CHAPTER 5 Quality Specification and Inspection

Instructor: Mr. Rizwan Tanveer malik

THE TRANSFORMATION AND VALUE-

ADDED CHAIN

Customer Converter Supplier

Customer Supplier Converter

Converter Customer Supplier

• Each department in organization is responsible to bring continuous improvement in

minimizing cost and controlling process in congruence with organizational goals

and strategies.

• Continuous examination of present & future customer needs will help organizations

know their requirements.

• Organizations can not accomplish their goals of transformation and value-added

chain unless combine efforts are made by all departments.

OPPORTUNITY TO AFFECT VALUE

1.

Need

recognition

2.

Description

3.

Potential

suppliers

4.

Selection

5.

Receipt

6.

Payment

Acquisition Process Steps

Low

High

Opportunity

to affect

value

By brand

“Or Equal”

By specification

Physical or chemical characteristics

Material or method of manufacture

Performance

By engineering drawing

By miscellaneous methods

Market grades

Sample

By a combination of two or more methods

METHODS OF DESCRIPTION

EXPLANATION CONT…

Description by brand and trade name indicates a reliance on the integrity and the reputation of the supplier.

When brand satisfies the needs of its purchaser as it promised, purchaser has right to expect same quality first obtained in additional purchases of same brand.

REASONS TO DESCRIBE BY BRAND NAME:

• When, either manufacturing process is secret or item is covered by patent.

• When intangible labor quality such as skil ls and expertise can not be defined accurately.

• When the quantity bought by the buyer is so small to make setting of specifications.

• When testing by the buyer is impractical due to high expense involved.

• When buyers have other brand preferences.

BY BRAND

It is not unusual, particularly in the public sector, to see

requests for quotations or bids which will specify a brand or a

manufacturer’s model number followed by the words “or

equal”.

In these circumstances, the buyer tries to shift the

responsibility for establishing equality or superiority to the

bidder without going to the expense of having detailed

specifications.

OR EQUAL

Physical or chemical characteristics: It defines the properties of

material the purchaser desires, that are necessary for

satisfactory use at the least cost consistent with quality.

Material or method of manufacture: This method is used when

special requirements exist and when the buyer is willing to

assume the responsibility for the result.

Performance & function: A functional specification does not

define the inner workings of the proposed system; it does not

include the specification of how the system function will be

implemented.

DESCRIPTION BY SPECIFICATION

DESCRIPTION BY SPECIFICATION

ADVANTAGES

• When a buyer has to purchase or is required to purchase a particular type of goods from more

than one supplier, specifications ensure the identity of goods purchased.

• Specifications provide an exact standard to the inspection department of the buyer against

incoming materials can be inspected or measured or tested with great accuracy and this

ensures uniformity in quality of materials purchased.

• Specification buying includes more suppliers to bid an offer because all of them know exactly

what is required and they also know what the other suppliers are bidding for.

• Specifications may result in simplification of design, reduction in the quantity of materials

used, increasing the productivity, decreasing the cost of production, lower selling price etc.

• If the suppliers combine specifications with quality control measures, the buyers have not to

worry much about the testing or inspecting of the products purchased and in such

circumstances buyer’s money and time both are saved by doing less complete inspection.

• Specifications buying is a necessary step towards industry wide standardization that helps a

lot in saving cost.

DISADVANTAGES:

• Specifications becomes inappropriate in case of patented items or items with brand

names or items manufactured by patented process. Product of each manufacturer is

unique and the buyers purchase the products of a particular manufacturer because they

have confidence in the unique skill of that manufacturer e.g. Telco Trucks, Bajaj scooters,

Maruti cars etc

• Items purchased to specifications require detailed inspection to decide whether they are

in conformity with specifications prescribed or not. This proves costlier. While items with

brand names require only a casual check.

• In case of very stringent specifications, the buyers have to pay more than necessary for

the items.

• Specifications buying proves economical only in case of large purchases. It is not wise or

advisable step to prepare specifications for small purchases.

• When a buyer purchase items as per his / her specifications and if the product does not

prove satisfactory even though the supplier has complied with the terms of the purchase

the responsibility rests with the buyers for unsatisfactory performance.

• If the buyers do not review the specifications once fixed, considering technological

developments, they may be thrown out of the markets by the consumers. -

It is particularly applicable to the purchase of construction,

electronic and electrical assemblies, machined parts,

forgings, castings and stampings.

It is an expensive method of description because of the cost

of preparing the print or computer program and its specialty

concerns for supplier.

Therefore, this is the most accurate form of description and

particularly adapted to purchasing those items requiring a

high degree of manufacturing & close tolerances.

DESCRIPTION BY ENGINEERING

DRAWING

Description by market grades: purchases on the basis of

materials are confined to certain primary materials. For some

purposes, purchase by grades is entirely satisfactory

depending upon the ability with which grading is done.

Furthermore, grading must be done by those individuals who

are being trusted by purchasers.

Description by sample: it is another method of description

that is done by submission of a sample of the item desired.

Example: wood, grain, color, smell & appearance.

Organizations often also use combination of

descriptive methods

MISCELLANEOUS METHODS OF

DESCRIPTION

Standardization: Agreement on definite sizes, design, quality,

or other aspects of the product or service .

A technical and engineering concept

Simplification: A reduction in the number of sizes, designs or

other aspects of the product or service .

It is a selective and commercial problem

It may be applied to articles already standardized or as a step

preliminary to standardization

STANDARDIZATION AND SIMPLIFICATION

QUALITY, SUITABILITY & BEST BUY

Meaning of quality

Producer’s perspective

Quality of conformance

Consumer’s perspective

Quality of design

Fitness for consumer

use

Suitability refers to the ability of a material,

good or service to meet the intended functional

use.

The Best buy, assumes, of necessity, a certain

minimum measure of suitability but considers

ultimate customer needs, cost and procurability

transportation and disposal as well.

Quality must be integrated

throughout the organization ’s

activities.

There must be employee

commitment to continuous

improvement.

The goal of customer satisfaction,

and the systematic and continuous

research process related to

customer satisfaction, drives TQM.

Suppliers are partners in the TQM

process.

TOTAL QUALITY MANAGEMENT

Performance

Aesthetics

Special features: convenience, high technology

Safety

Reliability

Conformance (meeting pre-established standards)

Durability

Service after sale

QUALITY DIMENSIONS

THE CURRENT VIEW OF THE

QUALITY-COST TRADE-OFF

Prevention cost: Related to the activit ies that el iminate the occurrence of future defects.

Appraisal cost: Represents the cost of inspection, testing, measuring and other activit ies designed to ensure conformance of the product or service.

Internal fai lure cost: Costs incurred within the operating system as a result of poor quality. E.g. extra transportation and management t ime to expedite replacement materials.

External fai lure cost: Incurred when poor quality goods or services are passed on to the customer and include cost of returns, warranty cost and management t ime handling customer complains.

Morale cost: One cost seldom recognized in an accounting sense is the morale cost of producing (or having to use) defective products or services.

FIVE QUALITY-RELATED COST CATEGORIES

PREVENTION & APPRAISAL COST

E.g.: Machine, tool, material, labor

checkouts, preventive maintenance

etc.

E.g.: extra handing and inventory tie-up

costs, inspection of space, people,

equipment, materials costs etc.

Examples:

• Scrap

• rework

• lost or

missing

information

• changing

processes

• redesigning

of hardware

or

processes

etc.

INTERNAL &

EXTERNAL

FAILURE

COST

Product planning - to determine design requirements

Parts deployment - to determine parts characteristics

Process planning - to determine manufacturing

requirements

Production planning - to determine production

requirements

THE FOUR INTEGRATED STAGES OF

QUALITY FUNCTIONAL DEPLOYMENT

QUALITY FUNCTIONAL DEPLOYMENT

PROCESS

Product planning - Provide expertise in analyzing customer

requirements and generating a list of new product ideas

Parts deployment - Provide alternative design concepts and

estimate the manufacturing costs of various parts

Process planning - Suppliers can determine their existing

processes ’ constraints

Production planning - Help develop performance measurement

criteria for production planning

THE ROLE OF SUPPLIERS IN QFD

It is the

sor t ing/segregat

ion of Non-

conforming

i tems from the

conforming

items.

Means

separation of

Defective items

from the right

i tems.

INSPECTION

PROCESS

TQ

M

Total quality management

Quality assurance

Quality control

Inspection

EVOLUTION

OF TQM

The process of

individual &

organizational

development the

purpose of

which is to

increase the

level of

satisfaction of

all the

stakeholders

Process capability - The ability of the process to

meet specifications consistently

Statistical process control (SPC) - A technique that

involves testing a random sample of output from a

process in order to detect if nonrandom changes in

the process are occurring

common causes versus special or nonrandom causes

PROCESS CONTROL

CONTROL CHART

Control Chart

0.027

0.028

0.029

0.03

0.031

0.032

0.033

0.034

1 2 3 4 5 6 7 8 9 10

Sample Number

UCL

LCL

Sample

Average