliers

 Service relationship with internal customers

 Customer-driven standards

 Never compromise quality

Process Oriented

 Thinking about the process

 Handling of the process

 Processes which are result oriented

Decision Making Based on Facts Only and Not on Opinions

 Integrated, strategic and systematic approach to ensure the entire organisation is aligned

 Communication must be open and at all levels of the organisation.

 Benefits of Total Quality Management

 The benefits arising from the implementation of a Total Quality Management in an

organization are:

 This will increase the awareness of quality culture within the organization.

 A special emphasis on teamwork will be achieved.

 TQM will lead to a commitment towards continuous improvement.

Essential requirements for successful implementation of TQM

 Commitment: Quality improvement (in all aspects) must be everyones’ job in the
organization. An apparent commitment from the top management, breaking down the
barriers for continuous quality improvement and steps required to provide an environment
for changing attitudes must be provided. Training and support for this should be extended.

 Culture: There should be proper training to effect the changes in attitude and culture.

 Continuous Improvement: Recognize improvement as a continuous process, and not merely

a one-off program.

 Customer Focus: Perfection in service with zero defects and full satisfaction to the end-user
whether it’s internal or external.

 Control: Ensure monitoring and control checks for any deviation from the intended course of
implementation.

Plan

Do

Check

Act

This is also referred to as the PDCA cycle.

 Planning Phase: This phase is the most crucial phase of total quality management. Under
this phase, employees have to come up with their respective queries and problems which
need to be addressed. The employees apprise the management of different challenges
which they are facing in their day to day operations and also analyze the root cause of the
problem. They need to do the required research and collect significant data which would
help them find solutions to all the problems.

 Doing Phase: In this phase, a solution for the identified problems in the planning phase is
developed by the employees. Strategies are devised and implemented to crack down the
challenges faced by employees. The efficiency and effectiveness of solutions and strategies
are also evaluated in this stage.

 Checking Phase: Under this phase, a comparison analysis of before and after is done in order
to assess the effectiveness of the processes and measure the results.

 Acting Phase: This is the last phase of the cycle, in this phase employees document their
results and prepare themselves to address other problems.