TOTAL QUALITY MANAGEMENT (TQM)

QUALITY
Definition : 1) Fitness for use or fitness for the purpose :- Juran 2) Conformation to the customers requirements :- Crosby 3) Total composite of characteristics of products & services, to meet the need and expectations of the customer. :- Feigenbum 4) Degree of excellence at an acceptance-price (for the customer) and degree of control of variability at an acceptable cost (for the producer). :- Bohr 5) Totality of features and characteristics of products or services that bear on its ability to satisfy the stated as well as implied needs of the users. :- ISO :840 6) Degree of capability of fulfillment of customers or consumers requirement by the inherent characteristics and features of the product. 7) Quality is the measure of the (i) products conformance (how close) to the specifications (requirement)/ expectation of the customer or (ii) conformance to the standards recommended by the designer / the customer, and (iii) the degree of its satisfactory performance to the end-user. Quality = Actual Conformance / Performance of the product Expectation or Satisfaction or Requirement of users

INTRODUCTION

Before implementation of the Quality Management concept, the manufacturing was primarily inspection-oriented (ie accept or reject).
HISTORY OF TQM : # The journey of Quality Management started in 1920s with its pioneer Quality Guru Walter Shewhart, known as the Father of Statistical Quality Control.

# The American Quality Gurus who developed the Quality Management Concept, in the 1950s are W Edwards Deming, Joseph Juran and Armand Feigenbum.
# The Japanese Quality Gurus who added values to and extended the American Quality Management ideas and models are Kaoru Ishikawa, Genichi Taguchi and Shigeo Shingo. # The 1970-80s Western Quality Gurus, Philip Crosby and Tom Peters, further extended the Quality Management concepts after the Japanese successes. TQM : Joseph Juran in his QUALITY TRIOLOGY, indicated the three universal sequences required for Quality management, as (i) Quality Planning, (ii) Quality Control and (iii) Quality Improvement. # TQM additionally needs all out awareness, commitment & involvement (management, workforce, suppliers, & customers and all departments), not only to meet but also to exceed the customer expectations, by quality sustainance & improvement, leading towards achieving business excellence.

JOURNEY OF TQM
Statistical Methods applied to Quality Control Increased emphasis on Process Improvement Japan emerges as the World Quality Leader
19401960s

1920s 1940s

1940s

WALTER SHEWHART : Father of Statistical Quality Control & the pioneer in modern Quality Approach EDWARD DEMING :14 Points TQM Program, Top Management Leadership, Deming Wheel (PDCA), Continuous Improvement
J. JURAN (Quality Triology & Quality Cost), & A. Feigenbum (Management Leadership & commitment, Employees Involvement) Kaoru Ishikawa (Quality Circle, Fish Bone Analysis) & Genichi Taguchi (Quality Loss-Function, Robust Design, Signal-Noise Ratio) Philip Crosby (Zero Defect, Quality is free), Shigeo Shingo (Poka Yoke) KANO (Customer-Voice), QFD, FMEA, FTA, Six -Sigma, LEAN concept, SERVQUAL,

Total Quality Control in United States

1960s 1970s

Zero-Defect Movement in the United States

TQM today

1970 1980s

1980s to-date

Evolution of TQM
1) WALTER SHEWHART (1920s): an employee of Bell Telephone developed technical tools of Statistical Quality Control, which are foundation of modern Quality Management. He is called Father of Statistical Quality Control. He introduced the philosophy of Quality Assurance. EDWARD DEMING (1940s): being a disciple of Shewhart, he changed the focus of Quality Assurance from technical/statistical aspect to Managerial commitment, support and responsibility. He advocated continuous improvement of production process. Deming discouraged inspection only at final stage and recommended quality checking at every stage from the beginning (raw materials). He also recommended extensive Involvement of operators (who knows the machines, process and problems more deeply) in quality maintenance and improvement. He also prescribed the thorough Training of operators on Quality Control and Improvement Techniques and methods. Deming Wheel ie P-D-C-A Cycle is an important technique for solving quality problem and continuous quality improvement. Demings 14 Points Philosophy has major influence on modern TQM.

2)

3)

JOSEPH JURAN (1950s) : Juran included Quality in the Strategic Planning process. Juran Triology is the three universal sequences or three phases of application of quality, which is suitable for any industry. Juran Triology includes (1) Quality Planning, (2) Quality Control and (3) Quality Improvement. Jurans COST OF QUALITY is an important concept for Quality decision. A. FEIGENBUM (1960s) : emphasized on Management Leadership & Commitment and introduced TQM as a total committed effort, company-wide from the management to employees throughout the organization, to improve quality continually. PHILIP CROSBY (1970s) : He emphasized on Cost of Poor Quality (like loss in cost of manpower, materials, machine-hour, loss of sales, cost of Customer dissatisfaction, etc). He advised for ZERO DEFECT production. He indicated Four Absolutes of Quality Management as, (1) Quality should be in conformance to requirements, (2) Prevention of non-conformance is Objective but not appraisal, (3) Performance Standard is Zero Defect, not that is close enough (4) Measurement of quality is through Cost of Non-conformance. He prescribed 14 point Prescription for Quality Improvement.

4)

5)

6)

K. ISHIKAWA (1970s) : He promoted QUALITY CIRCLE and FISHBONE DIAGRAM of Cause & Effect Analysis. His philosophy that a quality organization is needed to create a quality product or service has been accepted as the base of modern TQM. Genichi Taguchi (1980s) : He developed QUALITY LOSS FUNCTION concept which combines Cost, Target and Variation in performance Characteristics into one metric. Because Quality Loss Function is reactive, he developed Signal to Noise Ratio as a proactive equivalent. Robust Design of parameters & tolerance is the outcome of his philosophy.

7)

#
1) 2)

Dimensions / Determinants /Customer Attributes for PRODUCT QUALITY

Conformance : Meeting the characteristics as per the Specifications and relevant Standards and good Industrial Practice & Workmanship Performance : Basic performance characteristics of the product like, dimensions and fits & tolerances, capacity, efficiency, max. speed, speed pick-up rate, energy consumption rate, Heating rate, cooling rate, etc. Features : Secondary (extra) functional value / characteristics added to the product, like remote control to air conditioner or TV or car door lock, camera , internet to cell phone, etc. Reliability : Probability that the product will perform properly (as per specifications) throughout its specified life under specified conditions Durability / Specified Life : Specified useful Life of Performance (may be with repair & maintenance) Serviceability : Degree of ease to repair & maintenance responsive to complaints and speedy resolution of the problems

3)

4) 5) 6)

Dimensions / Customer-Attributes for Product Quality

Contd.

7)
8) 9) 10) 11) 12) 13)

Occupational Safety : for the operator, user and society

User-friendliness : How easy and quick to use / operate, and not requiring any special skill or knowledge Environment-friendliness : not polluting the environment and less depleting the natural resources Responsiveness : human to human interface ie courtesy and care toward customer & consumer Aesthetics : look, finish, taste, smell, feel and sensory characteristics Customizability / Flexibility for modification as per the change in customer taste & requirement on quality, quantity and other terms Reputation, Brand Image, etc

#
1. 2. 3. 4. 5. 6. 7.

Determinants (Dimensions) of SERVICE QUALITY

Timeliness : Promptness and speed in rendering service (less waiting time) Completeness : of job covering full (complete) scope of work / responsibility (not half-done service) Reliability : (i) Accuracy of bills, (ii) keeping records correctly, (iii) Performing at designated time Competence : Adequate knowledge, skill & experience of operating personnel Credibility : (i) Trustworthy-ness and (ii)) honesty in rendering services Security : (i) Physical & occupational safety, (ii) Confidentiality, (iii) Financial Security, (iv) against any other risk Courtesy : Employees treatment with and care to the customer. (i) Politeness, (ii) friendliness, (iii) cooperation, (iv) paying regard and importance to Customer, (v) neat & pleasing appearance of operating & contact personnel Consistency : Maintaining same level of service, effectiveness and quality Accessibility : Ease of customer to access for getting the service in (i) simple way, (ii) Less waiting time (not long queue) , (iii) convenient hours for contact / access /service, (iv) convenient location of service facility Accuracy : How rightly/correctly the service is performed Responsiveness : How efficiently, effectively and promptly the employee and company react against the service requirement or complaints. Communication : explaining clearly on (i) the service itself, (ii) cost of service, (iii) time of service, (iv) any other problem with assuring that it will be taken care of and solved at the earliest.

8. 9. 10. 11. 12.

#
1.
2.

Deming : 14 Point Program for TQM

Create a purpose toward the continuous improvement of product to achieve long term organizational goal. Adopt the philosophy of preventing poor quality or defectives to go into process through Acceptable Level of poor quality, because dissatisfied customers will not continue with the product further. Rather quality should be improved by Improving the Process (materials, workmanship, machines, maintenance, production process & technology). Understand that the purpose of SQC is to improve the process & design and also to reduce the cost. (Because Final Quality Rejection is
too late and too costly and may be sometime incurable.)

3.

4.
5. 6.

7.

Suppliers or Vendor selection will be mainly based on their quality commitment and not based on the lowest price only. Constantly improve the quality system focusing on the (i) process and (ii) Operator. Workers Training is essential . The training should be focused on (i) Identification & Solving the quality problem, (ii) effective use of SQC techniques & other Quality Tools (iii) Continuous improvement. Instill Leadership among supervisors to guide and help operators to perform better.

Deming 14 Point Philosophy

8.

9. 10. 11.

Encourage employees involvement by (i) eliminating Fear of identifying quality problems , (ii) treating them with dignity and (iii) encouraging them to contribute ideas for improvement (ie innovation). Eliminate barriers between different departments and promote
cooperation & TEAM-APPROACH, for working together.

Target / focus on QUALITY and not on quantity (Eliminate numerical quota set for operators to meet at any cost without regard to quality). Eliminate slogans for quality target (ie urging upon workers for achieving higher quality-performance level) without providing specific processimprovement.

12.

13. 14.

Enhance workers PRIDE of WORKMANSHIP and SELF ESTEEM by recognizing & appreciating their participation & sincere efforts, so that workers can perform to their capabilities and considering himself as a family member of the organization having same mission. Vigorous quality-awareness Training & Education program at all levels throughout the organization. Develop & ensure Top Managements COMMITMENT to implement the above points.

#
1)

JURANs QUALITY TRIOLOGY (Three Universal Quality-Sequences)

QUALITY PLANNING (& Organizing)
(i) Establish the Quality Target / Goal (Optimal Quality) (ii) Identify the Customer and determine Customer- needs (iii) Develop Products and Services corresponding to customer need (iv) Arrange required equipment, instrument, infrastructure and operators (skill) (v) Make Process Development for creating/delivering those products & services (vi) Establish Process-control Parameters, which are to be controlled.

2)

QUALITY CONTROL (i) Evaluate the actual Quality Performance

(ii) Compare the performance with Quality Target (iii) Act on (take corrective steps for) the variations

3)

QUALITY IMPROVEMENT (i) Establish infrastructure needed to secure periodic quality improvement
(ii) Identify Quality-improvement PROJECTS (iii) Form Teams to implement improvement projects (iv) Provide resources, motivation and training to the team for quality improvement.

Quality variation
Quality Planning & Organizing
Quality Control Quality Improvement

Variation Limit

Original Zone of Quality Control

New (Improved) Zone of Quality Control

Chronic Waste

Time
Quality Improvement

JURANs Quality-TRIOLOGY Diagram

JURANs Concept on QUALITY COST

COMPONENTS of QUALITY COST COST OF QUALITY :
Q. PREVENTION COST : Cost required to prevent the generation of poor quality product & service, ie product to meet customer satisfaction and compliance / conformation to specified quality. It includes : (i) Quality Planning Cost ie cost of developing & implementing the Quality Management Program. (ii) Cost of Design & Process Review & Re-Design of product & process. (iii) Quality Education & Training Cost. (iv) Cost of Review of VENDOR QUALITY CAPABILITY (v) Process Improvement Cost (vi) Information Cost (data collection & recording, data processing & data analysis) INSPECTION, CHECKING, TESTING & MEASURING, evaluating and auditing of quality of product to ensure the quality conforming to specifications and requirements.

QUALITY COST is the costs associated with providing quality of the product or
service ie cost incurred to ensure perfect / approved quality of product or service.

A.
1)

2) Q. APPRAISAL COST : Cost associated with Quality Control ie

QUALITY COST

3) Quality Failure TANGIBLE Cost : When final product does not

conform to specifications or customer requirements ie when Quality Rejections, defectives and failure to perform are there, the cost associated with

(i) Scrap (Rejections which are not re-workable or repairable) (ii) Re-doing/ Re-working on Rejections which are re-workable or repairable, Over-time for re-doing, Re-inspection & testing (iii) Re-ordering (iv) Servicing / Repairing at site when the product fails in operation, (v) Return and Replacement of defectives, (vi) Process Failure Analysis (causes of failure of the production process) (vii) Process-downtime (shutting down the production process (1) to prevent continuing generation of defects, and (2) to identify & locate the problem and its cause and to rectify, (viii) Price discount (in case of selling the defectives as Seconds) (ix) Penalty for late delivery
(x) Excessive Inventory

4) Quality Failure INTANGIBLE Cost :

Hidden Costs (which are difficult to quantify), associated with non-conformance of product to customer requirements. It includes cost of (i) Complaint-handling,

(ii) Customer Dissatisfaction leading to loss of customers, (iii) Loss of goodwill / brand image, (iv) Loss of sales. ---------------------------------------------------------------------------------------------------------

Quality Cost = Cost of Quality + Cost of Defectives

Cost of Quality (COQ) = Quality Prevention Cost + Quality Appraisal Cost Cost Of Defectives (COD) = Q Failure Tangible Cost + Q. Failure Intangible Cost

JURANs COST OF QUALITY (COQ) Optimization :

Juran expressed that Total Quality Cost has two components (i) Cost of Quality (COQ) : (Prevention Cost + Appraisal Cost) (ii) Cost of Defectives : Quality Failure Cost (QFC) + QF Intangible Cost Cost/unit

QUALITY COST (QC)

COQ (Cost of Quality)

Min. Cost

COD (Cost of Defectives)

0% (100% defectives)

Q*

Optimum Qualitity

100% (100% defect-free)

Quality

Quality Cost INDEX NUMBER :

Quality Cost can be expressed / interpreted in a meaningful way by INDEX NUMBER which is the ratio of quality cost and a base cost-value. Quality Sales Index = Quality Cost Index = Total Quality Cost Total Sales Revenue Total Quality Cost Total Production Cost

[Index shows the trend of quality improvement. Reduction of Quality Index shows the quality improvement.] ---------------------------------------------------------------------------------------------------------

QUALITY PRODUCTIVITY Ratio (QPR) :

QPR = Good quality units . (Input quantity x Processing cost per unit) + (Defective quantity x Re-work cost)

[ It shows the trend of Productivity improvement. QPR can be increased by (i) Quality improvement , and/or (ii) reducing of re-working cost, and/or (iii) by reducing the processing cost.]

Example-1 on QPR
H S Motor Co. produces electric motors at a processing cost of $30 per unit and defective ones can be reworked at an average cost of $12 per unit. The Co. produces 100 motors/day out of which 80% are of good quality and 50% of the defective products can only be reworked to acceptable quality level. The Co. wants to improve the productivity and ask you to give your impression on the effect of following 4 different proposals on productivity improvement,
(i) Increase the production rate to 200 motors/day, (ii) Reduce the processing cost to $27 and reworking cost to $10, (iii) Increase the product yield of good quality to 95%, by process improvement, with increase in processing cost to $ 30.20 per unit, (iv) Increase the product yield of good quality to 85% by process improvement, along with reduction of reworking cost to $10 per unit.

Solution-1 Existing QPR, QPR0 =

80 + 0.5 x 20 = 0.0289 100x$30 + 10x$12 Proposal-1 : Increase the production rate increased to 200 motors/day, QPR1 = 160 + 0.5 x 40 = 0.0289 QPR1 = QPR0 200x$30 + 20x$12 Proposal-2 : Reduce the processing cost to $27 and reworking cost to $10, QPR2 = 80 + 0.5 x 20 = 0.03214 QPR2 > QPR0 100x$27 + 10x$10 Proposal-3 : Increase the product yield of good quality by quality improvement to 95%, with increase in processing cost to $ 30.20 per unit, QPR3 = 95+ 0.5 x 5 = 0.03197 QPR3 > QPR0 100x$30.20 + 2.5x$12 QPR3 < QPR2 Proposal-4 : Increase the product yield of good quality by quality improvement to 85%, along with reduction of the reworking cost to $10, QPR4 = 85+ 0.5 x 15 = 0.03008 QPR4 < QPR3 100x$30 + 7.5x$10 QPR2 > QPR3 > QPR4 >QPR1 & QPR0
QPR is maximum in Proposal-2 (by Reducing the processing cost to $27 and reworking cost to $10). So, proposal-2 may be adopted for Productivity improvement.

Example-2 on QPR
H S Motor Co. produces electric motors at a processing cost of $30 per unit and defective ones can be reworked at an average cost of $12 per unit. The Co. produces 100 motors/day out of which 75% good quality and 40% of the defectives can only be reworked to acceptable quality level. The Co. wants to improve the productivity and ask you to give your impression on the effect of following 4 different proposals on productivity improvement, (i) Increase the production rate by 50%, (ii) Reduce the processing cost to $28 and reworking cost to $10, (iii) Increase the product yield of good quality by quality improvement to 85%, (iv) Increase the product yield of good quality by quality improvement to 95%, with an increase of the processing cost to $30.50.

[Ans : QPR1 = QPR0 = 0.02724 , QPR2 = 0.02931 , QPR3 = 0.02962 , QPR4 = 0.03155 . QPR4> QPR3 > QPR2 >QPR1 & QPR0 ]

# Essentials for Implementing TQM

1.
2. 3. 4.

Committed and involved Management : to provide long term Leadership and organizational support Focus on Customer, both internal & external Effective Involvement & Participation of entire Workforce, Empowerment of participating workforce Quality Training for entire workforce
Quality Culture and Team Spirit among entire workforce in any department and among all departments Quality Management System (QMS) & Quality Assurance CONTINUOUS IMPROVEMENT of Business Process and Production Process Forming Quality Steering Committee / Quality Council , headed by CEO and members from different sections and the Quality Manager; and under Q Council, Quality Sub-Groups at different sections or branches, for TQM implementation operation in big industries. Continuous Self Performance Measurement and Benchmarking for the Process and performance Good communication both internal & external Collaborative relation with suppliers / vendors (Treating the SUPPLIER as PARTNER)

5.
6. 7. 8. 9.

10. 11. 12.

TOOLS & TECHNIQUES for TQM

1. Quality Planning (Quality Policy, SMART Goal Setting, Optimum Quality Target, Quality Strategies, etc) 2. Statistical Quality Control 3. QFD (Quality Function Deployment) Redesign of product 4. FMEA (Failure Mode & Effect Analysis) 5. FTA (Fault Tree Analysis) 6. QUALITY CIRCLE 7. TOTAL PRODUCTIVE MAINTENANCE (TPM) 8. Deming Wheel (PDCA Cycle) for continuous improvement 9. Root Cause Analysis (Why-Why, (Ishikawa) Fish Bone Analysis, etc) 10. Brainstorming 11. Poka Yoke 12. 5 S (Sort, Set in order, Sweep, Standardize, Sustain) 13. Self Performance Assessment & Benchmarking 14. Six Sigma [ DMAIC : (i) Define quality problem; (ii) Measure Key Aspect & Collect relevant data; (iii) Analyze the collected data; (iv) Improve/Optimize current process; (v) Control (Check, Review & Correct).
: - For existing product

DMADV : Define; Measure; Analyze; Design; Verify. : - For new product ]

BENEFITS of TQM
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Improvement of Quality of products and services and its consistency Improvement of competitiveness Improved Delivery commitment Improved Customer-satisfaction Increase of Market Share Reduction of Scrap and cost of defectives Reduction in Inventory Increase of Productivity and Profitability Improved Team work and Team spirit Increase of Employees involvement and participation Improved Employees self-esteem & motivation Improved Communication both internal and external

INSPECTION

INSPECTION
Inspection may be (i) Pre-shipment (In-shop Final Inspection), (ii) Stage
Inspection, (iii) Third-Party Inspection by authorized & appointed Inspection Agency, (iv) Customs inspection (on Quality, Quantity and Price) (v) Inspection at receiving end ,for quality & quantity.

Responsibilities of Inspection Wing :

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Establishing the Objectives of inspection of the particular material. Defining the details of Methods of sampling, inspection, measurement and testing. Determining the targeted Quality-Specifications to be met for the particular item being processed, matching with the need of the users, as the guideline for inspection. Fixing the targeted Quality of supply of raw-material and components. Defining the Acceptable Quality Level (AQL) as per buyers strategy as well as mutual agreement between buyer and seller. Defining the responsibilities, authority and accountability of each position in processing line. Investigating and Analyzing any complaint received from the end-users or consumers, regarding Quality Maintaining the accuracy, sensitivity, operability of all equipment and instrument for inspection & testing. Preparing proper Inspection Report & Delivery-Clearance Certificate after satisfactory inspection of quality and quantity. Rendering assistance to Vendor Development wing by Rating of vendors, with records in respect of Quality.

TYPES of INSPECTION
1. Stage Inspection : during Procurement, Manufacturing/
Operational process and Assembly, before Pre-shipment (final) inspection on output products, by manufacturers inspection team and/or Buyers representatives.

2.

Pre-shipment Inspection : after Manufacturing/ Operational

process/ Assembly of final product, finally before delivery but before Packaging, by the manufacturer and/or Buyers representatives or Third-Party (Inspection Agencies).

3.

Third-Party Inspection : during and/or after Manufacturing /

Operational process/ Assembly of final product before delivery, on Quantity, Quality and Packaging, by Third-Party Inspection Agencies whose appointment has agreed / approved by both buyer and supplier and also by statutory authorities.

4.

Customs Inspection : on Quality, Quantity, Packing & Price (as

per Packing List & Proforma Invoice along with shipping documents), at ports just before shipment and also at the port of destination. Final Inspection at Receiving end (at site) : on Quality, Quantity, damages if any, performance, etc. by the Receiver or Buyer or User, at site or at the point of receiving.

5.

QUALITY-INSPECTION
(A) INSPECTION METHODS :
comparison) (mainly Measurement, testing &

(1) Visual (colour, shape, finish, damage, etc) (2) Touching (mainly for finish, fitting, texture, etc) (3) Smelling (odour or correct smell like coconut oil, chemicals, talcum powder, perfume, some of food staff, etc), where ever applicable (4) Measurement [size/dimensions, tolerances, capacity (by volume or weight), weight, density, viscosity, voltage, current, electrical resistance, electrical power, speed, pH, etc] (5) Gauging (Go & Not-go, match or no-match type) (6) Testing in Laboratories (strength, hardness, efficiency, performance, micro cracks or internal cracks (X-ray testing / Radiography) , pressure rating, temperature rating, etc) (7) Comparison of measured data (i) with quality data of standard sample or (ii) data prescribed in relevant Standard or (iii) specified data

Quality INSPECTION (contd.)

(B) SAMPLING :
Picking up an adequate number (Sample Size) of items (from an big lot of the same item, offered for Inspection), which truly represent the entire population of the offered/ referred lot, with the purpose of Inspection and Testing, with the OBJECTIVE to considerably reduce the (i) Insp. Time, (ii) Insp. Cost, (iii) Insp. effort, (iv) Insp. Fatigue, (v) Insp. Manpower, (vi) Damage of products (in case of destructive testing), for inspection.

The true Sample must be the real representatives of the whole population.
For inspection, Acceptance Sampling is the process of inspecting / evaluating a portion of the products in a lot called Sample, for the purpose of accepting the complete lot as conforming, or rejecting the complete lot as Non-conforming to the quality specification.

(i)
1)

SAMPLING METHODS :
Simple Random Sampling : All the items of the sample are
arbitrarily (at random) selected from any where of the entire lot. Each item of the population has equal probability to be selected & inspected.
2)

Stratified Sampling : The entire population of a big lot can be

divided systematically into a number of homogeneous groups or sublots or strata. eg Product: Fans & strata : ceiling fan 42,48, 54, etc., table fan, pedestal fan, blowers (3 sizes). Then Proportional sampling is done randomly from each of the strata, to meet the Sample Size.

Quality INSPECTION : Sampling Method (contd.)

3)

Systematic Sampling :

When the lot size of the product is very big and the lot is presented in many groups like stacks, piles, bins, chambers, etc., Systematic Sampling may be suitably adopted. In this method, adequate no. of sample-items are systematically selected from the systematically selected piles or stacks or bins, etc of the lot, at regular predetermined interval to meet the Sample Size (depending on the size of the lot). [example : 3rd, 13th, 23rd, 33 rd, ..items from 1st stack; 7th, 17th, 27th, 37th, items from 2nd stack, and so on] or K number of items randomly from each of the 2nd , 5th, 8th, 11th, 14th , . stack)

4)

Cluster Sampling :

When the lot contains a (i) good number of clusters or packs, (ii) each of small no. of items. First random sampling is done on the packs/clusters in the lot and then all the items of the selected sample-packs (which constitute Sample Size) are inspected.

5)

Two-stage Sampling :

When a huge lot size, containing a good number of packs or sub-lots, each pack/sub-lot containing a good number of items, Two-stage Sampling may be adopted. In this method, at the first stage, selection of packs is done randomly or systematically from the good number of packs in the lot, and then at the second stage, selection of items is again done randomly or systematically from the each of the selected sample-pack.

Quality INSPECTION (Sampling)

(ii)

SAMPLE SIZE :

The Sample Size is the minimum statistically adequate number of sample-items to be selected from the whole lot / population, by any sampling method, for the purpose of quality Inspection of the offered lot. Sample Size depends on, (i) Variation in observations (measurements Xi) in the population (ii) Status of existence of items (Mixed / Focused / Stratified / Clustered or Continuous / Categorical) (ii) Confidence Level / Significance Level (Z is dependent on Conf. L) (iv) Precision Interval (h is dependent on Precision Interval)

N sample

= Z2 . [ N Xi 2 - ( Xi)2 ] h2 ( Xi)2

where, Z = Standard Normal Statistics at given CONFIDENCE LEVEL (90% to 98%) which indicates probability of getting correct representative result.

[Z = 2 and 1.28 at Service Level 97.7% and 90% respectively]

[Significance Level = (100 Confidence Level) = 2.3 % for 97.7% C.L] h = of Confidence Interval (or Precision Interval) (Confidence Interval is the variation of confidence level around its mean ) [ Precision Interval is usually (2 to 3)% , for 3%, h = 0.03 ( - 0.03) = 0.03 ] 2 N = Ad-hoc no. of sample-items already inspected Xi = Individual observations on already inspected items (ad-hoc)