MODULE 2

Quality
Quality is the fitness for use.

Dimensions (characteristics) of quality

1. Durability
2. Suitability
3. Dependability
4. Reliability
5. Affordability
6. Value for money
QUALITY PLANNING
• It is the process of establishing quality objectives and creating plans for achieving those objectives.
• Quality plan is a documents containing quality standards, specifications, procedure and resources
relating to a particular product.
Objectives
1. Prepare guidelines to achieve quality
2. Define quality standards
3. Produce quality products
4. Quality assurance & Quality control
5. Analysis of the quality cost
Process of quality planning

THREE PRONG APPROACHES TO QUALITY PLANNING

1. Product planning: survey about the product, customer requirement etc.. and understand the product
to manufacture accordingly.
2. Managerial and operational planning: prepare organization structure, procedure, process etc ..
3. Quality plan preparation: prepare document for quality practice, procedures, resources etc..

DOCUMENTATION
All the measures taken by the organisation for quality management should be documented in a systematic manner.
Documentation is done in 4 levels.
LEVEL 1 : QUALITY MANUAL – a record of quality policy, what could be done, company goals, vision and mission.
LEVEL 2 : QUALITY PROCEDURE – who are responsible for implementing quality policy defined in quality manual.
LEVEL 3 : WORKING INSTRUCTION – how to create documents so that goals, vission and mission of the org can
be outlined.
LEVEL 4 : QUALITY RECORDS – Recording what has been done.
• Document contains:
o Quality policy
o Quality standards – Eg: ASME, BPVC, BIS, ISO …
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 o Specifications
o Quality Assurance & Quality Control procedures. Eg: NDT, leak proof test.
o Procedure – Eg: WPS
o Quality record.
ISO 9000

• ISO – International organisation for standards.

• It is a Document containing set of standards for quality management and assurance.
• Membership of 92 countries, including India.
• Elements of ISO-9000 – ISO 8402, ISO 9000, ISO 9001, ISO 9002, ISO 9003, ISO 9004.
Characteristics of ISO
• Defines basic elements of the quality.
• Ensures uniform system which is universally accepted.
• It is system oriented rather than product oriented.
• Promotes international exchange of products through standardization.
• For organizingations, ISO is a world wide credibility passport.
• Brought several countries under the same umbrella for quality management.

Elements of ISO 9000

ISO 8402 - it is the terminology standard. It to provide definition of all terms.

ISO 9000 – explain basic concepts such as quality, quality policy… It is a road map.
It explains how a company should select and use other for standards.

ISO 9004 – contains guidelines on technical and human factors affecting the
quality. Explain the elements by which a company can develop a good quality
management system.

ISO 9001 - the ensures quality through whole cycle from design developments
installation and servicing. It’s aim is to prevent non conformity at the each of these
steps.

ISO 9002 – the focus is on detecting nonconformity during each stage and implementation of the means to prevent
the recurrence of the error.

ISO 9003 – ensures the conformity in final test and inspection only. The certificate depends on the suppliers
capability to detects and control nonconformity during final inspection.

ISO 9000 INSTALLATION STEPS

1. Preparatory steps
• Conducts awareness program for top management.
• Set up implementation committee.
• Start ISO awareness program
• Find out current status and prepare an action plan
• Develop an organisational structure
• Develop quality system documentation
2. Implementation steps
• Implements the documented quality system
• Established internal quality audits
• Monitor the quality system
3. Registration & certification steps
• Apply for registration
• Compliance audit by certification body
• Certification
QUALITY AUDITS
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 • A systematic examination to identify whether quality objectives are as per plans, and whether these
plans are implemented effectively.
Objectives:
Ensuring the products are fit and safe for use.
Ensuring quality policy of the org meets quality standards.
Correction of mistakes and errors.
Oppertunities for improving quality are identified.
Types of Audit
Adequacy audit – Management audit to ensure quality policies meets quality standards.
Compliance audit – ensure quality policy is implemented and followed by employees.
System audit – audit on various systems such as design, production, inspection…..
Product audit – Audit by inspection dept to check product meet required quality.
First party audit – internal audit
Second party audit – audit by customers
Third party audit – audit by external certified agency.

TOTAL QUALITY MANAGEMENT

TQM is a management philosophy to quality of products and services.

Characteristics are,
1. Customer focused - customer determines the quality of products, so focus must be on the customer.
2. Total employee involvement - All employees participate in working toward common goals.
3. Quality system - formulation of a strategic plan that integrates quality as a core component.
4. Continuous improvement – continues improvement by upgrading design process, software etc..
TEN MANTHRAS OF TQM
1. Quality is through continuous involvement and effort.
2. Quality involves hard work and devotion
3. Quality is everybody’s business
4. Quality begins cleanliness
5. Take quality and quality will take care everything
6. Make it right for first time
7. Quality is achieved through team work.
8. Document is dependable.
9. Quality is end and begins with education
10. Quality used to evaluate product and services.
VISION, MISSION & QUALITY POLICY
• Vision: Vision can be described as desired future position of company.
o Eg: With in next 5 year company will take one fourth of the market.
• Mission : It is the statement it gives companies business ,its objective and approach to reach those
objectives.
o Eg: By expanding production of dress we will achieve the one fourth of the market.
• Quality Policy: Top management expression of intension, direction and aim regarding quality of
product and process.

MATERIAL MANAGEMENT (purchase department)

• Supply of proper quality & quantity of materials essential for manufacturing.
• This will reduce material wastage and thereby cost of production.
Objectives of purchase department

1. Purchasing of the required materials and services.

2. Providing needed materials, services on a timely basis.
3. Assist departments when emergency purchases are necessary.
4. Educate departments about purchase procedure and practices.
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 5. Protect against unethical trade practices.
6. Maintain good relationship with vendors.
7. Continuously improve procurement practices and procedures.
8. Conduct price analysis to determine whether the price submitted price by the vendors are fair.
9. Maintain a vendor file.
PURCHASE PROCEDURE

• Purchase request is given to purchase department.

• Purchase section will invite tender and select best supplier.
• Purchase order will be issued to the suitable supplier.
• Supplier will supply the material, after inspection of material will be accepted.
• Material will be given to the place where purchase request received.
INVENTORY
• Stock of physical asset which has economic value
Eg: Material, money, labor.
Classification
In manufacturing aspect,
1. Production inventory
2. Work in progress
3. Finished goods inventory
4. MRO inventory
5. Miscellaneous inventory
In controlling aspect
1. Class A
2. Class B
3. Class C

EOQ & ABC MODEL

EOQ MODEL ( Economic Order Quantity)

• The EOQ help to hold appropriate level of inventory. It helps to give purchase order at right time.
The important terms in EOQ are:
• Max stock: Max limit of stock at a time.
• Minimum stock: It is the minimum level of stock should kept always in store.

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 • EOQ or standard order: It’s the difference between max and min order quantity.
• Reorder point: This is the point where we have to initiate the purchase order.
• Lead time: It is the time difference between placing order time and material receiving time.
ABC MODEL ( Always Better Control model)

• In this model inventory is classified into Class A, Class B and Class C.

• Class A: It consists 10 % of the total no of items and 70 % of the total money value for all the items.
o High value item
o High control and security is required.
• Class B: It consists 20 % of the total no of items and 20 % of the total money value for all the items.
o Moderate value item.
o Moderate security and control
• Class C: It consists 70 % of the total no of items and 10 % of the total money value for all the items.
o low value material.
o Low security required
STORE MANAGEMENT
OBJECTIVES
• Uninterrupted supply of materials without delay.
• To prevent overstocking and understocking.
• To protect material from damage, theft, fire.
• To minimize storage cost.
• To ensure maximum utilization of storage space.
FUNCTIONS
• Issuing purchase request to purchase department.
• Receive materials from purchase department and confirm quality and quantity of order.
• Storing materials in convenient places so that it can be located easily.
• Storing materials in such a manner that chances of damages is less.
• Issuing materials to departments on material requisition slips.
• How full information about the material availability on store records.

Store layout is the design of a store’s floor space and the Placement of items within that store.
Types: 1) Centralized store. 2) Decentralized Store
Centralized store
• It is a store which receives and issues material to all departments.
• The materials required by all departments are stored by one single Store.
Advantages
• A better supervision of stories possible due to single supervision.
• A better layout of Store and control
• Less space is occupied.
• Investment in stock is minimized
• Trained and specialized persons can be appointed.
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Disadvantages
• Delay in sending materials to the departments and branches.
• Increase in material handling cost.
• Greater risk of loss by fire.
• Not suitable for a large company.
Decentralized Store
A decentralized store is that type of store which receives materials for and issues them to only one department and not
to the whole company. The decentralized store may be in many numbers in the company, as each department has its
own such store.
Advantages
• Delay in material handling will be eliminated.
• Minimizes the chances of loss by fire.
• No need of internal transportation costs.
• Specific needs of individual departments can be easily fulfilled.
• Saving in material handling cost.
Disadvantages
• Higher cost of supervision.
• More space is required for individual departments.
• Higher amount of investment is required.
• Higher cost of staff and stationary.
• Improved technique is less possible for controlling of materials.

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