Assignment -2

(All questions have equal marks. The last date of submission is 7th May,
2016)
1. The senior management in a food and grocery retail chain is committed
to improving its services. Discuss the specifics of quality of design,
conformance and performance in this context. Elaborate on possible
basic needs, performance needs and excitement needs of the
customer.
2. Explain how an organization (with an example of a financial institution)
links long term objectives, short term objectives and customer
satisfaction.
3. Consider a logistic company transporting goods on a global basis.
Develop a house of quality showing customer requirements and
technical requirements.
4. Perform process FMEA to anticipate what you could do to eliminate any
problems in one of the following process:
a. Sorting and washing laundry
b. Changing a tire of your automobile/ two wheeler
c. Replying an email of your colleague.
5. Compare Six Sigma. Lean and Theory of Constraints
6. What are the performance measure you recommend for the following
organization
a. Large Bank
b. Health-care facility
c. University academic department
d. Large departmental store
-X-X-

1. The senior management in a food and grocery retail chain is committed to

improving its services. Discuss the specifics of quality of design,
conformance and performance in this context. Elaborate on possible basic
needs, performance needs and excitement needs of the customer.

Three aspects of Quality

Quality of design means the stringent conditions that a product or service must
possess minimally to satisfy the requirements of the customer. In other words it
must meet at least minimally the needs of the customer. In practice a product is
overdesigned to ensure that product specifications are met. Quality of
Conformance on the other hand means that manufactured product or a service
must meet the standards selected in the design phase. It consists of the three
broad areas of defect prevention, defect finding & defect analysis and
rectification. The last but not the least Quality of Performance talks about how
well a product functions or service performs when put to use. It measures the
degree to which the product or service satisfies the customer.
The distribution or supply chain of food is different from that of other products.
Food products show continuous changes throughout the supply chain until it
reaches the end customer. So in food and grocery supply chain quality, health
and safety require more attention. The importances of food safety have been

discussed repeatedly specially during the times of food scares say, the infection
of chicken by Salmonella. The limited shelf life, temperature and humidity
requirements, possible interaction effects between products ,high customer
expectations and low profit margins are some issues that distributors face.

Quality of designSourcing of Materials

Potential source of contamination from the environment should be considered by
the food retail operator. Specially primary food production shall not be carried on
in areas where the presence of potentially harmful substances would lead to an
unacceptable level of such substances (organic or inorganic) in food.
The potential effects of primary production activities on the safety and suitability
of food shall be considered at all times. Producers should implement measures
to,
a) Control contamination from air, soil, water, feed-stuffs, fertilizers, pesticides,
veterinary drugs, plant growth hormones or any other agent used in primary
production
b) Control plant and animal health so that it does not pose a threat to human
health through food consumption, or adversely affect the suitability of the
product.
Procedures should be in place to
a) Sort food and food ingredients to segregate the material and reject which is
evidently unfit for human consumption
b) Dispose of any rejected material in a hygienic manner at the assigned
disposal station
c) Protect food and food ingredients from contamination by pests, or by
chemical, physical or microbiological contaminants or other objectionable
substances during handling, storage and transport. Care shall be taken to
prevent deterioration and spoilage through appropriate measures which may
include controlling temperature, humidity, and/or other control. Appropriate
facilities and procedures shall be in place to ensure that any necessary cleaning
and maintenance is carried out effectively; and an appropriate degree of
personal hygiene is maintained.
Potential sources of contamination should be considered when deciding location
of food supply establishments. Establishments shall not be located anywhere
where, after considering such protective measures, it is clear that there will
remain a threat to food safety or suitability.

Structures within food establishments shall be soundly built of durable materials

and be easy to maintain, clean and where appropriate, able to be disinfected.
Equipment and containers coming into contact with food should be designed and
constructed to ensure that, wherever necessary, they can be adequately
cleaned, disinfected and maintained to avoid the contamination of food.
Equipment and containers shall be made of materials with no toxic effect in
intended use.
The equipments that are used to cook, heat treat, cool, store or freeze food
should be designed to achieve the required food temperatures as rapidly as
necessary in the interests of food safety and suitability, and maintain them
effectively. Such equipment should also be designed to allow temperature to be
monitored and controlled. Containers for waste, by-products and inedible or
dangerous substances, shall be specifically identifiable, suitably constructed and,
where appropriate, made of impervious material. Containers used to hold
dangerous substances such as pesticides and toxic chemicals should be
identified and, where appropriate, be lockable to prevent malicious or accidental
contamination of food. Adequate natural or artificial lighting shall be provided to
enable the undertaking to operate in a hygienic manner. Where necessary,
lighting shall not be such that the resulting color is misleading. The intensity
shall be adequate to the nature of the operation. Lighting fixtures shall, be
protected to ensure that food is not contaminated by breakage. The retail food
operator should ensure that purchased product conforms to specified purchase
requirements. The type and extent of control applied to the supplier and the
purchased product should be dependent upon vulnerability of product to
contamination. The organization should evaluate and select suppliers based on
their ability to supply product in accordance with the organizations
requirements.
The organization should establish and implement the inspection or testing
activities necessary for ensuring that purchased product meets specified
purchase requirements. No raw material or products should be accepted, if it is
known to contain undesirable micro-organisms, pesticides, drugs or toxic,
decomposed or other harmful substances which cannot be reduced to an
acceptable level by normal sorting and/or processing. Raw materials or products
should be inspected wherever appropriate, and sorted before processing. Where
necessary, laboratory tests shall be made to establish fitness for use. Only
sound, suitable raw materials or products shall be used. The retail management
should also control and record the unique identification of the product to trace
back in the event of something going wrong in the channel and dealing with
customer complaints.
Store Operations - The food products have specified useful life and products after
the expiry of shelf life should be removed from the shelf and suitably disposed
off. Raw material shall be used in first-in/first-out (FIFO) and first-expiry-first-out
(FEFO) basis according to plant specified product rotation/inventory control
schedule. Raw material shall be stored at temperatures that maintain product
condition. Frozen material to be kept frozen if required. The package pallet

integrity must be maintained throughout storage period to maintain condition of

material. Product identity in storage should allow for in plant tracking system.
Retail management solutions should be there such as store reporting systems,
inventory management, electronic shelf labeling systems, loss prevention etc.
Logistics and Transportation Food should be transported such that it is
protected all times. Carriers and bulk containers shall be designed and
constructed so that they should not allow contamination, including dust and
fumes.
Quality of ConformanceSeveral empirical studies show a positive effect of Conformance Quality on
operational performance. The retailer can track three metrics related to
conformance to the centralized decisions on merchandise planning and display.
Phantom products which track whether stores present on their display shelves
the full assortment of products sent to them. Returns conformance tracks
whether stores return the products they are supposed to return to the
distribution centers. The third is Store conditions which track whether stores
conform to a wide range of standards related to the flow and storage of products.

Quality of performance

Kanos Model

Kano and colleagues (1984) defined three levels of customer-defined attributes:

basic (must-have), performance, and excitement. Must-have attributes are
expected by customers, and their absence leads to dissatisfaction. Increasing the
performance of these attributes provides diminishing returns in terms of
customer satisfaction; however the absence or poor performance of these
attributes results in extreme customer dissatisfaction.
For example, retail stores not keeping the favorite items of customers, faulty
packaging,food items or grocery items that are not fresh, late delivery
Performance attributes are those for which more is generally better, and will
improve customer satisfaction. Conversely, an absent or weak performance
attribute reduces customer satisfaction. For Example Customer will be willing to
pay for food items that are packaged in a better way, Nutrient rich items,
Purchase on credit
Excitement attributes are unspoken and unexpected by customers but can result
in high levels of customer satisfaction, however their absence does not lead to
dissatisfaction. Excitement attributes often satisfy latent needs real needs of
which customers are currently unaware. For Example Free offers for the
customers on buying some items, loyalty cards

4. Perform process FMEA to anticipate what you could do to eliminate any

problems in one of the following process:
a. Sorting and washing laundry
b. Changing a tire of your automobile/ two wheeler
c. Replying an email of your colleague.

Failure Mode Effects Analysis (FMEA) or failure modes, effects and criticality
analysis (FMECA).It is a step-by-step approach for identifying all possible failures
in a design, a manufacturing or assembly process, or a product or service.
There are two primary types of FMEA:
a) Design FMEAs are used during process or product design and
development.
The primary objective is to find out problems that may result in potential failures
within the new product or process.
b) Process FMEAs are used to discover problems related to an existing
process.
These are related to factors like manpower, systems, methods, measurements
and the environment.

FMEA distinguishes and prioritizes based on 3 criteria Severity, Occurance and

Detectability.
It should be determined how serious effect is. This is the severity rating, or S.
Severity is usually rated on a scale from 1 to 10, where 1 is insignificant and 10
is catastrophic. Also for each cause, occurrence rating, or O should be found out .
This rating estimates the probability of failure occurring for that reason during
the lifetime of scope. Occurrence is usually rated on a scale from 1 to 10, where
1 is extremely unlikely and 10 is inevitable. For each control, also there is need
to determine the detection rating, or D. This rating estimates how well the
controls can detect either the cause or its failure mode. Detection is usually
rated on a scale from 1 to 10, where 1 means the control is absolutely certain to
detect the problem and 10 means no control exists. The RPN (Risk Priority
Number) should be calculated which is S*O*D.

Root Cause

Failure
f(x)

Effect
y

Schematic showing relation between Cause, Failure and Effect.

This template illustrates a Failure

Mode and Effects Analysis (FMEA),
also referred to as a Potential Failure
Mode and Effects Analysis (PFMEA) or
Failure Modes, Effects and Criticality
Analysis (FMECA).

FAILURE MODE AND EFFECTS

ANALYSIS

Item:
Mod
el:
Core
Tea
m:

SORTING AND
WASHING
LAUNDRY

Responsi
bility:
Prepared
by:

XYZ TEAM

ABC
ABC

FMEA
number
:
Page :
FMEA
Date
(Orig):

123456
1 of 1
4/5/
201
6

Rev:

Pro
ces
s
Fun
ctio
n

Poten
tial
Failur
e
Mode

UNSO
RTED(
ITEMS
HAVIN
G
SOR DIFFE
T
RENT
LAU COLO
ND
UR)
RY
LAUN
DRY
SENT
TO
WASH
ING
UNSO
RTED
LAUN
DRY
SENT
TO
WASH
ING
ASSIG
N
VERY
SOILE
D
CLOT
HES
TO
ANOT
HER
PILE

Pote
Pote
ntial
ntia
Caus
C
l
e(s)/
S l
Effe
Mec
e a
ct(s
hani
v s
) of
sm(s
s
Fail
) of
ure
Failu
re
LIG
HT
COL
OU
RED
ITE
MS
MAY
GET
COL
OU
RED

FAB
RIC
S
MAY
9
GET
DA
MA
GED
WH
OLE
PILE
CAN
GET
SOI
LED
,MA
Y
NEE
D
DEE
P
WA
SH

Action Results

Cur
rent
O
c Pro
c ces
u s
r Con
trol
s

D
Reco
e R mme
t P nded
e N Actio
c
n(s)

Respo
nsibili
ty and
Target
Compl
etion
Date

Ac
tio
ns
Ta
ke
n

S O D R
e c e P
v c t N

LAZ
Y
ATTI
TUD
E

Ope
rato
r
trai
nin
3
g
and
inst
ruct
ions

SORT
ING
SHO
8
3
ULD
1
BE
DON
E

LAZ
Y
ATTI
TUD
E

Ope
rato
r
trai
nin
3
g
and
inst
ruct
ions

SORT
ING
SHO
8
3
ULD
1
BE
DON
E

NO
EYE
FOR
DET
AIL

Ope
rato
r
trai
nin
5
g
and
inst
ruct
ions

Insta
1 ll
5 2 Tool
5 Dete
ctors

WA
SH
LAU
ND
RY

ADDI
NG
TOO
LITTL
E
DETE
RGEN
T

WA
SH
WIL
L
NOT
BE
PRO
PER

ADDI
NG
TOO
MUCH
DETE
RGEN
T

WA
SH
WIL
L
NOT
BE
PRO
PER

ADDI
NG
TOO
LITTL
E
WATE
R

WA
SH
WIL
L
NOT
BE
PRO
PER

ADDI
NG
TOO
MUCH
WATE
R

WA
SH
WIL
L
NOT
BE
PRO
PER

NO
EYE
FOR
DET
AIL

NO
EYE
FOR
DET
AIL

NO
EYE
FOR
DET
AIL

NO
EYE
FOR
DET
AIL

CH
ECK
ING
IF
THE
LAU
ND
RY
IS
WA
SHE
D
PR
OPE
RLY
CH
ECK
ING
IF
THE
LAU
ND
RY
IS
WA
SHE
D
PR
OPE
RLY
CH
ECK
ING
IF
THE
LAU
ND
RY
IS
WA
SHE
D
PR
OPE
RLY
CH
ECK
ING
IF
THE
LAU
ND
RY
IS

1
7 7
5

1
7 7
5

1
7 7
5

7 1
7
5

WA
SHE
D
PR
OPE
RLY

FAILURE MODE AND EFFECTS

ANALYSIS

Item:
Mod
el:
Core
Tea
m:

Proc
ess
Fun
ctio
n

CHANGING
TYRE OF
AUTOMOBILE

Responsibili
ty:
Prepared
by:

ABC
ABC

XYZ TEAM

Pot
ent
ial
Fail
ure
Mo
de

Poten
tial
Effect
(s) of
Failur
e

C
S l
e a
v s
s

Potent
ial
Cause(
s)/
Mecha
nism(s
) of
Failure

O
c
c
u
r

Reco
Curr
D
mm
ent
e R end
Proc
t P
ed
ess
e N Acti
Con
c
on(s
trols
)

FMEA
numbe
r:
Page :
FMEA
Date
(Orig):

Resp
onsibi
lity
and
Targe
t
Comp
letion
Date

123456
1 of 1
4/5
/20
16

Rev:

Action Results
Ac
tio
ns
Ta
ke
n

S O D R
e c e P
v c t N

FIN
DA
FLA
T,
STA
BLE
,
SAF
E
PLA
CE

APP
LY
PAR
KIN
G
BRA
KE

TUR
N
ON
HAZ
AR
D
LIG
HTS

CAR
MAY
ROLL
OF IF
THE
TY
PLAC
RE
E IS
CH NOT
AN FLAT,
GE STABL
D
E.MIG
1
AT
HT
0
A
CAUS
UN E
STA ACCID
BLE ENTS,
AN SO
D
SAFE
UN PLAC
SA
E TO
FE
BE
PLA ENSU
CE
RED.
PA
RKI
NG
BR
CAR
AK
MAY
E
9
ROLL
NO
OFF.
T
AP
PLI
ED
HA
ZA
RD
LIG THER
HT E CAN
S
BE
7
NO ACCID
T
ENTS
AP
PLI
ED

LAZY
ATTITU
DE,UN
AWAR
E OF
DANG
ERS

OPE
RAT
OR
TRA
ININ
3
G&
INS
TUC
TIO
NS

TYR
E
CHA
NGE
SHO
ULD
BE
DON
9
3
E AT
0
A
FLAT
,STA
BLE,
SAF
E
PLA
CE

LAZY
ATTITU
DE,UN
AWAR
E OF
DANG
ERS

OPE
RAT
OR
TRA
ININ
3
G&
INS
TUC
TIO
NS

PAR
KIN
G
BRA
8 KES
3
1 SHO
ULD
BE
APPL
IED

LAZY
ATTITU
DE,UN
AWAR
E OF
DANG
ERS

OPE
RAT
OR
TRA
ININ
4
G&
INS
TUC
TIO
NS

HAZ
ARD
LIGH
8 TS
3
4 TO
BE
APPL
IED.

PLA
CE
A
HEA
VY
OBJ
ECT
IN
FRO
NT/
BAC
K
OF
THE
TYR
ES

PLA
CE
JAC
K
AT
THE
RIG
HT
PLA
CE

TIG
HTE
N
NUT
S
TILL
THE
Y
ARE
PRO
PER
LO
WE
R
THE
TYR
E
AN
D
RE
MO

HE
AV
Y
OBJ
EC
TS
NO
T
PLA
CE
D
AT
TH
E
RIG
HT
PLA
CE
JAC
K
NO
T
PLA
CE
D
AT
TH
E
RIG
HT
PLA
CE.
NU
TS
NO
T
PR
OP
ERL
Y
TIG
HT
EN
ED
JAC
K
NO
T
RE
MO
VE
D

CAR
CAN
ROLL
OFF.

CAR
MAY
BE
DAMA
GED.

TYRE
S MAY
LOOS
E
WHIL
E
DRIVI
NG
DAMA
GE TO
CAR

OPE
RAT
OR
NO
TRA
EYE
ININ
5
FOR
G&
DETAIL
INS
TUC
TIO
NS

HEA
VY
OBJE
CT
SHO
ULD
BE
1 PLA
5 7 CED
5 IN
FRO
NT/B
ACK
OF
THE
TYR
ES

OPE
RAT
OR
NO
TRA
EYE
ININ
5
FOR
G&
DETAIL
INS
TUC
TIO
NS

JACK
TO
BE
PLA
CED
9
3
AT
0
THE
RIG
HT
PLA
CE.

OPE
RAT
OR
NO
TRA
EYE
ININ
5
FOR
G&
DETAIL
INS
TUC
TIO
NS

NUT
S TO
BE
TIGH
7
3
TEN
5
ED
PRO
PERL
Y

NO
5 OPE
EYE
RAT
FOR
OR
DETAIL
TRA
ININ
G&
INS
TUC
TIO
NS

3 7 THE
5 JACK
SHO
ULD
BE
REM
OVE
D
AFT
ER

WO
RK
IS
DON
E

VE
THE
JAC
K

PUT
EVE
RYT
HIN
G
BAC
K
TO
THE
TRU
NK

JAC
K
AN
D
RE
MO
VE
D
TY
RE
S
NO
T
PU
T
BA
CK
IN
TR
UN
K

OPE
RAT
OR
NO
TRA
EYE
ININ
5
FOR
G&
DETAIL
INS
TUC
TIO
NS

WHEN
REQU
IRED
IT
THEY
5
WON'
T BE
AVAIL
ABLE

EVE
RTHI
NG
SHO
ULD
BE
PUT
7
3
BAC
5
K TO
THE
ORI
GIN
AL
PLA
CES

FAILURE MODE AND EFFECTS

ANALYSIS

Item:
Model
:

REPLYING TO AN
EMAIL OF
COLLEGUE

Respons
ibility:
Prepare
d by:

Core
Team:

XYZ TEAM

Proc

Poten

Pote

S C Pote

FMEA
numbe
r:

ABC
ABC

O Curr

Page :
FMEA
Date
(Orig):

D R Reco

Resp

123456
1 of 1
4/5
/20
16

Rev:

Action Results

ess
Func
tion

tial
Failur
e
Mode

REA
D
THE
EMAI
L
REC
EIVE
D

EMAI
L
NOT
READ
PROP
ERLY
OR
MAIL
GETS
TO
SPAM
FOLD
ER

REPL
Y
SHO
ULD
CON
TAIN
THE
FOR
MAL
ETIQ
UETT
ES
ALL
THE
STAK
EHO
LDE
RS
SHO
ULD
BE
INVO
LVED
IN
THE
REPL
Y

FOR
MAL
ETTI
QUET
TES
ABSE
NT

STAK
EHOL
DERS
ABSE
NT IN
REPL
Y

ntial
Cau
ntial
se(s
Effec
l
)/
t(s)
e a Mec
of
v s hani
Failur
s sm(
e
s) of
Fail
ure

ent
c
Proc
c
ess
u
Cont
r
rols

onsibi
lity
mm
e
and
ende
t P
Targe
d
e N
t
Actio
c
Comp
n(s)
letion
Date

LOSS
OF
INFO
RMA
TION

LAZ
Y
ATTI
TUD
E

TRA
NIN
G
AND
3
INST
RUC
TIO
NS

EMAI
L
SHO
ULD
6 BE
3
3 REA
D
PRO
PERL
Y

LAZ
Y
ATTI
TUD
E

TRA
NIN
G
AND
3
INST
RUC
TIO
NS

FOR
MAL
REPL
Y
4
3
SHO
5
ULD
BE
THE
RE

TRA
NIN
G
AND
5
INST
RUC
TIO
NS

ALL
STAK
EHO
LDE
1 RS
5 2 SHO
5 ULD
BE
INVO
LVE
D

LOSS
OF
REPU
TATI
ON

IMPO
RTAN
T
PEOP
LE
MAY
NOT
KNO
W
NECE
SSAR
Y
INFO
RMA
TION

NO
EYE
FOR
DET
AIL

Ac
tio
ns
Ta
ke
n

S O D R
e c e P
v c t N

ALL
RELE
VAN
T
INFO
RMA
TION
SHO
ULD
BE
INCO
RPO
RATE
D

REQU
IRED
INFO
RMAT
ION
NOT
PRES
ENT

THER
E
WILL
BE
MAIL
CHAI
N
AND
WAS
TE
OF
TIME

NO
EYE
FOR
DET
AIL

TRA
NIN
G
AND
5
INST
RUC
TIO
NS

REQ
UIRE
D
INFO
RMA
TION
SHO
ULD
BE
1
PRO
7 7
VIDE
5
D AT
THE
FIRS
T
INST
ANC
E
ITSE
LF