Objectives Of Material Handling

Coyle, Bardi & Langley (1996) enumerate the following general objectives of materials handling:

1. Increased effective capacity of warehouse. Many warehousing facilities waste much space by not storing goods as high as possible. Warehouse managers must focus on cubic space, not just on floor space.

2. Minimisation of aisle space. The type of materials handling equipment a company uses will affect aisle width. For example, forklift trucks very often require turning space and so they may necessitate much wider aisles than are required by other types of materials handling equipment.

3. Reduction of the number of times product is handled. Usually, products are received in a warehouse and placed in a storage area before being moved to an order selection area to be 'picked' and made up into orders. Finally they are moved to ready them for shipment to customers. This process involves several unavoidable movements. However, in some warehouses, goods are moved several times in each area and this additional handling causes inefficiency. Hence, the materials handling system should be designed so that movements to, within and from a warehouse are minimised.

4. Development of effective working conditions. The materials handling equipment, while enhancing productivity, should simultaneously minimise danger to workers operating them and also to workers in the vicinity.

5. Reduction of movements involving manual labour. The system should be designed in such a way as to eliminate as much as possible short distance warehouse movements which are repetitive, monotonous and involve heavy manual labour. This objective suggests that companies should automate warehouses as much as possible.

6. Improvement of logistics service. Materials handling equipment improves efficiency by making the logistics system respond quickly and effectively to plant and customer requirements.

7. Reduction of cost. Effective materials handling can contribute to cost minimisation by increasing productivity and also by more efficient space utilisation.

Objectives of Materials Handling

The simplest solution to the materials handling problem- “No movement, no cost” is

hardly practicable for a complete manufacturing process. It is basically sound approach

when one is attempting to improve a complete production cycle and when the number of

handling can be reduced. It is also a good solution in the making of heavy industrial

equipment. In the latter situation it is often more feasible to bring the tools and workers to the

product than to transport the product to the machine or work area.

In addition to the objective of reducing the overall costs of materials handling by

reducing the number of handling involved, the following may be considered as

objectives of the engineer in his or her approach to this problem.

Lower the unit materials handling costs. It is obvious that if the overall materials

handling costs are reduced the unit costs will be reduced. This approach requires the

costs of handling be allocated to or identified with the units of product, or its component

parts that moved.

Reduce the manufacturing cycle time: The total time required to make a product from

the receipt of raw materials to the finished goods can be reduced through effective

materials handling.

Contribute toward a better control of the flow of goods: A principle way in which good

materials handling practice can effect savings is by making the control of goods easier-

particularly in continuous manufacturing, where all operations are “tied together” by the

materials handling plan.

Provide for improved working conditions and greater safety in the movement of

materials many of the provisions of the occupational Safety and Health Act require

adherence to safe handling practices. These must be followed. In addition, it is evident

that the safe handling of materials will be reflected in a better industrial accident record.

Provide for fewer rejects : Care in the handling of the product will contribute to a better

quality level of the goods produced. Products damaged by inefficient handling are all too

often a major cost to manufacturer.

Achieve decreased storage requirement: Better movement and storage of materials

should increase the utilization of storage space.

Gain Higher productivity at lower manufacturing cost : Any materials handling system, if

it is worth its investments, is design to improve productivity. This improvement should

be achieved by moving materials in the fastest, most efficient and economical way

possible.

Objectives of Material HandlingBy Steve Jonathan, eHow Contributor

Material handling relates to the loading, unloading and movement of all types of materials. Today, we have numerous ways by which material handling is done and it is generally classified according to the type of equipment used. Material handling may involve as much as 50 percent of the total production cost of a business's goods. Hence, the objectives of material handling become crucial to the organization.

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1. Cost Reductiono One of the main objectives of material handling is the reduction of production cost. Material

handling can constitute as much as 50 percent of total product cost and effective handling of materials can help minimize this cost. When handling costs are reduced the overall unit cost is reduced as a direct result. Sophisticated management theories, including just-in-time production and supply chain management are primarily concerned with materials handling.

Increasing Warehouse Capacity

o When materials are not stored correctly in a warehouse, much of the facility is being wasted. This wastage adds to the cost of the product. Focusing on efficient storage in terms of cubic as well as floor space becomes important. Minimizing aisle space is also necessary with respect to increasing the amount of storage space. In both cases effective use of material handling will help to reduce warehousing cost of materials.

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Improving Layout to Reduce Waste

o A complete analysis of the flow of materials between operations, volumes, flow paths and timing is a must for efficient material handling. When space requirements are optimized and travel times reduced through the use of efficient handling systems and equipment, material handling becomes more cost effective. Further, this will lead to enhanced productivity.

Optimal Equipment Utilization

o Expensive equipment often fails to operate at full potential simply because the material handling system does not permit it to. For example, the rate at which materials are supplied or removed could cause a drop in equipment performance by simply leaving it standing idle. With a proper material handling system in place or more efficient control of an existing system, equipment utilization can soon be maximized.

Increasing Safety

o Safety in any organization is a primary concern and an efficient material handling system can make a direct contribution to the safety of workers, materials and associated equipment. With an efficient system in place, accident costs, lost time and damage to materials, among other things, can be reduced

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Just-in-time production

Just-in-time (JIT) production, sometimes called lean production, turns traditional manufacturing thinking on its head.

Rather than producing goods and supplying customers from stock, JIT processes focus on producing exactly the amount you require

at exactly the time your customers require it.

The advantages of JIT

The main benefit of JIT is that it can improve production efficiency and therefore competitiveness.

It does this by:

preventing over-production

minimising waiting times and transport costs

saving resources by streamlining your production systems

reducing the capital you have tied up in stock

dispensing with the need for inventory operations

decreasing product defects

It can also bring many of these advantages to your customers, so if you have a JIT approach it can win you new business.

The disadvantages of JIT

Implementing thorough JIT procedures can involve a major overhaul of your business systems - it may be difficult and expensive to

introduce.

JIT manufacturing also opens businesses to a number of risks, notably those associated with your supply chain. With no stocks to fall

back on, a minor disruption in supplies to your business from just one supplier could force production to cease at very short notice.

The name just-in-time refers to aproduction system in which operations(processing, movement of materials & goods,etc.) occur just as they are needed or demanded. JIT approach emphasizes continualeffort to remove waste & inefficiency from theproduction process through small lot sizes,high quality, and teamwork.

JUST-IN-TIME (JIT) PRODUCTION

Just-in-time (JIT) is defined in the APICS dictionary as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity”.  It also has been described as an approach with the objective of producing the right part in the right place at

the right time (in other words, “just in time”).  Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework.  JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown).  In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise.

JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit.

The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS).  JIT was well-established in many Japanese factories by the early 1970's.  JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used.

Contents of ISO 9001

ISO 9001 certification of a fish wholesaler in Tsukiji

ISO 9001:2008 Quality management systems — Requirements is a document of approximately 30 pages which is available from

the national standards organization in each country. It is supplemented by two other standards, ISO 9000:2005 Quality management

systems — Fundamentals and vocabulary and ISO 9004:2009 Managing for the sustained success of an organization — A quality

management approach, which do not contain specific requirements and are not used directly in certification. Outline contents for

ISO 9001 are as follows:

Page iv: Foreword

Pages v to vii: Section 0 Intro

Pages 1 to 14: Requirements

Section 1: Scope

Section 2: Normative Reference

Section 3: Terms and definitions (specific to ISO 9001, not specified in ISO 9000)

Section 4: Quality Management System

Section 5: Management Responsibility

Section 6: Resource Management

Section 7: Product Realization

Section 8: Measurement, analysis and improvement

In effect, users need to address all sections 1 to 8, but only 4 to 8 need implementing within a QMS.

Pages 15 to 22: Tables of Correspondence between ISO 9001 and other standards

Page 23: Bibliography

The standard specifies six compulsory documents:

Control of Documents (4.2.3)

Control of Records (4.2.4)

Internal Audits (8.2.2)

Control of Nonconforming Product / Service (8.3)

Corrective Action (8.5.2)

Preventive Action (8.5.3)

In addition to these, ISO 9001:2008 requires a quality policy and Quality Manual (which may or may not include the above

documents).

 ISO - Overview

The International Organization for Standardization (ISO) is a worldwide federation of national standards boards from 91 countries. The work of preparing International Standards is carried out through ISO technical committees. Each federation member interested in a subject for which a technical committee has been established has the right to be represented on that  

committee. External international organizations also take part in the work.

Important: Please refer to the website of the  International Organization for Standardization for updated information.

Contents:

ISO 9000/9001 OverviewISO 9000 Structure ISO 9000 PurposeWhy ISO 9000?ISO 9001 CharacteristicsISO 9001 ElementsISO 9001 System OverviewPreparation for AuditISO 9000 Glossary

Background:

The International Organization for Standardization (ISO) is a worldwide federation of national standards boards from 91 countries. The work of preparing International Standards is carried out through ISO technical committees. Each federation member interested in a subject for which a technical committee has been established has the right to be represented on that committee. External international organizations also take part in the work.

Draft International Standards adopted by the technical committees are circulated to the member bodies for approval before their acceptance as International Standards by the ISO Council. They are approved in accordance with ISO procedures requiring at least 75% approval by the members voting.

Quality standards were initially applied in military specifications. After successive releases, ISO 9000 became the European Economic Community (EC) norm and was approved by the European standard-setting organization on a "fast track" to be called EN29000.

Today, worldwide ISO 9000, the EC's EN29000, national standards such as BS-5750, and the United States ANSI/ASQC Q9000 series all describe the same set of quality principles. Currently 106 countries have adopted ISO 9000 as the quality standard. In Europe more than 50,000 businesses are ISO 9000 certified and in the U.S. approximately 3,500 businesses are ISO 9000 certified/registered.

ISO 9000 Structure

The intent of ISO 9000 is to fit the appropriate standard to "How you do business" not fit "How you do business" to ISO 9000. The ISO 9000 series can be used in conjunction with other contract quality requirements.

The ISO 9000 series of quality standards provides requirements and guidelines for quality management system elements and quality assurance. ISO 9000 Quality Management and

Quality Assurance consists of five standards:

ISO 9000 is a guide to selection and use of the remaining standards.

ISO 9001 is a specification for design/development, production, installation and servicing.

ISO 9002 is a specification for production, installation and servicing.

ISO 9003 is a specification for final inspection and test.

ISO 9004 describes the principal concepts and applications for a complete quality management system.

ISO 9000 is further divided into four parts:

Part 1 (ISO 9000) - Guidelines for selection and use.

Part 2(1SO 9000-2)- Generic guidelines for the application of ISO 9001, ISO 9002 and ISO 9003.

Part 3 (ISO 9000-3) - Guidelines for the application of ISO 9001 to the development, supply and maintenance of software.

Part 4 (ISO 9000-4) - Guide to dependability program management.

ISO 9000 Purpose

ISO 9000 involves two basic actions:

Establishing the proper quality management controls.

Documenting these controls (developing a Quality Manual) which creates a detailed record of an organization's quality procedures and practices.

Companies demonstrating compliance with ISO 9000 standards deliver products and services verified by a repeatable and consistent quality system. Registration of compliance with the standards requires an on-site audit of the quality system by an impartial, accredited auditor who verifies that the quality system complies with ISO 9001 standards and that everyone involved is following documented procedures. Surveillance audits are conducted by the auditor every six months.

One of the key aspects of ISO 9000 is that these quality standards do not apply to specific products. The standards are generic in nature and are intended to enable a supplier (through internal and external audits) to provide assurance that it has a quality system in place. The quality system, in turn, allows the supplier to meet its published quality objectives. The end product or service produced is essentially irrelevant to the registration process.

The ISO 9000 registration is, in effect, a confirmation of the "processes" only. The ISO 9000 registration cannot appear on the products, but can appear on the product literature or advertising.

Why ISO 9000?

Competitive Advantage:

Registration to the ISO 9001 standard sends a message to all prospective customers of your commitment to meet their needs and expectations and to produce quality products and services.

Worldwide acceptance and recognition of ISO 9001 as "The Quality System Standard" places the organization that has implemented it above the organization that has not. With ISO 9001 registration, the "world" is our marketplace. More than 100 countries have adopted ISO 9000 as their "Quality System Standard." Many European Community countries will not do business with organizations that are not ISO 9000 registered or certified.

ISO 9001 Characteristics

The following list of characteristics are important for all businesses to know and understand:

Quality systems serve as models for quality assurance in design/development, production, installation and servicing.

ISO 9001 is the most stringent of the three Quality Systems Standards (ISO 9001, ISO 9002 and ISO 9003).

Twenty elements of ISO 9000 cover all activities that affect the quality of the product or service produced.

Each of the 20 elements:

ISO 9001 Elements

ISO 9001 compliance is based on adherence to the requirements contained in the 20 elements listed below. Familiarity with these elements is very important and requires the attention, assistance, cooperation, and effort of business management and employees.

ISO 9001 - 20 Elements:4.1Management  Responsibility

4.2 Quality System

4.3 Contract Review

4.4 Design Control

4.5 Document and Data Control

4.6 Purchasing

4.7 Control of Customer Supplied Product

4.8 Project Identification and Traceability

4.9 Process Control

4.10 Inspection and Testing

4.11 Control of Inspection, Measuring and Test Equipment

4.12 Inspection and Test Status

4.13 Control of Nonconforming Product

4.15 Handling, Storage, Packaging,Preservation and Delivery

4.16 Control of Quality Records

4.17 Internal Quality Audits

4.18 Training

4.19 Servicing

4.20 Statistical Techniques

ISO 9001 System Overview

Quality System at Work:

A quality system should detect, correct, and prevent product quality problems. The primary role of a quality system is to ensure that:

All activities are planned.

Activities are performed in a predetermined way.

Clearly defined channels for communication of information and instructions exist and are used.

Documentation:

The quality system must be well documented in the quality manual, operating procedures and work instructions. The quality system manual contains policies; operating procedures contain and regulate main activities; work instructions explain specific tasks.

Audits/Corrective Actions:

Internal audits determine if the quality system is being used and if it is effective. Corrective actions are initiated to fix quality problems and to deal with their root causes so problems do not recur.

ISO 9001 Compliance Audit

What happens during the audit?

Auditors familiarize themselves with the operations and processes of the departments selected. They review documents and records and interview personnel about the quality system. At the end of the audit, the auditors present their findings and judge the company's suitability to ISO standards.

How do auditors work?

Auditors gather facts, collect evidence, and draw conclusions. They look for indications of non-compliance, such as a lack of continuity in dates on records and documents. They expect employees to know where procedures are located and how to verify latest revision level. They also ask questions that encourage employees to speak freely about concerns.

Where do auditors look?

Office Areas

Documents awaiting processing

What questions do auditors ask?

Auditors generally:Inquire about the company, the quality system and the company's stated quality policy

Focus on a department or an area

Examine compliance to instructions and procedures

Investigate potential noncompliance

Require supporting documentation or records to substantiate compliance

How do auditors examine documents and records?

Most non-compliance’s found during an ISO audit relate to a problem with a document or a record. All documents must be dated and must identify the using party. Most should also have a revision number and, when relevant, a distribution list.

Typical questions asked by auditors:

Do you have a quality policy here?

Tell me about your procedures; how do you implement and use them?

Where are the procedures you consult if you have any questions? (The employee must be able to have easy access and personally show the auditors.)

Were you trained before you started working alone, and can you show me the record?

How do you know when you are making the product correctly?

Can you tell when it is good or bad? Show me. (Ensure that there is some documented method for differentiation and that it is included as part of the training record.)

If you have a problem with the development of your product, what do you do? (You will need a documented process outline on how you control nonconforming material.)

How do you know the tools you are using are acceptable? Which ones need to be calibrated? How do you know when to send them back?

What do you do when data on a control chart indicates a process problem? What happened and what did you do? Could you show me how you were trained to make and understand these charts? (Make sure you are keeping records on out-of-control events; the auditors are looking for some form of documented proof that appropriate action was taken. Also ensure that your charts are maintained in an on-line dynamic fashion. Charts updated after the product has left the area are ineffective to your preventative program.)

How do you know you are building the right product? Can you show me the assembly documents or model?

Preparation for Audit

How you should prepare for the compliance audit?

Ensure that Your employees:

Know and understand the Company's quality policy. Ensure that a copy of it is available in each department area.

Are very familiar with directives and processes/procedures that relate to their job and know how to access them online or find current copies of each.

Know what ISO 9001 is and why your Company seeks registration.

Know about the 20 elements of the ISO 9001 Standard and the elements specific to their own area.

Check documents and records. Know the location of procedures, instructions, specifications and drawings, and ensure that all are at the latest revision. Check for unauthorized changes and uncontrolled work instructions. Organize and index files; label

folders and file cabinets.

Do all work using written instructions and procedures.

Clean up their work area. Remove scrap, trash, broken equipment, and other items not being used.

Are prepared to answer questions to the best of their knowledge.

That if they don't know the answer, they know to state that they don't know but will find out. That they are friendly and courteous.

Say what They do (establish appropriate quality controls and systems).

Do what they say (ensure everyone involved follows established procedures).

Prove it (demonstrate compliance of the quality system to an "external auditor").

ISO 9000 Glossary

Every process has its own glossary of terms and ISO 9000 is no exception. ISO 8402, Quality Management and Quality Assurance - Glossary, is the standard that defines terms used in the ISO standards. It is important to become familiar with the following terms:

Subcontractor: Organization that provides a product to the supplier. Supplier: Organization that provides a product or service to the customer. The company that maintains the quality system required by ISO 9000. Validation: Confirmation by examination and provision of objective evidence that the particular requirements for a specific intended use are fulfilled. Verification: Confirmation by examination and provision of objective evidence that specified requirements have been fulfilled.

Contractor: Supplier in a contractual situation.

Contract Review: Systematic activities carried out by the supplier before signing the contract to ensure that requirements for quality are adequately defined, free from ambiguity, documented and can be realized by the supplier.

Customer: Recipient of a product or service provided by a supplier.

Entity: That which can be individually described and considered (e.g., product, activity, process, organization, or combination thereof.)

Management Review: Formal evaluation by top management of the status and adequacy of the quality system in relation to quality policy and objectives.

Nonconformity: Non-fulfillment of specified requirement (e.g., materials, components, and products that are defective or are not the same as specified.) It could also mean not fulfilling quality system requirements; for example, using an outdated drawing or test or equipment that is overdue for calibration.

Objective Evidence: Information which can be proved true, based on facts obtained through observation, measurement, test or other means.

Organization: Company, corporation, firm, enterprise or institution, or part thereof, whether incorporated or not, public or private, that has its own functions and administration.

Organizational Structure: Responsibilities, authorities and relationships, arranged in a pattern, through which an organization performs its functions.

Procedure: Specified way to perform an activity.

Process: Set of interrelated resources and activities which transform inputs into outputs.

Product: The result of activities or processes. The final product or service. May include hardware, processed materials, software or a combination thereof. Could also include all materials, components, and other elements needed to build the product.

Purchaser: Customer in a contractual situation.

Quality: All the features and characteristics of a product or service that affect its ability to satisfy stated or implied needs. Quality means "Fitness for Use," "Customer Satisfaction," and/or "Conformance to Requirements."

Quality Management: All activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality planning, quality control, quality assurance, and quality improvement, within the quality system. Quality management is the responsibility of all levels of management but must be led by top management. Its implementation involves all members of the organization.

Quality Manual: Sometimes referred to as the Quality System Manual, covers the requirements of the ISO 9001 standard. The Quality Manual includes or makes reference to the quality system procedures and outlines the structure of documentation used in the quality system.

Quality Planning: Activities that establish the objectives and requirements for quality and for the application of quality system elements.

Quality Policy: Overall intentions and direction of an organization with regard to quality, as formally expressed by top management.

Quality System: Organizational structure, procedures, processes and resources needed to implement quality management. Everything that a company plans to do to manage the quality of its product.

Quality System Audit: Systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives. An independent examination to determine whether a quality system satisfies the requirements of ISO 9000 and whether all policies and procedures of the quality system are followed and audit trails have been documented.

Record: Document which furnishes objective evidence of activities performed or results achieved.

 

10 Characteristics of Effective Quality Management SystemsPosted by admin on November 27, 2010 · 18 Comments · Forward this article to your friendsQuality management systems can become cumbersome and bureaucratic if not properly developed, implemented and maintained. Effective quality management systems have ten common characteristics that I have discovered in my consulting practice over the past couple of decades. These common denominators of quality management, when properly implemented, can improve your organization’s ability to satisfy customer and manage your processes and products more effectively. These ten common denominators are relevant and applicable for organizations seeking ISO 9001, AS 9100, ISO 13485 or TS 16949 registration.1. A process is in place to ensure the needs and expectations of customers and other interested parties are clearly defined.2. The quality policy and quality objectives are defined, deployed throughout the organization and understood by employees at all levels.3. Processes are documented in simple to use procedures that are up to date and controlled while responsibilities of personnel are established and followed up on to achieve objectives.4. Resources to meet objectives are identified and provided. Resources include people, processes, equipment and infrastructure.5. Metrics are established and monitored for each process. The old adage, “If it is not worth measuring, it is not worth doing,” is certainly true for business processes. When a process is not monitored and measured, how can leaders know if it is producing the desired outcomes? Many organizations fail to establish criteria for monitoring and measuring processes and as a result inefficiencies are rampant and it is very difficult to implement corrective actions that really work.6. Management is committed to using the metrics for process improvements and for communications within the organization as well as for holding people accountable for their performance. Accountability is dependent upon two factors: 1)the people know what is expected and 2), the leaders follow-up to insure people do what is expected.7. A process is in place for preventing non-conforming product or services and in the event non-conforming the situation is documented and corrective actions taken. In the case of non-conforming product, the process provides for identification and segregation to prevent it from getting to a customer.8. Continual improvement is a priority and simple approaches are implemented to involve people throughout the organization in identifying continual improvement opportunities.9. A framework for verification of processes and products is in place and functioning as planned. This includes internal audits of the processes as well as product quality verification at various stages of production.10. Management is involved in the system and reviews the entire system at appropriate intervals to insure the system is functioning as planned, is effective for the business and is being maintained.A quality management system built on these ten foundational principles will give your business a competitive advantage and should not be a bureaucratic nightmare.

Acceptance samplingFrom Wikipedia, the free encyclopedia

Acceptance sampling uses statistical sampling to determine whether to accept or reject a production lot of

material. It has been a common quality control technique used in industry and particularly the military for

contracts and procurement. It is usually done as products leave the factory, or in some cases even within the

factory. Most often a producer supplies a consumer a number of items and decision to accept or reject the lot is

made by determining the number of defective items in a sample from the lot. The lot is accepted if the number

of defects falls below where the acceptance number or otherwise the lot is rejected.[1]

A wide variety of acceptance sampling plans are available.

Definition of 'Acceptance Sampling'A statistical measure used in quality control. A company cannot test every one of its products due to either ruining the products, or the volume of products being too large. Acceptance sampling solves this by testing a sample of product for defects. The process involves batch size, sample size and the number of defects acceptable in the batch. This process allows a company to measure the quality of a batch with a specified degree of statistical certainty without having to test every unit of product. The statistical reliability of a sample is generally measured by a t-statistic.

Investopedia explains 'Acceptance Sampling'Probability is a key factor in acceptance sampling, but it is not the only factor. If a company makes a million products and tests 10 units with one default, an assumption would be made on probability that 100,000 of the 1,000,000 are defective. However, this could be a grossly inaccurate representation. More reliable conclusions can be made by increasing the batch size higher than 10, and increasing the sample size by doing more than just one test and averaging the results. When done correctly, acceptance sampling is a very effective tool in quality control.

Read more: http://www.investopedia.com/terms/a/acceptance-sampling.asp#ixzz1sezVhCi1

Acceptance Sampling

When applying acceptance sampling as your approach to quality, a small batch of components are measured or observed and a decision to scrap or accept is made. This approach is dependent on statistical sampling techniques that use the data collected on a small number of  samples to be extrapolated to predict the likelihood of large numbers of products meeting the design specification.

The decision to accept or reject is based on the idea that a certain number of defective items can be tolerated.

The Techniques We Used In Store Inventory Control.

Store / Inventory control technique is the important tool in the hands of the modern management. It is indispensable for each and every manufacturing concern. The following are the important techniques of store control.

Fixation of various stock level: Under this method various stock levels are fixed scientifically to avoid over stocking and under stocking of materials. Over stocking of materials leads to unnecessary blockage of materials and investment and under stocking of material leads to disputation in production. These are the following stock levels which help for planning of materials.Economic ordering quantity: Economic ordering quantity is that quantity of material which are to be ordered in one time in order to minimize ordering cost, carrying cost as well as cost of holding stock.Perpetual inventory system: Perpetual inventory system is defined as "a system of records maintained by the controlling department which reflects the physical movement of stocks and their current balances."

Bin card and store ledger constitute the bedrock of perpetual inventory system. It is a method of recording store after every receipt & every issue and their current balances to avoid closing down the firm for stock taking. To ensure accuracy the physical verification may be made which must have to agree with the balance of Bin Card & store ledger. If there is any discrepancy between the two, it may be adjusted by preparing debit note and credit note.

A.B.C. Analysis: A. B. C. analysis is always a better control system. Under this method inventory items are classified in to three categories such as A. B. C. basing upon its value and cost significance. The number of items and the value of each class is expressed as percentage of the total and categorize as under.

Items of high value and small in numbers termed as 'A'

Items of moderate value and moderate in number is termed as 'B'

Items of small in value and large in number is termed as 'C'

V.E.D. Analysis: This method is used for control of spare parts. VED is the symbol of

1. Vital spare parts: Are those spares whose cost of stock out is very high.2. Essential spare parts: Are those spares which are essential for the production to continue.3. Desirable spare parts: Are those spares which are needed but their absence even a week or more

will not lead to stoppage of production.

Inventory turn over ratio: Inventory turn over ratio is one of the method of store control. it indicates how quickly the stocks are converted in to sale. Low inventory turn over ratio indicates  the inefficient management in inventory & high inventory turn over ratio is always implies favorable situation.What is Purchase Requisition?

Purchase requisition is a form used as a formal requisite by the store keeper to the purchasing department to purchase requisite quantity of materials. When store reaches at ordering level the store keeper initiates purchase requisition to the purchasing department for fresh supply of materials. The purchase department may not purchase materials according to his own accord. When purchase officer receives purchase requisition. He arranges for purchase of materials.

Introduction

It was discussed in demand forecasting that in the dependent demand situation, if the demand for an item is known, the demand for other related items can be deduced. For example, if the demand of an automobile is known, the demand of its sub assemblies and sub components can easily be deduced. For dependent demand situations, normal reactive inventory control systems (i.e. EOQ etc.) are not suitable because they result in high inventory costs and unreliable delivery schedules. More recently, managers have realized that inventory planning systems (such as materials requirements planning) are better suited for dependent demand items. MRP is a simple system of calculating arithmetically the requirements of the input materials at different points of time based on actual production plan. MRP can also be defined as a planning and scheduling system to meet time-phased materials requirements for production operations. MRP always tries to meet the delivery schedule of end products as specified in the master production schedule.

MRP Objectives

MRP has several objectives, such as:

Reduction in Inventory Cost: By providing the right quantity of material at right time to meet master production schedule, MRP tries to avoid the cost of excessive inventory.

Meeting Delivery Schedule: By minimizing the delays in materials procurement, production decision making, MRP helps avoid delays in production thereby meeting delivery schedules more consistently.

Improved Performance: By stream lining the production operations and minimizing the unplanned interruptions, MRP focuses on having all components available at right place in right quantity at right time.

1. Reduction of defects because TQM promotes quality awareness and participation of all members of the organization, not just the QA or QC department. It means quality at the source. 2. Total quality management system leads to ease of problem solving. Through measurements such as SPC and other techniques such as failure analysis, defects and failures (even potential failures) can be identified and addressed. 3. TQM also leads to continuous improvement of processes and products. TQM system should also improve the efficiency of people and machine.4. TQM leads to quality products which leads to customer satisfaction. 5. And finally, by reducing defects and improving machine and personnel efficiency, TQM should lead to cost savings and profitability improvement (bottomline). 

Total Quality Management is a system of continuous improvement that involves all workers in a business from upper management

to production line workers. The focus of the improvement program is to improve customer service and reduce waste in the business.

Quality improvement teams use problem-solving techniques and analysis to identify and eliminate weaknesses in the company.

Production DisruptionImplementing a Total Quality Management system in a company requires extensive training of employees. The employee training

includes instruction in problem solving techniques and the tools to evaluate a process and identify weaknesses such as statistical

process control, Pareto diagrams and brainstorming techniques. During the initial training period, productivity can decline. Meetings

for quality improvement teams also take workers away from their duties, which also reduce productivity. While the improvements do

reduce lead time, eliminate waste and improve productivity, the beginning stages of implementing Total Quality Management in an

organization can reduce worker output.

Lowers Production CostsA Total Quality Management program eliminates defects and waste, which reduces production costs in a business. As teams gather

to identify and eliminate weaknesses in the business, the company continues to enjoy reduced costs and higher profit. Quality

improvement teams can eliminate defects, reduce lead time and identify redundancies in the production process that can

significantly add to the profit the company earns.

Employee ResistanceTotal Quality Management requires change in mindset, attitude and methods for performing their jobs. When management does not

effectively communicate the team approach of Total Quality Management, workers may become fearful, which leads to employee

resistance. When workers resist the program, it can lower employee morale and productivity for the business. Total Quality

Management uses small incremental improvements to move the business forward. It can take years for a company to enjoy the

benefits of the program.

Employee ParticipationOnce workers understand their participation and involvement in Total Quality Management is essential to its success, morale and

productivity improve. Workers become empowered through participation on quality improvement teams. Businesses can improve

morale further by recognizing improvement teams that make meaningful changes in the production process to reduce or eliminate

waste.

Total Quality Management (TQM) is a philosophy aimed at improving business as a

whole. Some of the benefits lie in the continuous improvement of processes and

products, and enhanced efficiency of people and machines leading to improved quality.

The application of Total Quality Management helps in streamlining processes, and

ensures a proactive work system ready to counter deviations from the ideal state. What

are some of the major benefits of Total Quality Management?

The major thrust of Total Quality Management (TQM) is to achieve productivity and

process efficiency by identifying and eliminating problems in work processes and

systems. TQM addresses key problem areas such as mistakes in work processes,

redundant processes, unnecessary tasks, and duplicate efforts. TQM interventions also

help with predicting and pre-empting such mistakes and unproductive activities.

Improving process efficiency brings about many benefits to the organizations in terms of

costs and time.

The major benefits of TQM in terms of cost savings include:

elimination of non-confirmation and repetitive work

elimination of waste costs and reject products

elimination of repairs and reworks

reduced warranty and customer support costs

process efficiency leading to improved profit per product or service

fiscal discipline through elimination of unnecessary steps and wasteful expenditure

TQM frees up management time from redressing problems and directs management

time and effort to:

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increase production

extend the range of products

improve existing products

The advantages of total quality management (TQM) include:

Cost reduction. When applied consistently over time, TQM can reduce costs throughout an organization, especially in the areas

of scrap, rework, field service, and warranty cost reduction.

Customer satisfaction. Since the company has better products and services, and its interactions with customers are relatively error-

free, there should be fewer customer complaints.

Defect reduction. TQM has a strong emphasis on improving quality within a process, rather than inspecting quality into a process.

This not only reduces the time needed to fix errors, but makes it less necessary to employ a team of quality assurance personnel.

Morale. The ongoing and proven success of TQM, and in particular the participation of employees in that success can lead to a

noticeable improvement in employee morale, which in turn reduces employee turnover.

However, TQM also requires a significant training period for those employees involved in it. Since the training can take people away

from their regular work, this can actually have a negative short-term effect on costs. Also, since TQM tends to result in a continuing

series of incremental changes, it can generate an adverse reaction from those employees who prefer the current system, or who

feel that they may lose their jobs because of it.

TQM works best in an environment where it is strongly supported by management, it is implemented by employee teams, and there

is a continual focus on process improvement that prevents errors from occurring.

Types of Control Charts

Written by:  Heidi Wiesenfelder • Edited by: Jean Scheid Updated Jul 4, 2011 • Related Guides: Six Sigma | Control Charts

The most basic type of control chart, the individuals chart, is often used for all types of

data. Yet often more specialized types of control charts can provide more valuable

information about process performance, data variation, and process changes. Learn the

different types and when to use them.

About control chart types

In addition to the individual charts, a variety of specialty control charts are at your

disposal for charting your data, calculating statistical control limits and detecting special

causes. Many of these charts can look very similar to individuals charts, but the limits

are calculated differently and do a better job of detecting special causes for the specific

type of data for which they are designed.

Software programs such as Minitab and QI Macros for Excel can create any type of

control chart and provide settings that can be adjusted by advanced users.

P & np charts

For discrete-attribute data, p-charts and np-charts are ideal. Attribute data is for

measures that categorize or bucket items, so that a proportion of items in a certain

category can be calculated. Thus a p-chart is used when a control chart of these

proportions is desired.

An np-chart is appropriate when the number of items used to calculate each proportion

is the same. For example, 100 reports may be reviewed each week and categorized as

either accurate or inaccurate. The proportion of inaccurate reports could be plotted on a

p-chart or the actual number of inaccurate reports could be plotted on an np-chart. If the

number of reports reviewed each week varies, then a p-chart must be used.

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C & u charts

Discrete-count data differs from attribute data in that the occurrence of a characteristic

or event can be counted, but a non-occurrence can not be counted. Thus the data

plotted for a c-chart or u-chart is always the count of occurrences. The c-chart is used

when the opportunity for occurrences is equal for each data point and the u-chart is

required when the opportunities differ.

The u-chart looks different from the individuals chart in that the limits actually vary from

point to point, as seen here: