UNIT IV

Operations Management

Acceptance Sampling Defined

Acceptance Sampling is a form of inspection that is used to determine whether or not goods are coherent with a set standard of quality

What is acceptance sampling?

Acceptance Sampling
Statistical quality control technique, where a random sample is taken from a lot, and upon the results of the sample taken the lot will either be rejected or accepted.

Acceptance Sampling How can this tool be used in your organization?

When is Acceptance Sampling useful?

When product testing is
expensive time consuming

When developing new products

When is Acceptance Sampling useful?

When dealing with new suppliers When a suppliers product has had excellent quality in the past

Acceptance Sampling method

ACCEPTANCE SAMPLING TAKE SAMPLE

INSPECT SAMPLE Type title here

DECISION

ACCEPT LOT

REJECT LOT

SAMPLE AGAIN

DECISION

RETURN LOT TO SUPPLIER

100% INSPECTION

What is acceptance sampling?

Accept Lot
Ready for customers

Reject Lot
Not suitable for customers

Statistical Process Control(SPC)

Sample and determine if in acceptable limits

Typical Application of Acceptance Sampling

A vendor delivers a product to a manufacturing company

The product is a raw material used by the company

 A sample of the shipment is taken

Quality characteristics of the units in the sample are inspected.

Typical Application of Acceptance Sampling

 Sampling Plans specify the lot size, sample

size, number of samples

and acceptance/rejection criteria. Sampling plans involve Single sampling Double sampling Multiple sampling

Single Sampling Plan

A Single Sampling Plan is one where A representative sample of n items is drawn from a lot size of N items. Each item in the sample is examined and classified as good/defective If the number of defective exceeds a specified rejection number the whole lot is rejected; otherwise the whole lot is accepted

Double Sampling Plan

A Double Sampling Plan allows the opportunity to take a second sample if the results of the original sample are inconclusive. Specifies the lot size, size of the initial sample, the accept/reject/inconclusive criteria for the initial sample (CL - lower level of defectives, CU - upper level of defectives) Specifies the size of the second sample and the acceptance rejection criteria based on the total number of defective observed in both the first and second sample (CT- total allowable defectives) It works like the following example

Multiple Sampling Plan

A Multiple Sampling Plan is similar to

the

successive trials are made, each of which has acceptance, rejection and inconclusive options. Which Plan you choose depends on . Cost and time . Number of samples needed and number of items in each sample

double

sampling

plan

in

that

Operating Characteristic Curve (OCC)

An Operating Characteristic Curve (OCC) is a probability curve for a sampling plan that shows the probabilities of accepting lots with various lot quality levels (% defectives).

Customer Acceptance Levels

Most customers understand that 100% inspection is impractical and are generally willing to accept that a certain level of defectives will be produced. The Acceptable Quality Level (AQL) is the percentage level of defects at which a customer is willing to accept as lot as good. The Lot Tolerance Percent Defective (LTPD) is the upper limit on the percentage of defectives that a customer is willing to accept. Customers want lots with quality better than or equal to the AQL but are willing to live with some lots with quality as poor as the LTPD, but prefer not to accept lots with quality levels worse than the LTPD.

AQL

LTPD

TQM
Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing,. Therefore, TQM is the art of managing the whole to achieve excellence.

Total Quality Management

Total Quality Is
Meeting Our Requirements Customers

Doing Things Right the First Time; Freedom from Failure (Defects) Consistency (Reduction in Variation) Continuous Improvement Quality in Everything We Do

Whats the goal of TQM?

Do the right things, right at the first time, every time.

Total Quality Management

Another way to put it

At its simplest, TQM is all managers leading and facilitating all contributors in everyones two main objectives:

(1) total client satisfaction through quality products and services; and (2) continuous improvements to

processes, systems, people, suppliers, partners, products, and services.

Total Quality Management

Productivity and TQM

Traditional view:
Quality cannot be improved without significant losses in productivity.

TQM view:
Improved quality leads to improved productivity.

Total Quality Management

Continuous Improvement versus Traditional Approach

Traditional Approach Continuous Improvement

Market-share focus Individuals Focus on who and why Short-term focus Product focus Innovation Fire fighting

Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving

Basic Tenets of TQM

The customer makes the ultimate determination of quality. Top management must provide leadership and support for all quality initiatives. Preventing variability is the key to producing high quality. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

Total Quality Management

The three aspects of TQM

Counting Customers Culture

Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality.
Total Quality Management

Value-based Approach

Manufacturing Dimensions
Performance Features Reliability Conformance Durability Serviceability Perceived quality

Service Dimensions
Reliability Responsiveness Assurance Empathy

Total Quality Management

The TQM System

Objective

Continuous Improvement

Principles

Customer Focus

Process Improvement

Total Involvement

Elements

Leadership Education and Training Supportive structure Communications Reward and recognition Measurement

Total Quality Management