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COURSE LEARNING OUTCOME

Upon completion of this course, students should be able to:-
1. Identify the fundamental statistics and basic quality concepts and
various terms relating to quality.
2. Understand the definitions, types and objectives of product inspections
and selecting the right method.
3. Apply and relate the implementation of statistic in products or services
quality control such as by using SPC and SQC software.
4. Analyze based on different types of plotted charts such as control chart,
matrix, Pareto, scatter diagram, check sheet, graph and brainstorming
method in purposely to improve the quality.
5. Evaluate the best and most cost effective method in ensuring product
quality that fulfill the ISO 9000 standard.
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CHAPTER 6: QUALITY COST
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The "cost of quality" isn't the price of creating a
quality product or service. It's the cost of NOT
creating a quality product or service.
The concept of quality costsor cost of qualityis a
means to quantify the total cost of quality-related
efforts and deficiencies.
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QUALITY COST
Quality costs are the total of the cost incurred by:
Investing in the prevention of nonconformance to
requirements.
Appraising a product or service for conformance to
requirements.
Failing to meet requirements.
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QUALITY COST
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QUALITY COST
Quality
cost
Quality level
Objektif koskualiti :
Memaparkankepentinganaktiviti berkaitankualiti padapihak
pengurusansyarikat melalui terma-termayang lebihbermakna
contohnyakos.
Menunjukkan kesan aktiviti berkaitan kualiti terhadap criteria
utama pengeluaran atau perniagaan seperti kos utama, untung
atau rugi.
Membuat perbandingankemajuanantarajabatanatausyarikat.
Mengukuhkanasasuntukbelanjawandenganbertujuanuntuk
mengawal operasi kualiti secarakeseluruhan.
Menyediakan maklumat kos bertujuan untuk memotivasiakan
keseluruhanperingkat pekerjadalamsyarikat.
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QUALITY COST
Prevention cost
The cost of planning and executing a project so it is error-free or
within an acceptable error range. Includes product design, process
design, employee training, vendor programs, mistake-proofing.
Appraisal cost
The cost of evaluating processes and their outputs to ensure
quality. Includes quality audits, SQC programs, Incoming and source
inspection/test of purchased material, in-process and final
inspection/test.
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CATEGORIES OF COST
Internal failure cost
Cost incurred to correct an identified defect before the customer
receives the product. Includes scrap, rework, retest, downtime.
External failure cost
Cost that relates to all errors not detected and corrected before
delivery to the customer. Including warranty repairs, loss of market
share, liability, complaint adjustment, returns, downgrade
allowances.
Measurement and test equipment costs
Capital cost of equipment used to perform prevention and appraisal
activities.
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CATEGORIES OF COST
Achievement aspect / advantages of successively
quality cost:
profit improvement
revenue growth
cost reductions
increased productivity
increase customer & employee retention
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QUALITY COST
CHAPTER 7: QUALITY
IMPROVEMENT TECHNIQUE
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SPC is the application of statistical techniques to
determine whether a process is functioning as
desired or otherwise
SPC also monitors specified quality
characteristics of a product or service so as :
To measure the current quality of products or
services
To detect whether the process has changed in a
way that will affect product quality
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SPC
Used during data collection. This tool provides a
simple means for recording data by categories
and enables the analyst to determine the relative
frequency of occurrence of the various categories
of data. From the check sheet, it is possible to
easily determine that the most frequent reason
for a defective batch.
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Check sheet
This tool is used to analyze the process dispersion. The
diagram illustrates the main causes and sub causes
leading to an effect or symptom.
So called the fishbone diagram chart because of its
appearance and the Ishikawa chart after the man who
popularized its use in Japan.
Its most frequent use is to list the cause of particular
problems. The lines coming off the core horizontal line are
the main causes and the lines coming off those are sub
causes.
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Cause and effect diagram
This tool provides the same type of insight into the most
and least frequent occurrences. But Pareto diagram
provides better organization of the data compare to
check sheet, and provides a more polished presentation.
The Pareto diagram sorts the data categories from the
highest to lowest and also shows the cumulative
frequencies. This information helps to focus attention on
the highest-priority category.
Also called the 80-20 rule, meaning that 80% of the problems
are often due to 20 % of the causes.
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Pareto Chart
A graphical technique used to analyze the
relationship between two variables. Two sets of data
are plotted on a graph, with the y-axis being used for
the variable to be predicted and the x-axis being
used for the variable to make the prediction. The
graph will show possible relationships, although two
variables might appear to be related, they might not
be.
The scatter diagram shows the pattern of
relationship between two variables that are thought
to be related.
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Scatter Diagram
The purpose of brainstorming is to generate a list of
problems, opportunities, or ideas from a group of
people. It is a session purely to generate ideas and
opportunities. Consists of a group leader, registrant,
and the committee member.
Everyone present at the session should participate.
The discussion leader must ensure that everyone is
given an opportunity to comment and add ideas.
Critical to brainstorming is that on arguing; no
criticism; no negativism; mp evaluation of the ideas,
problems or opportunities take place during the
session.
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Brainstorming
Sequence (Step) of brainstorming activities:
1. Gather the participants from as wide a range of
disciplines with as broad a range of experience
as possible. This brings many more creative
ideas to the session.
2. Pointed leader in this team as to guide the
group to achieve the aim and objective. The
leader should take control of the session,
initially defining the problem to be solved with
any criteria that must be met, and then keeping
the session on course.
3. Every members come out with the ideas
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4. Write down all the solutions that come to mind . Do
NOT interpret the idea.
5. Do NOT evaluate ideas until the session moves to
the evaluation phase. Once the brainstorming
session has been completed, the results of the
session can be analyzed and the best solutions can
be explored either using further brainstorming or
more conventional solutions.
6. The leader should keep the brainstorming on
subject, and should try to steer it towards the
development of some practical solutions.
7. Once all the solutions have been written down,
evaluate the list to determine the best action to
correct the problem
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CHAPTER 8: ISO (INTERNATIONAL
ORGANISATION FOR
STANDARDIZATION)
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Total Quality Control
Step for implement TQC
Quality Policy Statement
Establishment of Organizational Structure
Education, Training and Communications
Quality System Implementation Plan
Establishment of the Quality Council
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Advantages of TQC
Fewer complaints and lower warranty costs.
Higher profit.
Improved reputation and increased market share.
Decrease in production costs due to mass production.
Decrease in price of product.
Prompt delivery and higher productivity
Improved employee morale due to perks, promotion and
reputation of thecompany.
Improved labor efficiency and better industrial relation
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ISO DEFINITION
ISO 9001:2008is an International Standard on
Quality Management System (QMS) requirements
necessary for Quality Assurance. It sets out
requirements suitable for an organization to
demonstrate its quality assurance capability and for
the assessment of that capability by an audit or
review process.
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ISO
MAIN STANDARD OF ISO
ISO 9000 - Quality Management systems
fundamentals and vocabulary
ISO 9001- Quality Management systems
Requirement.
ISO 9002- Quality Management systems for
quality assurance in production, installation and
servicing
ISO 9003- Quality Management systems for
quality assurance in final inspection and test.
ISO 9004 - Quality Management systems
guidance for performance improvement.
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ISO
4 TYPES OF DOCUMENT
Quality manual (Why)
Procedures (Who, What, When, Where)
Work Instruction (How)
Records (Evidence)
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ISO
Fir st Par ty is also known as the Internal Quality
Audit. This audit is conducted by the organization
and in the organization itself.
Second Par ty Audit also known as the External
Quality Audit. This audit is conduct to audit
suppliers for the award as a vendor.
Thir d Par ty Audit also known as the Surveillance
Audit. It was conducted by an independent
auditor/external auditor or certification body
standards. For example, ISO 9000 certification.
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STEP OF QUALITY AUDIT PROCEDURE
1. Provides Audit Program
2. Plan and conduct audit
3. Auditing Process
4. Reporting Audit Results
5. Conduct Follow-up Audit
6. Completion of Quality Records
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Advantages of ISO
Increased marketability (Opportunities to sell your products to new
markets.)
Reduced operational expenses.
Better management control.
Increased customer satisfaction.
Improved internal communication.
Improved customer service.
Reduction of product-liability risks.
Attractiveness to investors
International recognition of the quality of your company.
Improved employee satisfaction
Ability to compete with larger businesses.
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ISO
Disadvantages of ISO
Owners and managers do not have an adequate
understanding of the ISO 9000 certification
Funding for establishing the quality system is inadequate-
high cost (to maintain the accreditation and it involve
training all staff in organization)
Heavy emphasis on documentation
Length of the process (time consuming)
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