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COURSE LEARNING OUTCOME

Upon completion of this course, students should be able to:-

1. Identify the fundamental statistics and basic quality concepts and various terms relating to quality.

2. Understand the definitions, types and objectives of product inspections and selecting the right method.

3. Apply and relate the implementation of statistic in products or services quality control such as by using SPC and SQC software.

4. Analyze based on different types of plotted charts such as control chart, matrix, Pareto, scatter diagram, check sheet, graph and brainstorming method in purposely to improve the quality.

5. Evaluate the best and most cost effective method in ensuring product quality that fulfill the ISO 9000 standard.

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CHAPTER 6: QUALITY COST

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The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.

The concept of quality costs or cost of quality is a means to quantify the total cost of quality-related efforts and deficiencies.

4QUALITY COST

Quality costs are the total of the cost incurred by:

Investing in the prevention of nonconformance to requirements.

Appraising a product or service for conformance to requirements.

Failing to meet requirements.

5QUALITY COST

6QUALITY COST

Quality cost

Quality level

Objektif kos kualiti :

Memaparkan kepentingan aktiviti berkaitan kualiti pada pihakpengurusan syarikat melalui terma-terma yang lebih bermaknacontohnya kos.

Menunjukkan kesan aktiviti berkaitan kualiti terhadap criteria utama pengeluaran atau perniagaan seperti kos utama, untung atau rugi.

Membuat perbandingan kemajuan antara jabatan atau syarikat. Mengukuhkan asas untuk belanjawan dengan bertujuan untuk

mengawal operasi kualiti secara keseluruhan. Menyediakan maklumat kos bertujuan untuk memotivasiakan

keseluruhan peringkat pekerja dalam syarikat.

7QUALITY COST

Prevention cost The cost of planning and executing a project so it is error-free or

within an acceptable error range. Includes product design, process design, employee training, vendor programs, mistake-proofing.

Appraisal cost The cost of evaluating processes and their outputs to ensure

quality. Includes quality audits, SQC programs, Incoming and source inspection/test of purchased material, in-process and final inspection/test.

8CATEGORIES OF COST

Internal failure cost Cost incurred to correct an identified defect before the customer

receives the product. Includes scrap, rework, retest, downtime.

External failure cost Cost that relates to all errors not detected and corrected before

delivery to the customer. Including warranty repairs, loss of market share, liability, complaint adjustment, returns, downgrade allowances.

Measurement and test equipment costs Capital cost of equipment used to perform prevention and appraisal

activities.

9CATEGORIES OF COST

Achievement aspect / advantages of successively quality cost:

profit improvement revenue growth cost reductions increased productivity increase customer & employee retention

10QUALITY COST

CHAPTER 7: QUALITY IMPROVEMENT TECHNIQUE

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SPC is the application of statistical techniques to determine whether a process is functioning as desired or otherwise

SPC also monitors specified quality characteristics of a product or service so as : To measure the current quality of products or

services To detect whether the process has changed in a

way that will affect product quality

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SPC

Used during data collection. This tool provides a simple means for recording data by categories and enables the analyst to determine the relative frequency of occurrence of the various categories of data. From the check sheet, it is possible to easily determine that the most frequent reason for a defective batch.

13Check sheet

This tool is used to analyze the process dispersion. The diagram illustrates the main causes and sub causes leading to an effect or symptom.

So called the fishbone diagram chart because of its appearance and the Ishikawa chart after the man who popularized its use in Japan.

Its most frequent use is to list the cause of particular problems. The lines coming off the core horizontal line are the main causes and the lines coming off those are sub causes.

14Cause and effect diagram

This tool provides the same type of insight into the most and least frequent occurrences. But Pareto diagram provides better organization of the data compare to check sheet, and provides a more polished presentation. The Pareto diagram sorts the data categories from the highest to lowest and also shows the cumulative frequencies. This information helps to focus attention on the highest-priority category.

Also called the 80-20 rule, meaning that 80% of the problems are often due to 20 % of the causes.

15Pareto Chart

A graphical technique used to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y-axis being used for the variable to be predicted and the x-axis being used for the variable to make the prediction. The graph will show possible relationships, although two variables might appear to be related, they might not be.

The scatter diagram shows the pattern of relationship between two variables that are thought to be related.

16Scatter Diagram

The purpose of brainstorming is to generate a list of problems, opportunities, or ideas from a group of people. It is a session purely to generate ideas and opportunities. Consists of a group leader, registrant, and the committee member.

Everyone present at the session should participate. The discussion leader must ensure that everyone is given an opportunity to comment and add ideas. Critical to brainstorming is that on arguing; no criticism; no negativism; mp evaluation of the ideas, problems or opportunities take place during the session.

17Brainstorming

Sequence (Step) of brainstorming activities:

1. Gather the participants from as wide a range of disciplines with as broad a range of experience as possible. This brings many more creative ideas to the session.

2. Pointed leader in this team as to guide the group to achieve the aim and objective. The leader should take control of the session, initially defining the problem to be solved with any criteria that must be met, and then keeping the session on course.

3. Every members come out with the ideas

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4. Write down all the solutions that come to mind . Do NOT interpret the idea.

5. Do NOT evaluate ideas until the session moves to the evaluation phase. Once the brainstorming session has been completed, the results of the session can be analyzed and the best solutions can be explored either using further brainstorming or more conventional solutions.

6. The leader should keep the brainstorming on subject, and should try to steer it towards the development of some practical solutions.

7. Once all the solutions have been written down, evaluate the list to determine the best action to correct the problem

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CHAPTER 8: ISO (INTERNATIONAL ORGANISATION FOR STANDARDIZATION)

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Total Quality Control

Step for implement TQC Quality Policy Statement Establishment of Organizational Structure Education, Training and Communications Quality System Implementation Plan Establishment of the Quality Council

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Advantages of TQC Fewer complaints and lower warranty costs. Higher profit. Improved reputation and increased market share. Decrease in production costs due to mass production. Decrease in price of product. Prompt delivery and higher productivity Improved employee morale due to perks, promotion and

reputation of the company. Improved labor efficiency and better industrial relation

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ISO DEFINITION

ISO 9001:2008 is an International Standard on Quality Management System (QMS) requirements necessary for Quality Assurance. It sets out requirements suitable for an organization to demonstrate its quality assurance capability and for the assessment of that capability by an audit or review process.

23ISO

MAIN STANDARD OF ISO

ISO 9000 - Quality Management systems fundamentals and vocabulary

ISO 9001- Quality Management systems Requirement.

ISO 9002- Quality Management systems for quality assurance in production, installation and servicing

ISO 9003- Quality Management systems for quality assurance in final inspection and test.

ISO 9004 - Quality Management systems guidance for performance improvement.

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4 TYPES OF DOCUMENT

Quality manual (Why) Procedures (Who, What, When, Where) Work Instruction (How) Records (Evidence)

25ISO

First Party is also known as the Internal Quality Audit. This audit is conducted by the organization and in the organization itself.

Second Party Audit also known as the External Quality Audit. This audit is conduct to audit suppliers for the award as a vendor.

Third Party Audit also known as the Surveillance Audit. It was conducted by an independent auditor/external auditor or certification body standards. For example, ISO 9000 certification.

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STEP OF QUALITY AUDIT PROCEDURE

1. Provides Audit Program2. Plan and conduct audit3. Auditing Process4. Reporting Audit Results5. Conduct Follow-up Audit6. Completion of Quality Records

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Advantages of ISO Increased marketability (Opportunities to sell your products to new

markets.) Reduced operational expenses. Better management control. Increased customer satisfaction. Improved internal communication. Improved customer service. Reduction of product-liability risks. Attractiveness to investors International recognition of the quality of your company. Improved employee satisfaction Ability to compete with larger businesses.

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ISO

Disadvantages of ISO

Owners and managers do not have an adequate understanding of the ISO 9000 certification

Funding for establishing the quality system is inadequate-high cost (to maintain the accreditation and it involve training all staff in organization)Heavy emphasis on documentation

Length of the process (time consuming)

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