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Management
UNIT I
where as modern authors says that
management is a process of
accomplishing certain objectives
through the utilization of human and
other resource.
IMPORTANCE OF MANAGEMENT
Organizing Function
Standard.
For Payment system.
Controlling Function
•Quality
•Quantity
•Time
•Inventory
•Cost
•Maintenance
PRODUCTIVITY
Efficiency
is the ratio of actual output attained to the
standard expected output. It measures of how well the
resources
are utilized to accomplish the target or
result.
Effectiveness is the degree of accomplishing the
objectives
Production System
Energy
Purpose to Increase Productivity:
FOR MANAGEMENT
Ø To produce good earning (profit).
Ø To clear the debt or loans acquired from different
sources.
Ø To sell more.
Ø To stand better in the market.
FOR WORKERS
Ø HIGHER WAGES.
Ø Better Working Conditions.
Ø Higher standard of living.
Ø Job Security and Satisfaction
FOR CUSTOMER
Ø To reduced price of the article.
INDUSTRIAL OWNER SHIP
Sole Proprietorship
Partnership
Co – operative Organization
Joint Stock Company
State & Central Govt .
Three basic forms of
business ownership
•Sole
proprietorship
•Partnership
•Corporation
Sole proprietorship
•A business
owned and
Advantages of sole
proprietorships
•Easy and inexpensive to create .
•Owner makes all business
decisions .
•Owner receives all profits .
•Least regulated form of
business
Disadvantages of sole
proprietorships
•Owner has unlimited liability for
all debts and
The
Partnership
A form of
business
ownership in
which two or
more people
share the
assets ,
liabilities ,
and profits .
Types of Partnerships
•General partnership : A partnership
in which all
responsibilities .
•Easier to raise capital than
in a sole
Disadvantages of
partnerships
responsibilities and
Corporation
A business that is
chartered by a state and
legally operates apart
from its owners .
Types of corporations
•C - corporation : The most common form
of
corporation .
•Start - up is costly .
•Corporations are subject to
more
Alternate approaches to
starting a business
•Buy an existing
business .
•Enter a family
business .
•Own a franchise
business .
Sole Proprietorship
Merits –
Easy Formation
Easy to Operate
Secrecy
Simplicity
Demerits
Limited Resources
Lack of Continuity
Unlimited Liability
Limited Managerial Ability
Partnership
Partnership
Merits
Demerits
Legal Entity Unlimited Liability
Risk Sharing Limited Resources
More Funds Possibility Of Conflict
Continuity Lack of Public Interest
Mutual Agency
Joint Stock Company
Merits
Demerits
Merits
Demerits
Basis of Sole Partnership Corporative Company
Comparison proprietorship Society
Management Function
Management
Organizing
Leading
Planning
Controlling
Management Process and Goal Attainment
Management and Organizational
Resources
Planning
Planning involves tasks
that must be performed to
attain organizational goals,
outlining how the tasks
must be performed, and
indicating when they
should be performed.
Planning
Process by which a person, group,
or
organization consciously monitors
performance and takes corrective
action
Basic Levels of Management
(adapted from Figure 1.3)
Top
Top
Managers
Managers
MiddleManagers
Middle Managers
First-Line
First-Line
Managers
Managers
Nonmanagers
Nonmanagers
Levels of Management
First-line Managers: have direct responsibility for
producing goods or services Foreman, supervisors,
clerical supervisors
Middle Managers:
Coordinate employee activities
Determine which goods or services to provide
Decide how to market goods or services to
customers
Assistant Manager, Manager (Section Head)
Managerial
Managerial Activities
Activities
••Make
Make decisions
decisions
••Allocate
Allocate resources
resources
••Direct
Direct activities
activities ofof
others
others to
to attain
attain goals
goals
Scientific Management
8. Centralization
9. Scalar Chain
10. Order
11. Equity
13. Initiative
Fishbone Diagrams
No statistics involved
S h rin ka g
e
Constructing a Fishbone
Diagram
Step 3 - Identify different areas where
problems may arise from
Ex. : High Inventory Shrinkage at local Drug Store
e m p lo ye e s
S h rin ka g
e
sh o p lifte rs
Constructing a Fishbone
Diagram
Step 4 - Identify what these specific causes
could be
Ex. : High Inventory Shrinkage at local Drug Store
Shrinkag
e Anti-theft tags poorly
Expensive merchandise designed
out in the open
No security/
surveillance shoplifters
Constructing a Fishbone
Diagram
Step 5 – Use the finished diagram to brainstorm solutions
to the main problems .
Ex. : High Inventory Shrinkage at local Drug Store
employees
attitude
training
new
trainee
benefits practices
Shrinkage
Anti-theft tags poorly designed
Expensive merchandise out in the
open
No security/ surveillance
shoplifters
The Basic Seven (B7) Tools of
Quality
Histograms
Bar chart
Used to graphically represent groups of
data
From a set of data compute
sum
mean (x)
Max
Min
Range (max-min)
Constructing a Histogram
Use range to estimate beginning and
end
Calculate the width of each column
by dividing the range by the
number of columns
R ange
= Width
# of Columns
Example
Let’s say the owner wants a
distribution of Acme’s Thursday
Night Sales
Data Set from last Thursday(slices)
0212241312122434143223212212214221
2122121212121212221212112223142232
2212322422441222322122421242172122
3121121222122121222424
Example
Mean = 2.032258
Max = 7
Min = 0
Range = 7
Question
For 7 columns what would the width be?
R a n g e / C o lu m n s= 7 / 7 = 1 slice
Example
H isto g ra m
70 65
60
50
40 33
# times ordered
30
20
12
8
10
0 0 1
0
1 2 3 4 5 6 7
S lice s o f Pizza
Constructing a Histogram
How is this helpful to Acme?
2 slices of pizza most common order
placed
Distribution of sales useful for
forecasting next Thursday’s late night
demand
If you were an Acme manager how
could you apply this information?
The Basic Seven (B7) Tools of
Quality
Pareto Analysis
70
60
50
40
# times ordered
30
20
10
0
21 1
2 43 34 75 56 67
S lice s o f Pizza
The Basic Seven (B7) Tools of
Quality
Flowcharts
Pro ce ss
D e cisio n
T h e p ro ce ss
flo w
Flowcharts
Don’t Forget to:
no
Get Pizza
Lockup
Put More in
Oven 2 Pies
no
Available?
yes
Time no
to close? yes
Take to Customer
The Basic Seven (B7) Tools of
Quality
Scatter Plots
2 Dimensional X/Y plots
Used to show relationship
between independent(x) and
dependent(y) variables
(Scatter Diagram)
Minutes Cooking Defective Pies
10 1
45 8
30 5
75 20
60 14
20 4
25 6
•Easier to see 25
direct
Defective Pizzas
20
relationship
15
10
0
0 20 40 60 80
Time Cooking
(minutes)
Scatter Diagrams
As a quality tool
What does this tell Acme
management about their
processes?
Improvements?
25
Defective Pizzas
20
15
10
0
0 20 40 60 80
Cyclical
8 9 10 11 12 1 8 9 10 11 12 1 8 9 10 11 12 1 Time
2 3 4PM- AM 2 3 PM
4 - AM 2 3 PM
4 - AM
Thursday Thursday Thursday
Week 1 Week 2 Week 3
The Basic Seven (B7) Tools of
Quality
Control Charts
Deviation from Mean
Range
Control Charts
Upper Limit
X
Lower Limit
U n a cce p ta b
le d e via tio n
Control Charts
Management wants to get in on the control chart action
•Average Diameter = 16 inches
•Upper Limit = 17 inches
•Lower Limit = 15 inches
example Control Charts
Upper Limit
17 inches
X
16
inches=
Lower Limit
15 Inches
S m a llPie
Work Study
generic term for management services and
system engineering techniques, used to
investigate
methods of performing work (method study)
and improve its efficiency and economy
the time taken to do it (work measurement)
with a view to rationalization, routinisation,
utilisation, cost and incentive improvement
the worker-work system-technology
relationship: how this is best designed
and improved (ergonomics and the
human-machine-information interfaces)
A work study curriculum - 1
Method Plant
Jobs study layout
Work Time
breakdown study
s
Incent
standa ive
rd reward
times s
Methods, times and
systems for performance
Operation
Move
Delay
Store
Inspect /
process
Decision
Traditional O&M critical
examination questions
Purpose
What, Why, What else might &
Should be done ? aaactivity
sound reason
sound
activity
reason for
for every
every
Place
Where, Why, Where else &
Where should it be done ?
nonocheck
assumptions so
assumptions
check
so double
double
Sequence quality
quality, , safety
must not
must
safety and
and health
not compromised
compromised
health
When, Why then, When else
could & When should ?
People
Who, Why, Who else might &
should do it?
Method
How, Why, How else could,
How else should
Other types of process
modelling
multiple activity charts
string diagrams
3-dimensional models
recording methods - video,etc
computer-based modeling
Measuring Work
engineering
how work is done & data for planning, staffing & control
functions.
applied across a wide range of industrial/commercial
activity: manufacturing, office, service industries,
facilities layout, materials handling, logistics, IT and IS
Identify process components & interrelationships (inputs,
processes/transformations, rules, outputs, interfaces
break down the process into its logical sub processes (work
breakdown structure)
map using
process flow charts etc
describe the business process & jobs at sub process levels
document for: capacity planning, quality (zero defects &
process orientation, inspection), operator intervention,
safety, accounting/cost, planned maintenance, JIT
purposes
FROM WORK STUDY TO
SYSTEMS ANALYSIS AND
DESIGN
Human
activity
Information
modelling Analysis
& design
Socio-tech
Keep
Our focus
in mind
Analysis, Design, Build Projects
Business
Situation New system
& •Add modules
Informatio Contribution / VfM?
•Review
n performance
Processing •Devel. Team
Requiremen dispersed
t Accept
Continuity contracts •Maintenance
Feasibility
• Technological
• Finan cial
• Organisational BSOs , TSOs Design
Requirements Specification
Prototyping
System Development Costs
Modelling the Information
System
Our 'model' of the information system
Requirements
•information processing
functions
•data to store
Aggregate planning
Definition
Choosing production rates, work force levels,
and inventory levels
Horizon
6-18 months into future
Prerequisites
Forecasting
Company policies on
Max./min. inventories
Hiring/firing
Overtime
Production Planning 112
Policy considerations in aggregate
planning
Flexibility
Are work force and inventories
maintained at a level sufficient to meet
unexpected demand?
Work force stability
Improves quality, productivity, union
relations
Production rate stability
Makes materials planning easier, reduces
uncertainty in physical distribution
113
Policy considerations in aggregate
planning (cont.)
Production capacity
Will overtime reduce quality? When will
physical capacity (space, machinery,
equipment) become inadequate?
Customer service
Have lead time and stock availability
goals been met?
114
Aggregate planning in services
Definition
Balancing service capacity with demand
Tactics
Change operating hours
Change staffing
Nbr. of workers
Full vs. part-time
Modify type of service
Influence demand
Advertising
Pricing
Build more service outlets
111
Aggregate planning in services
(cont.)
Evaluation
Waiting time
Throughput
Service time
Nbr. of lost customers
116
Production – Inventory System
Information Flow
Material Flow
Days for transit time
#
Days to process or# to
handle and issue orders
Demand
Company System 50 Independent 500 Independent
Under Distributors Retailers
Managerial Control Dynam . xls
-4%
Weeks
Retail sales RRR
5000 5
(units/week)
-10%
-15% -3%
0 0
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun J
EVOLUTIONARY
System evolves based on prototype versus an
established set of requirements .
Progress through
Determine steps
objectives ,
alternatives , and Risk analysis
constraints Evaluate alternatives
identify , resolve risks
Risk analysis
Risk analysis
Risk
analysis Operation
Commitment Prototype Prototype al
Review P1 2 3 Prototype
Partition Reqmts plan
Life cycle Concept of
Develop , plan operation Software
Verify reqmts Software Detailed
next - level product design
process plans Develop - Requirement
ment design
validation Code
Evaluate process plan Unit
alternatives ; Integration test
identify , resolve Design validation
process risks and verification Integrati
and test on and
Determine process test
object , Formal
alternatives Implementation test
plan
,
constraints
Develop , Verify
Figure based on the concept by Barry Boehm published in Next - Level Product
Information Technology in Action, Prentice Hall, 1993.
Development Model Thoughts
There is no magic model – they are
largely the creation of academia
Many experienced software & systems
engineers create development life
cycles as needed
In particular, rapidly evolving software
technology leaves most standard
models in the dust
Weekly
Review Daily
Scrum
Product
Release
Release Plan
Test
Test &
& Analyze/Maps
Analyze/Maps
Document
Document Requirements
Requirements
Production
Our Functional Spec
HTML Functional Specification with links to artifacts
(Folder) Project Description (word)
User Conops (how the user sees the product)
System Conops (perspective of technology)
Requirements Table (id, description, sprint no., date
complete)
(Folder) UI Storyboard (your favorite graphics editor
or html)
Screen Flow Diagrams (a -> b -> c
Screen prototypes
(Folder) Business Processes (Argo UML)
Activity Diagrams
Class Diagrams
Sequence Diagrams
(Folder) Feature Backlog (Excel)
Prioritized List of features and requirements
Sprint Plan – Assign features to sprints
Percent Complete
UNIT III
Inventory Management
OVERVIEW
For example:
The simplest language, inventory
controlmay be said to be a planned
method whereby investment in
inventories held in stock is
maintained in such a manner that it
ensures proper and smooth flow of
materials needed for production
operations as 'well sales, while at
the same time, the total costs of
investment in inventories is kept at
OBJECTIVES OF INVENTORY
Ø To ensure adequate supply of products to customer and
CONTROL
avoid shortages as far as possible.
Ø To make sure that the financial investment in inventories is
minimum (i.e., to see that the working capital is blocked
to the minimum possible extent).
Ø Efficient purchasing, storing, consumption and accounting
for materials is an important objective.
Ø To maintain timely record of inventories of all the items and
to maintain the stock within the desired limits.
Ø To ensure timely action for replenishment.
Ø To provide a reserve stock for variations in lead times of
delivery of materials.
Ø To provide a scientific base for both short-term and long-
term planning of materials.
BENEFITS OF INVENTORY
CONTROL
Ø Improvement in customer’s relationship
because of the timely delivery of
goods and service.
Ø Smooth and uninterrupted production
and, hence, no stock out.
Ø Efficient utilisation of working capital.
Helps in minimising loss due to
deterioration, obsolescence damage
and pilferage.
Ø Economy in purchasing.
Ø Eliminates the possibility of duplicate
Inventory
Inventory Costs
Inventory Costs
Ø Cost Of Ordering/ Replenishment cost :
Every time an order is placed for stock replenishment,
certain costs are involved, and for most practical purposes,
it can be assumed that the cost per order is constant. The
ordering cost (Co) may vary, depending upon the type of
items; raw material like steel against production components
like casting. However, it is assumed that an estimate Co can
be obtained for a given range of items. This cost of ordering,
Co includes:
Paper work costs, typing and despatching an order.
Follow-up costs required to ensure timely supplies –
includes the travel cost for purchase follow-up,
telephone, telex and postal bills.
Costs involved in receiving the order, inspection,
checking and handling in the stores.
Any set up cost of machines if charged by the
supplier, either directly indicated in quotations or
assessed through quotations for various quantities.
The salaries and wages to the purchase department.
Inventory Costs (continued)
Ø Holding\Inventory Carrying cost:
This cost is measured as a percentage of the unit cost of
the item. This measure, gives a basis for estimating what it
actually costs a firm to carry stock. This cost includes:
interest on capital.
insurance and tax charges.
storage costs – any labour, the costs of provisions
of storage area and facilities like bins, racks,
etc.
allowance for deterioration or spoilage.
salaries of stores staff.
Obsolescence.
These charges increase as inventory levels rise. To
minimize carrying costs, management makes frequent
orders of small quantities. Holding costs are commonly
assessed as a percentage of unit value, rather than
attempting to derive monetary value for each of these costs
Inventory Costs (continued)
Ø Ordering costs:
Ordering costs have to do with
placing orders, receiving and storage.
Transportation and invoice processing
are also included. Lowering these costs
would be accomplished by placing small
number of orders, each for a large
quantity. Unlike carrying costs, ordering
expenses are generally expressed as a
monetary value per order. If the business
is in manufacturing, then to production
setup costs are considered instead.
Inventory Costs (continued)
Ø Stock-out costs:
Stockout or shortfall costs(Ks) represent lost sales
due to lack of supply for consumers. How these costs are
calculated can be a matter of contention between sales
and logistics managers. Sales departments prefer these
numbers be kept low so that an ample stock will always
be kept. Logistics managers prefer to err on the side of
caution to reduce warehousing costs. They include sales
that are lost, both short and long term, when a desired
item is not available; the costs associated with back
ordering the missing item; or expenses related to
stopping the production line because a component part
has not arrived. These charges are probably the most
difficult to compute, but arguably the most important
because they represent the costs incurred by customers
when an inventory policy falters.
INVENTORY CONTROL
TECHNIQUES
vABC Analysis - based on annual
consumption.
vVED Analysis - criticality for
production.
vSDE Analysis - availability.
vGOLF analysis-based on suppliers
vHML Analysis - weight / cost permit.
vFSN Analysis - consumption rate.
vSOS Analysis-based on seasonality
vXYZ Analysis-Left out stock value
vTwo-Bin System
ABC ANALYSIS
Tight controls Moderate control
Ordinary control measure
Rigid estimates
of requirements Purchase based on rigid
Purchase based on usage estimates
requirements
Strict and close watch
Reasonably strict watch and
Controls exercises by store keeper.
( monitoring) control
analysis
Ø First we are trying to prepare a list of items and calculate their
annual usage in rupees. This can be obtained by multiplying
the quantity ( number of units) of the item consumed in one
year by its unit price.
Ø Arranging all these items in the descending order of their
individual dosage in rupees. That means the first item in the
list will now show the maximum annual usage in rupees, the
second item the second maximum, the third item the third
maximum and so on. After having done this the total of
annual usage in rupees is put at the bottom of the list.
Ø Those items which together form about 70% of the total
annual usage may be total annual usage may be
categorized as A items. Similarly. Items which contribute the
next 20 to 25 % of the aggregate are listed as B items. The
rest which contributes 5 to 10% of the total percentage of
annual usage are called C items.
Ø Placing of the orders on the basis of this classification.
VED ANALYSIS
VED analysis is done to control a critical inventory
situation. Through this analysis, we identify the criticality of
production situation and accordingly plan for the inventory.
Materials are classified into the three types as under:
Ø V-Vital: items without which production will completely
stop. i.e. non- availability can not be tolerated. Eg. Due
to the absence of bearing, rolling machine cannot
operate. Airlines industry is bound to keep stand-by
engines as its absence; at times, the industry may
require flight cancellation, which costs to the industry an
enormous revenue loss.
Ø E-Essential: items whose cost of non availability can be
tolerated for 2-3 days, because similar or alternative
items are available. For example, some paper mills,
bamboo is an important raw material. Availability of
bamboo from the forests, at times, becomes uncertain
because of number of reasons due to climate, natural
calamities etc.,
Ø Desirable: items whose non availability can be tolerated
for a long period.
SDE ANALYSIS
This analysis is based spares availability of an item –
Ø S-Scarce Items
Ø D-Difficult Items
Ø E-Easy Items
this analysis.
Ø
Ø
Ø Deterministic models [Known
Demand]
Basic EOQ
EOQ for Production Lots
EOQ with Quantity Discounts
Model I: Basic EOQ
The order quantity where the TSC is
at a minimum (EOQ) can be found
using calculus (take the first
EOQset
derivative, = 2itDS / C to zero and
equal
solve for Q)
Balancing Carrying against
Ordering
Annual Cost ($) Costs
Minimum
Higher
Total Annual
Stocking Costs
Total Annual
Stocking Costs
Annual
Carrying Costs
Lower
Annual
Ordering Costs
Order Quantity
Smaller EOQ Larger
Example: Basic EOQ
D = 5,750,000 tons/year
C = .40(22.50) = $9.00/ton/year
S = $595/order
EOQ = 2DS/C
EOQ = 2(5,750,000)(595)/9.00
= $2.10/ton/year
EOQ = 2(292,000)(5,000)/2.10[3,500/(3,50
0-800)]
= Q(p-d)/p
= 42,455.5(3,500 – 800)/3,500
Note: HEC will use 23%
= 42,455.5(.771429)
of the production lot by the
= 32,751.4 time
tonsit receives the full lot.
Model III: EOQ with Quantity
Discounts
Under quantity discounts, a supplier
offers a lower unit price if larger
quantities are ordered at one time
This is presented as a price or discount
schedule, i.e., a certain unit price over
a certain order quantity range
This means this model differs from
Model I because the acquisition cost
(ac) may vary with the quantity
ordered, i.e., it is not necessarily
constant
. . . more
Model III: EOQ with Quantity
Discounts
Under this condition, acquisition cost
becomes an incremental cost and
must be considered in the
determination of the EOQ
The total annual material costs (TMC)
= Total annual stocking costs (TSC)
+ annual acquisition cost
. . . more
Model III: EOQ with Quantity
Discounts
To find the EOQ, the following
procedure is used:
1 – 499 $21.60
500 – 999 20.95
1,000 + 20.90
Example: EOQ with Quantity
Discounts
EOQ Economical
= 2DS/C Order Quantity
i i
EOQ 3 = 2(25,000)100/(.3(20.90) = 893.00
This quantity is not feasible, so try
EOQ ac2 =
= $20.95
2(25,000)100/(.3(20.95) = 891.93
PROBABLISTIC MODEL
ASSUMPTIONS
Demand is NOT deterministic but
probability distribution is known
Lead time MIGHT NOT BE
deterministic
Shortages MAY OCCUR
All ordered units arrive at once
Purchasing cost is independent of the
order quantity
SUPPLY CHAIN MANAGEMENTN AND INVENTORY
CONTROL
Quality Management
Organization
8 - 10 members
Same area
Supervisor / moder
ator Training
Group
processes
Presentation Data
Implementation collection
Monitoring Problem
analysis
Problem
Identificati
on
Solution List
Problem results alternatives
Problem Consensus
Analysis Brainstormin
Cause and g
effect
Data
collection
and analysis
Quality Management
Meaning of Quality
Webster’s Dictionary
degree of excellence of a thing
American Society for Quality
totality of features and
characteristics that satisfy
needs
Quality is the ‘totality of features
and characteristics’
Meaning of Quality:
Consumer’s Perspective
Performance
basic operating characteristics of a
product; how well a car is handled or
its gas mileage
Features
“extra” items added to basic features,
such as a stereo CD or a leather
interior in a car
Reliability
probability that a product will operate
properly within an expected time
frame; that is, a TV will work without
repair for about seven years
Dimensions of Quality:
Manufactured Products (cont.)
Conformance
degree to which a product meets pre–
established standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair
person
Dimensions of Quality:
Manufactured Products (cont.)
Aesthetics
how a product looks, feels, sounds,
smells, or tastes
Safety
assurance that customer will not
suffer injury or harm from a
product; an especially important
consideration for automobiles
Perceptions
subjective perceptions based on
brand name, advertising, and
the like
Dimensions of Quality:
Service
Courtesy:
How are customers treated by
employees?
Are catalogue phone operators nice and
are their voices pleasant?
Consistency
Is the same level of service provided to
each customer each time?
Is your newspaper delivered on time
every morning?
Dimensions of Quality:
Service (cont.)
Quality of Conformance
Making sure a product or service is
produced according to design
if new tires do not conform to
specifications, they wobble
if a hotel room is not clean when a
guest checks in, the hotel is not
functioning according to
specifications of its design
Meaning of Quality:
A Final Perspective
Meaning
Meaning of
of Quality
Quality
Producer
Producer’’ss Perspective
Perspective Consumer
Consumer’’ss Perspective
Perspective
Quality
Quality of
of Quality
Quality of
of Design
Design
Conformance
Conformance
Production
Production •Conformance to •Quality characteristics Marketing
Marketing
specifications •Price
•Cost
Fitness
Fitness for
for
Consumer
Consumer Use
Use
Meaning of Control
Control is a system
For measuring and checking
(inspecting) a phenomenon.
Suggests when to inspect, how often
to inspect and how much to inspect.
It incorporates a feedback
mechanism which explores the
causes of poor quality and takes
corrective action.
Quality Control
B y -:
YA LU N
“Statistical quality control should be viewed as a
By-:
EUGENE L. GRANT
CHARACTERISTICS OF S.Q.C.-:
Value
This
This point
point is
is out
out of
of the
the control
control limits
limits
UCL
3σ Center
Line
3σ
LCL
Time
AAprocess
processisisconsidered
consideredininstatistical
statisticalcontrol
controlififitithas
hasno
noassignable
assignablecauses,
causes,
onlynatural
only naturalvariation.
variation.
PURPOSE & USES OF CONTROL
CHARTS
1. Determines the quality standard of the products.
2. Detects the chance & assignable variations in the
quality standards by setting two control limits.
3. Reveals variations in the quality standards of the
products from the desired level.
4. Indicates whether the production process is in
control or not.
5. Ensures less inspection cost & time in the process
control.
Types-:
CONTROL CHATS FOR VARIABLES
2 18 10 8 22
3 19 17 10 13
4 12 19 14 20
5 20 19 26 12 23
1 15 10 11 14 70 14 10
2 18 10 8 22 70 14 14
3 19 17 10 13 80 16 11
4 12 19 14 20 80 16 8
5 20 19 26 12 23 100 20 14
MEAN CHART
2
UCL
5
=22.
SAMPLE MEANS
Grand Chart .
57
Grand = 16 (Central line) . . CL
2
. . =1
Control limits-: 0 6
LCL=9.4
23
UCL = Grand + A2 1
= 16 + 0.577 x 11.4
= 22.577
5
LCL = Grand - A2 1 0 1 2 3 4
= 16 – 0.577 x 11.4 0 5SAMPLE
6
= 9.423 NOS.
= ΣR/K = 57/5 = 11.4
Range Chart RANGE
= 11.4 (Central line) 2 CHART
5 UCL=24.
09
SAMPLE RANGE
Control limits-: 2
UCL = D4. 0 . .
= 2.115 x 11.4 .
. CL=1
1 . 1.4
= 24.09
5 LCL=0
LCL = D3.
1 0 1 2 3 4
= 0 x 11.4 0 5SAMPLE
6
=0 NOS.
Ø σ Chart-: This chart is constructed to get a better picture of
the variations in the quality standard in a process than that is
obtained from the range chart provided the standard
deviation(σ) of the various samples are readily available.
1 100 5 0.05
2 100 3 0.03
3 100 3 0.03
4 100 6 0.06
5 100 5 0.05
6 100 6 0.06
7 100 8 0.08
8 100 10 0.1
9 100 10 0.1
10 100 4 0.04
K = 10 Σd = 60
= Total no. of defectives/Total no. of units =
60/1000 = 0.06
»q̅ = 1- = 1- 0.06 = 0.94
UCL = + 3√ . q̅ /n
= 0.06 + 3√0.06x0.94/100
= 0.1311
LCL = - 3 √ . q̅ /n
= 0.06 - 3 √ 0.06x0.94/100
= -0.0111 = 0
p-CHART
.
1
UCL=0.1311
FRACTION DEFECTIVE
. . .
1 . CL=0.0
2 . . 6
. .
.
. . .
0 LCL=0
8 0 1 2 3 4 5 6 7 8 9 10
. SAMPLE NOS.
0
Example-:
An inspection of 10 samples of size 400 each from 10 lots reveal
the following number of defectives:
17, 15, 14, 26, 9, 4, 19, 12, 9, 15
Calculate control limits for the no. of defective units.
Solution-: n = 400, k (No. of samples) = 10, Σd (total no. of
defectives) = 140
n = Σd/k = 140/10 = 14
Now, = n/n = 14/400 = 0.035,
n = 14 (central line)
UCL= n + 3√ n q̅ LCL= n - 3√ n q
̅ = 14 + 3√400x0.035x0.965 = 14 - 3√400x0.035x0.965
= 25.025 = 2.975
np-CHART
.
2 UCL=25.025
FRACTION DEFECTIVE
5
.
.
2 . .
0 .
CL=14
.
.
.
1
5 . LCL=2.975
1 0 1 2 3 4 5 6 7 8 9 10
0 SAMPLE NOS.
5
ØC-Chart-: This chart is used for the control of
no. of defects per unit say a piece of
cloth/glass/paper/bottle which may
contain more than one defect. The
inspection unit in this chart will be a
single unit of product. The probability of
occurrence of each defect tends to
remain very small.
USES
Meaning-:
Another major area of S.Q.C. is “Product
By-:
SIMPSON AND KAFKA
Risks in Acceptance sampling
LIMITATIONS-:
Walter Shewart
In 1920s, developed control charts
Introduced the term “quality assurance”
W. Edwards Deming
Developed courses during World War II to
teach statistical quality-control techniques to
engineers and executives of companies that
were military suppliers
After the war, began teaching statistical quality
control to Japanese companies
Joseph M. Juran
Followed Deming to Japan in 1954
Focused on strategic quality planning
Quality Gurus (cont.)
Armand V. Feigenbaum
In 1951, introduced concepts of total quality
control and continuous quality
improvement
Philip Crosby
In 1979, emphasized that costs of poor
quality far outweigh the cost of preventing
poor quality
In 1984, defined absolutes of quality
management—conformance to
requirements, prevention, and “zero
defects”
Kaoru Ishikawa
Promoted use of quality circles
Developed “fishbone” diagram
Emphasized importance of internal customer
Deming’s 14 Points
4 . Act 1 . Plan
Institutiona Identify
lize problem and
improvement ; develop
continue plan for
cycle . improvement .
3. 2 . Do
Study / Check Implement
Assess plan ; plan on a
is it working? test basis .
TQM and…
… Partnering
a relationship between a
company and its supplier
based on mutual quality
standards
… Customers
system must measure customer
satisfaction
… Information Technology
infrastructure of hardware,
networks, and software
necessary to support a quality
program
Quality Circle
Organization
8 - 10 members
Same area
Supervisor / moderato
r
Training
Presentation Group processes
Implementation Data collection
Monitoring Problem
analysis
Problem
Identificat
Solution ion
Problem results List
alternatives
Problem Consensus
Brainstorming
Analysis
Cause and
effect
Data
collection and
analysis
Strategic Implications of
TQM
Strong leadership
Goals, vision, or mission
Operational plans and
policies
Mechanism for feedback
Six Sigma
It is a disciplined, data-driven
approach and methodology
ü For eliminating defects in any
process -- from manufacturing to
transactional and from product to
service.
Two Six Sigma
sub-methodologies:
DMAIC and DMADV
DMAIC process (defines, measure,
analyze, improve, control) is an
improvement system for existing
processes falling below specification
and looking for incremental
improvement
DMADV process (define, measure,
analyze, design, verify) is an
improvement system used to
ISO 9000
Environmental
Issues
The Ecosystem
Bio-Geo-Chemical Cycles
Greenhouse Effect & Global Warming
Ozone Layer Depletion
Acid Rain
Deforestation
Other Issues*
*Other Issues
Energy Issues,
Over-Population,
Lend Degradation,
Environmental Degradation,
Ocean Deoxygenating
Sustainable Development,
Environmental Pollution
Environmental Pollution
© Norman R. Rowan/Stock Boston
Agricultural Waste,
Kitchen Waste,
Pesticides,
Plastics
DDT
Aluminum Foil
Aesthetic Damage
Contributors to Pollution
Harmful Gases
Factory Chimneys
Home Furnaces
Burning Refuse
Burning fuel for light. Heat, power
and transportation,
Gaseous emissions from automobiles.
Effects of Air Pollution
Ozone Depletion,
Acid Rain,
Reduced lung functioning,
Cancer, Asthma Attack,
Premature death,
harmful effects on natural ecosystems
Increased respiratory disease such as
bronchitis.
Prevention of Air Pollution
Carpool,
Plantation,
Save energy,
avoid the use of air conditioner ,
Avoid the use of firecrackers,
Always buy recycled products,
Water pollution
Water pollution may also be defined as the
addition to a natural body of water of any
material which diminishes the optimal
economic use of the water by the population
which it serves.
Water Pollutants
Organic sewage
Industrial Waste
Silt from Degraded Catchment
Chemical Agents of Fertilizers &
Pesticides
Water Pollutants
Causes of Water Pollution
Factories & Refineries,
Waste Treatment Facilities,
Use of chemicals in Agriculture
Industrial processes produce toxic
waste
construction industry
Animal wastes
Boating ponds
Household Chemicals
Effects of Water Pollution
Product of industrialization,
Urbanizations and
Modern civilization
Effects of Noise Pollution
Right to Life
Right to Religion and Noise
Directive Principal of State Policy
Fundamental Duties
(a)Cr.P.C. Section 133
(b)I.P.C. Public Nuisance 268-295
(c)Noise Pollution Control Rule 2000
Conclusion