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Worked examples tqm

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Worked examples tqm

  1. 1. Problem 1 Sl. No. Description Frequency 1 Soiled and dirty 23 2 Cuts and discontinuities 12 3 Improper specifications 19 4 Weight loss 31 5 Defective packing 21 (a) The histogram is given below: Analysis of Cotton Dressing 35 30 25 Frequency 20 15 10 5 0
  2. 2. (b) The data is rearranged here to draw the Pareto Diagram: Sl.No. Description Frequency Cumulative % 1 Weight Loss 31 29.25% 2 Soiled and dirty 23 50.94% 3 Defective packing 21 70.75% 4 Improper specifications 19 88.68% 5 Cuts & discontinuities 12 100.00% Analysis of Cotton Dressing 35 1.2 30 1 25 0.8 Frequency 20 0.6 15 0.4 10 0.2 5 0 0 Weight Loss Soiled and dirty Defective Improper Cuts & packing specifications discontinuities The recommended course of action would be to tackle the weight loss issue first. The weight loss issue could be subject to analysis to determine the cause of this defect. The issue of soiled and dirty dressings also needs to be taken up concurrently because these two issues cover more than 50% of the defective items.
  3. 3. o Diagram: 1.2 1 0.8 Cumulative % 0.6 0.4 0.2 0tackle thee could be this defect.needs to bes cover more
  4. 4. Problem 2 Employees unaware of customer waiting time Manpower shortage Space constraint Inequitable work Lack of training Level of technology low Lack of motivation Absenteeism Number of accounts handled is escess of capacity Too much variation in service offerings Unrealistic expectations by customers CAUSE
  5. 5. Employees unaware ofcustomer waiting time Inequitable workload Procedural delays Lack of standardisation of service Delay in Customer Service Time EFFECT
  6. 6. Problem 4 Sl. No Description of item of cost 2002 2003 2004 1 Warranty costs 12,532.00 11,540.00 12,320.00 2 Cost of rework 9,348.00 18,540.00 17,439.00 3 Training costs 234.00 567.00 893.00 4 Supplier Development costs 1,238.00 2,345.00 3,459.00 5 On-site repair of products 8,345.00 7,934.00 7,839.00 6 Cost of testing 4,567.00 5,672.00 5,789.00 7 Loss from Product returns 4,562.00 4,234.00 2,389.00 8 Inspection costs 7,812.00 12,127.00 17,283.00 9 Calibration of testing devices 1,678.00 1,482.00 2,093.00 10 Scrap 2,568.00 4,298.00 6,238.00(a) The quality costing is given as follows: External Failure 25,439.00 23,708.00 22,548.00 Internal Failure 11,916.00 22,838.00 23,677.00 Appraisal 12,379.00 17,799.00 23,072.00 Prevention 3,150.00 4,394.00 6,445.00 Sum 52,884.00 68,739.00 75,742.00(b) The cost of quality as a percentage of the total turnover is given in the following table, the contribution of individual quality cost components are also shown: 2002 2003 2004 Annual Turnover 200,000.00 240,000.00 300,000.00 Rupees (in 000s) External Failure 13% 10% 8% Internal Failure 6% 10% 8% Appraisal 6% 7% 8% Prevention 2% 2% 2%
  7. 7. COQ (%) 26% 29% 25%(c) Quality Cost Components External Failure Internal Failure Appraisal Prevention 0.35 0.3 Percentage values 0.25 0.2 0.15 0.1 0.05 0 2002 2003 Significant trends observed from the chart (above) are: 1. Steady decline total quality cost 2. Amongst the components, prevention cost shows no variation, however as the external failure cost goes significantly down, internal failure costs and appraisal costs go up
  8. 8. Category of Quality CostExternal FailureInternal Failure Prevention PreventionExternal Failure AppraisalExternal Failure Appraisal PreventionInternal Failure
  9. 9. Prevention 2004iation, however asrnal failure costs

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