Production Operations Management Module II

Production !
Operations Management
12.1 INTRODUCTION L_A project (be it a construction work, or design and development of a prototype, or a turnkey project like a sub-station, power house, factory establishment, etc>) consists of a large number of activities whose scheduling by the conventional methods is generally difficult. Projects that are not properly scheduled generally tend to extend beyond the contract date and thus cause heavy losses to the contracting firms. Delays in completion of projects : Tend to increase investment in work-in-progress. Delay in invoicing and thereby reduce working capital. Penalize the contracting firm when the completion lags behind the agreed date since most of the contracts of the projects contain penalty clauses. Result in unwelcome additions to the fixed manufacturing expenses as men and machines are employed beyond the economic time span.
Timely completion of the projects-projects backed by good scheduling-projects the capability of the contracting firm to meet delivery commitment. Such a firm - a firm known for its delivery commitment - can win an order even in the face of competition from a large number of lower priced competitors. Scientific scheduling of projects, therefore, is important for the firms engaged in work on turn-key-projects. A number of scientific tools are available for scheduling but the scheduling of projects is best performed through a well-known technique called Critical Path Analysis, abbreviated as CPA. 12.2 CRITICAL PATH ANALYSIS ritical path analysis, an important aid to planning, scheduling and coordinating the activities of large scale projects, is a synthesis of two independent techniques: Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM). PERT was developed by Naval Engineers of USA Navy, in charge of Polaris Sub-marine Missile project in 1958. CPM was developed by Morgan Walker of DU Pont and James Kelly of Remington Rand (USA) in 1957 for the use in planning and scheduling of the construction of a chemical plant. Though the two techniques were developed independently, they are only superficially different. The two methods have many features in common and are now combined into a technique called Critical Path Analysis (CPA) or Network Analysis.
Unit 12
Project Planning & Control : Critical Path Analysis (PfcRT/CPM)
There are three basic differences between a PERT network and CPM network: PERT is event oriented while CPM is activity oriented (i.e. PERT prepares network from events while CPM builds if from activities.) PERT provides for an allowance for uncertainty while CPM does not (i.e. PERT makes three time estimates tor each activity while CPM makes one time estimate). Activity times in CPM technique are related to costs while it is not so in PERT since it is event oriented.
12.3 APPLICATIONS OF CPA CPA technique is a very useful technique for a project manager in his decision making process. Typical areas of application of CPA technique are :
Construction Turn key projects Manufacture Maintenance Installation and reorganization Retooling Research & Development Launching Administration Accounting General
New buildings, bridges, plants, extension of existing building. Substation, power house, factory establishment. Special purpose machines, cranes, turbo generators, ships, pressure vessels, locomotives etc. Annual shut down of plants, overhauling of large machines. Installation of new machine/computer, shifting of an old machine or an office to a new site. Modifying a machine or a production process. US Polaris missile, prototype work. A new product. ---------7
Strategic and tactical planning^ Budgeting and preparation of annual accounts. Organization of conferences,-functions and seminars.
12.4 ADVANTAGES OF CPA Critical Path Analysis offers several advantages. 1. It forces a thorough pre-planning. Each and every activity comprising the project is identified and recorded. Nothing is left to memory or chance, which prevents crises in scheduling.
Pmdtieiioii ' Opeiulions Management
2. 3. 4. 5. 6. 7. 8. 9.
It increases coordination of tasks as technological relationships between the activities suggest which activities can run simultaneously and which should succeed others. It helps computations of different project durations for different level of resources and thereby selects a plan that minimises total project cost. It indicates optimal start and finish times of each activity of the project. It defines areas of responsibility of different departmental heads for timely execution of the project. It facilitates progress reporting and limits unnecessary discussion at the progress meetings to minimum. It identifies troubles spots often in advance and apply remedial measures. 11 enables the plan to be revised in accordance with changes/ changing circumstances. It helps to exercise "control by exception" and prevent cost overruns.
12.5 NETWORK LOGIC A network is a graphical representation of the project and is composed as series of connected arrows and circles to describe the inter-relationship of the activities involved. The netvvi >i k is constructed from the following elements: 1. Activity: An activity represents a task, which has a definite beginning and definite end. An activity is represented by an "arrow" (>). The description of the activity is written above the arrow and the time is consumes is written below the arrow. Design 4 Weeks Words like "design"," cast", "machine", "produce", "develop", "prepare", etc. are used to describe activities.
General conventions concerning activities :

* * * Acti vities proceed from left to right. The tail of the arrow represents the start of an activity and head of the arrow represents the completion of the activity. The length of the arrow is not important. That is there is no relationship between the duration of an activity and the length of the arrow. Arrows do not need to be only in the horizontal plane. Vertical plane can also be u'sec .(i.e. arrows mav be straight, vertical or bent but are not broken.)
Unit 12
Project Planning & Control : Critical Path Analysis (PERT/CPM)
Activities are properly identified using any one of the methods given below: Shortened descriptions e.g. design, draft, paint wall, fixes door, etc. Alphabetical codes e.g. A, B, C etc. Pairs of number of the events linked by the activity e.g. 1-2,2-3,2-4 etc.
Durations for the activities are written below their corresponding arrows and they have common unit (i.e. hours, days, weeks etc.) An Event:
2.
An event represents the start or the completion of the task. An event is graphically represented by a circle. A
Starting event
A'
Completion event
Incorrect
B
Correct
12.1 (a)
A Correct
Merge event
Burst event
Combination of merge and burst event
12.1 (b) Fig 12.1: Method of representing activities and events
Production / Operations Management
Each activity has a definite beginning and a definite end, hence each arrow representing the activity is bounded by two events (circles). Events are described by words like "designed", "started" "computed", "received", "issued", "approved", "tested", "despatched" etc. An event, as mentioned above, represents either the start or the completion of the activity. Such separate start and end events, however, are reduced to a common event which represents the completion of the first activity and the start of the next. (Ref. Fig. 12. l(b)) Sometimes, a single event may, represent the joint start of more than one activity or the joint completion of more than one activity, or both. Such events are respectively called "burst event", "merge event" and combination of "merge & burst event". (Ref. Fig. 12.1 (c) 3. Activity relationships:
A project is made up of various activities which are interrelated. To construct a network, the project is first torn into its activities and then technological relationships between the activities are established. Three possible relationships are: Certain activities can run parallel and they are called "Concurrent" activities. Certain activities depend upon competition of the others. Such activities are called "Succeeding" activities and the activities on which they depend are called "Preceding" activities.
Few illustrations on the graphical representation of the activity relationships are given below (Fig. 12.2) Network Interpretation Activity B can not start until activity 'A' is completed. 'A' is, therefore, a preceding activity and 'B' is a succeeding activity. Activity 'D' as well as activity 'E' can not start until activity 'C' is completed and once activity 'C is completed, both activities D and E can be started simultaneously. Activities D and E, therefore, are though concurrent between themselves but are succeeding to Activity 'C'.
Unit 12
Project Planning & Control: Critical Path Analysis (PERT/CPM)
Activity H can not start until activities 'F' and 'G' are completed Activity M as well as activity N can not start until activities K and L are completed. K and L are, therefore, preceding activities while M and N are succeeding activities. M and N however between themselves are concurrent. Activity R can not start until activities P and Q are completed. And activity 'S' can not start until activity Q is over (i.e. activity P may not be even over.) Activity R, therefore, is succeeding to activity P and Q while activity S is succeeding to activity Q. Fig 12.2: Graphical representation of activity relationships Dummy Activities
"X
A fundamenjalj^nvention used in drawing the network is that one_activity must follow another. A "dummy activity" in some situations is used to avoid ambiguities or iUogicalitje^"
Us.
A dummy activity, therefore, is an activity which shows only a technological relationship: it neither consumes time nor resources. It is used purely for convemenceln afawtng netw&rks. Dummy activity is indicated by a dotted line. To illustrate the use of dummy activities, let us take two examples: Example 1: A project consists of four activities A, B, C and D. Activities B and C depend on Activity Awhile Activity D depends on B and C. Draw the network for the project.
Solution:
The network for the above project in the absence of dummy activities, wi ii be as shown in Fig. 12.3 (a).
Though the network gives logical representation hut is likely to introduce error or even create confusion since two activities B and C, can not be separated in terms of event numbers. To have clarity in interpretation of activity relationships, a dummy activity as shown in Fig. 12.3 (b) may be made use of.
Fig 12.3 (a) & (b) Example 2 : Another illustration on the use of dummy activities :
A simple project consists of eight activities whose activity relationships are given below: Activity 1-2 2-3 2-4 3-5 4-5 5-6 (a) Preceded by None 1-2 1-2 2-3 2-4 3 - 5 & 4-5
Draw the network considering precedence relationships given above.
(b) If activity 3-5 was to depend on activity 2 - 3 (as per existing arrangement) and activity 4 - 5 to depend on the completion of 2 - 3 and 2-4, how was the network to look like?
Unit 12
Solution:
Network considering the activity precedence relationship is given in Fig. 12.4. (b) To draw a network in which activity 4 - 5 depends on completion of both 2-3 and 2 -4, a dummy activity is required to be used as shown in Fig. 12.5. \ /
4
(a)
^ ----------- '
Fig 12.5 Âctivity A: a) List down 10 major activities involved in a project of construction of a building.
b)
Prepare a table for the activities mentioned above showing their interrelationship like succeeding activities and preceding activities.
c) By using the relationship of activities mentioned above, prepare the network diagram.
12.6 STEPS FOR CRITICAL PATH ANALYSIS 1. Breaking down a project into a set of identifiable activities:
A project comprises a series of activities and the identification of the individual activities requires knowledge and experience of the men responsible for the planning of the project. Even the preliminaries-mere listing of the activities-make the operating personnel: Think of details about the project well in advance. Observe critically the way in which various activities interact or compete for scarce resources. Improve upon the original plans even before network is formally drawn and analyzed.
A project, therefore, must be torn into a set of identifiable activities. There are no set rules but general guidelines are as under: Activity should represent the smallest unit of operation or set of operations over which management desires control. An activity should represent an operation or set of operations which can be performed using a particular kind of equipment or a special skill. For example, in a construction project plumbing can be considered as one activity while wiring is another activity since the first activity requires plumbers and the second activity needs electricians. The number of activities should be limited otherwise the network may become too complex to be handled.
10
Unit 12
2.
JKsjtaftlishing technological relationship between activities :
After the project has been broken into activities, the next logical step is to establish technological relationships. Activities may be classified as i nitial activities, concurrent activities, preceding activities, succeeding activities, and end activities. ^-~?^ -*" Initial acti vities are those which can start at the outset of the project.
3.
Concurrent activities are those which can be performed simultaneously. Succeeding activities are those which depend on others. Preceding activities are those on which succeeding activities depend. End activities are those which are the last ones in the project.
Making of an arrow diagram called a network :
A network is a graphical representation of the activities comprising the project. The network is formed by a series of connected arrows and circles which give technological relationships to the activities involved. Making of a network requires a clear understanding of the network logic and basic elements of the network discussed earlier.
Rules for drawing the network :
A set of rules given below have been specified to ensure logical representations: Every activity must have one preceding (tail) event and one succeeding (head) event. However, more than one activities may share the same tail event (such a tail event is called burst event) or the same head event (such a head event is called burst event). But an activity must not share the same tail event and same head event with any other activity. r (Ref. Fig 12.6) ~~~
(Incorrect)
(Correct)
Fig 12.6
11
The dummy attached to activity B can be avoided by interchanging the position of this path and the middle path as under. (Fig. 12.12)
Fig 12.12 How to draw a network?

Drawing of network does not require any special skill. It is just a matter of practice. Different authors have suggested different approaches, the most common approach being to start with the first activity and draw the subsequent activities as per relationships. This, however, proves to be a laborious method since it involves drawing and redrawing of network a number of times until the final network is obtained. A more rational approach developed by this author reduces any complex network to extreme simplicity. The approach suggested consists of following seven steps: 1. Prepare the complete list of activities to complete the project.
Table 12.1 : Table of Technological Relationships

Activity Activity code description A B A Design gearbox Prepare engineering drawings and bill-of-materials. C Purchase special materials (e.g. forgings for gears and shafts etc.) Purchase bought out parts (e.g. B bearings, oil seals, eirclips etc.) B Depends on Remarks
It is an initial activity. Drawings and bill-of materials is possible alter design is over. Materials procurement can he done only after bill-of-materials are ready. Bought out parts can be procured only on completion of bill-of-materials.
Unit 12
Activity Activity code description
Depends on
Remarks Pattern can be made only after drawings of housing is ready. Casting can be obtained only if pattern is ready. Machining of housing is
nncciHJp if fh^r(=> ic a ^nctina
..E
Make pattern for housing
F /
Cast housing Machine housing
E F
of the housing. H Turn shafts
C H
Machining of shafts is possible if there is material. Shafts can be heat treated only on completion of their machining. Machining of gear blanks can be done only if material for the gears have been procured. Hobbing or shaping or gear blanks can be undertaken after they have been machined.
Heat treat shaft
IJ
Machine gears
Cut gears
Heat treat gears
Heat treatment of gears is possible after they have been hobbed/shaped. Assembly of gear box can be done if bought out parts have been procured and works made parts namely housing, shafts and gears are ready. Test run can be conducted after gear box has been assembled.
Assemble gear box
D, G I, L
M
N Test run
1 5
2. Establish technological relationship between the activities. A table consisting of two columns, as shown in Table 12.1 may be constructed for this purpose. All activities in the given sequence are listed in the second column and corresponding activities on which they depend are entered in the first column. 3 . Connect the first activity in the first column to the activity opposite to it in the second column. Locate the activity connected back into in the first column and join this activity to the corresponding activity in the second column. Repeat this process till one sequence is covered which gives one path. 4. Start with next activity from the top in the first column which has not been connected in the first sequence and follow up step (iii) and complete the sequence to obtain next path. 5. 6. 7. Repeat step (iv) over and over again until all activities in the first column have been connected. B uild up network from above paths . Modify network (if necessary) considering "do's and don'ts" explained under ''rules of drawing network".
A Case Illustration on Network Building :

Auto-Craft Pvt. Limited is engaged in the manufacture of various precision turned components and small auto-parts assemblies in their well established auto shop. It has received an order for 1 ,000 sets of a small auto-part-assembly called relief valve assembly. The assembly consists of a valve, a plunger, a spring and a lock. The following are the major activities: 1. 2. Prepare bill for material and operation layouts . Valve Body a) Procure material for valve body b) Machine blanks c) Centreless grind d) Roll threads e) Drill cross holes &C'sunk f) Drill 2.4 dia. +0.078 g) Drill and ream 4+0.030 x 25.5 deep.
Unit 12
Plunger , <1) Procure material for plungers x 2) Machine blanks j) Heat treat Grind OD (centreless grind) Grind total length Inspect .;. 4. Test assemblies Springs 5. Purchase springs. Inspect springs.
Locks Purchase.locks. Inspect locks.
6. 7.
Assemble components Test assemblies Major activities described above are summarized and codified as under: (A) Prepare bill for materials and operational layouts (B) Procure material for valve body (C) Machine blanks for valve body (D) Centreless grind valve body (E) Roll threads on valve body (F) Drill cross hole & C'sunk hole in valve body (G) Drill 2.4 ??hole in body +0.078 (H) Drill and ream 4+0.030? x 25.5 deep in body (I) (J) Inspect valve body Procure materials for plungers
1 7
(K) Machine plungers '..)
Heat
treat plungers (M) Grind OD of plungers (N) Grind total length of plungers (O) Inspect plungers (P) Procure springs (Q) Inspect springs (R) Procure locks (S) Inspect locks (T) Assemble components (U) Test assemblies Draw a network diagram for the above activities.
Solution:
The step-by-step procedure of drawing the network is explained with respect to above data: (a) "'Prepare the complete list of activities to be performed to complete the project". This step has already been done in the case problem. (b) "Establish technological relationships between activities". Table 12.2 is drawn for this purpose, and it contains two columns. All activities, A to U, have been listed in the given sequence in the second column while corresponding activities on which they depend have been entered in the first column. For example Activity A, prepare bill of materials and operational layouts, is the initial activity, hence it does not depend on any other activity. Therefore, under first column and against activity A (recorded under second column) we have written - (dash).
18
Unit 12
Activity B. procure material for valve body can not be performed until bill of material and operational layouts are ready, hence activity B depends on A. To indicate this relationship, therefore, activity A is written under first column against activity B. Activity C. machine blanks for valve body, cannot take place unless materials for valve body have been procured. This implies that activity C depends on activity B. To represent this relationship, activity B is therefore, written under first column against activity C. Technological relationship of other activities based on the above logic have been entered in Table 12.2 Table 12.2 : Table of technological relationship
Activity or Activities on which activity mentioned in the second column depends _. A B C D E F G H A .1 K L M N A P A R 1. 0. Q, S. T
r
Activities as per given sequence A B C D E F G H I J K L M N O P
Q
R S T U
(c) "Connect the first activity under the first column to the activity opposite to it in the second column. Locate the activity connected in the first column and join this activity to the corresponding activity in the second column. Repeat above process till one sequence is covered which gives one path". The first activity recorded under the first column is A which is connected to activity B, activity opposite to it under the second column. The activity B, the activity to which we have just connected, has been located in the first column and it has been connected to the activity C, the activity opposite to it under the second column. Next activity C has been identified in the first column and is connected by an arrow to the activity D, the activity opposite to activity C. Proceeding on the above lines, we have connected D to E, E to F, F to G, G to H, H to I, I to T and T to U. (Ref Table 12.3) Table 12.3 : Independency with the first path identified Activity or Activities on which activity mentioned in the second column depends Activities as per given sequence
_ A B C D E F G H A J K L M N A P A R
I, 0, Q, S
A B C D E F G H 1 J K L M N O P
T
20
R S T U
Unit 12
Project Planning &~QmtrorTCfTncaTT7tm
This gives rise to the first path of the network that is A-B-C-D-E-F-G-H-I-T-U (d) "Start with next activity from top in the first column which has not been connected in the first sequence and follow up step V and complete second sequence and hence second path". The next activity from top which has not been connected in the first sequence is A which if connected considering the above steps will give rise to second path A-J-K-L-M-N-O-T-U (e) "Repeat step'd' over and over again until all activities in the first column have been connected." The repetition of step'd' gives rise to two more paths A-P-Q-T-U and A-R-S-T-U (f) "Build up the network from the above paths". There are four paths in this network. They are once again summarized as under: 1st path 2nd path 3rd path 4th path : : : : A-B-C-D-E-F-G-H-I-T-U A-J-K-L-M-N-O-T-U A-P-Q-T-U A-R-S-T-U
To construct the network, the longest path, consisting of activities A-B-C-D-E-F-G-H-I-T-U has been plotted in the middle, next longer path, consisting of activities A-J-K-L M-N-O-T-U is plotted above the first path and the remaining two paths are plotted below the first path. The network so formed is shown in Fig. 12.13 (g) "Modify network (if necessary) considering do's and don'ts explained under rules of drawing network". There is no need to modify the network since all conventions of the network are taken care of.
21
Unit 12
Estimating time of the activities
Once an arrow diagram has been drawn, the next logical step is to determine duration of each of the activities comprising the project. Time estimation of activity durations is an important work. Success in timely completion of the project largely depends upon the accuracy of time estimates. Times of the activities may be established either from past records or synthesized from elemental data. In the absence of the standard data, time for new activities may be provided by the man directly responsible for the activities. The time of an activity may be expressed either in the workin^^|f^âys, weeks or months . . The estimate of duration of an activity should : Be obtained from the person responsible for the completion of the activity. For example, a purchase man may be contacted to obtain time for a buying activity, an official from engineering for the design activity and a production person for the manufacturing operation, and so on. Be independent of any influence which the preceding or succeeding activity may have on it. Be based on the assumption that resources required to carry out the activity are available. Assume that just the normal quantity of resources is available to perform the activity. Include only normal delays and interruptions due to breakdowns, absenteeism and shop efficiency etc. The effect of unforeseen contingencies such as fires, strikes, floods etc. should not be considered. Be based on single time estimate for the projects which are of repetitive nature. This is recommended on the assumption that those charged with the responsibility of such projects generally have a fair idea of the activity durations from their previous experience.
For new activities, it may be difficult to establish one time estimate with reasonable degree of certainty. Multiple time estimates based on PERT concept of optimistic, pessimistic time and most likely time should be used for such activities.
PERT concept of multiple times
One major difference between PERT and CPM is the formers adaptability for the projects where high degree of uncertainty prevails and hence activity duration during performance is expected to vary considerably for certain activities.
23
The concept of three time estimate was evolved to reduce the extent of uncertainty. The above mentioned three time estimate suggests:
V A il-IV"
1. Optimistic time (a)
<?~-> SfcV^**"^
'
This indicates the minimum time an activity can take if everything goes smoothly without any intemiptionslThe chances that such a time could even be shorter should be onein hundred or less. The optimistic time is represented by 'a'. Pessimistic time (b) This indicates the minimum time an activity can take if everything goes wrong in a sort of catastrophe. The chances that this time could even be longer should be one in hundred or less. Pessimistic time is denoted by 'b'. -3. Most likely time (m) J '{'
This indicates the time an activity can take most often if it is repeated again and again under the same conditions. Most likely time is denoted by 'm'. Three time estimates are not directly entered into the network. They are transformed into an expected time, te, using the statistical relation given below:
te =
a -f 4m + b
An illustration on three time estimates:
Fig 12.14 The network of a small project

24
Table 12.4 : Expected estimate calculations Activity (a-m-b) A

B
Three time estimate (te) 6-7-8 5-7-9 1-2-3 2-4-6 4-6-14 3-5-7 6-7-8 5-7-9 1-2-3
Expected time
7
7 2
4 7
C
D E F
5
7 7
G
H I
Âctivity C; Calculate expected time for each activity for the project mentioned in activity B.
A network consists of chains of activities called paths of network. Addition of durations of activities on a path gives the duration of that path. The comparisons of such durations identify a path whose duration is the longest. It is this path, the path with the longest duration-which determines the overall duration of the project - which is called "critical path". And the activities on the critical path are known as critical activities. To explain the concept, let us consider the network drawn in Fig. 12.16. There are three paths in this network, out of which bottom path comprising of activities. A, B, G, H and I is the longest (30 days). It is this path, the longest of all, which shall be labelled as the critical path.
Unit 12
Major benefits of identifying the critical path are: (i) Critical path helps to identify a set of activities which determine the project duration and are important for its timely completion. 'To complete a project on time, each critical activity must be completed on time'. (ii) Mere allocation of additional resources does not help to reduce the duration of the project. 'To shorten a project, some of the activities on the critical path must be shortened'. (iii) Certain resources (men, machines and money) are generally common to different activities. The activities to be given preference in allocation of resources are identified by critical path. 'Critical activities should be given preference over others in allocation of resources'. Critical path is shown on the network by either red line/double line/thick line.
Âctivity D:
Identify the critical path for the project mentioned in activity C. Show it by a double line.
Identify the critical path of a complex project.

The critical path in a small network can be obtained by tracing the various paths through the network. For larger networks, a more systematic procedure is needed. The most commonly used method to do this is to compute event times which are of two types: earliest event time (TE) and latest event time (TL). Earliest event time (TE) represents earliest possible occurrence time (i.e. start time) of the activity (ies) emanating from the event. Latest event time (TE) represents are latest allowable occurrence time of the activities terminating into the event.
27
ised in recording of event times is given in Fig. 12.16. The convention usec
Fig 12.16
To explain the concept of event times, let us consider a network drawn in Fig. 12.16.
Earliest event time (TE):

Earliest event time represents the earliest possible occurrence time of the event, which gives the earliest possible start time of the activity (ies) emanating from the event. The following basic rules govern the computation of the earliest event times, (i) Each
activity of the network starts as soon as the activity(ies) preceding to it is (are) completed. This implies that the earliest event time of a plain event equals (TE) of the tail event plus duration of activity emanating from the tail event, (ii) merge event equals "largest of the sums of TE of the tail event plus duration of the activity emanating from the tail event''. (iii) The first activity of the project can be started as soon as the project is undertaken which implies that the earliest event time of the initial event is zero. The step by step calculations of TE of the events of the network drawn in Fig. 12.16 are given in the Table 12.5. The earliest event time TE of a
Latest event times TL : Latest event time TL represents the latest occurrence time of the event. The following simple rules govern the computation of the latest event time: (i) Latest event time of the end event equals earliest event time otherwise the project duration will be affected. (ii) The latest event time of a plain event equals latest event time of the head event less duration of the event converging on the head event. (iii) The latest event time of a "burst" event equals "the smallest of the difference between the latest event time of the head event less duration of the activity converging on the head event". Following the above rules, let us calculate latest event time TL for the network: (i) Latest event time of event 8 = Earliest event time since it is the end event = 30 (ii) the activity converging on the head event. = (iii) TL of event 6 = (iv) TL of event 5 = (v) TL of event 4 = (vi) TL of event 3 = = (vii) TL of event 2 = (viii)TL of event 1 = 7-^7=0 The latest event time of each of the events are shown in the network (Fig. 12.18). 14-7=7 Min(21-7, 17-2,28-5) Min (14, 15, 23) =14 21-4=17 28-7 = 21 28-7 = 21 30-2 = 28 Latest event time of event 7 = Latest event time of head event less duration of
30
Unit 12
Fig 12.18 Analysis of activity durations

Mere computation of event time is not sufficient, equally important is the task of establishing the date at which each activity should start and end to maintain:
(i)
Earliest starting date (ES)

The network logic indicates that an activity can not commence until its preceding event is completed. This implies that the earliest start time of an activity equals earliest event time (TE) of the tail event. Symbolically, ESij = TEi
(ii) Earliest finishing date equals the earliest event time of the tail event plus duration of the activity emanating from the tail event. Symbolically EFij = TEi + tij or EFij = ESi + tij (iii) Latest finishing date is the latest event time of the head event. Symbolically LFij = TLj
31
(iv) Latest starting date is the latest finishing time minus activity duration. Symbolically LSij =LFij -tij Table 12.6 illustrates the above calculations for the activities of the network of Fig. 12.16. Computation of slack (Float) Slack (or float) is the leeway available to the project planner to have flexibility in allocation of resources. Slack is mainly of two types: total slack and free slack. All activities lying on other than critical paths contain total slack and some of them also contain free slack. Total and free slack have following significance: (i) Total slack of an activity represents the time duration by which an activity can be delayed or extended without extending the overall duration of the project. Free slack represents the time duration by which an activity can be delayed or extended without delaying any subsequent activity.
(ii)
Determination of total float

Total float of the activity implies the excess of available time over its duration. It is thus the duration by which an activity can be delayed without affecting the project completion time. In other words, total float is the maximum leeway available to an activity when all preceding activities occur at the earliest possible time and all succeeding activities occur at the latest possible time. Total float of an activity thus can be obtained by subcontracting the earliest possible finish time of the activity from its latest allowable possible finish time of the activity. Ft = LF - EF Total float of an activity is calculated as follows: Total float = Latest event time of the head event minus Earliest event time of the tail event minus Activity duration. T Li-TEi-tij For the network shown in Fig. 12.19 total floats are tabulated in table 12.6.
32
Unit 12
Free float Free tloat refers to that portion of total float within which an activity can be manipulated without affecting the float of succeeding activities. Free float results when preceding activities occur at the earliest event times and all succeeding activities also occur at the earliest event times.
li
Free float can be obtained as under: Free float : Earliest event time of head event minus Earliest event time of tail event minus Activity duration T Ei - T Ei - t i j Alternatively, free float can be obtained by subtracting slack of the head event (slack of succeeding event is the difference between TL and TE) from the total float. Free float calculations for the network in Fig. 12.19 are given in table 12.6. Table 12,6 Computation of activity durations and floats
Events comprising
m al
N
ed
the activity
Activity Tail Head
Activity duration (ES) = Earliest event time (TE) of the tail event
Earliest start (EF) = ES + te event
Earliest finish (LF) = Latest
Latest finish (LS) =
Latest start float
Total float
Free float
Independent
L F- t e time
(TL) of the head event
1-2 2-3 3-4 3-5 4-6 3-7 5-7 6-7 7-8
1 2 3 3 4 3 5 6 7
2 3 4 5 6 7 7 7 8
7 7 2 7 4 5 7 7 2
0 7 14 14 16 14 21 20 28
7 14 16 21 20 19 28 27 30
7 14 17 21 21 28 28 28 30
0 7 15 14 17 23 21 21 28
0 0 I 0
0 0 0 0 0 9 0 1 0
0 0 0 0 0 9 0 0 0
1
9 0 1 0
33
Critical Path based on floats:

Floats suggest the leeway available and its knowledge provides the flexibility from scheduling point of view. The network, therefore, may contain a path(s) which have no leeway (i.e. have zero float). Such a path(s) is (are) called critical path(s) since any delay in the completion of activities on the critical path affects duration of the project. Critical path is characterized by zero float and for the example on hand it comprises of activities. 1-2, 2-3, 3-5, 5-7 and 7-8. Critical path does not remain always fixed. A change in expected time of an activity or activities can cause a change in critical path.
Scheduling the activities of a project:

Scheduling is the most important consideration in critical path analysis. Scheduling is the process of assigning calendar dates to the various activities. To prepare a schedule a time chart is prepared which is then converted into a calendar schedule. The method of drawing the time chart and then project schedule is as under: (i) A suitable scale on the graph paper is selected and it is marked in pencil.
(ii) To construct a chart, critical activities are first inserted into the time chart. Non-critical activities are then added into the chart by indicating their earliest completion time limits. (iii) The dummy activities are also entered into the time chart. They are shown by vertical lines in the chart since these activities do not consume time. (iv) The plotting of activities - critical, non-critical and dummy activities - is strictly according to their precedence relationships. (v) The critical activities are shown by solid lines, non-critical activities by thin lines and total floats of non-critical activities by dotted lines. (vi) The time chart if necessary may be slightly modified considering the limitations of resources. (vii) The time chart is then dated to obtain time bound project schedule. Fig. 12.19 shows the network of a small project, and Fig. 12.20 gives its time chart (squared network).
34
Unit 12
^"Activity E: Calculate the duration of the project mentioned in Activity D.
12.7 COMPUTER APPLICATIONS IN PROJECT MANAGEMENT _________ Most of the computers, including PCs, these days have well written CPM/PERT packages. Some of them even include project crashing and resource allocation. These packages provide the necessary information needed for efficient project management. Use of computers in project management: Projects have become more and more complex. This leads into a higher demand in managing all project related information, handling project documentation and communication between all team members. At the same time project manager and controller need current information about the utilization of team members and the caused costs at all time. All team members should be informed of project changes to avoid time consuming enquiries. Changes to the project documentation should be possible easily and from everywhere. Today many software are available to help us to plot CPM, PERT and Gantt Charts. Software helps us in the following ways : '1.
3. 4.
Project Planning 2.
f.
P r o
1.
Project Planning : Project planning is a ti j a specific task .This is a very important in\ e software helps in the entire list of activities in showing the task which affects, task c affecting the project schedule/ s
t Communication Project Documentation

GO
Project Control) ing

45
2.
Project communication ; One challenge in project management is the smooth and lossless communication between all project members. They should be on the same level of information and be notified of any changes at all time. In order to do so, no additional effort should be necessary for the team members. They will then be free to be able to do more important tasks. Automatic project specific email distribution lists keep you up to date about all important changes made to your project, (change in the time table or the status of a task, new project information or new or modified documents).
3.
Enter project information via email when away from the office.
Project documentation: Do you also have to look on your server, in your email archive or on your laptop to find important documents for your project meeting? And after all three of your team members come up with three different versions of this document? Use of computer saves project relevant information and documents in a structured way - fitting your project plan. So the whole project team has access to al! relevant data - the same data! You can access, change and add all project information via browser. Various search options will help you to keep an overview of your projects. Project controlling : You need the actual times needed and costs for the after-calculation of your projects? Your customers expect to get a time and cost listing when they get their bill? You don't want to wait until all team members return from the customer's site to the office to write down their working times just to get the actual status of your project. Collect all working times and project costs directly on site using a browser and computer software automatically generated reports will help you to keep your overview of the project's progress, times and costs at all times. 12.8 SUMMARY Projects are one time large tasks comprising of a set of activities which are interrelated with each other. A systematic way of describing the interrelationships of the activities is the making of an arrow diagram called network. Project management deals with time scheduling, resources allocation, updating and monitoring of the activities. If the activity times are deterministic then critical path method can be used to identify critical activities. The slacks/floats associated with each activity can be used for economic allocation of resources. When the activity time is probabilistic, PERT technique can be used. In this method, three time estimates are made for each activity and these are used to compute
38
13.1 INTRODUCTION
Today's plants are regarded as high technology plants. These plants, compared to plants of past years, are bigger in capacity, involve high speed machinery, complex and precise designs, more automation and therefore pose difficulties in maintenance. In lieu of large capital investment, down time cost of these plants is enormous. Since machinery and its arrangement is engineered for continuous production, stoppage/ malfunctioning / breakdown of a single machine can cause stoppage of the whole plant. This is true more so in chemical process industries. With the advancement of technology, production function is getting simplified day by day due to built-in automated controls, while maintenance function is becoming complex, increasingly difficult and important for survival. All machines tend to deteriorate in performance with use over the period due to the process 1 of wear and tear. A number of factors contribute to the functional degradation (or wear; and tear) of the machines of which typical ones are: temperature rise, vibrations, looseness, j seasoning of parts, accumulation of dust, rusting of parts etc. The process of deterioration of the machine is reflected in: The inability of the machine to take up the specified load. The inability of the machine to produce within the specification limits, thereby causing 1 rejection and/or rework. The inability of the machine to attain specified speed (e.g. vehicles). The reduction in the useful life of the various components of the machine (i.e. frequent | failure of parts). Increased hazards to the safety of employees working on or near the machines.
This process of deterioration, if not checked, culminates into an eventual breakdown, an unplanned and unexpected stoppage of the machine. Systematic maintenance though can't eliminate the process of wear and tear yet it can significantly lower it Ajgood maintenance system is not a luxury but a necessityjÔne of the major causes of poor pr61IuWvity~oi j Indian industries is poor maintenance practices. Majority of the companies in India use the concept of breakdown maintenance which is too costly to use (six big losses explained later). }
50
Unit 13
Maintenance of the Plant
13.2 TYPICAL CAUSES OF PLANT BREAKDOWN _____________________

Besides design/manufacturing defects, the cause of plant breakdown can be attributed to one or more of the following: "T, I" Excessive friction between the parts (e.g. insufficient/improper/lack of lubrication). Failure to replace parts that are known to wear (e.g. filters contacts and Neglected cooling system (e.g. failure to clean vents, grills and ducting
7
. . .. *. , , ^
brushes). i etcjMj.
^,
4.
Neglected common minor faults, (e.g. vibrations, temperature, metal fatigue in minor items such as retaining or contact springs and locking devices).
5,/ Temporary or permanent external factors leading to plant failure (e.g. overloading of machines, wrong fuel, obstruction of air intakes, faults in another items of equipment). Design or manufacturing defects of the equipment (or its one or more components). Installation deficiencies. 8. Improper handling of the machine by the operators (e.g. lack of knowledge, improper training).
Âctivity A; What are the typical causes of a breakdown of a two wheeler?
13.3 COSTS ASSOCIATED WITH AN EVENTUAL BREAKDOWN

Unplanned and unexpected stoppage of a machine can cause big losses consisting of the Killowing tangible and intangible losses. (The intangible losses are marked in this list with austerik * marks) 1. Down time cost: Down time cost refers to the loss due to non-absoq^tion of overheads for the period she machine is under breakdown and it approximately equals the product of machine hour rate and down time of the machine.
51
2.
Idle wages :
Idle wage paid to the direct workmen for the period the machine is under repairs and, it equals the product of labour hourly rate and down time of the machine.
3.
Loss of materials :
Unexpected breakdowns usually result in loss of material being worked upon which is either to be scrapped or reworked.
4.
Cost of repairs :
\ "' - "*
Unexpected breakdowns usually cost more to repair, partly due to damage done to the adjacent components and partly due to the emergency action. |
5. 6.
Opportunity cost:
Opportunity cost implies the foregone profit due to inability of the company to produce.
Effect on other machines :

The broken-down machine at times may render other machines which are dependent on deceased machine, idle. The cost of idle time of such machines requires to be considered towards cost of breakdown.
7.
Expediting cost:
Eventual breakdowns are not anticipated. The disturbed schedules cause queuing' which leads to overtime, offloading on other units, job splitting etc.
8^
Accident cost:
Accident cost implies the compensation payable to the employee for the injury caused i by the eventual breakdown. Injury to the workmen may be caused either directly from the breakdown or indirectly from the confusion and hurried actions required to repair the machine. The accident cost for certain equipments like pneumatic chucks, pressure vessels, relief valves, electric hoists and cranes, temperature control devices, hooks, chains and eye bolts, slings and cables, elevators etc. can be especially high.
9.
Added set up cost:

Breakdown on a machine is normally accompanied by added machine set ups' due to (i) Re-setting of job on the broken down machine after it has been repaired, (ii) Change of job(s) on the machine(s) effected by the broken down machine.
10. Tool breakage :

The failure of hydraulic system in a machine, for example, may result in loosening of job thereby causing breakage of tool. Similarly, the failure of rapid traverse in a milling machine may cause breakage of the milling cutter.
52
Unit 13
11. Increase in WIP investment:
Breakdown on the machine usually increases manufacturing cycle time since jobs are held up near the broken down machines which increases investment in WIP inventory.
12. Overtime wages paid to the maintenance:
Since the machine has brokendown in normal production, it is very likely that it will be required very urgently. Overtime payment will have to be paid to maintenance team to get the machine back into operation at the earliest.
13. Premium paid on the spare parts:
If a spare part is required and is not readily available it will have to be purchased from the market at higher (premium) price.
14. '"Reduced life of the equipment:
Frequent breakdowns tend to reduce the life of the equipment thus necessitating premature replacement of the equipment which not only entails capital investment but also affects depreciation structure.
15.* Broken promises:

Eventual breakdowns usually cause failure in delivery commitments. And frequent failures in delivery commitments in turn lead to customer dissatisfaction, or at times even cancellation of orders, or loss of customer.
16.* Lowered morale:

ased ctly A shop plagued by frequent breakdowns of the machines accompanied by changes in machine setups, splitting up of planned batches, supervisors shouting at the pitch of their voices, production control personnel following up supervisory staff to expedite items, refusal of the supervisor to sanction leave etc. is hardly expected to have good morale.
17.* Higher spares inventory investment:
lips
No fixed pattern of consumption of spares can be expected if there are eventual breakdowns. In order to shorten down time period, usual tendency is to stock large number of spares in the store. Such inventory usually consists of parts which do not move for a long time.
18.* Cost of standby equipment: ]
I
Many a firms in order to keep their production going, install equipments. Such investments lockup scarce capital.
53
Âctivity B : a) The nature of a breakdown is mentioned below. Identify the appropriate costs associated with it. A machine stops working: a. due to bearing failure. b. due to nonavailability of material, c. due to right tools are not available. d. due to power failure.
b)
In a car servicing workshop having 30 mechanics and 3 compressors, which are the costs associated with breakdown of one compressor?
13.4 OBJECTIVES OF A GOOD MAINTENANCE SYSTEM
____
Maintenance system in any industrial firm needs to be engineered to serve the following objectives: Ensuring maximum plant availability by preventing unexpected breakdowns and by reducing shutdown periods. Maintenance of equipment at its rated productivity and original accuracy. Minimization of wear and tear to increase the longevity of the equipment. Elimination of unsafe conditions that cause accidents thereby ensuring safety of the workmen. Increase in productivity of machines though improvements and modifications made during scheduled overhauls. *| Achievement of all the above objectives at the least cost of the company. 13.5 TYPES OF MAINTENANCE Maintenance is of two types: Unplanned maintenance. 1. Planned maintenance and Planned maintenance
Planned maintenance refers to the system of maintenance wherein the maintenance work j is planned (i.e. maintenanceâctivitiesjre dovetailed with a time schedule) in advance work is executed as per schedule, actions taken (maintenance work activities performed)! are recorded on completion, historical and statistical records so produced and maintained are reviewed/analyzed to identify gaps/deficiencies in planning and feedback is utilized to;
54
Unit 13
>,',.;:>>
devise strategies (adjust/modify/incorporate changes in the original p]an) for accomplishing better performance. Fig, 13.1 shows the stages (i.e. planning, scheduling, executing, recording, analyzing and controlling) in a planned maintenance work cycle. Planned maintenance can be divided into preventive maintenance and corrective maintenance.
Planning maintenance work cycle
Planning
Controlling
Scheduling
I
Analysing
------------ . -------------- . Executing

i
Recording
Fig 13.1: Steps involved in a planned maintenance work cycle a)

Preventive maintenance anticipates failures and adopts necessary actions to check failures before they occur. Itiricludes activities like inspection, lubrication, cleaning and upkeep, minor adjustments and replacements*7oTinTn^c^ssary^r!nT!mS of inspection etc. Preventive maintenance can be either: "running maintenance" or "shut down maintenance." "1 "Running maintenance includes preventive maintenance activities (e.g. minor adjustments in machines revealed through inspections, lubrication, cleaning and upkeep etc.) which are carried out when the machine is still amning. Shutdown maintenance includes preventive maintenance activities such as minor component replacement whose needs are identified through inspections which require stoppage of machines. Preventive inspection is one of the key activities of preventive maintenance which is usually performed by making use of human senses - watch (eye), listen (ear), touchy (hand, leg, body X^mÛnose) anidta^tej(tongue) - but the trendTs now changing towards use of condition moTTrfoTmgTmtrulin^nts. Such a maintenance practice is known as predictive maintenance or condition based maintenance.
b)
Corrective maintenance: Preventive maintenance can significantly reduce the rate of wear and tear of machinery but can't wholly eliminate it. Equipment thus functionally degrades over the period and its performance gradually drops below its acceptable
5 5
limit. Corrective maintenance is the main tenance work undertaken to compensate for we%
Even if the firm has adopted preventive maintenance, some corrective maintenance work is required, nameiy To rectify malfunction due to chance failure of the parts. To rehabil itate /recondition of the equipment. To replace major parts which have worn out (e.g. replacement of tubes in a boiler). To improve reliability and maintainability of the equipment by making changes in design, materials, manufacturing process of parts thereby eliminate the need for maintenance or reduce frequency of breakdowns.
Planned corrective maintenance mostly include planned major repairs and overhauls. Since equipment during these maintenance activities is essentially stopped, such maintenance aptly is referred as "Shutdown maintenance". Planned corrective maintenance also provides an opportunity to undertake design! modifications in the equipment to eliminate the need of maintenance or reduce frequency of breakdowns. Such type of maintenance is known as "design-out maintenance". Design modifications may also be made to reduce time/effort required in carrying out maintenance work. Such type of maintenance is called as "design-in 2. Unplanned maintenance :
Since in spite of elaborate planned maintenance system, chance equipment failures can still occur, the firm will always have some unplanned maintenance work. Unplanned maintenance thus is the maintenance work performed which is not conceived in advance. Unplanned maintenance can be categorized as (i) Emergency maintenance and (ii) Breakdown maintenance. I
,,<-.,. . .ja rf ul*
Although emergency maintenance and breakdown maintenance are used synonymously (perhaps because both relate to equipment failure and down time which is not foreseen) yet in some respect they differ from each other. Emergency maintenance is truely an unplanned maintenance as the equipment failure is not foreseen nor resources required to fix these i unforeseen failures are planned. Breakdown maintenance, on the other hand, may partly be planned as failures can be considered in advance though timing of the failure may not be known (provision can be made by planning other resources such as tools, spares and replacements).
56
Unit 13
Incase, the resources for breakdown are not considered and planned, then breakdown maintenance is to be treated as unplanned maintenance. And if resources have been provided for, the breakdown maintenance may be trusted as planned maintenance. In this text, we have considered breakdown maintenance as a unplanned maintenance. Different maintenance practices mentioned in the preceding paragraphs can be summarized as shown in Fig. 13.2.
MAINTENANCE
Planned Maintenance
Unplanned Maintenance
Preventive Maintenance
Corrective Maintenance
Running-in Maintenance
Design-in Maintenance
Shutdown Maintenance
Design-out Maintenance
Predictive Maintenance
Shutdown Maintenance
Unplanned Maintenance
Fig 13.2 : Types of maintenance

ied
(n)
Âctivity C:
con) med fx these i partly r not be js and
The situation of a machine is explained below. Identify the type of maintenance necessary to rectify the problem. The machine has stopped due to: 1) The burning of the motor. 2) Motion slide gives variation, (presently not affecting production) 3) Noise coming from bearing.
5 7
4. To perform regular maintenance as per the plan & checklist.
13.6 ELEMENTS OF A GOOD MAINTENANCE SYSTEM Each equipment and its different systems (parts and components) are subjected to stress and physical exhaustion which cause their wear and tear. Temperature changes, vibrations! friction between the mating parts, corrosion etc. are but to name few which cause deterioration and create a gap between the performance of the system in use anc( performance obtainable from it. Some sort of action is necessary to (i) keep rate of we and tear at its minimum and (ii) restore the equipment back to acceptable level when the| gap in performance increases beyond acceptable limit. Such actions/activities are terme as maintenance. Maintenance thus may be defined ' 'A set of activities performed to keep equipment in the specified condition or it is a reme action to restore the equipment to its specified condition." The act of keeping equipment in the specified condition is called, preventive maintenanc while the act of restoring it is called corrective maintenance. Therefore, two basic constituen of a maintenance system are: preventive maintenance and corrective maintenanc (Fig. 13.3).
SYSTEMATIC MAINTENANCE
Maintenance system engineered to ensure higher plant availability at the lowest maintenance cost
Maintenance activities to keep the equipment in the specified condition (Preventive Maintenance)
Maintenance activities to restore the equipment to its specified condition (Corrective Maintenance)
HIGHER MAINTENANCE PRODUCTIVITY
Fig 13.3 : Elements of a systematic maintenance

58
Unit 13
Âctivity D : The situation of a machine is explained below. Identify the type of maintenance necessary to rectify the problem. The machine has stopped due to: 1 The burning of the motor. 2 Motion slide gives variation.( presently not affecting production) 3 Noise coming from bearing. 4. To perform regular maintenance as per the plan & checklist.
13.7 PREVENTIVE MAINTENANCE Preventive maintenance is the maintenance system wherein certain maintenance activities are carried out in a planned manner with an explicit objective of detecting weak spots; and the perfect functioning of the plant is ensured by suitable preventive measures including replacement of parts which could still be used. Such preventive measures provide a high degree of reliability to the machine. [Preventive maintenance perhaps finds its origin from the adage that "preventive is better"! thancufe^ As in public health programme people are often inoculated as a preventive measure against epidemical disease, similarly preventive maintenance is employed in the industry to protect plant an machinery from perennial breakdowns. Preventive maintenance works because almost no equipment fails without showing the signs of malfunctioning. If a fault is detected when it is still in a pre-matured minor stage, eventual breakdown of the equipment can be prevented. Preventive maintenance advocates maintenance procedures whereby the condition of the plant is constantly watched through systematic inspection to unearth unheaj.tly^pnditinsand preventive action (major or mmofrepairs / replacements are made) is taken to^revelFunsclTeûled'interruption to the plant and equipment. The preventive maintenance is therefore based on famous age old saying - "A stitch in time saves nine" Basic activities of preventive maintenance : Preventive maintenance encompasses the following activities: 4) Preventive inspection /*
(irf Planned lubrication 59
(iii) Cleaning and upkeep (iv) Minor adjustments and repair (y) Equipment records (yi) Spares control (vii) Condition monitoring Fig. 13.4 lists the above activities of preventive maintenance and various maintenance concepts to be exploited. 1. Preventive Inspection
PREVENTIVE MAINTENANCE
Preventiv e inspection
Planned lubrication
Cleaning and upkeep
Minor adjustments and replacements
Equipment records
Spares control
Planning of preventive maintenance activities
1. 2. 3. 4.
Equipment categorisation Preventive inspection schedules Lubrication schedule Cleaning and upkeep schedule
Maintenance concepts to be exploited
Failure statistics analysis
MINIMUM DOWNTIME
Fig 13.4
60
Unit 13
Preventive inspection is an integral part of the preventive maintenance programme. Inspection is carried out systematically, at periodical intervals, by the staff specially trained, to determine the condition of the equipment. Preventive inspection identifies: Parts which are might have worn out or deteriorated. Surfaces which might have got corroded. Bolts and nuts which might have become loose due to vibrations. Elements (e.g. lead screw and nutvworm and worm wheel, etc.) which might have developed excessive play (or backlash). Alignments which might have gone out of order. Defects which might have been caused due to overheating. Other hoists of defects.
These defects if not corrected on time may cause malfunctioning of the equipment, or result in breakdown of the machine, or be a reason for the hazards. Corrective action can be taken if they are noticed well in time ancTbreakdown can be avoided by rectifying them when they are still in minor stages. Such a maintenance approach is helpful in number of ways: If the impending problems are of not serious nature, the repair work can be carried out without affecting production. Production personnel can be told of the impending danger (if is of serious nature) and can be coaxed to release the machine immediately for repairs which reduces friction between the departments. Such repairs require lesser time as compared to that of breakdown repair which reduces maintenance cost and improves plant availability. Preventive inspection is of two types: (i) External and (ii) Internal. External inspection is the inspection intended to detect such as abnormal sound, heat, smoke, vibrations, etc. and is carried out, by making use of human senses, when the quipment is in operation. ' ~ " '~ " - ~" Five human senses and typical maintenance related characteristics that can be observed by preventive inspection are recorded in Table 13.1.
Table 13.1: Preventive inspection by five human senses
Human sense
!.-' Eye (watch)
Typical maintenance by five human senses

Leakage (oil/water), wear, crack, oil level/oil gauge, scoring, smoothness of rotation/slide, dust, corrosion etc. Impact, rotation, air leakage, looseness etc.
2xEar (listen)
6 1
1
Vibrations temperature, roughness, dust, crack, air leakage etc. Burn-out, exhaust gas or oil. Sweet, salt, acid
3. i 4. 5. (i) (ii) (iii) (v)
Hand, leg and body (touch)
Nose (smell) Tongue (taste)
For example, Deviation from the normal sound of the machine can be heard. Temperature of motors, bearings, and similar parts can be felt. Scoring of parts caused due to wear can be observed. Inspection of sight glass can reveal whether or not gear elements are getting lubricated.; or not.
(iv) Bolts and nuts which become loose due to vibrations can be identified and tightened.
Internal inspection is meant to identify defects in moving parts, internal cracks, and others when the machine is under pre-planned shutdowns. Internal inspection may also be conducted to investigate into the causes of defects noticed during external inspection. For example, equipment requires to be stopped to study the: Wear of the gears. True running of the spindle.
When to inspect?
Maintenance activity apparently involves conflict, the conflict of departmental objectives. Production personnel expect maximum machine availability and demand instant service! and quick repairs whenever plant failure occurs while maintenance men like to plan workl in a way that utilizes departmental resources efficiently as far as possible. Preventive inspection, as a general rule, should be carried out without interrupting production activity, A great deal of opportunity exists to do this: Natural breaks during working hours (Some of the preventive maintenance activities can be synchronized and performed during natural gaps like lunch breaks of the production workmen). Non-production hours (2nd and 3rd shifts in companies working single shift). Weekly off and holidays. Stand-up-equipment. Machine set-ups.
62
Unit 13
Preparation of maintenance inspection schedule <^

Inspection schedule is the time frame for the maintenance needs of the eqtii^, manufacturers provide guidelines regarding maintenance in the instruction manuals s along with the equipment. Information can also be obtained from the users of similar quipment. Table 3,2 shows a typical inspection and adjustment schedule of an engineering firm at Pune. Table 13.2: Typical inspection and adjustment schedule DWGIMETALWARES PREVENTIVE ACTIVITY PRIVATE LTD. MAINTENANCE INSPECTION AND PUNE 4. ADJUSTMENT S^Jo. Elements Frequenc Activity description Remarks 1. 2. ,3. 4. Belts Clutches Worm and worm wheels Square tool post Gears y Check tension : tighten Weekly Six monthly (or) replace, if necessary. Six monthly Adjust Check back-lash, adjust (if necessary) Six monthly Check (location), replace bushes (if necessary) Yearly Inspect for wear, replace Belts replaced in the preceeding week needs to be tightened in the next week
k s.
7. Spindle bearings 8.9.
Yearly Yearly Capstan & aprons Yearly Pulleys Nipples Weekly
if wornout or excessive back-lash Check for life and end play, adjust (if necessary). Remove, clean and check for play, replace bushes (if necessary) Inspect for alignment and wear Observe all points, replace if damaged or spoiled.
Note : Inspection reports prepared at the time of cleaning and inspection will reveal any wear development and spare parts should be ordered in readiness.
63
2.
Planned Lubrication
Planned lubrication is said to be the nervous system of the equipment. Regular lubrication with carefully selected lubricants is an essential factor in the maintenance of high grade machine tools working under continuous loads. Lubricants help to Retard the rate of wear and tear of moving parts by converting solid friction into liquid friction. Keep the temperature of bearings within the allowable limits. Protect parts from moisture, dust and corrosion. Keep power consumption within the allowable limits.
Studies have shown that root cause of most of the breakdowns is the failure of the lubrication system and a well planned lubrication programme must form the nucleus of the preventive maintenance programme. Essentials of well planned lubrication systems are: Proper identification of lubrication points (Right place). Right selection of the lubricant. (Right quality). Optimum frequency of lubrication. (Right time). Optimum quantity of the lubricant. (Right quantity). Proper care and storage of lubricants (Right care).
Planned lubrication involves the following activities: a) Proper identification of lubrication points
Development of a good lubrication programme begins with the identification of lubrication points. Many a times, the very presence of a lubrication point is not known to the oilmen. It is, therefore, essential that all lubrication points must be identified clearly and made known to the oilmen. Most valuable source for this type of information is the manufacturers' instruction manuals. Most of the manufacturers of equipment append lubrication layouts to the instruction manuals. The lubrication points shown on such a layout however need to be confirmed on the machine.
64
Unit 13
A systematic and more rational approach is to conduct a "lubrication survey" for each of the existing machines. Also the new machine on its arrival should be subjected to lubrication survey. Once the lubrication points have been identified, they should be put into black and white to ensure that nothing is left to the memory of the oil men. The "lubrication layout" concept is a very useful concept in this direction.
:o
Alubncation layout besides showing the exact location of the lubrication points also incorporates method of lubrication, lubricants to be used, frequency of lubrication and the quantity of the lubricant to be used. To provide clarity, more than one view of the machine may be shown on the layout.
ve
b) Periodical cleaning of oil sumps * Periodical removal of used oil from the gear boxes, feed boxes and worm gearing tanks is another important activity of the planned lubrication. The lubricating oil of the right quality should be filled into the tanks after thorough cleaning of the tank at the time of the commencement of the machine. After around 100 hours, the tank must be drained with kerosene oil and new oil filled in. A further change of oil then should be done after every six months. "~"""""""
Used oil need not be scrapped. It can be used for general lubrication.
c) Cleaning of plunger pumps -
/YY)^
ff
lion len. iade rers' Is to obe
The gear elements in many a machine tools - radial drilling machines (HMT), capstan lathes (Mysore Kirloskar), gear shapers (HMT) etc. - are automatically lubricated by a plunger pump which draws in oil from the reservoir in the bottom part of the gear box. The pump is fitted to the driving shaft which sucks oil from the container and splashes periodically on the gear. The pump requires be withdrawingonce a year andcleaning thoroughly. Also the oil reservoir requires be draining of used oil and filling with fresh oil. j/s tj
d) Lubrication of bearings in the motors -
, ,
n/fl'C
Bearings require to be filled with grease (covering half of the raceway) once a year.
e) Replacement of wicks
" " " * " * ' "
Wick lubricators must retain their capillary action. Oil wicks, therefore, needs to be replaced at regular intervals, say once in six months.
6 5
f)
Replacement of damaged oil nipples
Oil nipples may get damaged due to careless use of oil gun at the time of lubrication improper handling of jobs/tools by the operator. Damaged nipples should be replaced by new ones. g) Replacements of gaskets
Old gaskets become hard and lose their sealing ability. Schedules should be prepared for periodical replacement, say once in^bunonths, of gaskets. To economize on cost and time, gaskets pre-cut to the required form, should be purchased and stocked. h) Table lubrication ----
Table lubrication of cylindrical grinding machines, spline grinding machines and others should be checked up every week. Right time of lubrication Parts lubricated with the aid of oil nipples needs to be oiled once a day. Tool slides and guide ways normally require to be lubricated two to three times a day. Oil filler provided in the machine tool to maintain level in the gear box / feed box etc. should be covered by the screwed cap and oil filler should be topped upto the required level regularly. ,x^ Table lubrication should be checked up every week. pil reservoirs, from which a plunger pump draws in oil should be drained off and refilled with fresh oil once a year. Gear boxes, feed boxes and worm gearing oil reservoirs require to be drained off and fresh oil needs to be filled after every six months (if the machine is run on two shift basis). Responsibilities of lubrication The responsibility of lubrication in a small unit may be delegated to the workmen under the control of the shop supervisor. And in a large unit, the responsibility of lubrication should be placed in the hands of a central lubrication body under the supervision of Lubrication Engineer. The body operating on a planned schedule should ensure that every unit in the entire plant receives correct and regular lubrication.
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Unit 13
Many a sophisticated machine tools like gear hobbers, spline grinders, boring machines etc. have centralized lubrication systems. Hand lever provided on to the machines for centralized lubrication requires to be actuated two to three times per shift to enable lubrication of the elements. Such lubrication system naturally requires that the task should be delegated to the workmen. 3. Cleaning and Upkeep
Cleaning and upkeep of the machines is another important activity of preventive maintenance. Periodical cleaning of the machine is required to prevent ingression of dust into the components. Dust gets mixed with lubricants, forms an abrasive substance and causes pre-mature failure of machinery. The collection of dust on equipment also leads to destruction of protective coatings which further accelerate the rate of wear and tear of the equipment. Besides periodic cleaning of machines and surrounding areas provides tidy and clean working environment which itself improves maintenance efficiency. The activity of periodic cleaning of machines is usually assigned to workmen. However, machine elements and accessories which require dismantling are attended to by the maintenance department. A well designed preventive maintenance system incorporates periodic cleaning of plant and equipment schedules as a part of its preventive maintenance activity. Typical examples of cleaning activities are given below: Transformers, Rectifiers, Resistors etc. need no maintenance except normal cleaning. The terminals elements however, require to be inspected and tightened (if necessary) once in six months. Motor terminals connections require to be checked up and tightened (if necessary) once in a year. Contact Tips of contactors, limit switches, push buttons, fuses etc. are subjected to mechanical wear and electrical burning. They need to be inspected every 1500 hours of operation (i.e. once in 4 months, if equipment runs two shifts per day). If contacts are pitted, they should be cleaned by wire brush followed by application of a thin layer of petroleum jelly. And if they are badly burnt, they require to be replaced.
Motors, Fan Blades and Fins of Motors require to be cleaned every year by blowing dry air to keep the ventilating passages clear and should be overhauled after 4000 hours (i.e. once in a year if equipment runs two shifts per day.) Motor Bearings and Bearing Covers removed at the time of overhauling of motors should be cleaned with pure benzene, dried out, rinsed in spindle oil heated to about SOT, and finally lubricated with fresh grease covering half of the bearing raceway.
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Guide ways and the complete machine require to be cleaned atleast once in a week using clean rags. Pneumatic Chucks require to be dismantled and cleaned once in a month. Hydraulic Oil Tanks need to be kept clean and free from chips and dust ensuring sufficient oil level at all time. Filter-in-oil tanks require to be cleaned once in six months. Carbon brushes on converters and D.C. Motors need to be cleaned and replaced (if necessary) once in a quarter. Filters require to be cleaned once a month. Aprons, tool posts, tool slides need to be cleaned once in a month. Airtools, hand chucks, airchucks require to dismantled and cleaned once a month. Modular replacements concept may be planned for the purpose.
Table 13.3 shows the cleaning work done at a typical engineering firm.
t - / " " ' ,/ Table 13.3: Cleaning work done at typical engineering firm
PRODUCTIVITY SERVICES F.C. Road, Pune - 411 009 PREVENTIVE MAINTENANCE ACTIVITY CLEANING
S.No. Elements
1.
Work to be done
Frequency W e e kl y^ ,
Machines All All
2. 3. 4.
Complete machine Clean all parts with clean cotton rags Should be emptied several Swarf trays times in a day Lubrication oil filter Strip, clean and replace Hydraulic oil filter Remove, clean and re-fit
22. 2
Monthly ^ Monthly ^
5.
Strainers Plunger Pumps Head stock
Remove and clean Remove, strip and clean Remove head stock cover, clean oil distribution plates, flush out interiors and scrub gears with clear paraffin.
Monthly
All machines with hydraulic system
6. 7.
Six monthly Six monthly Centre lathes Capston lathes
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PRODUCTIVITY SERVICES F.C. Road, Pune - 411 009
PREVENTIVE MAINTENANCE
ACTIVITY CLEANING
S.NO. Elements
8. 9.
Feed box Coolant sump, filters and pumps Cutting oil tanks trolleys Hydraulic oil Pneumatic chuck Hand chucks Aprons Capstan Toolposts
Work to be done
Drain, clean sump, filters and pump Drain, clean tank and refill clean Drain off by filtering pump, check viscosity and re-fill Strip clean & oil all parts Strip clean & oil all parts Strip clean & oil all parts Strip, clean and oil
Frequency Machines
Six monthly Monthly Capstan lathes Quarterly Weekly Quarterly Monthly Monthly Quarterly Yearly
10A. 10B. Materials handling Collect oil from trolleys and 11. 12. 13. 14. 15. 16.
17. 18. 19. 20. 21. 22. 23.
All All
Machines with hyd. systems

Centre lathes Capstan lathes
Strip, clean and check locations Air chuck cylinders Strip and clean Air tools Strip, clean & oil all parts Tail stock Strip, clean & oil all parts Fluorescent Tubes Clean tube and fixtures and bulbs Fans Clean with petrol Bus bars Contacts of contactors limit switches Clean with petrol Power contactors Clean Auxiliary contacts, contactors replace if badly burnt or wornout Remove from machine, strip, clean ventilator & varnish
Six monthly Centre lathes, Capstan lathes Yearly Weekly Weekly Monthly Six monthly Exhaust fans & Air fan Six monthly Yearly
24.
Electric motors
Yearly
All
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4.
Minor Adjustments and Replacements
Preventive inspection may identify certain points which require minor adjustments and or replacements. Typical examples are: Tightening of loose parts. Replacements of oil filter and oil seals. Replacement of damaged oil nipples.
Depending upon the urgency of work these preventive maintenance jobs require to be scheduled.
5.
Equipment Records
Good record keeping is the essence of good preventive maintenance. The following documents and records must be maintained for smooth working of the department:
a)
Instruction manuals
Instruction manuals are the catalogues supplied by the manufacturers of the machines along with the equipment. An instruction manual: Gives instructions regarding installation and operation of the equipment. Enlists points for lubrication, frequency of lubrication, and type of lubricant. Guides maintenance department regarding preventive inspection of the different parts of the equipment. Contains notes on common troubles with causes and remedies for trouble shooting ] by the maintenance staff.
Instruction manuals are, therefore, very useful catalogues. They must be arranged, numbered and filed properly so that they can be located, when required, without loss of time. Equally important is to maintain drawings of the parts of the equipment. Manufacturers do not always give drawings of the components. Drawings may be prepared for the parts which can be made at the home plant.
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b) Spare-parts catalog Some manufacturers furnish separate catalogue of the consumable and replacement spares of their equipments. Such catalogues, therefore, must be maintained properly so that identification of the worn out parts is made quickly. c) Electrical and hydraulic circuits diagrams Electrical and hydraulic circuits diagrams are normally appended to the instruction manuals. These diagrams, due to frequent use by the maintenance personnel, get dirty, torn or even lost. It is, therefore, recommended that such diagrams should be removed from the instruction manuals and transformed on tracing paper. Only blue prints of the traced diagrams should be issued to the maintenance personnel while their tracings should be kept in the drawings office/library. d) Equipment cards An equipment card (Fig. 13.5 and Fig. 13.6) is the record of the information pertaining to the name and address of the manufacturer of the equipment, purchase order number and date, date of commissioning, equipment specifications, list of the accessories, list of the major spares etc. Equipment card thus is a valuable document and hence it must be maintained systematically.
Manufacturers' Name: Agent Name: I Address: Manufacturer's Sr. No.: Purchase Order No. and Date: Equipment Code No.: Description : Location: Date of Installation : Date of Admission List of accessories Electric Mortors Belts
Description
Qty.
Description
HP
RPM
Type
Description
Drive From To
Qty.
Fig 13.5: Equipment card (Front)

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Lubrication / Hydraulic Systems
Flexible Hose connections End Connections
System
Recommended lubricant
Qty.
Description
Pressure
ID
Length
Fig 13.6: Equipment card (Rear) e) Equipment history cards An equipment history card (Fig. 13.7) is the record of all repairs, replacements and engineering changes carried out in the equipment during its period in service. An equipment history card: Gives the record of the faults that occur in the equipment and work done to remove each fault. Gives the consumption record of the parts replaced from time to time. Enables to relate spare parts consumption to significant van ables such as the age of the equipment. Gives down time of the equipment due to each unexpected breakdown or planned replacement of parts thereby providing enough data to develop performance standards for the maintenance activities.
In lieu of above mentioned benefits, it is imperative to conclude that equipment history cards are useful documents and therefore need to be maintained systematically.
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PRODUCTIVITY SERVICES Machine No. : F.C. Road, Pune - 411 009 M/c Desc .
f^-AlvU
EQUIPMENT HISTORY Time spent Parts replaced
Date
Nature of maintenance work done
Attended by
Next replacement due
Fig 13.7: Equipment history card Failure statistics analysis: Maintenance records (equipment history cards) should be analysed periodically. The analysis helps to t Identify causes for major repetitive failures and thereby take decisions for their prevention in future.
Forecast defects and to make plan to rectify before failure occurs. Quantify frequency of preventive inspections. Highlight the reliability of the machines which helps production Decide optimum retentive period of the machine.
planning.
Provide management data to serve basis for selection of a new machine.
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6.
Spares Control:
Spare parts must be available as per need otherwise the down time unnecessarily increases. A suitable system of inventory control of spares, therefore, should be evolved to ensure availability of spares with minimum capital lock up. 7. Condition monitoring:
It is the maintenance work initiated on a result on knowledge of the condition of an item from routine or continuous checking. Corrective maintenance initiated by the maintenance "engineer to replace a bearing of a motor based on observations of his maintenance man during a preventive maintenance checkup by touching the outer casing of motor is nothing but condition monitoring. Condition reports arise from human observations, check & tests or from fixed instrumentation or alarm system. All these methods are called condition monitoring methods. On-line and off-line techniques of inspections are involved for condition monitoring. Training of maintenance personnel Sound training in the concept of preventive maintenance is essential for the success of the PM programme
x4gT Activity E:
Identify any five household equipments with their preventive maintenance activities to be done with their frequencies.
13.8 CORRECTIVE MAINTENANCE _________________________________ Preventive maintenance though helps to keep the equipment at its rated productivity and original accuracy, yet it can not eliminate totally the normal wear and tear of the machinery and the occasional breakdowns. Corrective maintenance is employed to restore the equipment back to its original performance. Corrective maintenance includes the following activities:
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Unit 13
1.
Servicing and overhauling
2. Rebuilding/reconditioning 3. Modifications and improvements 4. Planned replacement of worn-out parts 5. Emergency repairs 6. Breakdown maintenance Fig. 13.8 shows the element of corrective maintenance and various maintenances practices to be exploited.
CORRECTIVE MAINTENANCE
Modifications and improvements
Planned replacement of parts
Planning of corrective maintenance activities
Servicing and overhaul schedules
Rebuilding and reconditioning scheduling
Maintenance concepts to be exploited
Design-out maintenance
Scheduled maintenance
Modular replacement
High maintainability and greater plant availability
Fig 13.8: Elements of corrective maintenance
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1.
Servicing and overhauls

To get trouble free service from equipment, it is always necessary to carry out certain periodic activities such as servicing and overhauls. The frequency of such maintenance activities should be predetermined so that the work can be scheduled in advance to fit into the idle period of the equipment. Such an approach has a number of distinct advantages: The presence of servicing overhauls in the firm enables it to prepare the requirement of replacement spares well in advance which enables purchase department to procure them at competitive rates. Periodic overhauls and servicing lengthen the useful life of the equipment and its parts. The equipment can be attended without disturbing the production programme since overhauls and replacement are planned well in advance and the equipment is withdrawn from the production line in consultation with the production personnel.
2.
Rebuilding /Reconditioning
Reconditioning is the process of withdrawing the equipment from the production line, dismantling it unit-wise, visualizing defects, effecting adjustments, replacing worn-out parts and finally building it up to get desired accuracies. Reconditioning helps the firm to: Eliminate problem, frequent breakdown. Increase the life of the components Plan the requirement of the replacement spares.
3.
Design modifications and improvements

Design modifications and improvements in a equipment are carried out either with a view to eliminate the need for maintenance and to reduce breakdown frequency (called design-out maintenance) or reduce time and efforts required in carrying out maintenance work (called design-in-maintenance)
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4. Planned maintenance of worn-out parts

Replacement of worn-out parts (e.g. gears, shafts, wedges, worms and work wheels etc.) is an important activity of corrective maintenance. Replacement of worn-out parts should be planned in a manner that reduces the down time of the machine. This can be done by synchronizing the activity of replacement of parts with the natural gaps such a weekly holidays, idle period of the machines due to non-availability of work etc.
5. Emergency repairs
Emergency repairs are the maintenance necessary to be undertaken immediately to avoid serious consequences of loss of production, extensive damage to equipment or to correct unsafe conditions.
6. Breakdown maintenance
Breakdown maintenance is the maintenance work carried out after the equipment has failed which may include replacement of worn-out parts also. Âctivity F: Identify any five breakdowns of household equipments with their corrective maintenance activities to be done.
13.9 ORGANIZATION FOR MAINTENANCE ________

Organization of the maintenance department implies three things: 1. Status of the department in the company. 2. Degree of centralization. 3. Internal structure of the department.
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1.
Status of the department in the organization
Maintenance is a service function and its performance is measured in terms of trouble free service it renders at minimum cost. Maintenance has to achieve the standards of reliability, maintainability, availability and longevity of the equipment. Also, it has to ensure safe working conditions. Therefore, the organization of the maintenance has to be such that the machines are kept in the state of maximum efficiency and required repairs, servicing and overhauls, and other maintenance work is carried out economically and effectively. Maintenance must be placed as a staff function to production, the head of maintenance department reporting to the top most level in the organization. If maintenance is organized as a function subordinate to production, its objectives of high reliability, maintainability, availability and safe working conditions will be sacrificed to achieve fulfillment of production targets. Since maintenance is a vital service function, the head of the maintenance department (say maintenance manager) must report to the top most level in the organization. Only under such a setup, his voice will be heard, his plans and budgets will be approved and he will be able to enlist co-operation of heads of other departments. Even in a small set up wherein maintenance of machines is looked after by a mechanic who is also a part of manufacturing team, the mechanic should report directly to the person responsible for the manufacturing operations. 2. Degree of centralization
Maintenance function must be centralized and all activities related to maintenance including installation of machinery should be placed under one authority. It should never be decentralized and placed under shop superintendents. In a large company, having more than one manufacturing plants, each plant may have independent maintenance team but all maintenance teams must report to the chief maintenance manager so that performance standards of reliability and safety are uniform. A centralized setup is preferred as it provides better opportunities for the growth of the maintenance personnel. In a decentralized set up, maintenance engineer cannot rise beyond the level of a senior engineer and therefore may get frustrated. However in a centralized ; set up, he has a chance to rise to the level of chief maintenance manager.
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Unit 13
3.
Internal structure of the maintenance department
Internal structure of the department depends on the size of the firm and the type of machinery. In medium/large size units, the maintenance function may be divided into four groups, each having his own foreman/charge hand and workmen forming the team. They are: Breakdown maintenance Preventive maintenance group. Feedback attending group. Reconditioning group
Breakdown maintenance also called "Repair maintenance" performs maintenance work on crash time basis to start the broken-down machine within the least possible time. Preventive maintenance performs planned maintenance activities with an explicit objective of detecting weak point and ensuring perfect functioning by replacing parts which could still be used. Feedback attending group supplements preventive maintenance group by undertaking planned shutdown of machines and equipment and attending to machines based on feedback generated by preventive maintenance group. Reconditioning group take up machines for rejuvenating of the machines and restoring them back to as close to their original performance as possible. Preventive maintenance as a separate team : Preventive maintenance is planned activity with fixed cycles and pre-determined schedules while breakdowns are random occurrences. Therefore, both types of responsibilities cannot be and should not be assigned to one team. Preventive maintenance should always be a separate team and it should not be given work of breakdown repairs even occasionally. Temptations of assigning even occasionally emergency breakdown work to preventive maintenance team should be avoided as a matter of discipline. If preventive maintenance and breakdown maintenance work is assigned to same team or if preventive maintenance team is occasionally entrusted emergency repair assignments, its preventive maintenance activities may not get completed as per schedule or get neglected. Sooner than later, such a team gets fully occupied with breakdown work and emergency jobs and preventive maintenance is pushed into oblivion.
79
An alternative to the creation of separate preventive maintenance team is to contract the work of preventive maintenance to an outside agency. A third alternative is to assign the responsibility of preventive maintenance services to the supplier of the equipment. The supplier in such cases is made to include preventive maintenance services in his sale contract. Placement of engineering stores : Engineering stores in a bigger setup must form a part of the maintenance department. If engineering stores is part of materials department, provisioning of spares and consumables gets neglected which affects performance of the maintenance department. Purchase department is not competent to take stocking decisions of maintenance spares. Maximum-minimum control limits as applicable to production items if blindly extended to spares may cause higher inventories coupled with frequent stock outs. Stock levels of engineering spares must be decided by maintenance department. Inventories can be kept with little or no risk of stock outs by linking stock levels of engineering spares to maintenance plans and schedules. A sample organization of the maintenance department in a medium size company is shown in Fig. 13.9.
Production / Operations,
Âctivity G: Prepare an organization chart for the authorized service station for a leading two wheeler manufacturer.
Managers of the factories regard the maintenance function as an ancillary to operations, ignoring it's crucial role in supporting the reliable system. Various costs are involved in eventual breakdown causing big losses to organization. Planned maintenance consisting of preventive and corrective maintenance is answer to avoid losses due to breakdown maintenance. Various activities like preventive inspection, planned lubrication, cleaning & upkeep, minor adjustments & repairs, equipment records, spare control, condition monitoring are associated with preventive maintenance. Corrective maintenance includes servicing and overhauling, rebuilding / reconditioning, planned replacement of worn-out parts, emergency repairs and breakdown maintenance. Bigger manufacturing plants should have separate maintenance function with maintenance manager directly reporting to works manager. 13.11 SELF- ASSESSMENT QUESTIONS 1. 2. What are the costs associated with machine breakdown? How can they be minimized? Discuss broad classification of losses brought about through poor maintenance of plant and machinery in the factory.
3 . Why is effective plant maintenance important? Does this have any connection with organizational placement of the maintenance department? If so, what and why? 4 . ' Two basic aspects of the function of plant maintenance are: preventive maintenance and corrective maintenance." What are they? How do they differ from each other? What activities are considered under each of them?
14.1
A manufacturing (or service) organization may looked upon as a bundle of processes which have definite inputs and outputs. The output from the process is in the form of goods and services and input is in the form of men, machines, materials, technology and management. The recipient of the output from the process is the customer (internal or external). External customers are located outside the organization and receive the final product/ service. Internal customers are located within the organization and receive output from the preceding process. The output (goods or services) of the process must of the highest standard (i.e. quality output/services) so that the recipient (customer) is satisfied. Quality may be defined [B.S. 4778(1)] as the "Totality of features and characteristics of a product or service that bears on its ability to satisfy the customer". Fig. 14.1 exhibits customer supplier chains.
External Supplier Internal Customer - Supplier External Customer
Fig 14.1 Customer Supply chain Definitions of Quality

Quality has been defined in different ways by different people as under:
1.
Transcendent definition
Quality is absolute, innate and universally recognizable and often loosely related to comparison of features and characteristics of products. For example, a small car, (Maruti) versus a big car (Rolls Royce). \ """"
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Quality Management - 1 (Inspection and Quality Control)
Product based definition
Quality is precise and measurable variable and differences in quality reflect differences in quantity of some attribute of the product. For example, fuel consumption (kms/ litre), area (house), foreign threads in one sq. meter (cloth) etc. I '--~ Use-based definition
Quality is fitness for the purpose. For example, photo frame to exhibit a safety slogan on the shop floor versus photo frame to exhibit a scenery in the drawing room; a car for a manager versus a car for an MD. The use of extra fine finishes, unnecessary closer tolerances, expensive materials, extra features, etc . do not add to the quality of the product but adds to the cost. 4. Manufacturing based definition Quality is "conformance to requirements" and conformance measures the extent the products manufactured meet the design specifications. 5. Value based definition Quality is the value perceived by the customer. Such a concept of quality brings both quality and cost into focus. According to Mr. A. V. Pardhan, formerly General Manager, Sandvik Asia (coromant) division -
"An organization exists to offer a product or a service to a customer at a cost. The customer perceives a certain value in this product or service and is willing to pay a price for it. The difference in the price and the cost is the main objective of the organization...".
6. Juran's View on Quality:
J.M. Juran defines quality as, "Quality is customer satisfaction achieved through product features and freedom from deficiencies".
Product features imply "quality of design " and freedom from deficiencies means "quality of conformance ". Quality of design is the quality specified by the designer on behalf of the customer. \ Quality of conformance measures the extent the products manufactured conforms to the laid down design (i.e. design specifications). Both quality of design and quality of conformance have been discussed later.
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Management
14.2 HISTORIC DEVELOPMENT Quality in the last 100 years has undergone four stages of changes as under: 1. Stage I (Inspection) Stage I is referred to as "Inspection phase" and it has the following distinguishing features: Inspection stage employs simple inspection based systems. Teams of inspectors are employed to examine, measure or test a product and compare it with product standard. Inspection is conducted at various stages of manufacture such as incoming materials, semi finished and finished goods. Often, lots of products are subjected to hundred percent inspection.
Non-conforming products (i.e. products of poor quality) are segregated from , good ones. Non-conforing products are subsequently scrapped, reworked or sold at lower prices.
Inspection based systems often fail to find poor quality items (100% inspection is also never fool proof) and costly as 2. persons are employed to look for faulty work and persons are employed to repair/rectify it. they usually employ 100% inspection.
Stage II (Quality Control) Stage II may be appropriately labeled as "Quality Control (inspection based)" and it has the following distinguishing features: Acceptance function (i.e. accepting good ones by rejecting and segregating defectives) is replaced by corrective function, i.e. utilizing inspection results for prevention of defectives in future lots). Data on defects is generated from the inspection results of product testing done at various stages of manufacturing. Sampling inspection plans are adopted for product control thereby replacing 100% inspection by sampling inspection. Statistical quality control (control charts) are employed for process control.

RR
'unit 14
Quality Management -1 (Inspection and Quality Control)
3.
Stage III (Quality Assurance) Quality Assurance stage (stage III) has the following distinguishing features: t Quality Control (inspection based) is substituted by Quality Assurance (prevention based). Emphasis is placed on quality of processes. Quality planning and quality manuals are prepared with an object to build quality into the manufacturing process.
Quality assurance (prevention based) however pays little or no attention to service industries and soft areas of quality such as delivery, customer satisfaction etc. 4. Stage IV (Total Quality Management) TQM is the current stage in quality and has the following distinguishing features: TQM covers all kinds of industries manufacturing as well as servicing. TQM implementation requires clear and unambiguous vision of top management and gradual removal of inter-departmental barriers. TQM places great emphasis on customers' (internal and external) focus. TQM believes that good training based on systematic training needs identification is essential to attain greater quality. TQM lays greater trust on business processes and advocates continuous improvement in every business activity.
14.3 ACHIEVEMENT OF QUALITY First milestone to the achievement of the quality is the understanding of the purpose of product derived from the company's quality policy. The next important thing is understand uid interpret the two distinct but inter related aspects of quality Quality of design. Quality of conformance. ^_ [
Quality of design is the quality specified by the designer on behalf of the customer
Quality of conformance measures the extent the products manufactured conforms to iaid-down design (i.e. design specifications).
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1.
Quality of Design
Quality of design covers identification of the right product, selection of the appropriate features (i.e. end use, ease of operation, ease of maintenance, durability, life, reliability, strength, appearance, etc.) for the selected product and preparation of detailed specifications (metallurgical, performance, dimensional, etc.) to ensure that product renders satisfactory service to the customer at the optimal cost. Quality of design is primarily the function of the design department. Those charged with the responsibility of design must: a) b) c) put continual effort in the development of the product. have in-depth knowledge of alternative materials, manufacturing processes, etc. have access to the latest technology and production process being adopted by the industries in the developed world.
The starting point in the product design is an assessment of customer's expectations from the product. Infact, customer satisfaction has to be central theme of the product design. The design must consider all those aspects that a consumer is concerned about. The design should ensure that the product shall (i) (ii) (iii) satisfy the functional requirements of its usage (use or functional requirements). provide adequate protection against harmful effect on body and dangers to human life (safety requirements). give trouble free service over its life span (reliability requirements).
(iv) be repaired, in case of malfunction, with ease and without aid of too many special tools (maintainability requirements). (v) render ego satisfaction which comes from the possession of the product of good quality (esteem requirements).
Customer's acceptance of the product and its price
A quality product which satisfies all above aspects may not find a single customers if its price is not within the reach of the potential customers. Price, therefore, is a crucial consideration in the customer's acceptance of the product and must be borne in mind throughout while working on the design.
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Price brings into focus the cost of production. Good quality design must becapable of being produced within the cost frame that puts its price within the reach of the target clientelle. Since design determines cost, eveiy element of design - shape and size of various parts, tolerances and finishes of their surfaces, specifications and originating processes of their material, heat treatment and surface treatment details etc. - must be specified strictly according to the requirements and nothing more or less. Quality of design and manufacturing lead time Even if the design is exactly what the customer wants, its quality is doubtful if the shops can not make it. The product quality will also be in trouble if its manufacturing can not be completed within the contracted time because then there will always be temptation to skip the quality to meet the delivery. Good quality design must be economically a viable. design. The design must enable: manufacture of components within the facilities at the command of the firm. Producing a design on the basis of additional equipment may not be desirable unless the sale of product is sure to increase to justify additional expenditure. manufacture of components at a cost low enough to enable the firm to sell the product within their competitor's price range, leaving enough profit margin. manufacture of the product within the reasonable time. procurement of materials and parts at the right time and at the right price.
The designer can take care of these aspects provided he knows (i) the manufacturing capability of the machines available in the plant (Quality control can help to measure process capability of any machine or process and provide this information to the designer); (ii) availability or otherwise of the materials in the market i ncluding development of new materials which are more reliable and yet cheaper (purchase can provide the information).
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2.
Quality of Conformance
Quality of design must ensure that all relevant features (i.e. performance, looks, ease of maintenance, ease of operation, durability, reliability, cost of operation, etc.) which determine the quality of a product are included in the design parameters. These design features, however, are of little or no use unless they are meticulously reflected in the final product That is though the end result of the good quality of design is the good quality product provided the design parameters given in the drawings and specifications are strictly adhered to. This is where second aspect of quality i.e. "quality of conformance" comes into picture. "Quality of conformance" refers to the extent the product manufactured conforms to the laid-down design (i.e. design specifications and tolerances). The more closely the product meets the requirements of the design, the higher is said to be its quality of conformance. Quality of design though is closely related to quality of conformance yet the achievement of one does not guarantee the compliance of the other. Good quality of design does not automatically guarantee high quality of the product. It is the good design coupled with a good execution (conformance) which results in good quality of product. Poor conformance, on the contrary, can easily debase a good design. Quality of conformance demands a system approach and control of every item that goes into the product and control of every of activity that is required for the production of the product: the material, the tools, the equipment, the processes, the preservatives, the packaging and packing, etc. Quality control is the watch-dog which ensures thaêvery element of production and activities linked to it which could affect the quality of the end product are regulated to the extent desirable. Âctivity A: Visit any organization. Taking an example of a process, find out what important measures the management takes to ensure that manufacturing conforms to design:
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Unit 14
Quality Management - I (Inspection and Quality Control)
14.4 QUALITY STANDARDS Good design features, as mentioned earlier, are of little use unless they are reflected in the final product. This is possible only if the pre-determined quality is built into the product during process of production itself, This calls for system approach. Since quality depends on all elements of production: raw materials, equipment and workmen, hence all these must be tied up, and the first and foremost step in enunciating quality is to lay down quality specifications. Specifications are the definitions of the measurable as well as non-measurable characteristics^ OTTflRepfoOucirSpecifications lay down required qualitative standards based .on trie-design for every element of production including material. For example, in defining qualitative requirements, the specifications of materials should cover features like material composition, dimensions, heat treatment and other parameters like physical condition, etc. Specifications are mainly of four types: material specifications, dimensional specifications, performance specifications and environmental specifications. Material specifications pertain to the metallurgical aspects of the product and they form a vital part of engineering function. Materials specifications are based on experience, tests, experiments and applied research etc.^l Dimensional specifications refer to the size aspects of the product and they are the ones that are incorporated into the component drawings. Exact sizes are not specified since assembly will function satisfactorily even if there are some variations in the part sizes. Also exact sizes are too expensive to produce. Tolerances on the dimensions are therefore specified to indicate the maximum permissible variability in their sizes. Performance specifications refer to the actual performance of the product. Environmental specifications pertain to the climatic conditions which the component/ oroduct/material/should withstand (e.g. temperature, moisture etc.) "~j "~~r ~~~r
wo basic requirements of quality standards are:
Quality standards must be definite and understandable. They must not leave even a slight doubt for any department, be it manufacturing, inspection or any other. The reliance on judgment and the problem of interpretation during inspection must be remote. Quality standards should also be reasonable and achievable i.e. they must be economically viable. Absolute uniformity (i.e. to produce each item to exact dimension)
93
is not only impossible to obtain in production but also costly to approach. The quality standards, therefore, must take into account permissible amount of variation from the ideal. In an engineering drawing, specification gives the basic dimension called nominal size which is theoretically the perfect dimension and the permissible variations around it called design tolerance which depends the functional requirements of the part. 14.5 QUALITY CONTROL _________
Quality control is one of the important functions of the management. It is the system - a set of tools and techniques - by which products are made to comply with the specifications at minimum cost to the firm. According to Alford and Beaty, "Quality control is the mechanism by which products are made to measure upto the specifications determined from customer's demand and transformed into engineering and manufacturing requirements. It is concerned with making things right than discovering and rejecting those made wrong". Another dimension to the quality control is the control of manufacturing process which has been brought out very clearly by Bethel, Atwater and Stackman. According to them "Quality Control refers to the systematic control of those variables encountered in a manufacturing process which affect excellence of the end product. Such variables result from application of materials, machines and manufacturing conditions. Only when these variables are regulated to the extent that they do not detract unnecessarily from the excellence of the manufacturing process as reflected in the quality of the finished product, can the control of quality said to exist. "
Quality control function must be looked upon as an integrated function because the quality of product can be directly traced to the quality of raw materials and components purchased from vendors; the quality of production aids - (tools, jigs and fixtures, measuring instruments); quality of manufacturing process and manufacturing facilities employed; quality of workmanship; and the quality of system set to regulate and control work on the shop floor. To ensure quality of the products, scientific quality cont rol recognizes three distinct functions: Acceptance function refers to the inspection of goods to ensure that they are up to the specifications thereby segregate and reject those which are defectives. Acceptance function of quality is called "Inspection" and it includes elements like receiving inspection, process inspection, finished goods inspection, gauge maintenance, disposition of non-confirming materials, day-to-day trouble shooting etc.
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Preventive function refers to the identification of defects in materials, components, machining processes, or men to fix responsibility of defectives thereby avoiding or minimizing occurrence of defectives. Preventive function of quality is called "Quality Control" and it includes elements like process capability studies, failure statistics analysis, training of inspectors, methods studies to reduce defectives etc. Assurance function refers to verification that every quality characteristic or product is assured to meet a pre-determined performance standard at each stage in the manufacturing cycle. The assurance function includes elements like customer complaints, quality audit, quality determination, accuracy of inspection, executive reports on quality, etc.
Most of the Indian industries are found to perform the acceptance function efficiently while little or no attention is paid to preventive and assurance functions.
Exercising Control Over Quality
The basic areas for the control are : i) ii) iii) Preparation of quality standards and specifications. Exercising control over inputs (i.e. raw materials, tools, jigs and fixtures). Exercising control during manufacturing.
iv) Inspection prior to shipment of goods to c ustomers. v) vi) Deterrent action against those found guilty of malpractices. Periodical analysis of inspection reports to establish causes of rejections.
vii) Application of stati stical methods of quality control. vi) Method study to reduce defectives. ix) x) xi) and gauges. xii) Creating quality consciousness in the organization. Initiation of quality circles. Suggestion schemes to improve quality. Training of workmen and inspectors in the proper use of measuring instruments
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Inspection Versus Quality Control Quality Control and inspection are though closely related yet they differ in respect of the following: i) Quality Control aims to produce better quality products at the least cost to the company and inspection is one of the tools used by it to achieve this objective. ii) Quality Control determines the causes of variations in the characteristics of the products and suggests methods to minimize these variations while inspection is the application of tests and measuring devices to compare the products and their performance with specified standards. Inspection thus determines the acceptability, or otherwise of an item by comparing it with the specified limits of variability. iii) Quality Control determines what, when and how much to inspect while inspection actually conducts examination of goods for the quality characteristics called for by the Quality Control at the place and stages suggested by them (Quality Control). The two functions were formerly combined, inspection being a part of quality control or vice versa but with the evolution of SQC concepts the trend is towards the separation of the functions. Benefits of Inspection and Quality Control a) Ensures adequate maintenance of quality necessary to satisfy customers and to meet competition of rival producers. Ensures that parts are within the specified limits of accuracy and they fit properly during assembly. Gives economy in production through reduction of defective work and consequent increase in utilization of facilities and labour. Prevents labour and machine time from being spent on work already identified as defective. Provides required control on work produced by the incentive workers since they need to be paid only for the acceptable quantities.
b)
c)
d)
e)
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Âctivity B : Visit any manufacturing organization and identify differences in the roles of the Heads of QAandQC:
14.6 QUALITY CONTROL OVER PURCHASED MATERIAL ______________ Quality of raw materials and components used in the product and the quality of tools and supplies employed as an aid to manufacture has a direct bearing on the quality of the product manufactured. The following aspects are essential to ensure quality of purchased items: Defining the right quality for the job. Selecting suppliers based on their quality assurance capability. Making sure that suppliers understand the requirements. Monitoring quality of goods purchased and providing feedback to the suppliers. Defect identification and defect prevention.
Vendor performance evaluation. 1. Defining the right quality Ambiguity in the quality requirements has always been a major problem of the buyer. Quality purchases needs clarity in quality requirements. Quality is a bundle of characteristics, viz. Physical dimension (lengths, diameters, weights etc.) Chemical composition
(percentages of various alloying elements) Heat treatment (i.e. hardness, case depth, microstructure etc.) Surface treatment (i.e. phosphating, zinc plating, blackodising, painting etc.)
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Surface finish (i.e. rough finish, smooth finish, mirror like finish etc.) Mechanical and electrical properties (i.e. tensile strength, elasticity, conductivity, capacitance etc. Workmanship (i.e. appearance etc.)
Quality requirements are indicated in the form of specifications. 2. Selecting supplier of right quality The conventional approach to the quality control system in purchased materials is two fold namely: i) ii) incoming inspection to segregate pieces which do not conform to quality specifications; return of defecti ve materials back to the supplier.
Such an approach does not guarantee the quality due to last minute non-availability of materials and as a result defective materials continue to creep into the manufacturing process. Quality cannot be inspected into a product, it must be manufactured into it by the supplier. This implies that unless vendor is basically capable of achieving the desired quality standards, defectives are most likely to be found in the supplies. If the activity of scientific search for qualified suppliers is neglected and second grade vendors are allowed to supply materials, then the result is : frequent rejections which create shortages of materials for production, shortages which cause urgencies and pressure on inspection and quality control to accept sub-standard materials under deviations, frequent rejections and subsequent acceptance create a stage where vendors control the buyer in respect of quality, quantity and delivery.
The net effect of the above situation is that organisation suffers in respect of quality delivery and cost and gets burdened with either higher internal failures or frequent complaints from customers including a greater percentage of return of defective products by its customers. The suppliers should be selected after careful analysis of their manufacturing facilities, quality control practices and the status of the quality control department in their organisation.
flK
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Qualified suppliers may be selected by one of the following three methods: i) n) iii) By reputation, e.g. suppliers covered by ISI; By vendor plant surveys; By experience e.g. vendor quality performance on same or similar product.
Vendor plant survey should cover the following aspects of quality: t Production facilities and their condition (i.e. state of maintenance). Testing and laboratory facilities. Measuring instruments, gauges and inspection tackles used in production. Inspection calibration procedure for gauges and other measuring devices. Availability of quality assurance team. Quality control procedures (i.e. inspection stages, system of communicating or reporting inspection results etc.) Use of statistical quality control techniques (X-R chart, c-charts, p-charts, etc.) Efforts in defect identification and defect prevention. Action for deviation (i.e. disposition of non-conforming materials). System of selection of vendors by the supplier under study. Expertise in manufacture of same or similar product(s). Internal structure of the inspection and quality control department and its placement in the organisation.
The above aspects may be found lacking in small-scale industries. Small firms may not even be in a position to employ full time assurance engineer. Easy asses to high quality consulting engineer, testing and laboratory facilities apart from a minimum of quality engineering trained personnel to oversee its manufacturing processes, standards and gauges should be considered.
3.
Ensuring that suppliers understand requirement

The selection of the suppliers capable of quality assurance too does not guarantee that the buyer will have no quality problems in the supplies from the vendor. Rejection
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also result if the supplier is not clear about the functional requirements. Even if the blue print of the component/part/sub-assemblies contracted to the supplier gives necessary details, still many aspects may not be clear. The technical personnel of the buyer should discuss and provide the supplier (educate if necessary) information in the following areas: i) Functional aspects to make the supplier know as to what the item/component is, what function does it perform, what assembly it is in, etc. if) Dimensional aspects to highlight critical dimensions, less critical dimensions and non-critical dimensions. The suppliers should be given the classification of the defects, such as critical, major and minor defects: Critical defects are those which could make the product dangerous or affect performance of the product. Major defects are those which could materially increase the probability of failure. Minor defects are those which do not affect product usability or performance or which get corrected in the subsequent operation(s) (e.g. rough machining of surfaces).
iii) Commonality of inspection methods so to clarify to the supplier as to how inspection is going to be carried out at the buyer's plant. Mutually agreed tests to be carried out and measuring instruments and gauges to be used should be specified. iv) Packing and packaging methods to advise supplier regarding method and type of primary and/or secondary packing and quantity per package. v) Preservation methods to advise supplier regarding method of rust prevention to be followed.
4. Monitoring Supplier Quality
Even if the supplier has very good quality control and has time and again proved his reliability, yet some inspection, however informal, must be conducted before taking the materials into stock. In fact all purchased materials must be inspected on receipt irrespective of whether ordered to commercial standards or to formal specifications so as to ensure 100
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that they are in conformity with the purchase order. Inspection on incoming materials is essential to: i) ii) I) iv) ensure that only quality materials go into the manufacture; provide a formal check on buying department for their responsibility of purchasing materials of right quality; prevent costs from being incurred on the shop floor upto the stage until defects are found in the materials; make the supplier conscious of the quality and to exercise care while supplying the materials.
Place of inspection:
Inspection of materials ordered on the suppliers may be carried out either by the buyer's representative at the supplier's plant prior to shipment of goods to the buyer or it may be undertaken at the buyer's plant on receipt of goods from the supplier. The former is called "inspection at source" and the latter is known as "inward or vendor inspection". Inspection at source has a number of advantages: i) ii) iii) iv) Inspection work load at the home plant is reduced; Unnecessary expenses of returning rejected materials to the vendor are saved; Production stoppages and last minute rush due to rejection on receipt of consignments are avoided; Papers are cleared faster.
Inspection at source at times is employed when developing an article with the supplier. The presence of the buyer's inspection helps the supplier to employ methods of inspection similar to those of the buyer.
Extent of inspection:
Everything that affects product quality must be subjected to some kind of inspection. How much inspection should be carried out? As little as will ensure required quality! If suppliers are selected based on their quality assurance capabilities and they are given absolute clarity in quality requirement, inspection for acceptance becomes a formality. Such suppliers could be covered under the scheme of self certification. Alternatively,
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acceptance could be done on the basis of the reports submitted by the vendors. If necessary, few tests at random could be earned out and at least cent percent inspection could be replaced by sampling inspection.
Inspection of purchased items by small firms

Visual as well as dimensional inspection usually can be done by the buying firm but it may not be able to carry1 out specific tests in lieu of lack of facilities, Alternatives available to the firm are to: i) restrict their purchases or raw materials to only IS1 approved manufaturers or insist on suppliers to submit test certificates. ii) get the samples tested at some laboratory' or inspection centre.
iii) adopt vendor inspection wherein materials are inspected by the buyer's inspection prior to dispatch of the material. This enables the buyer to make use of supplier's special inspection facilities.
5.
Defect Identification and Defect Prevention
The result of the inspections carried out on vendors' supplies should be properly documented by the buyer's quality assurance department and periodically such data should be fed back to supplier to enable him to take corrective and preventive actions and prevent such defects in future supplies. The buyer's quality assurance should then keep track whether or not the defects communicated to the vendors occur in his future supplies. The supplier's representatives may require to be called for discussions if defects go on occurring. A meeting of senior personnel of the buyers and sellers may be even called to decide action to prevent chronic defects.
Importance of defect prevention

One can learn a lot from Japanese companies in this regard. Almost all Japanese companies devote intensive efforts to screening of incoming materials and to feeding the results to the suppliers. One hundred percent inspection is often the rule until the supplier proves his reliability. Such a concept is based on the fact that higher rejection means greater cost of production which vendor ultimately recovers from his customer and hence any reduction in the suppliers' defects helps the buyer's company indirectly. Before analysing the measures to be followed by the buyer to help suppliers to reduce rejection, it is worth enumerating the problems created in case of rejection of the vendors' supply.
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.;-:
1.
Defects in vendors' supplies may result in disruption of company's production.
2. Defective pieces may require to be reworked at the company' s own plant which tend to shrink plant available capacity. Higher investment may be needed to meet required targets. 3. Production schedule usually get disturbed and scheduling is thrown haywire when the vendors lots are rejected.
4. Rejections cause situation of crises which requires expediting expenses to get the replacements from vendors. 5. 6. Rejection may create helplessness for the company. Defective components may be accepted to keep production line running which impairs quality. Even with 100% inspection, some bad pieces detrimental to performance of the product, may get into the final assembly and fail in the field, thereby spoiling image of the company.
7. Frequent rejections and return of defectives may spoil buyer-seller relationships and force the supplier look for some other customers and earn a bad name for the company. 8. Rejected lots may require to be segregated by company's own inspection department for supplies received from outside vendors and even lots received from local source when there is no time to call vendor for the purpose. Even if there is time, calling vendor to segregate, costs money to communicate. Segregation of lots is thus costly affair for the company.
Steps to be taken
A systematic analysis is necessary to avoid rejection in vendors' supplies: 1. Each vendor's supplies must be properly identified for which supplier must be made to put his identification mark. A still rational approach is to assign a code numbers to the vendors which they must affix on their supplies. Supplier's identification mark must be aftixed/engraved/punched on each piece if component involved is an expensive one. (e.g. sub-assemblies, assemblies, motors^ gear boxes, hobs, broaches, cutters, etc.) and large enough to accommodate supplier's code. ( Alternatively, codes may be affixed on each packet, if the component involved is small and inexpensive one (e.g. bolts, nuts, washers, screws, etc.)
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Buyer's drawings should clearly spell out the space where identification mark must be affixed. Homogeneity makes identification easy and introduces discipline among the suppliers. Logically, identification mark on fully finished jobs should be required to be put on the surfaces which are other than bearing, locating, clamping or mating surfaces. /In semi-finished parts to be received from vendors, the ideal surface for the "-identification mark will be the one where no further machining is required at the buyer's plant (e.g. un-machined forged or cast surfaces of gear blanks, pulleys, shafts, etc.) \ Identification marks for semi-finished jobs which are machined all over at buyer's plant should be affixed by the buyer at his own plant after completing machining of one or two surfaces. Alternatively a system of "first-in-first out" should be practiced for processing of such parts. 2. Buyer's inspection should clearly spell out the nature of defects observed in each supply received from a vendor and appropriate remarks should be made to appear on the goods-receipt-reports prepared by the buyer's receiving department. Mere indication of acceptance or rejection of lot does not serve any purpose. Even though defects in the individual supplies are communicated from time to time, yet problems may persist. Monthly or quarterly feedback to the vendor on the quantity supplied and the quantity rejected together with the "defects analysis" usually enables suppliers to take action. To do this, the buyer's inward inspection should pass on information to its quality control department for each supply received from vendor who in turn should record these defects supplier wise and item wise. Month wise percentage rejection should be further supplemented by three or four months moving average and the last year's average for the comparison. Such a system also enables quality control department to send an alarm to the vendor if the average in a particular period exceeds the moving average. Quality control after such an alarm, keeps track of the vendors' supplies to expect definite improvements. If vendor's supplies do not show definite improvements, a "quality meet" between the representatives of the quality control and production department of the buyer and the seller is organized at buyer's/seller's plant. Such a meeting: a) helps the supplier to understand the nature of defects in his supplies.
3.
4.
5.
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b) identify the causes of defects: materials, men, machines, manufacturing processes, etc. c) gives the supplier a feeling that the buyer's quality control is vendor's friend and is out to help them. This improves buyer-seller relationships.
d) provides an opportunity to the buyer to extract a commitment from the vendor to lower defects. e) brings an understanding among the personnel of quality control departments of the two companies regarding the quality requirements, methods of inspection, etc.
6.
Vendor Performance Evaluation Periodical appraisal of the performance of vendors is another important aspect of right quality. Each vendor must be rated for its quality and the quality ratings must be communicated to them periodically. Vendor's whose quality rating is poor should be rendered technical help (if required). Vendors having quality rating of A and B should be awarded additional business and those scoring C and D should be helped, encouraged, and/or advised to improve and in case they are not able to improve they should be dropped.
14.7 QUALITY CONTROL DURING MANUFACTURING _________________ Quality control during manufacturing is equally important. Defectives, rewok or rejection eat into the capacity of the manufacturing facilities, increase throughput time, lower productivity and push up manufacturing cost. Quality control of work done at the home plant involves the following activities: 1. Preparation of process sheets of components The product should be broken into its components. Since each component may have to pass through various operations on different machines, a process sheet must be prepared to spell out clearly the operations to be performed, machines to be used for each indicated operation and tooling for each operation. 2. Drawing for each stage of operation Each machine operation converts a piece from one shape and size to another. A workman, at a machine, therefore, must konw as to how the piece is to be received 105
at the machine and how it is supposed to leave. Short-cuts giving an operator final drawing and asking him to perform a particular operation are usually costly. System approach demands that there should be a drawing for each item, for each stage operation, called "stage drawing" or "operation layout". Operation diagrams a) b) c) give guidance to the operators since it gives the incoming shape and size as well as the intended outgoing shape and size. serve the basis of the tool setting. form the basis of the inspection system.
3.
Inspection by the workmen

Outgoing pieces must leave in the intended shape and size. Each workman, therefore, must conduct inspection on the pieces produced by him for which necessary instruments and gauges must be provided. The details of the gauges, frequency of inspection and other relevant details can be spelled out on the operation layouts. Self inspection by the workman ensures that the work proceeds within the specified parameters. The moment the work goes beyond the operator's gauge, he (the operator) must stop the machine and look for the fault. This prevents subsequent rejection and consequent waste.
4.
Periodical inspection during manufacturing

Even if first few pieces have been inspected and found within the prescribed limits, there is no guarantee that subsequent pieces will continue to do so. Periodical inspection ensures that future pieces are within the limits. Any departure is brought to light and corrections are done immediately. Inspection during manufacturing should be as under: a) b) First few pieces, when the machine is set up initially, should be inspected to ensure that the tool setting is correct. Inspection on time interval basis - say every half an hour or one hour - should be conducted to ensure that manufacturing is within the prescribed limits. The pieces produced between two consecutive inspections must be kept separate so that if any fault is detected, the corresponding pieces can be identified.
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Appropriate points of inspection in the production process must be specified to ensure control of quality at the minimum cost.
5. Inspection during assembly

Nothing can go wrong in assembly if individual components conform to the specified tolerances. Some care, however, needs to be exercised at the time of assembly of the product, inspection must keep a watch and ensure bolts have been tightened properly, shims of right thickness are being used, washers have been inserted underneath the nuts, etc. Inspection during assembly should ensure that: a) c) ever)' piece going into the assembly has already been cleared by inspection. specified torque only is applied during tightening of bolts, etc. b) assembly is complete in all respects and no component is missing.
6. Final inspection
Final inspection generally concerns more with visual defects. a) But mere identification of defects is not enough. Defects must be investigated for causes. Remedial action should be initiated to prevent occurrence of such defects in future.
b) If the firm is manufacturing a final product, few pieces of the final product should be put on trial.
Âctivity C:
Identify and briefly explain the major trends in quality control in manufacturing.
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14.8 ORGANIZATION FOR QUALITY CONTROL ______________________ Organization structure for the inspection and quality control department involves decisions as to the status of the department in the company, the degree of centralization, and the internal structure of the department. 1. The status of the department in the company a) To ensure quality of the out-going product, inspection function - the mechanics of assuring quality of conformance - must not be influenced by any other factor like delivery commitment, loss of production, etc. Any deviation in the laid down standards should be sanctioned only by the head of the quality control function after ascertaining the function of the item, effect of deviation on performance of the product, etc. Inspecting staff though may take instructions from production on the priorities, but in respect of their verdict (on acceptance/rejection), they (inspectors) must be independent of production.
b)
c)
The aspects mentioned above are possible by evolving an inspection hierarchy independent of production. Quality control without autonomy is no more that an inspection function. The department, depending upon the nature of the company, may be placed as under: 'The President or Vice President or General Manager who is normally aloof from day to day problems. This arrangement gives the department status equal to that of Production, Materials or Sales department which is essential for maintenance of specification standards. Quality, unlike in any other arrangement, is not sacrificed to quantity under the spur of rush orders. Disputes relating to inspection matters particularly where inspection requirements clash with requirements of manufacturing departments are received more rationally with balanced judgment coming from the senior executive. This arrangement is best suited in industries like automobiles, machine tools, cutting tools, gauge manufacturers, aircraft medicines, scientific equipment manufacturers, and others where rigorous exactness is obligatory or others where quality is of greater importance. The Sales manager who is essentially the representative of the customers. Such an arrangement ensures that decisions are taken in the best interests of the customers and the quality of the product is maintained (In fact there is a fear in this set up that there may be insistence upon a quality greater than initially contracted for in the price). This set up is probably best suited for the firms manufacturing consumer goods.
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or ad of es, ust ;hy tan my. ioof qua! -The ChieChemist/Technologist who has.Qyerall knowledge of manufacturing process and can apply his expert knowledge to solve problems arising out of manufacturing. Such an arrangement is probably most satisfactory for chemical units, pharmaceutical companies, processing industries like sugar, cement etc., paints manufacturers, dyes and colour manufacturers. The Chief Designer who can solve technical problems which arise while manufacturing a complex product. Such an arrangement is most appropriate for firms producing high technology equipment. The Works Superintendent responsible for production. The department of quality control is placed as staff department. Such an arrangement is suitable for firms where the quality is of average importance as in the manufacture of washing machines, vacuum cleaners etc. vi)x The Production Foreman who is responsible for production. This arrangement appropriate for manufacture of inexpensive products like hardware, hand tools, bricks etc.
2. The internal structure
,auge jthers :eater
Quality control function must be looked upon as an integrated function because the quality of product can be directly traced to the quality of raw materials and components purchased from vendors; the quality of production aids (tools, jigs and fixtures, measuring instruments); quality of manufacturing process and manufacturing facilities employed; quality of workmanship; and the quality of systems set to regulate and control work on the shop floor. To ensure quality of the products, the quality function needs to set up to cater to the following requirements: a) Inspection of goods to ensure that they are upto the specifications, thereby segregate and reject those which are defectives. This is acceptance function of quality and is commonly known as "Inspection". b) Identification of source of defects in materials, components, machining processes, or men to fix responsibility of defectives, thereby avoiding or minimising occurrence of defectives. This is the preventive function of quality and is commonly known as "Quality control". Quality control thus aims to produce better quality products at the least cost to the company and inspection is one of the tools used by it to achieve this objective. Quality control and inspection are though closely related yet they differ in respect of the following:
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Quality control determines the causes of variations in the characteristics of the products and suggests methods to minimise these variations while inspection is the application of tests and measuring devices to compare the products and their performances with specified standards. Inspection thus determines the acceptability or otherwise of an item by comparing it with the specified limits of variability.
ii)
Quality control determines what, when and how much to inspect while inspection actually conducts examination of goods for the quality characteristics called for by the Quality Control at the places and stages suggested by them (Quality Control). Inspection is thus the mechanics of assuring quality of conformance.
Inspection though merely segregates defectives after they have been produced yet by detecting substandard work during and after manufacturing and by providing foremen and engineers with the relevant information, it can assist in eliminating assignable causes of defective work. Inspection conducts examination of goods at various places and at various stages to ensure they conform to dimensional and other specifications. Inspection comprises of the following functions: (i) Acceptance or rejection of purchased items like materials, bought out parts, tools, gauges, supplies etc. to ensure that they are in conformity with the purchase order (Receiving Inspection). (if) First-off inspection and thereafter periodic sampling inspection by the patrolling inspectors thereby identifying and correcting the faults at the earliest opportunity (Floor inspection). (iii) Acceptance or rejection of semi-finished items at different stages as work progresses through different manufacturing operations (Stage inspection) (iv) Acceptance and rejection of items manufactured at the home plant prior to their movement to finished parts stores or to the customers (Final Inspection). (v) Selection, control and maintenance of gauges, instruments and equipment used for inspection by the production as well as inspection personnel (Gauge inspection). (vi) Administrative control over testing laboratory set up for checking quality and accepting materials (Testing laboratory). (vii) Co-operation in, or complete supervision of, the use of statistical quality control charts in identifying assignable causes and thereby maintaining the process under control and thus reducing the defective work (Process inspection). (viii) Co-operation in, or complete supervision of, the salvaging of defective parts and materials, including issuance of defective work and scrap reports (Salvage section).
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(ix) Visits to the customers' plants to settle disputes relating to quality of goods supplied. Quality control comprises the following functions: (i) Setting up a system of inspection covering stages of inspection, places of inspection, degree of inspection, inspection methods, responsibility of inspection and inspection reports. (ii) Periodical analysis of causes of defectives and evolving steps to rectify them progressively. (iii) Review of customers' complaints periodically and systematically. (iv) Study of request for deviations on quality specifications. (v) Rendering assistance in vendors' development. (vi) Assisting process engineering in fixing inspection stages, methods of inspection etc. (vii) Designing and installing need based statistical quality control systems. (viii) Training of inspection staff. (ix) Creating quality consciousness in the organisation. (x) Conducting periodical performance appraisal of vendors.
(xi) Supervising and co-ordinating the activities of quality circles. (xii) Minimisation of quality costs.
3.
The degree of centralisation

The degree of centralisation of the department is dictated by the size of the company, the quantity, variety and complexity of its operations. A greater degree of functionalised sub-divisions is generally profitable when the activities are large and varied while related activities (e.g. stage inspection, final inspection or functional inspection etc.) may be combined when the activities are small and not very complex. The function of quality control may be divided into "Inspection" and "Quality Control" in a large firm while they may be combined into one in a small company.
A representative organisation structure of an "Inspection and Quality Control" department in a medium-sized firm is shown in Fig. 14.2.
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14.9 TYPES OF INSPECTION All items - raw materials, bought-out parts, sub-contract components etc. purchased from outside suppliers as well as those manufactured at the home plant must be verified for quality before passing them for the next operation. This ensures that Only acceptable pieces go to the next operation which guarantees specified outgoing quality to the customer. Defective pieces are withheld and additional cost is prevented from being expended on the defective pieces. Causes for the defective are known to those concerned and appropriate action is taken to prevent re-occurrence of such defects.
Inspection of incoming materials serves other objectives also 1. It exerts moral pressure on the suppliers to inspect goods before supply. 2. It enables buyer to assess supplier's quality assurance capability and thereby decide future share of business to the supplier. 3. The inspection results enable buyer to discuss defects with the suppliers, extract promise to improve, watch their performance in the subsequent supplies, and remove those who fail to show improvement even after repeated promises. 4. Periodical feedback on the lines mentioned in para (iii) above also enables buyer to identify items where new sources require to be developed in place of existing ones. Inspection is of two types : (i) Cent percent inspection and (ii) Sampling inspection. Cent percent inspection is one wherein each and every piece is verified against the pre-set specifications. However, cent percent inspection does not mean verification of each and every quality characteristic. Only important characteristics - those necessary for satisfactory performance of the function - may be verified. Cent percent inspection has many weaknesses, namely: It involves huge costs and expenditure incurred on inspection which is a' 'dead weight cost" (Inspection does not add any value to the product but adds to the cost). It is time consuming and tedious.
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It is not suitable for items whose conformance to quality specifications needs be ascertained from destructive tests. Cent percent inspection is not foolproof either. Since inspection work is highly repetitive and boring, even competent inspectors sometimes reject good pieces or accept defective ones.
An alternative to 100 percent inspection is to use statistical inspection methods wherein the quality of the lot is decided based on the inspection results of few pieces drawn from each consignment lot. If the sample conforms to specifications, the whole lot is accepted otherwise it is rejected. Since the acceptance is based on the inference drawn from the sample, the technique is known as acceptance sampling. The choice between cent percent inspection and sampling inspection depends on the following factors: i) Cost of inspection versus cost of failure : Sampling inspection is best suited when the cost of inspection is much higher than the loss arising from the acceptance of a defective part. ii) Nature of inspection: Sampling inspection is a must if the inspection is of destructive nature. iii) Lot size: Sampling inspection is desirable if the quantity to be inspected is very large while cent percent inspection is alright if the lot is small. iv) Manufacturing process: Manufacturing process also influences the choice of the inspection process. The component produced on completely automatic machines may be subjected to sampling inspection while parts produced on semi-automatic and completely manual operated machines require cent percent inspection. v) Stage of inspection : Cent percent inspection is required on WIP prior to a key operation and critical operation. Similarly, cent percent inspection is a must prior to an operation wherein costly tooling is likely to be endangered. Cent percent inspection, however, does not mean inspection of components, for 100% quality characteristics. Only few quality characteristics may be checked in 100% of the components. Sampling inspection may be performed at other inspection stages. This is especially important when subsequent operations are likely to correct minor defects in the components produced at the preceding operations. vi) Functional importance of the item: Functionally critical parts require to be covered under cent percent inspection while others may be subjected to sampling inspection.
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',<".;,
vii) Stage of development: Samples, pilot lot and first few production lots must be subjected to cent percent inspection while subsequent lots may be subjected to sampling inspection. viii) Results of sampling inspection : A lot declared rejected in sampling inspection may require to be inspected 100% in case of urgencies. ix) Re-inspection of segregated lots : Lots declared rejected in sampling inspection and subsequent segregated by the vendor's representatives do not need to be checked up for cent percent inspection. Sampling inspection is generally sufficient for segregated lots. x) Vendor's quality rating: The past experience with the vendors can also help to decide the extent of inspection; Lots submitted by the vendors known for quality do not need to be checked for cent percent quantities while lots submitted by other vendors may be subjected to cent percent inspection. xi) Inspection performed as a moral check on stage inspectors or line inspector Sampling inspection suffice to check the work of line inspectors and stage inspectors. xii) Natural tolerance versus design tolerance: The part produced on machine having natural tolerance, also called process capability, smaller than the design tolerance may not be inspected at all. Sampling inspection is generally desirable for parts produced at machines having natural tolerance either equal to or closer to the design tolerance. And cent percent inspection is required for parts produced on machines having natural tolerance greater than the design tolerance since the manufacture will involve acceptable, rework and defective pieces. xiii) Industry wise practice: Inspection practice of the industry and those of competitors also influence the choice but it is not really important. Sampling inspection, however is subjected to sampling errors as there is always a chance that the sample may not be representative of the population from which it is drawn. This at times may cause acceptance of a lot of bad quality or rejection of a lot of good quality. Sampling errors in acceptance sampling are minimized by selecting a sample which is representative of the lot (i.e. by choosing the sample at random so that every portion of the lot will have equal representation in the sample). Such a sampling is known as random sampling. If the sample is true representative of the lot, then only a few good lots will be rejected and only a few bad lots will be accepted. Infact, acceptance sampling plans exactly do this. A carefully designed sampling plan utilizing appropriate sample size (n) allowable number of defectives called acceptance number (c) usually takes care of quality assurance function adequately.
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Acceptance sampling plan is a set of rules which prescribe the procedure to be adopted in preparing the lot, selecting the sample(s), conducting inspection of the sample(s) and fixing criteria for acceptance or rejection of the lot. Basis of Inspection Sampling inspection can be conducted on either of the two basis: (i) Variable basis: In this, inspection of samples is conducted on measurement (variables) basis (i.e. on the basis of actual measurements). Examples of variables are: Weight of a packet (in kgs), length of a component (in mm/cm/meters), life test of a part (in hours), tensile strength of a rod (kgs/cm2) etc. (ii) Attribute basis : In this inspection of samples is carried out on 'go' and 'no go' basis (i.e. determining whether or not the product in the sample conforms to the specifications). Examples of attributes are cracks (e.g. pressure gauge is either cracked or not cracked), colour (e.g. furniture has a desired colour or it has not), appearance (e.g. surface finish of the cover is either satisfactory or it is not), missing operation (bearing is either oiled or not oiled), presence of burrs etc. Defects and their Classification Inspection is to verify conformance of the product to the specified standards which may be either a single characteristic or a bundle of characteristics. The failure of an item/product to meet the standard against a particular characteristic, is called a defect, i.e. when a product fails to satisfy say three characteristics is said to have three defects. For example, a casting may be rejected due to one or more faults like blow holes, cracks, cuts, scabs, sponginess, swells, runouts, misruns, bad surface, faulty microstructure, low/high hardness etc. Each of these faults is called a defect and a casting that has any one or more of these defects is called defective casting. Defects can broadly be classified as critical, major or minor: (i) Critical defect: A defect that renders the item totally unfit for use, makes it hazardous or unsafe to use e.g. hole at the bottom of a test tube, badly insulated electric appliances etc, (ii) Major defect: A defect which is not critical but affects function, effectiveness, life or appearance of the item is called major defect, e.g. unevenness of the rim of a test tube, missing thread of a fastner etc.
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'
<"''' l '- i ''
(iii) Minor defect: A defect, other than critical and major defect, that does not materially reduce the usability of the product for its intended puipose is called minor defect, e.g. scratches on the paint of the outer casing of a gear box; lack of smoothness on the edges of CRCA sheet (if the sheets in subsequent operation are trimmed), poor surface finish in rough turned blanks, etc. The placement of a defect in a particular classification varies from item to item, depending upon purpose for which the item is designed. For example scratch on the paint of a gear box housing is a minor defect while scratch on the paint of a kitchen cabinet or dining table is a major defect. Therefore, while inspecting, an inspector must have clear understanding of the required characteristics, permitted variations, type of defects and classification of defects. Defect classification is utilised in acceptance sampling as under: (i) A separate sampling plan is chosen for each class of defects. (ii) The sampling plan for critical defects is generally tight whereas for minor defects it is comparatively loose. Âctivity D ; Visit a service organization like a Financial Institution or BPO. Find out and explain in brief their system of Quality Control in their operations.
14.10 THE OPERATING CHARACTERISTICS CURVE ___________________ The sampling plan is supposed to separate good lots from bad lots but there are bound to be sampling error (A properly designed sampling plan can control sampling errors but can not completely eliminate them). A sampling plan specifies the sample size (n) to be drawn and the number of defectives (c) associated with it which are to be allowed in a batch of acceptable quality (c is often referred to as the acceptance number). The lot is accepted if the number of defectives in the sample is equal to or below the permissible number of detectives and is rejected if the number of defectives in the sample exceeds the permissible limit. The capability of the sampling plan to discriminate between good lots (i.e. acceptable
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lots) and bad lots (i .e. unacceptable lots) is revealed by the operating characteristic (OC) curve.
Construction of OC Curve
The operating characteristic curve gives the probability that a lot with particular percentage defectives (p) shall be accepted on the basis of sampling inspection. The curve, drawn on a graph, indicates percentage defectives (p) in the lot along the X - axis and probability of acceptance (Pa) of the lot along the Y - axis (Fig. 14.3) The basic characteristics of an OC curve are:
r~
1.The OC curve i s based on the assumption that if the lot is large in compari son to the > sample, the probabilities of the OC curve will follow a binomial distribution. When q is very large than p and also if the sample is largeTFoissoh distribution is used instead of binomial distribution to construct OC curve. The change makes negligible difference in accuracies but appreciably reduces the cumbersome calculations which otherwise need to be made. 2. An OC curve drawn for sample size 'n' and the associated number of defectives (c) gives the probability that the sampling will accept a lot containing a particular percentage of defectives that is offered to it. A common property of all OC curves is that a lot having zero percentage defectives will always be accepted. As the percentage defectives increases, the probability of acceptance of the lot reduces. However, probability of a lot even for a particular percentage of defectives will be different for the different sample sizes and different allowable defectives in the sample. Expressed in another way, an OC curve is always exclusive to a particular sampling plan and is dependent of 'n' and 'c'. Only two points on the curve are sufficient to specify an OC curve. This is because the shape of the curve is a function of the sample size and the acceptance number. And hence if two points are specified for any OC curve, there will necessarily be only one such curve which will pass through these two points.
3.
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LU
I H LL
o
UJ
III
8
m O tr o_
_ J0) <
\ i 1,0 0 .95 .90 .85 ,80 .75 .70 .65 .60 .55 .50 .65 ,0 .35 .30 .25 20 .15 .10 .05
r i \ s \ \
\ \ 1
/ i n fv\
L \ 1
n 5 = Cs 2 0
V
\
\ \
N\
4 56 78
s s'l
v
"23
9 10 11 12 13 15 16 17 18
ACTUAL PERCENTAGE DEFECTIVES IN THE LOT
Fig 14.3 Parameters of OC Curve

An OC Curve has four parameters : Producer's risk (a) is the probability that a good lot will be rejected by the sampling plan. The risk of rejecting a good quality lot (depending upon the plan) may vary between 0.01 to 10%. Consumer's risk ((3) is the probability that a bad lot will be accepted by the sampling plan.
o z
w u u
a, O
.100 2 3
1 4 5
= PRODUCERS RISK PERCENT DEFECTIVES

0-
Fig 14.4 : OC Curve showing its four parameters
(3 = CONSUMER RISK .20
fin) Acceptable quality level (AQL) is the

maximum percent defective (or maximum number of defects per hundred) that for the purpose of sampling inspection can be considered satisfactory as a process average.
11 9
A good sampling plan should have a low producers' risk for quality that is equal to or better than AQL. Lot Tolerance Percentage Defective (LTPD) is the defect level (percent defective or number of defects per hundred) for which lots are regarded as bad lots and therefore should have very low probability of acceptance."^ ~" The OC curve gives graphical summary of these four parameters (Fig. 14.4)
Relationship between Parameters

AQL and producers' risk are inter-related since probability of acceptance (Pa) of a lot of a specified AQL is nothing but (1 - a) a being the producers' risk. For example, if producers' risk (a) is fixed at 5% then the probability of acceptance of a good lot automatically gets set at 95% (= 1-a). Similarly, LTPD and consumer's risk ((3) are inter-related. This is because the probability of acceptance of lots of LTPD quality and consumer' risk ((3) are one and same thing. For example, if consumer's risk (|3) is fixed at 10%, it means probability of acceptance (Pa) of bad lots at 10% ((3 = 0.10). Since (3 is expressed in terms of probability of acceptance, no conversion is necessary. In lieu of the above, it may be concluded that the four points go in pairs (Fig. 14.5) 2 3 i5 i PRODUCER'S RISKs PROBABiLrTY OF REJECTING PRODUCT WHICH MEETS THE AQL *
PROCESS AVERAGE, DEFECTS MOD UNITS
Fig 14.5
CONSUMER'S RISK = PROBABILITY ) OF ACCEPTING PRODUCT WHICH IS WORSE THAN LTPD
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OC Curve of an Ideal Plan An operating characteristic curve indicates the ability of the sampling plan to discriminate between lots of varying quality. An ideal OC curve is a rectangular shaped curve that accepts all lots with quality equal to or better than AQL and rejects all other lots. Such a curve is possible only with cent percent inspection. Fig. 14.6 shows OC curve of an ideal sampling plan. It suggests that (i) All lots less than 3% defectives have the probability of acceptance of 1.00 (certainty) (ii) All lots greater than 3 % defectives have a probability of acceptance of zero.
Jj8 -7 ACCEPTANCE /
& 6 U) .6
i.o
LINE
CD
INCOMING PERCENT DEFECTIVES
Fig 14.6: OC curve of an ideal sampling plan
Since in the sampling inspection, it is not possible to get a rectangular OC curve, the aim should to be to have as steeper an OC curve as possible (governing factors being cost of inspection and risk of loss from accepting a bad lot). This is because the steeper the OC curve, the better is the discrimination between good and bad lots. OC Curve of a General Plan
ocPRODUCER'S RISK
inly cent percent inspection (i.e. rectangular OC curve) can perfectly discriminate between lots of good quality and lots of bad quality. With a general OC curve, probability of acceptance of lots of good quality is never unity. Similarly, even lots with percent defectives equal to or greater than LTPD, though technically bad lots, have some chance of being accepted. A general OC curve, which is of the shape drawn in Fig. 14.7, can be divided into three zones: (i) Zone of acceptance and rejection : Fie 14.7
The zone extending up to AQL and beyond LTPD are referred to as the zone of the acceptance and the zone of rejection respectively. Nearly all lots within zone of acceptance are accepted quickly and within the zone of rejection nearly all are rejected.
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An OC curve should, therefore, be chosen in such a way that its zone of acceptance rejects lots which are considered unsatisfactory. (ii) Zone of indecision: Zone of indecision is a zone encompassed within the zone of acceptance and zone of rejection. Lots having percentage defectives more than the AQL but less than LTPD fall within this zone. A lot in this zone is said to be worse than what is considered to be an acceptable lot and better than what is considered as unacceptable lot. No decision whether the lot should be accepted or rejected can be taken until cent percent inspection is carried out. The width of the zone of indecision, however, can be reduced by taking a large sample but this will increase the inspection costs. An important requirement of a sampling plan is that lots of good quality should have a high probability of acceptance and lots of poor quality should have very low probability of acceptance. This is referred to as the discriminating power of the sampling plan and largely depends on the size of the sample. It may be observed that the larger the sample size (n), the steeper the OC curve and thus better is the discrimination between good and bad lots by the plan (Fig. 14.8). A sampling plan which perfectly discriminates will have vertical CXI! curve. Discriminating power of sampling plan can also be increased by reducing its acceptance number. Fig. 14.9 shows curves for varying values of acceptance number (keeping N and n constant).
Fig 14.8: OC Curve for varying sample sizes

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Fig 14.9: OC Curve with different acceptance nos. for a sample size of n
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14.11 SPECIFYING AN OC CURVE

An operating characteristic curve, as discussed earlier, is fully specified if any two points on it are fixed. The most common method of setting these points is to fix "acceptable quality level" called AQL and "unacceptable quality level" called LTPD.
Acceptable Quality Level (AQL) AQL refers to the quality levels for which lots are regarded as good lots and hence must have a very high probability of acceptance. The AQL is found at one end of the OC curve and it represents the percentage rejects in a batch at which a sampling plan will accept most of the lots (usually 95% of the lots submitted for inspection). The AQL level is measured in terms of acceptance number 'c' which gives the maximum permissible number of defectives in the sample (n) if the lot is to be accepted. For each item, the defects are grouped into three categories as defined above and the corresponding AQL values are fixed. AQL level for critical defects is kept lower than AQL level for major defects. Similarly, AQL level for major defects is kept lower than AQL level for minor defects. Atypical example of selection of AQL is given below: Nature of characteristics (defects) Critical Major Minor
Lot Tolerance Percent Defective (LTPD) LTPD refers to the quality for which lots are regarded as bad lots and hence must have a very low probability of acceptance. LTPD is found at other end of OC curve and it represents the percentange rejects in a batch at which sampling plan will reject most of the lots (usually 90% of the lots). LTPD is measured in terms of rejection number, r, which sets the limit at and above which number of defectives in the sample (n) lot will be rejected. Sampling is a random phenomenon and hence the decision based on acceptance sampling at times may not be correct. In fact, there is always some risk involved in acceptance sampling. Since the inference is drawn on the basis of a sample, there is always some chance that the sample may not be representative of the population from which it is drawn.
AQL Upto 0.65% 1.5%

4%
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Two types of errors can possibly be made with a sampling plan: (i) (ii) The plan may reject a lot of acceptable quality (called producer's risk). The plan may accept a lot of rejectable quality (called consumer's risk).
Producer's Risk (a)

ucer's risk also called a (or alpha) risk refers to the risk that a batch of goods of acceptable quality will be rejected as a result of sampling inspection. Producer's risk is measured in terms of probability that lots of level AQL will not be accepted. A producer risk of 5% is usually considered as a reasonable figure which implies that only 5 out of 100 cases a lot of AQL level will be rejected due to sampling error.
Consumer's Risk (|5)

Consumer's risk also called (3(or Beta) risk refers to the risk that a batch of goods of "unsatisfactory quality will be accepted as a result of sampling inspection. Consumer's risk is measured in terms of probability that lots ofLTPD will be accepted. The consumer' risk is generally set at 10% which implies that out of 100 cases a lot of LTPD level will be accepted due to sampling error. Since AQL and producer risk (a) as well as LTPD and consumer risk (P) are interrelated, to select a sampling plan, therefore, both buyer and seller must agree on the level of inspection governed by AQL and LTPD values. The lower the AQL level, the lesser is the probability of accepting wrongly a bad lot but greater is the cost of inspection. A producer, therefore, likes to set very high AQL while a consumer wishes to set a low LTPD. The choice of the suitable plan is a matter of negotiation between the consumer (buyer) and the producer (seller). This is how an OC curve is established by specifying (AQL and ?) and (LTPD and ?). And once the two points have been specified, the shape of the curve that passes through these points is known, which in turn decides sample size (n) and acceptance number (c). Theoretically, determination of 'n' and 'c' is a trial and error method. But in practice, they are picked up from sampling tables according to the sampling plan used. The method to compute 'n' and 'c' values is beyond the scope of this book.
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14.11 SAMPLING PLANS

Sampling plans commonly used for attributes have been classified into four categories. Single sampling plan. Double sampling plan. Multiple sampling plan. Sequential sampling plan.
1.
Single Sampling Plan

The single sampling plan is a sampling inspection in which the decision to accept or reject the lot is based on inspection results of a single sample. If the number of defectives found in the sample is equal to or less than the acceptance number set by the plan, the lot is accepted. And if the number of defectives is equal to or greater than the rejection number (rejection number in a single sampling plan equals acceptance number plus one), the lot is rejected. The data required for the single sampling plan are: lot size (N), sample size (n), acceptance number (c) and rejection number (r). Specification of rejection number in a single sampling plan is optional since it equals acceptance number plus one. The working procedure of the single sampling plan is as under : i) Collect a random sample (n) from the lot to be inspected. ii) Inspect pieces in the sample for the required quality characteristics. iii) iv) If number of defectives is equal to or less than the acceptance number (c) set by the plan, accept the lot. If the number of defectives exceed the acceptance number (i.e. equals or exceeds the rejection number), reject the lot.
The plan is schematically represented in Fig 14.10 An illustration of a single sampling plan: A sampling plan has the following data to suggest: Lot size Sample size Acceptance Number = N = 4000 = n = 80 =c=2
ii
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Now let us see the working of the plan.

Select a random sample of 'n' pieces 1 Inspect pieces for the given quality characteristic i "c" or fewer defectives 1 Accept the lot
1 "r" or more defectives I Reject the lot
Fig 14.10: Schematic diagram of a single sampling plan Solution: The plan suggests that from a lot of 4,000 pieces, select 80 pieces at random and inspect them for the required quality characteristic(s). If the number of defectives in the sample is zero to two (i.e.zero, one or two), accept the lot. And if the number or defectives in the sample is three (rejection number r = c+1) or more, reject the lot. 2. Double Sampling Plan
The double sampling plan is sampling plan in which the decision to accept or reject the lot is based on inspection results of, at the most, two samples. The data required for the double sampling plan are: the lot size (N), first sample size (n,), first acceptance number (c,), first rejection number (r ^second sample size (n2), second acceptance number (c2) and second rejection number (r2) The schematic diagram of the double sampling plan is drawn in Fig. 14.11. The working procedure of the double sampling plan is as under: i) ii) iii) Collect a random sample n, from the lot Inspect the sample for the given quality characteristic(s) If the number of defectives is less than or equal to the acceptance number c,, accept the lot.
iv) If the number of defectives is equal to or more than the rejection number r (, select the lot.
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v) vi)
If the total number of defectives are more than c(, but less than rj5 select another random sample on n2 pieces. If the total number of defectives in both samples (cumulative sample size) is less than or equal to the acceptance number c2, accept the lot.
vii) If the total number of defectives in both samples is more than rejection number r2, reject the lot. Select a random sample (n^ from the lot Inspect the pieces for the given quality characteristic(s) More than c{ but less than r( defectives Select a second random sample (n )
---------------- ; -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Inspect second sample for given quality characteristic(s) Add up defectives in the two samples c2 or less defectives r2 or more defectives Accept the lot Fig 14.11: Schematic diagram of double sampling plan An illustration of the sampling plan:
A sampling plan has the following data to offer: N =

c
=
4,000 50 0 3 3 r2 =4 n, c2 = = 50
Explain the working of the plan.
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Solution:
The plan suggests that from a lot of 4,000 select 50 pieces (n^ at random and inspect them for the required quality characteristics. If number of defectives in the sample is zero (c yor less) accept the lot. And if there are three or more defectives (rejection number r,) in the sample, reject the lot. However, if there is 1 or 2 defectives (between cl and r,), draw a second sample of 50 (n,) pieces. If the number of defectives in the combined samples (n, + n2) is 0 to 3 (c2 or less) accept the lot. And if the number of defectives in the combined samples is 4 or more (r2 or more) reject the lot. Double sampling is similar to single sampling except that a decision can often be made with much less inspection. In single sampling plan, the decision to accept or reject a lot is based on the results of inspection of a single sample of specimens drawn from the lot. In double sampling plan, a smller sample is drawn and a decision to accept or reject is reached on the basis of the sample of specimens if the number of defectives is either quite large or quite small. A second sample is taken if the results of the first sample are not decisive. Since it is necessary to draw and inspect the second sample in border line cases only, the average number of pieces per lot inspected is generally smaller than with single sampling. If single sampling reqires 100 pieces, double sampling ordinarily accomplishes the same results with 50 pieces.
3. Multiple sampling plans

Multiple sampling plan is a type of sampling inspection in which the decision to accept or reject the lot is based on inspection of possibly more than two samples. Multiple sampling is an extension of the double sampling plan. In multiple sampling plan, after each sample is inspected, the decision is made to accept the lot, or to reject the lot, or to draw another sample. The process of drawing sample is continued there being prescribed maximum number of samples until the decision to accept or reject the lot is taken. The data required for the multiple sampling plan are: the lot size (N), first sample size (n,), first acceptance number (c,), first rejection number (r,), second sample size (n2), second acceptance number (c2) for the two combined samples (n,+n2), second rejection number (r2) for the two combined samples, third sample size (n3), third acceptance number (c3) for the three combined samples (n^n^n^, third rejection number (r3) for the three combined samples and so on. The schematic diagram of the multiple sampling inspection plan is drawn in Fig. 14.12
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An illustration on multiple sampling plans:

A sampling plan has the following data to offer: N = 4,000
Select a random sample (n,) from the lot Examine the piece for the given quality characteristics More than c1 but less than r1 defectives Select and examine a second sample of n pieces Add up defectives in the two samples More than c2 but less than r2 defectives Select and examine a third sample of n pieces And so on through remaining samples Inspect last (mth) samples of n pieces Add up defectives in m samples c or less defectives
Sample stage
Sample size n, = 20 n = 20 n =20 1*4 = 20 ns = 20 n6 = 20 n? = 20
Cum.sample
Acceptance number
Rejection number
1 2 3 4 5 6 7
20 40 60 80 100 120 140
0 1 3 5 7 10 13
4 6 8 10 11 12 14
Solution:
The plan suggests that from the lot collect the first sample of 20 nos. (n,) at random and examine them for required quality characteristic. If the number of defectives in the sample is zero, accept the lot and if there are 4 or more defectives reject the lot. If, however, the number of defectives is between 0 and 4 (i.e. greater than zero but less than 4), draw a second sample (n2) of 20 numbers and examine for defectives. If the number of defectives in the combined sample (n! + n2) is 1, accept the lot and if the number of defectives in the the combined sample is 6 or more, reject the lot. If no decision is reached after examining the second sample this being the case when the number of defectives in the first and second sample taken together is between 1 and 6 (i.e. more than 1 but less than 6), select a third sample of 20 pieces and so on upto the seventh stage till a decision is finally reached so as to accept or reject the lot. Comparison of single, double and multiple sampling plans: Relative advantages and disadvantages of single, double and multiple sampling plans are given in Table 14.1 Table 14.1: Comparison of different sampling plans Type of Sampling Plan Features 1 . Administrative simplicity 2. Sampling inspection cost 3. Reliability of information on level of quality of the lot 4. Acceptability to the producer Single Sampling Maximum Higher Double Sampling Moderate Lower than single sampling plan Lesser than single sampling plan Good (Relatively higher than single sampling) Multiple Sampling Minimum Least (lower than double sampling plan) Least
Largest
Psychologically poor due to one chance
Excellent
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14.12 TOTAL QUALITY MANAGEMENT
TQM is the way of managing for the future. It is far wider in its application than merely assuring product or service quality. TQM views quality entirely from the pint of view of customers. TQM is a way of managing business processes at every stage, internally and externally to ensure complete customer Satisfaction. TQM, combined with effective leadership, results in an organization doing the right things right, first time. Total Quality Management is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. TQM encompasses all functions, activities, employees and processes of an organization. Definition TQM is a generic term. Hence there are several definitions of TQM due to different perceptions. It is viewed as a method, approach, way and philosophy. Few definitions are as below: in concept Jurow & Barnard, 1993 defined TQM as
"A system of continuous improvement employing participative management and centered on the needs of customers" . Ânother definition of TQM as a management philosophyjuA
\ TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. A management philosophy for continuously improving overall business performance based on leadership, supplier quality management, vision and plan statement, evaluation, process control and improvement, product design, quality system improvement, employee participation, recognition and reward, education and training, and customer focus.
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Key Principles of TQM 1. Focus on the Customer Focus on customer is critical element of TQM. Central to all TQM is a focus on the customer both the internal and external. Following actions are suggested: 2. Give customers highest quality and best services at best price Identify/define customer expectations Put customer service first before anything -^ Have well defined policy to handle dissatisfied customers
Continuous Improvement of Quality TQM is not a one time activity but ongoing way of managing business. Fundamental to all TQM systems is improving the quality of the products and services provided by an organization on continuous basis. Several techniques like PDCA cycle, 7 QC tools are used to achieve continuous improvement. Such quality improvement results in greater productivity and ability to serve customers better. A focus on continuous quality improvement helps an organization do things right.
3.
Employee Involvement TQM strives to utilize abilities and experience of all the employees. Hence TQM requires involvement of all the employees. It is a long term activity and requires structured approach. Attitude surveys, employee empowerment, skill development, suggestion schemes, Kaizen are some of the techniques/approaches which management employ.
4.
Leadership Providing leadership for TQM is top management responsibility and is one of the essential requirements for success of TQM. The leader's goal is to help people do a better job. The management should act as a facilitator, catalyst, and coach Management should lead the process of transformation of the organization to the new culture of continuous quality improvement. The management is expected to have vision, long term thinking and should focus on policy, structure, and systems to sustain continuous quality improvement. Within this context, quality is the first among equals of the organization's functions. Quality is at the top of the agenda for every meeting, every communication..
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5.
Systematic Improvement of Operations

TQM through Quality improvement teams or otherwise improves the process continuously. Quality improvement teams are the committee of employees drawn from different departments. The team studies the identified work processes, record and analyze the process, find areas for improvement and implements the findings/ suggestions. Studying work processes quantitatively, using individuals or teams, to find places that breakdowns or unnecessary complexities occur in processes, and then to identify solutions that prevent them in the future. Study of work processes helps to reduce costs while ensuring that quality is built into a service or product since quality cannot be inspected into it at the end of the processes.
6.
Training and education

Training and education is essential for success of TQM. Training must be imparted to employees at all levels. The training should cover all aspects from conceptual inputs to those of tools/techniques, for inter personal skills. Some of the aspects to be considered are as follows: Define Training objectives Prepare a training plan Have training need based rather than resource based Have system to evaluate training effectiveness
Steps to Total Quality Management

Based on his work with Japanese managers and others, Deming (1986; Walton, 1986) outlined 14 steps that managers in any type of organization can take to implement a total quality management program. 1. Create constancy of purpose for improvement of product and service. Contancy of purpose requires innovation, investment in research and education, continuous improvement of product and service, maintenance of equipment, furniture and fixtures, and new aids to production. 2. Adopt the new philosophy. Management must undergo a transformation and begin to believe in quality products and services.
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3.
Cease dependence on mass inspection. Inspect products and services only enough to be able to identify ways to improve the process. End the practice of awarding business on price tag alone. The lowest priced goods are not always the highest quality; choose a supplier based on its record of improvement and then make a long-term commitment to it. Improve constantly and forever the system of product and service. Improvement is not a one-time effort; management is responsible for leading the organization into the practice of continual improvement in quality and productivity. Institute training and retraining. Workers need to know how to do their jobs correctly even if they need to learn new skills. Institute leadership. Leadership is the job of management. Managers have the responsibility to discover the barriers that prevent staff from taking pride in what they do. The staff will know what those barriers are. Drive out fear. People often fear reprisal if they "make waves" at work. Managers need to create an environment where workers can express concerns with confidence. Break down barriers between staff areas. Managers should promote teamwork by helping staff in different areas/departments work together. Fostering interrelationships among departments encourages higher quality decision-making.
4.
5.
6.
7.
8.
9.
10. Eliminate slogans, exhortations, and targets for the workforce. Using slogans alone, without an investigation into the processes of the workplace, can be offensive to workers because they imply that a better job could be done. Managers need to learn real ways of motivating people in their organizations. 11. Eliminate numerical quotas. Quotas impede quality more than any other working condition; they leave no room for improvement. Workers need the flexibility to give customers the level of service they need. 12. Remove barriers to pride of workmanship. Give workers respect and feedback about how they are doing their jobs. 13. Institute a vigorous program of education and retraining. With continuous improvement, job descriptions will change. As a result, employees need to be educated and retrained so they will be successful at new job responsibilities.
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Quality Management - I (Inspection anu
14. Take action to accomplish the transformation. Management must work as a team to carry out the previous 13 steps.
Benefits of TQM
Greater customer satisfaction Lower cost Higher responsiveness to customer needs Higher productivity levels Making organizations competitive Improvement in delivery
14.13 SUMMARY
The term quality has many definitions and meaning but now it is directly linked to customer satisfaction. Quality function has evolved from inspection to QC to QA and to TQM. To build Quality into product it is necessary to have it at both stages- Quality of Design and Quality of Conformance. Quality control in purchased items require different approach than that for manufactured items. Often 100% inspection is impracticable or uneconomical. Inspector's fatigue or repetitive operations can be serious obstacle to good 100% inspection since some defective pieces may escape with the good pieces. On the contrary, the quality of the product accepted may be better with modern statistical acceptance sampling procedures than would be the case if the same product were subjected to 100% inspection. Acceptance sampling is the process of evaluating the quality of a lot of product through careful examination of a small number of units of products drawn from the lot. ing ive If the decision to accept or to reject a lot is based on the inspection of a single sample, it is called single sampling; if the decision rule requires inspection of a second sample (when the acceptance or rejection of the lot on the basis of inspection of the first sample is non conclusive), it is called double sampling; and if the decision rule in which there is possibility of taking more than two samples before the final decision on acceptance or rejection of the lot is reached, it is called multiple sampling. Total Quality Management is a philosophy to manage business focusing to customer requirements. TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. Leadership, customer focus, employee involvement, training are some of the key elements of TQM.
>y
K)Ut
sent, ined
13 5
14.14 KEYWORDS Quality Quality Control

Quality is customer satisfaction achieved through product features and freedom from deficiencies Quality control is the mechanism by which products are made to measure upto the specifications determined from customer's demand and transformed into engineering and manufacturing requirements. Quality of design covers identification of the right product, selection of the appropriate features. The failure of an item/product to meet the standard against a particular characteristic, is called a defect. The operating characteristic curve gives the probability that a lot with particular percentage defectives (p) shall be accepted on the basis of sampling inspection. AQL is the maximum percent defective (or maximum number of defects per hundred) that for the purpose of sampling inspection can be considered satisfactory as a process average. The single sampling plan is a sampling inspection in which the decision to accept or reject the lot is based on inspection results of a single sample TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.
Quality of Design Defect OC Curve
AQL
Single Sampling Plan
TQM
14.15 SELF-ASSESSMENT QUESTIONS

1. "Quality is basically the responsibility of one who produces". Discuss. In this background, explain the role of Quality Control department. (a) (b) What does management expect from Quality Control department? What duties are generally assigned to the Quality Control department of the company?
2.
136
15.1 INTRODUCTION (Statistical quality control underlines a basic philosophy that prevention is better than cure and a stitch in time saves nine. ^ -~-*-SPC prevents the occurrences of defectives by exercising control over the process rather than inspecting goods for conformance after they have been produced. The most common device used for this purpose is Shewhart Control Chart introduced in 1931. A control chart is a visual display of statistically significant changes that may occur in a process. The chart evaluates whether the process is in the state of statistical control or not. If it is, the fluctuations are due to random variability and if it is not, they are due to assignable variability. Assignable variability can be traced to the specific causes (called assignable causes) whose removal brings about greater product uniformity, lower waste and reduced cost. 15.2 PRINCIPLES UNDERLYING PROCESS CONTROL ________________ Process control is based on following five principles:
. ""
-~i
"Variability is necessarily inherent in any process." 1 This implies that no two parts produced on a machine are exactly identical. They, however, may be interchangeable. Variations results in parts because of the inherent variability of the manufacturing process. Some variations are so great that they can be identified by the measuring instruments and some others are so minute that the confusion arises whether the variations are those within the parts or they are due to errors in readings or due to errors of the measuring instruments. The existence of the inherent variability has been recognised by the industry. Inclusion of certain tolerance on the basic dimension in the drawing is the acceptance of this variability.
1.
2.
"Total variability is composed of two parts: one internal to the process and the other external to the process." Internal variations, also called inherent or chance variations, are caused by cumulative effect of number of chance causes. Variations due to chance causes are inevitable in any process and are difficult to identify. Economically, nothing can be done about them unless the whole process itself is changed which constitutes a fundamental change. Typical examples of chance causes are : play in the journals and guide rods (e.g. lathe), heterogeneity in the material used, the temperature of the workshop, fluctuations/ variations in power supply, lack of human perfection in reading instruments etc. External variations are caused due to assignable causes which can always be traced to the operating conditions of the process and corrected. Assignable causes include
Unit 15
Quality Management - II (Statistical Process Control)
such factors as poor machine maintenance, faulty jigs and fixtures, large variations in hardness of material, tool wear, errors in setting, careless or poorly trained workers, extreme warm weather, accumulation of dust and dirt, an extended vacation period, changes in the shifts or of the operator, supply of defective materials etc. Basic characteristics of the two types of causes are given below: Chance causes are very large in number while assignable causes are few in number. A single chance cause results in an insignificant variation (many chance causes acting together, however, can cause substantial variation) while any one assignable cause can result in a large amount of variation. Variation due to chance causes follow statistical laws while those due to assignable causes don't. Variations due to chance causes are difficult to identify while those due to assignable causes can be traced to the opening conditions of the process. Variations due to chance causes cannot be economically eliminated while those due to assignable causes can be economically removed. Control charts of statistical quality control help the operating personnel to identify the presence of an assignable cause before it develops and renders the component defective. 3. "Variation pattern of an industrial process when under control (process being influenced only by inherent causes) fits into a normal curve."
Âctivity A:
SPC can be implemented to process if: a. The output of a given process is deemed significant or critical. b. The process output is a number. c. The process variation is very large. d. The process is out of control. Comment.
143
Productio n/ Operation s Managem ent
Fig 15.1: Normal distribution curve

Normal distribution is one of the best known statistical relationships. Every one is familiar with its bell shaped curve (Fig. 15.1) Important properties of normal distribution are: The normal distribution represents a bell shaped curve which has a single hump at the mean. The mean, the mode and median are equal. The distribution is symmetrical about the mean, the area under the curve below the average equals area under the curve extending beyond the average i.e. skewness and kurtosis are zero. The total area under the normal curve is unity.
Theoretically, the normal curve can extend from - to + , but almost all the observations (e.g. 99.73% of the total observations) are enclosed between |i 3 o limits. The area enclosed within the commonly used multiples of o is Limits Area enclosed (%)
(ilo H 2 a \i 3 o
68.26% 95.45% 99.73%
Whatever be the dimensions of the curve, be it tall and thin or short and fat, the proportionate area under the curve encompassed between the mean and the given standard deviation is same.
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Unit 15
The distribution is dependent on only two parameters (I (mean) and a (standard deviation).
An illustration as under could be considered :

Assume that a screw machine is employed to cut a rod to a certain tolerance. Further assume that external variations due to assignable causes have been eliminated which implies that the machine is being influenced only by the chance causes. A series of measurements of length of a large number of parts if plotted will yield a normal distribution. Almost all measurements (99.73% i.e. 9973 observations out of 10,000) shall be within three standard deviations from the mean which is the measure of inherent variability. The magnitude of this inherent variability is called "process capability " or "natural tolerance ". Control charts thus help the operating personnel to measure natural tolerance of the machine. 4. "Every quality characteristic has a certain specification and the manufacturing process is expected to produce within this specification (called design tolerance which is the difference between the specification limits)." The economic manufacture will result when the process capability (natural tolerance) and the design tolerance are made to synchronize. The process capability studies of the various processes are likely to fit in one of the following situations: (i) Good process variability and correct process centering (Fig. 15.2) The variability of the process is well within the variability allowed by the specifications. The process is also centered to the specifications. This is an excellent situation. LOWER SPEC LIMIT ~ UPPER SPEC ~~ LIMIT
Fig 15.2
145
(ii)
Good process variability but poor process centering (Fig. 15.3) The variability of the process though is well within the variability allowed by the specifications (i.e. process variability is good) but the process needs centering.
(iii) Good process variability but bad process centering (Fig. 15.4) The variability of the process is within the variability allowed by the specifications but the process is off-centre. Lack of centering is the cause of rejection / rework (i.e. out-of-specification products).
,' 1
Fig 15.3
(iv) Process variability is just adequate (Fig. 15.5)
Fig. 15.4
The process variability equals the variability allowed by the specifications. This is not a comfortable situation since a slight disturbance in the process can cause out-of-specification products. The process needs close monitoring and control.
Fig 15.5
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Unit 15
(v)
Process variability is just adequate but process is off-centre. (Fig. 15.6) The process variability equals the variability allowed by the specifications. The process is also off centre. It is clearly uncomfortable situation as presence of an assignable cause even for temporary period can cause some out-of-specification products. The process needs centering and close monitoring and control.
(vi) Inadequate process variability (Fig. 15.7) The process variability is more than the variability allowed by specifications. Also any off centering of process is sure to worsen the situation. The process is incapable of producing acceptable product and needs correction to reduce its variability.
Fig 15.6
Fig 15.7
5. "The arithmetic means of samples, drawn from a population which is normal with mean \l and standard deviation o if plotted also yield normal distribution with mean X (x being the average of the sample averages) being equal mean of the population, ( X = |i), and standard deviation
x=
^ n being the sample size".
This aspect enables the analyst to plot average values of the samples instead of individual values.
147
Âctivity B : What are the benefits of using the control charts for the worker of a machine shop?
15.3 CONTROL CHARTS AS A TOOL FOR PROCESS CONTROL

A fundamental aim of process control is to evolve system of differentiating between variations due to chance causes and those due to assignable causes so that the latter can be identified and removed thereby improving the quality of the product. The basic tool used for this purpose is called control chart. A control chart is a visual display of the inspection results of the samples of a product. It incorporates carefully derived statistical limits which help to discriminate between random variability and assignable variability. A control chart consists of three lines, a central line, upper control limit and lower control limit. To construct the chart, time variable is taken along the abscissa (x-axis) and the quality characteristic of the product is taken along the ordinate (y-axis). The control parameters- central line, upper control limit and lower control limit - are drawn by horizontal lines. The central line denotes the mean value of the quality characteristic. The upper control limit is located at 3 standard deviations above the central line and the lower control limit is located at 3 standard deviations below the central line. Samples of fixed size are taken at specified intervals of time. Each sample is inspected for the given quality characteristic. The values of the samples are plotted on the graph according to the time available. The trend of the points in the chart is studied to know the state of the process. So long the sample points lie within the control limits, the process is said to be under control. The variations that are observed are due to chance causes and are not serious. The falling of the points outside the control limits indicates deterioration in quality and hence the presence of assignable causes. Such causes are identified and corrected. Sometimes the sample points within the control limits exhibit certain patterns such as continuous upward or downward trend, cyclical pattern, hugging pattern etc. Even though the points are within the limits, it indicates the presence of assignable causes and hence the need to take corrective action.
148
Unit 15
Âctivity C;
What is the difference between random variability and assignable variability? Give one example.
15.4 TYPES OF CONTROL CHARTS __________________________________
To assess the quality of a product, the measurement of some property of the product (properties of the product are called quality characteristics) is necessary. This can be done firstly in terms of product being classified either right or wrong (acceptable or unacceptable). An example of this is the assessment of properties which are difficult to measure quantitatively, such as surface appearance, colour, gloss, texture, cracks, imperfections, burns, burrs etc. These properties are usually measured by comparison and any sample taken is classified either good or bad (o.k. or defective). These properties (or quality characteristics) are called attributes. Secondly, the product can be classified good or bad, acceptable or non-acceptable based on quantitative measurements of their properties. These properties (those capable of being measured) are called variables, typical examples of variables are diameter, length, thickness, weight, temperature, humidity, voltage, hardness, viscosity etc. Thus, control charts are of two types (i) those drawn for properties which are variables. These are called control charts by variables, (ii) those drawn for properties which are attributes. These are called control charts by attributes. Control charts for variables are basically the following a) The average chart (X -chart), which measures the central tendency of the process. b) The range chart (R-chart), which measures the spread of the process. Since average chart and range charts are usually used together, they are commonly known as x-R charts.
Control charts for attributes are basically the following -
a) The fraction defective chart (p-chart) which records the proportion of defective items in a sample. b) The number defectives chart (np-chart) which records the number of defective items in a sample. 149
c)
The defects chart (c-chart) which records the number of defects in a component or a product.
Âctivity D : Prepare a list of three attributes and three variables for a refrigerator as a product. Attributes:
Variables:
15.5 CONTROL CHARTS FOR VARIABLES ( x -R CHARTS) ______________ What Are X-R Charts? X -R chart is a pair of chart consisting of a average chart (called x chart) and a range chart (called R chart) placed one below another on a piece of graph paper. The x chart is used to control the mean value of the characteristic and R-chart is used to restrict the range of variations in the values, x -R charts are drawn when the characteristics are measurable. Each chart consists of three values: a central line, upper control limit and lower control limit. The central line represents the arithmetic average of the sample means which equals the mean of the population, ji. The upper and lower control limits are located at three standard deviation on either side of the central line. Samples of fixed size are drawn at regular intervals and measurements are taken. The samples wise values of the mean and range are plotted in their respective x and R charts. The spread of sample points in the charts is studied to decide the remedial action (if any) to be taken. The x chart analyses whether or not the mean of the quality characteristics is within control while R-chart analyses whether or not the variability is within control.
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Unit 15
Theory Underlying x -R Charts: x -R charts (infact control charts in general) are based on the concept that the average of the sample of several items tend to cancel out the normal process variability and undesirable changes due to assignable causes thereafter become visible. Further to ensure that an assignable cause is detected before required tolerances are violated. (i) (ii) Upper and lower statistical limits are worked out and inserted into the chart. Statistical limits are calculated from averages of samples of n (4,5...) instead of single sample of large size (This reduces the spread of natural variability).
Statistical limits of the X -R chart are based on the concept of statistical significance, which states that "The arithmetic means of samples are distributed according to normal distribution with sample mean X equal to mean of the population jj, and standard deviation of sample means o X equal to J where a is the standard deviation of the population and n is the sample size." Based on the above statement, the statistical limits (or control parameters) of the average chart (x -chart) under different situations may be set up as under: (i) f and a x known Central line = CLx = ^ Upper controllimit = UCLx = x +3.ax Lower control limit = LCL x = x + 3 .o x (ii) |a. and o~ known Central line = CLX = X
3.C7JC
Upper control limit = UCL X = fl + _ _ Lower control limit = LCL X = X +

151
(iii)
X and a known Central line = CLx = X

3.CT
Upper control limit = UCL x = X + ~r^

3.cr V<"
Lower control limit = LCL x = X - -7=(iv) Sample data on individual measurements known Let Ri = Rangle of i th sample m = No. of samples n = Size of each sample
m
It has been established by the statisticians that the ratio of standard deviation of the population and mean range of the samples ( R ) for a given sample size (n) is constant and has been specified as correction factor d' .-.4=d' R o = d1 R ' The formula for the control limits becomes Control limits = x + 3.cr x =
X
_L_ __
3.o
=
V
= X
3.d
-4- ______
r -
Vn
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Unit 15
3.d'
The term -7=- in the above formula is constant for a sample size and therefore can be expressed into another constant A2. Table 15.1 gives different values of A, of for varying values of sample size. The above simplification reduces the formula of the limits of the control chart to X + A2 R UCLx = X +A 2
R
LCLX = X -A 9 R X - chart is normally accompanied by range chart (R-chart). R-chait, like X-chart, consists of a central line, upper control limit and lower control limit. The central line of R-chart is located at R and control limits at R 3 a R Table 15.1: Factors for determining the 3-sigma control limits for control charts Number of observations in the sub-group Factors for estimating a from R (d') 0.887 0.591 0.486 0.430 0.395 0.370 0.351 0.337 0.325 0.315 0.307 0.300 0.294 0.288 0.283 0.279 0.275 0.271 0.268 Factor for X chart
A
Factor for R chart Upper Lower control control limit limit

D 3
(n) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
D4
3.267 2.575 2.282 2.115 2.004 1.924 1.864 1.816 1.777 1.744 1.716 1.692 1.671 - 1.652 1.636 1.621 1.608 1.596 1 .585
153
1.880 1.023 0.729 0.577 0.483 0.419 0.373 0.337 0.308 0.285 0.266 0.256 0.249 0.235 0.223 0.212 0.203 0.196 0.187
0.076 0.136 0.184 0.223 0.256 0.284 0.308 0.329 0.348 0.365 0.379 0.394 0.404 0.414
The formula for o R is somewhat complicated and hence the limits may be calculated using the following relations -
The values of constant D, and D, can also be read from Table 15.1
3 4
Steps To Prepare x - R Chart A pre-requisite to the preparation of the chart is the decision on the following aspects : Quality characteristics refers to the property of the product which is to be assessed. The quality characteristics must be capable of being measured. In case of more than quality characteristics, separate chart is made for each quality characteristic. Sample size refers to number of pieces comprising each sample. Sample size is an important decision. It is a common practice to use sample of n = 4 or 5 to have low appraisal cost. Large samples such as n = 1 5 or 20 are used if the process standard deviation is large. Sample population refers to the number of samples to be collected to construct a control chart. The number of samples must be sufficient. Usually, 20 samples, each of size 4 or 5, are enough to have good estimates. of the process average ( ^ ) and dispersion ( R ). Time interval measures the time gap between consecutive samples . Time interval, as a general rule, should be proportional to the average frequency of out-of-control conditions. It is fairly a complex decision since a number of factors such as cost economy, susceptibility of the process to disturbances, convenience of the inspector etc. require to be considered.
The making of the X -R chart involves the following steps : Step 1 : Collect data
(a) Collect sufficient samples spread over a reasonable period. Each sample must be of equal size. (b) Measure each component comprising the sample for the given quality characteristic. (c) Record individual measurements on a work data sheet.
154
Unit 15
Step 2 : Calculate mean (x) and range (R) of each sample (a) The mean which is written as X (X bar) is average of each sample and is obtained by totalling the individual measurements of the units comprising the sample and dividing the total by the sample size (number of units in each sample). (b) The range which is written as R is obtained as the difference between the highest and the lowest measurement of a sample. (c) The values of x and R are recorded samplewise either on the extreme right of the individual measurements on the data sheet or in a separate table. Step 3: Calculate grand average ( x) and mean range ( R ) (a) The grand average which as written is X (X double bar) is the average of the sample averages and is obtained by dividing the total of the averages of all the samples by the total number of samples. (b) The mean range which is written as R (R bar) is the average of the ranges and is obtained by dividing the total of the ranges of the samples by the total number of samples. Step 4: Set up control chart for the average (a) Set up a control chart with central line drawn at x, upper control limit located X + A2 R and lower control limit set up at X - A2 R . (b) Plot the averages to see whether the process was under control when samples were drawn. (c) If all points fall within the control limits, the process is said to be under control. (d) If process is not under control (indicated by some points falling outside the control limits), eliminate points outside the control limits and compute new trial control limits for the remaining points. (e) Repeat step 4 (d) until all points fall within the control limits. (f) Control limits in a practical situation should be revised from time to time as additional data is accumulated.
155
Step 5 : Calculate control limits of the range chart (a) The control chart for range chart is set up with central line as R , upper control limit (UCLR) located at D4 R above the central line and lower control limit (LCLR) at D3 R below the central line. (b) Plot the value of the range of each sample. (c) If all points fall within the control limits, no modification is necessary unless it is desired to reduce the process dispersion. (d) If range chart exhibits lack of control indicated by some points falling outside the control limits, eliminate those points out of control and compute new trial control limits. (e) Repeat step 5 (d) until all points fall within the control limits. (f) Control limits in a practical situation should be revised time to time as additional data is accumulated.
Step 6 : Use control chart (a) Collect samples of fixed size at specified intervals of time. (b) Measure each unit of the sample for the quality characteristics, calculate mean and the range of each sample. (c) Plot the values of X and R of each sample in their respective charts. (d) Study the trend of the points to interpret and suggest remedial action (Ref. Fig. 15.8) (i) A continuous upward pattern indicates wear of tool, wear of threads and clamping devices, deterioration of strength of solution, accumulation of dirt, clogging of fixtures and holes, and abnormal rise in temperature etc. Trends ------------------should be investigated to determine if the Trend of points and their process is "slipping" and adjustments interpretation should be made before an out of contol condition occurs. Fig. 15.8
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Unit 15
(ii) A cyclical pattern depicting peaks and valleys, indicates the presence of variables (namely wornout positions, roller eccentricity, fatigue, rotations of persons etc.) which operate periodically. (iii) An erratic pattern-points falling above and below the control limits-indicates defects in materials, frequent adjustments of machines, poorly trained operators etc. (iv) Hugging-points lying close to mean of the process - indicates biases in measurements, recording done without actual measurements and improper selection of samples (e.g. selection of samples from different machines doing the same job).
An illustration on making of X - R chart:

A line inspector in an engineering company recorded dimensions of each of the five jobs selected at the end of every half an hour of the five hours in the morning. The quality characteristic is the measurement of diameter whose design specification is 25.0 0.10. Sample No. Individual measurements of dia. (mm)
1
25.00 25.00 25.01 25.01 25.02 25.06 24.99 25.02 25.03 25.02
2
25.01 25.03 25.02 25.02 25.02 25.03 24.98 25.01 25.01 24.99
3
25.00 25.00 25.02 25.02 25.03 25.02 25.02 25.01 24.97 24.99
4
25.03 25.04 25.03 25.01 25.03 25.00 25.02 24.99 25.01 24.98
5
25.01 25.03 25.02 25.04 25.00 24.99 24.99 25.02 25.03 24.97
1 2 3 4 5 6 7 8 9 10
Plot X and R chart and find out which of the given observations are out of control. Given constants A2 = 0.5768
15 7
Solution: Stepl: Collect data

This step has already been done in the case problem. Step 2 : Calculate mean (x) and range (R)
The mean which is written as X (X bar) is the average of each sample and is obtained by adding individual measurements of each sample and dividing the total by the sample size: For sample 1, mean (Xt)
- X M +X 12 +X 13 +X 14 +X| 5
25.00 + 25.01 + 25.00 + 25.03 + 25.01 5
125.05 5= 25.01 The figures of average for different samples in the above problem have been computed as above and recorded in table 16.2 The range which is written as R is obtained as the difference between the highest and the lowest measurement of a sample. For sample 1, the highest and the lowest measurements respectively are 25.03 and 25.00. Range (R) for sample 1 =25.03 25.00 = 0.03 The individual figures of range for different samples have been calculated as above and are recorded in column 3 of the above referred table.
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Unit 15
Table 15.2 : Arithmetic mean and range of each sample Sample No. 1 2 3 4 5 6 7 8 9 10 Arithmetic Mean X 25.01 25.02 25.02 25.02 25.02 25.02 25.00 25.01 25.01 24.98 Range (R) 0.03 0.04 0.02 0.03 0.03 0.07 0.04 0.03 0.06 0.05
Step 3: Calculate grand average and the mean range

Grand average which is written as x (X double bar) is the average of the averages. Grand average is calculated by totalling up the averages of all the samples and dividing the sum by the total number of samples. 25.01 + 25.02 + 25.02 + 25.02 + 25.02 + 25.02 = + 25.00 + 25.01 + 25.01 + 24.98 10 250.10 = 25.01 10 Mean range which is written as R (R bar) is rhe average of sample ranges. Mean range is calculated by addiding the ranges of samples and dividing the sum by the total number of samples.
- 0.03 + 0.04 + 0.02 + 0.03 + 0.03 + 0.07 + 0.04 + 0.03 + 0.06 + 0.05 R= 10
0.40 10
= 0.04
15 9
Production / Operations Managed
I 1 1
UCL
I . . . 2 3 4 5 6 7 8 9
SAMPLENO.^
Fig 15.10 : Revised average chart ( X - chart)

The control chart for the revised control limits is drawn in Fig . 1 5 . 1 0 The average of the samples excluding the deleted sample has also been plotted into the chart. Since now all the points are within the control limits, the new x chart represents a process under control. Step 5 : Set-up a range chart : -chart like X -chart consists of a central line and one
upper control limit and one lower

** .-: _
AVVIAIAA
control limit located as under: =0.039 0.04 s = 0 x 0.039 = 0 Central line CLD
K.
Lower Upper control controllimit limit= -
2.115x0.03 9 0.082 0.08
15.6 CONTROL CHARTS FOR ATTRIBUTES What Are Control Charts By Attributes? Another form of inspection is where the items comprising the sample are classified into two factions "acceptable" and "non-acceptable". Such an inspection is termed as "inspection by attributes". "Inspection by attributes" covers those situations where either (i) Quantitative measurements are not possible as with the inspection for damages, scratches, blemishes (paint runs), matching of colour against a standard shade, presence of burrs, correct seating of the components in the assembly etc., or (ii) Quantitative measurements consume too much time as with the inspection of pitch diameters of threads, p.c.d. of drilled holes etc. The inspection by attributes is faster as the decision, whether or not a product is up to standard, is made with the help of "go" "no-go" gauges. The control charts made for this type of inspection are of three types: (i) Control chart for fraction defectives (p-chart). (ii). Control chart for number - defectives (np-chart) (iii) Control chart for number of defects (c-chart). Control Charts for Fraction Defectives (p-chart): The control charts for fraction defectives is used where the products manufactured in the shops or products received from vendors are inspected and classified as either "accepted" or "rejected". The rejected products may be further divided into "spoilage" and "rework". To enable comparison, such situations demand recording and maintenance of records of pieces inspected and accepted during different periods. Alternatively, records of number of items rejected to the number of pieces inspected, called fraction defectives, are maintained. The Shewhart control chart for fraction defectives provides a simple method to calculate control limits that tell whether variations in lot to lot are due to -
164
Unit 15
(i) (if)
Assignable causes such as defects in gauges, operators, materials, machines, vendors or Chance causes.
Basic theory underlying p-chart The products, under the p-chart, are divided into two factions "acceptable" and "non-acceptable" This two way classification naturally leads to a binomial description of the standard error of the mean. The central line of the fraction defectives is determined by average percentage defectives (or average fraction defectives) p and the limits of the percentage defectives are obtained from the following formulae: Control limits = P 3 J FV '\ n Sample sizes for the construction of p-chart are typically larger (50,100 or even more) than for x -R charts. This is because "inspection by attributes" is much faster than "inspection by variables". How is a p-chart constructed? The basic steps in the construction of p-chart are as under: (i) Collect data on sample wise number of defectives and enter it in a data sheet.
(ii) Calculate fraction (or proportionate) defective units (p) in each sample is by dividing number of defectives by the number of pieces in the sample i.e. Number of defectives Number of pieces inspected
P=
(iii) Aggregate sample wise percentage of defectives into average percentage defectives, P i.e. V Sample wise percentage defectives V? p= ----------------------------------------= ^ Number of samples m Alternatively, p may be obtained by dividing the sum of defectives in all samples by total number of pieces in all samples.
165
(iv) Calculate limits of p-chart on the assumption that distribution of proportion of defectives follows binomial distribution with Standard deviation = Like any other control chart, p-chart too has three lines, a central line located at p and two limits UCLp and LCLp located respectively above and below the central line at distance equal to three standard deviation i.e. Central line CLp = P Upper control limit = UCLp = p + 3 .
Upper control limit = LCLp = p + 3 . Since the value of p can never be negative, hence "if LCLp works out to be negative, it is taken as zero". (v) Plot the recorded data into p-chart to see whether or not the sample wise fraction defectives are within the statistical limits. At times, investigation may reveal that some of the observations are outside the control limits which indicate lack of process control. Such observations are dropped and a fresh p for the rest for the sample data is calculated and fresh control limits are established.
An illustration on making of a p-chart
10 samples, each of size 50, of a pipe were inspected in pressure testing. The results of the inspection are given below: SampleNo. 7 2 8 1 9 2 3 No. of defectives : 10 23 20 23 1 2 34 56
Draw a p-chart and state your conclusion:
16 6
Unit 15
Control Charts for Number - Defectives (np-Chart): np-chart unlike p-chart records the "number of detectives" instead of "fraction or proportionate defectives." The np-chart possesses the following additional benefits: (i) The control chart for number of defectives is more convenient to make than control chart for fraction defectives since the figure of number of defective units can be directly taken from the inspection report. This is especially useful in situations where the number of items in each sample is same. (ii) For controlling process, the analyst is interested in the number of defectives rather than fraction defectives. The control parameters of np-chart are calculated as under: (i) Calculate p pTotal number of defectives Total number of units inspected
(ii) Determine control parameters (i.e. Central Line, UCL and LCL) Central line UCLnp LCLnp = np + 3 ^n. = np - 3 ^n.p(l-p) = CLnp = n. p .
An illustration on the making of np-chart For the data given in the illustration for p-chart, construct np-chart and comment on the same.
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Fig 15.13 gives a graphical analysis of np-chart
UCL
i
LCL 0 1 2 3 4 5 6 SAMPLE NO. 7 10 8 9
8
Fig 15.13 Control chart for number of defectives (np-chart) Control Charts for the Number of Defects (c-chart); Quality of some of the industrial products is controlled by controlling the number of defects per unit. A certain number of defects may be tolerable but the number of defects per unit needs to be watched, controlled and reduced. For example, Glassware is determined by the number of bubbles in it. Fiber is adjudged based on number of weak spots in a given length. Cloth is set by the number of imperfections in a given length. Printing i s controlled by controlling the number of errors (over exposures / under exposures, smudges etc.) per printed sheet. A control chart drawn to exhibit counted data on number of defects is called c-chart. The quality characteristic in this chart, therefore, is the number of defects per unit. A product may have more than one defect but all defects are not of equal importance.
Theory underlying c-chart:

The products under c-chart are studied for the number of defects per unit of the product. The defects could occur at any spot but the probability of their occurrence at a particular spot is very small whereas the numbers of spots where the defects can occur are very large. Such a situation is correctly described by Poisson distribution with mean equal to average number of defects in all samples, say c , and standard deviation equal to Jj
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Control limits of c-chart: In lieu of the above, the central line is located at the mean number of defects per unit while upper and lower control limits are located at a distance of 3 standard deviations above and below the central line respectively i.e. Central Line = CL c = c Upper Control Limit (UCLc) = c + 3 ^ Lower Control Limit (LCLc) = c - 3 ^ "Since value of c can never be negative, if the lower control limit (LCLc) works out to be negative, then it is taken equal to zero". The sample size in c-chart is usually fixed which may be either Fixed length e.g. coil winding of fixed length of wire. The breaks observed in this length of wire constitute defects. Area of the surface e.g. surface blemishes on a painted component. Single part e.g. number of defects in an individual component, gear, shaft, wheel, pulley etc. Completed assembly e.g. a scooter, a cycle, a T.V., a radio etc. The number of defects here implies number of defects in the constituent assemblies. An illustration on making of a c-chart: Ten woollen carpets were studied critically for total number of defects in their texture. The details of the number of defects in each carpet are given below: Carpet No. : No. of defects 1 2 2 4 3 3 4 5 5 1 6 3 7 2 8 3 9 4 10 3
: ten carpets, however, were regarded as "acceptable" by the quality control department All of the company. Construct a control chart for number of defects and comment on the results.
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Jg$Activity E;
a) Please choose the right option from the following: i) The primary objective of a control chart is to: Eliminate variation ii) Reduce
variation iii) variation iv)
Detect assignable causes of Improve quality
As a part of incoming quality control in an organisation, employee Mr. A checks the plastic component lots received from a supplier. He observes a defect in it. If he wants to measure the number of defectives, then he should use: i) ii) iii) iv) C chart np chart X bar & R chart Moving average chart.
b)
Identify at least one situation or case from any industry where you can apply the following types of control charts. Fraction defective chart Range chart Average chart Defect chart ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________
Number defective chart _____________________________________________
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c)
The following details have been collected from 100 meter pieces of woollen cloth: Purchaser's Inspection No, 1 2 3 4 5 6 7 8 9
(i) (ii)
Number of defects 13
Purchaser's Number of Inspection No. defects 10 11 12 13 14 15 16 17 18
5 1
4 3 0 3 1 6
1 3
5 7 4 10 5 0 1
Compute the value of c-chart and its control limits. Draw a c-chart.
15.7 SUMMARY
Control charts are important statistical tool for quality control. They display the results of inspecting a continuous process and separate random variations due to real assignable causes from normal variations due to chance causes. Such a running commentary as to what is happening in the process provides a convenient and rapid feedback suggesting when adjustments, corrections or overhauls may be needed. Control charts are basically of two types (i) control charts by variables (e.g. X -R charts), and (ii) control charts by attributes (e.g. p-chart, np-chart and c-chart). The parameters of the control charts (each chart consists of a central line, a upper control limit, and a lower control limit) are based on sound statistical principles regarding behaviour of sample means.
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Production/Operations
leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is exactly why Six Sigma puts emphasis on "Quality must become a part of our culture". 16.2 QUALITY DEFINED Let us see how term quality has been defined by some management Guru's: 1. 2. 3. Fitness for Use: As per Juran's definition," The components are said to possess good quality, if they work well in the equipment for which they are meant". Deming defined it as "A predictable degree of uniformity and dependability at low cost and suited to the market." Philip Crosby defined it as" Conformity to requirements is concerned with how well a products confirm to design & other specification".
In brief, quality can be described as" quality is customer satisfaction aimed at meeting the: 1. 2. Stated needs - e.g Safety in operation, appropriate cost, good after sales service etc. The more needs we satisfy more will be customer satisfaction. Unstated needs - Product Installation manual, good packaging, guaranty / warranty etc. These are the needs, if we don't satisfy, it will turned customer in to dissatisfaction & if we satisfy, does not result in to increase in the satisfaction. Expectations - Better aesthetic, good discount on MRP etc. As we satisfy more & more expectations, it adds to customer satisfaction & delight.
3.
16.3 THEORY BEHIND SIX SIGMA Six Sigma was pioneered by Bill Smith at Motorola in 1986 and was originally defined as "a metric for measuring defects and improving quality; and a methodology to reduce defect levels below 3.4 Defects Per (one) Million Opportunities (DPMO). Six Sigma has now grown beyond defect control. Six Sigma is a registered service mark and trademark of Motorola, Inc. Motorola has reported over US$ 17 billion in savings from Six Sigma to date.
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Why "Sigma"? The word is a statistical term that measures how far a given process deviates from perfection. Six Sigma is a methodology to manage process variations that cause defects, defined as unacceptable deviation from the mean or target; and to systematically work towards managing variation to eliminate those defects. The objective of Six Sigma is to deliver high performance, reliability, and value to the end customer. Hence Six Sigma involves disciplined data colllection and analysis to achieve one of the following goals: 1. Reduce the defects in the any process, to less than 3.4 per milllion operations. This goals refers to the quality of the product. 2. Eliminate wasteful practices. This goal refers to the cost of the product. 3. Delight internal & external customer by fulfilling their present and future needs. This goal refers to the scheduling & after sales service quality. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services. The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects'Q Benefits of Six Sigma Most of the organizations, before they begin their quality journey, are usually at one / two sigma levels (two sigma signifies 3,08.537 defects per million part) while world wide average around three sigma (which is 66,807 defects per million). As organization traverse from three sigma (66,807 PPM), four sigma (6,210 PPM) and five sigma (233 PPM) to reach six sigma (3.4 PPM), its quality costs come tumbling down. Benefits that accrue to the company from such a transaction are as follows: t t Defect free product or service Lower warranty costs Lower production costs
;
'.>
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Journey towards excellence i.e. movement from % defect AQL PPM (parts per million) PPB (parts per billion) Zero defect (Zero variation). Better reputation in the market place. Lower inspection costs (movement from 100% inspection to sampling inspection). Ship to stock Ship directly from supply (production) line JIT / Kanban). Tension free working. Greater customer satisfaction (Journey from customer satisfaction to customer delight). Higher employees' morale.
Quality becomes a way of life in the organisation. Key Concepts of Six Sigma or Quality Terms : At its core, Six Sigma revolves around a few key concepts. Voice of Customer: To understand Customer needs and expectations. Critical to Quality (CTQ): Attributes most important to the customer. Among the most important attribute (CTQs), some are more important are termed as CTP (Critical to process). Defect: Failing to deliver what the customer wants. Sources of customer irritation. Defects are costly to both customers and to manufacturers or service providers. Eliminating defects provides cost benefits. Process Capability: What your process can deliver J
s***^,
Variation: What the customer sees and feels ~ ' .. '.j** Variance: A change in a process or business practice that may alter its expected outcome. Control: The state of stability, normal variation and predictability. Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels. Process of regulating and guiding operations and processes using jquantitative data.
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Principles : Genuine Focus on Customer Stress on understanding customer needs/expection. The customer focus is Top Priority. 2. Data and fact driven Management It begins by clarifying which measures are KEY to evaluating the business performance. It applies data and analysis to build understading of the KEY variables leading to optimization of the result. 3. Process focus, management and improvement Six sigma focuses on "process" to achieve success such as designing the product and services, measuring the performance, Improving the efficiency and customer satisfaction. The effectiveness of the process is "ability" to achieve satisfaction of the customer. The efficiency of the process means the results achieved versus resources used. 4. Six Sigma uses proactive thinking. Six sigma encompasses tools and practices that replace recactive habits with dynamic, responsive,proactive style of management/]! 5. Boundaryless collaboration Six sigma improves the work environment supports true teamwprk in companies between: Employees, Vendors, Customers. 6. Dri ve fat perfection; tolerance for failure. Six sigma allows failure but through techniques of Risk Management. Steps to adopt Process Approach: 1. Describe the process objectives 2. Specify the resources needed 3. Detail the instructions, precautions & process operations 4. Define operating c onditions 5. Define the authority and responsibilities and interrelationship amongst them
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6. 7. 8. 9.
Specify the method of measuri ng the performance Use feedback for correction and corrective action Anticipate and Prevent Problems Improve the Process continually.
The above steps follows Deraing's PDCA cycle.
Act
Plan
Check
DO \
Fig 16.1
16.4 COST OF QUALITY Let us understand what we mean by cost of quality. The cost of quality can be divided in to following areas: 1. Appraisal Cost (Inspection) These are the cost which we need to bear to make it sure that product is being manufactured as per the quality standards. For example, inspection carried out at the various stages during manufacturing processes. 2. Prevention Cost These are the cost which used to prevent/ reduces the causes of failures or errors in an organization. For example, cost of proactive maintenance, cost of quality planning. 3. Failure Cost
Failure cost is further divided in to: Internal Failure Cost 18 6
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This cost is resultant of the failure of the product within the factory area. For example, Rework on the assembly line. External Failure cost This cost is resultant of failure of product delivered to the customer or put in to the service. For example, cost of free replacement.
4.
Hidden Cost
The hidden cost can be internal cost or external cost. For example, cost of redesigning, Octroi charges on product called for free replacement. The cost of appraisal and cost of prevention is called "Cost of conformance". All other costs are called as "Cost of non-conformance". Seven Tools of Quality Flowchart Check Sheet Pareto Chart Cause and effect (Ishikawa/Fishbone Diagram) Histogram Scatter Diagram Control Chart
Please read more details on these points. Libraries and the Internet are valuable sources for updated information. Example 1: Shows how an increase in appraisal cost reduces the cost of quality for a Pencil Manufacturer: Quantity manufactured is 25,000 nos. per day.
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Sr No. 1 2 3
4 5
Description Sale of pencil Second's sale price Prevention cost process control Inspection etc. Appraisal cost Internal failure cost @ 5% rejection Other cost External failure cost @ 1% Rejection analysis Cost of visiting customer Loss of goodwill, business etc.
Per unit Price Cost of Quality before appraisal
15 10
5000 7000 ( 25000*0.5)*(15-10)=6250 3000 (25000*0.01)*(15-10)=1250 3000 5000 15000 45500
6 7 8 9
Sr No. 1 2 3 4
5
Description Sale of pencil Second's sale price Prevention cost process control Inspection etc. Appraisal cost Internal failure cost @ 2% rejection Other cost External failure cost @ 1 % Rejection analysis Cost of visiting customer Loss of goodwill, business etc.
Per unit Price
Cost of Quality after increase in appraisal
15 10
8000 10000 ( 25000*0.2)*(15-10)=2500
0 0
3000
7 8 9
0 0
23500
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Let us tabulate results Cost of conformance Cost of Non-conformance Total Cost of Quality
Appraisal Cost 1 12000 33500 45500
Appraisal Cost 2 18000 5500 23500
Cost of Quality per Unit= Total Cost of Quality/ 25000 1.82 0.94 The above example clearly shows that, the slight increase in appraisal (inspection on the line) for the product like pencil has resulted in to reducing process variation drastically. The reduction in the variation reduces the cost of quality & thus saving for organization. This example is used to demonstrate how one tool in Six Sigma helps the organizations to improve their quality standards & brings savings. /Âctivity A; Visit an Electronic goods shopping mall. Try to calculate the external failure cost of damaged TV sets in transportation.
16.5 HOW TO CALCULATE PROCESS SIGMA Here is the 5 step process to calculate your process sigma. Step 1: Define Your Opportunities An opportunity is the lowest defect noticeable by a customer. Step 2: Define Your Defects Defining what a defect is to your customer is not easy either. You need to first communicate with your customer through focus groups, surveys, or other voice of the customer tools. Step 3: Measure Your Opportunities and Defects Now that you have clear definitions of what an opportunity and defect are, you can measure them.
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Step 4: Calculate Your Yield

The process yield is calculated by subtracting the total number of detects from the total number of opportunities, dividing by the total number of opportunities, and finally multiplying the result by 100. Alternatively, the yield can be calculated for you by using the Six Sigma Process Sigma Calculator - just input your process opportunities and defects.
Step 5: Look Up Process Sigma

The final step (if not using the Six Sigma Process Sigma Calculator) is to look up your sigma on a sigma conversion table, using your process yield calculated in Step 4.
Assumptions:
This metric is defects per million opportunities (DPMO). A straightforward calculation is made using the following formula: DPMO = Number of defects x 1,000,000 Number of opportunities for error per unit x Number of units (PI. refer the DPMO & corresponding Six Sigma Table 16.1). CTQ Examples Including Defect, Unit and Opportunity
Example 2:
Area: Call Centre Customer Quote: 'I consistently wait too long to speak to a representative.' CTQ Name: Representative Responsiveness CTQ Measure: Time on hold (seconds) CTQ Specification: Less than 60 seconds from call connection to the automated response system Defect: Calls with hold time equal and greater than 6t seconds Unit: Call Opportunity: 1 per call
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Defects: 263 calls Units: 21,501 calls Opportunities: 1 per call Sigma: 3.75 Area: Book Publisher Customer Quote: I can't stand typos in books I purchase. CTQName: Typographic Quality CTQ Measure: Number of typographical mistakes CTQ Specification: Zero typographical mistakes Defect: Any typographical mistakes Unit: A word Opportunity: Words per book Defects: 2 typographical mistakes Units: 100,000 (500 words/page x 200 pages/book) Opportunities: 1 per word Sigma: 5.61 16.6 PROCESS VARIATION It is well established that there exist 8 dimensions of quality: 1. Confortnance 2. Performance 3. Features 4. Reliability 5. Durability 6. Serviceability 7. Aesthetics 8. Perceived Quality
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Each dimension can be explicitly defined and is self-exclusive from the other dimensions of quality. A customer may rate your service or product high in conformance, but low in reliability. Or they may view two dimensions to work in conjunction with each other, such as durability and reliability. Statistical Analysis provides early warnings signal before the occurrence of failures / Defect. Understanding Conformance Conformance can simply be defined as the degree to which your service or product meets the CTQs and predefined standards. PI. try to look in to insight of your organization's services and products are a function of your internal processes, as well as your supplier's processes.
Here are a few examples:

1. You manufacture tires and carries machining of spindle OD 10 mm with +/- 0.002 mm
A simple way to learn the concept of how well your service or product conforms to the CTQs is with a picture of a target. A target, like those used in archery or shooting, has a series of concentric circles that alternate color. In the center of the target is the bullseye. When services or products are developed by your organization, the bullseye is defined by CTQs, the parts are defined by dimensional standards, and the materials are defined by purity requirements. As we see from the example above, the conformance CTQs usually involve a target dimension (the exact center of the target), as well as a permissible range of variation (center yellow area).
Fig 16.2 : Targetting Process Variation Three pictures help explain the variation in a process. The picture on the left displays a process that covers the entire target. While all the bullets appear to have hit the target, very few are in the bullseye. This is an example of a process that is centered around the target, but very seldomly meets the CTQs of the customer.
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The middle picture in Fig 16.2 displays a process that is well grouped on the target (all the bullets hit the target in close proximity to eachother), but is well off target. In this picture -- like in the first picture almost every service or product produced fails to meet the customer CTQs. The far right picture in Fig 16.2 displays a process that is well grouped on the target, and all the bullets are within the bullseye. This case displays a process that is centered and is within the tolerance of the customer CTQs. Because this definition of conformance defines "good quality" with all of the bullets landing within the bullseye tolerance band, there is little interest in whether the bullets are exactly centered. For the most part, variation (or dispersion) within the CTQ specification limits is not an issue for the customer. Relating the Bullseye to Frequency Curves In the real-world, we seldom view our processes as bullseyes (unless you work at a shooting range). So how can you determine if your process is scattered around the target, grouped well but off the bullseye, or grouped well on the bullseye? We can display our data in frequency distributions showing the number (percentage) of our process outputs having the indicated dimensions.
Âctivity B ;
Record the temperatures of an air-conditioned room. The desirable temperature band is 21-24 degrees. Plot the variation in the temperature.
Target Spec. I Spec. Limit Limit
Target Spec. Spec. Limit Limit I
Target Spec. ! Spec. Limit Limit i
rv
Fig 16.3 Targetting Process Variation with the Process Capability Ratio
19 3
In Fig 16.3, the far left picture displays wide variation that is centered on the target. The middle picture shows little variation, but off target. And the far right picture displays little variation centered on the target. Shaded areas falling between the specification limits indicate process output dimensions meeting specifications; shaded areas falling either to the left of the lower specification limit or to the right of the upper specification limit indicate items falling outside specification limits.
Assignable Causes Inherent Causes MEAN Inherent Causes Assignable Causes
PW
Fig 16.4 Distribution of causes of the Mean PI. refer Fig 16.4. Here, USL - Upper Specification Limit - Lower Specification Limit UCL - Upper Control Limit LCL Lower Control Limit. Specification Width = USL-LSL Process Width = UCL-LCL Principles underlying six sigma concept 1. 2. Variability is necessarily inherent in any process.
variation around
Total variability is the result of two types of causes : Inherent cause and assignable causes. Inherent causes can't be identified and hence cannot be eliminated while
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assignable causes can be identified and can be avoided/removed. Inherent causes reflect system problems in an operating process. These includes weakness in product design, equipment malfunction etc. Assignable causes reflects short term sources of variation in an operating process that could be corrected by employees. These includes lack of knowledge or skill, worker negligence etc. Removal of assignable causes is can only be through root-cause analysis and corrective actions leading to continual improvement. This is mostly done by employees. Variations due to inherent causes can only be through fundamental change in the process, which is called as break through improvement. This generally requires additional resources and needs direct support from management. 3. Variation pattern of a process influenced by only chance causes fits into (yields) a normal distribution and process mean and standard deviations are known, (i.e. each process parameter is characterized by normal distribution). Six sigma processes are under statistical control). 4. Process mean in real life (in practice) can shift from the nominal mean by 1.5 times standard deviation (i.e 1.5). 5. Defects are randomly distributed throughout the units, and parts and processes are individual. 6. For execution of any operation (manufacturing or non manufacturing), certain standards are specified for the output and some variations are allowed from the ideal measure. These requirements are usually stated in terms of USL = Upper Specification Limit LSL=Lower Specification Limit
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LSL
USL
Fig 16.4
Since measured values follow a normal distribution (provided the process is under statistical control) with mean u and standard deviation, the process capability (99.73% of measurements) of the process will equal u 3. Refer Fig 16.4. If mean of the process is centered at the nominal value of the quality characteristic and USL and LSL are respectively at 3 of the mean, 99.73% of the measurements shall be within the specifications (99.73% the parts produced shall be acceptable and 0.27% = 2700 PPM would be outside the specifications, i.e. 0.27% would be rejects. Such a process is said to be three sigma process. A four sigma process will have USL and LSL equal to 4 of the mean and would yield a defect of 63 PPM. Similarly, a six sigma process will have USL and LSL equal to 6 of the mean with a defect rate of 0.002 PPM.
7.
Since process mean in real life (in practice) can shift from nominal by 1.5 times the standard deviation (i.e. 1.5 ) due to gradual drift (e.g tool wear) or as a result of sudden drift, defect rates in practice expected at different sigma levels are higher than in the mean centered process. Table 16.1 gives such a comparison.
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Table 16.1: Defect rate of a mean centered process and mean shifted process at different sigma levels Sigma level 3 4 5 6 Defects (PPM) Mean centered process 2700 63 0.57 0.002 Mean shifted (1.5 ) process 66,807 6,210
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3.4
Six Sigma helps to reduce defects in two different ways: By reducing the value of variations (standard deviation) i.e. reducing variability by reengineering the process. If the previous specifications, USL and LSL, were at x 3, then due to reduction in variations, they now would be at x 6, thereby reducing the defects. (Refer Fig 16.5)
ctsu
CUSt)
Fig 16.5 : Reducing variations

Increasing the design width i.e. permitting higher variation in the specification so that even if the product deviates between say x 3, it functions properly. (Refer Fig 16.6)
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NEW DESIGN WtQTH ORIGfNAL OESfGN WIDTH
OWGWAt SPECIFICATION _ _ _ ----- _ ------------------------- _ _ . NEW SPECIFICATION LIMITS
Fig 16.6 A six sigma process should actually generate no flaws at all. But since, over the long run, every process shifts by 1.5 parts out of every million will go even beyond the 6 level, generating a few defects. Therefore, six sigma describes a manufacturing process of highly robust quality i.e. the process with very low variability compared to the tolerance limits specified for the product being manufactured. 8. Measurements are the key element in six sigma. If measurements are ambiguous, one can't control one's process which means one can't control defects. Two well known measurements of process capability are: process capability index Cp and Cpk. Process capability index for a process with centered mean is denoted by Cp and is defined as the ratio of "specification width" to "inherent process variation (6)". i.eCp = USL - LSL 60
Cp is 2 for six sigma process which means that inherent process variation is half of the specification width.
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The process capability index for process with drifted mean is denoted by Cpk and is defined as the ratio of the absolute distance from the mean to the nearer specification" to "one half of the inherent process variations." X - Nearer specification i.e Cpk = Vz (6 o) X - USL or X _LSL _ (whichever is small) Cpk for a six sigma process with shifted mean is equal to 1.5 Âctivity C : For Activity B: try to identify the different causes of variation (assignable & inherent)
Âctivity D : For Activity C : try to calculate Process 6 Cp & Cpk.
Example 1: Following are the readings of process A: 3.7,6.5,3.2,3.2,5.7,7.4,5.7,7.7,4.2,2.9 Calculate Mean, Standard deviation 6, Cp. From the above, the TotaTs5p.2 & Mean= 50.2/10=5.02 Sigma= SQRT (X1-X)2+- (Xn-X)2 (n-1) n= Number of observations( Sample Size) X1,X2- Xn are the observations.
Hence we get Sigma= 1.81. Cp= Usl-Lsl/66= 6.5-3.5/6* 1.81 = 0.28 Cpk= Usl-Mean/36 od Lsl-Mean/36
16.7 SIX SIGMA METHODOLOGY

The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts. Before moving to DMAIC and DMADV, let us discuss one important problem solving technique used widely and known as 8-D.
8D Problem Solving Technique

The key concept is to resolve the problem such that they never occur. 8D is a problem-solving methodology for product and process improvement. It is structured into eight disciplines, emphasizing team synergy. The team as whole is better and smarter than the quality sum of the individuals. Each discipline is supported by a checklist of assessment questions, such as "what is wrong with what", "what, when, where, how much". 1. Use Team Approach Establish a small group of people with the knowledge, time, authority and skill to solve the problem and implement corrective actions. The group must select a team leader. 2. Describe the Problem Describe the problem in measurable terms. Specify the internal or external customer problem by describing it in specific terms.
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3. Implement and Verify Short-Term Corrective Actions Define and implement those intermediate actions that will protect the customer from the problem until permanent corrective action is implemented. Verify with data the effectiveness of these actions. 4. Define and Verify Root Causes Identify all potential causes which could explain why the problem occurred. Test each potential cause against the problem description and data. Identify alternative corrective actions to eliminate root cause. 5. Verify Corrective Actions Confirm that the selected corrective actions will resolve the problem for the customer and will not cause undesirable side effects. Define other actions, if necessary, based on potential severity of problem. 6. Implement Permanent Corrective Actions Define and implement the permanent corrective actions needed. Choose on-going controls to insure the root cause is eliminated. Once in production, monitor the long-term effects and implement additional controls as necessary. 7. Prevent Recurrence Modify specifications, update training, review w'9rk flow, improve practices and procedures to prevent recurrence of this and all similar problems. 8. Congratulate Your Team Recognize the collective efforts of your team. Publicise your achievement. Share your knowledge and learning.
DMAIC Framework
i tu
am
D: Define imprudent activity goals. At the top level the goals will be the organization's strategic objectives such as higher return on investment or market share.' At the operations level, a goal might be to increase the throughput of a production department. At the project level goals might be to reduce the defect level and increase the yield of a process or machine. Apply data meaning methods to identify potential improvement opportunities.
20 1
M: Measure the existing system establish valid and reliable metrics to help monitor progress toward the goal(s) defined in the previous step. Begin by determining the currant base line. Use exploratory and descriptive data analysis to help you understand the data. A : Analyze the system to identify ways to eliminate the gap between the currant performance of the system or process and the desired goal. Apply statistical tools to guide the analysis. I : Improve the system, be creative in finding new way to do things safer, better, cheaper or faster, use project management and other planning and management tools to implement the new approach. Use statistical methods to validate the improvement. C: Control the new system. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, MRP, budgets operating, Instructions and other management system. You may wish to utilize systems such as ISO 9000 to ensure that documentation is correct.
The Similarities of DMAIC and DMADV

Let's first look at the DMAIC and DMADY methodologies and talk about how they're alike. DMAIC and DMADV are both: Six Sigma methodologies used to drive defects to less than 3.4 per million opportunities. Data intensive solution approaches. Intuition has no place in Six Sigma -only cold, hard facts. Implemented by Green Belts, Black Belts and Master Black Belts. Ways to help meet the business/financial bottom-line numbers. Implemented with the support of a champion and process owner.
Table 16.2 : The differences between DMAIC and DMADV

DMAIC Define Measure Analyze Improve Control Define the project goals and customer (internal and external) deliverabl.es Measure the process to determine current performance Analyze and determine the root cause(s) of the defects Improve the process by eliminating defects Control future process performance
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DMADV
Define Measure Analyze Design Verify
Define the project goals and customer (internal and external) deliverables Measure and determine customer needs and specifications Analyze the process options to meet the customer needs Design (detailed) the process to meet the customer needs Verify the design performance and ability to meet customer needs
When To Use DMAIC The DMAIC methodology, instead of the DMADV methodology, should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately. When To Use DMADV The DMADV methodology, instead of the DMAIC methodology, should be used when: A product or process is not in existence at your company and one needs to be developed The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level. The reader's are requested to read additional material on internet on the details of application of various tools, in order to get better clarity on subject. 16.8 BECOMING A SIX SIGMA ORGANIZATION _____________________ Six sigma is implemented by refining the processes to eliminate all possibilities of defects. The concept is not confined to the shop floor. It can be applied effectively to both manufacturing and non-manufacturing sectors. To achieve a six sigma status, the organization must design, operate and control each and .very process in a manner that no process yields more than 3.4 defects for every one million opportunities.
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No organization can achieve six sigma level status overnight. It is a journey that must traverse several lower levels. It demands perseverance but it holds magnanimous promises for the healthy bottom line. Six sigma as a tool can help the organization to know: How good or bad its current processes are (i.e. how good or bad its quality levels are)? What, where and how much they can improve ? What progress they are making in their efforts to improve?
16.9 SIX SIGMA ORGANIZATIONAL ARCHITECTURE _______________ Six Sigma is a quality methodology that can produce significant benefit to businesses and Organizations. The structure needed to successfully implement Six Sigma quality within your business or organization is mentioned in Fig 16.7. Now we will focus on roles and responsibilities for a successful Six Sigma quality program.
CEO
VPHR
Jirect jS^^]
T
Fig 16.7 Roles and Responsibilities
204
Unit 16
Six Sigma
Quality Leader/Manager (QL/QM) - The quality leaders's responsibility is to represent the needs of the customer and to improve the operational effectiveness of the organization. The Quality function is typically separated from the manufacturing or transactional processing functions in order to maintain impartiality. The quality manager sits on the CEO/President's staff, and has equal authority to all other direct reports. Master Black Belt (MBB) - Master Black Belts are typically assigned to a specific area or function of a business or organization. It may be a functional area such as human resources or legal, or process specific area such as billing or tube rolling. MBBs work with the owners of the process to ensure that quality objectives and targets are set, plans are determined, progress is tracked, and education is provided. In the best Six Sigma organizations, process owners and MBBs work very closely and share information daily. Process Owner (PO) - Process owners are exactly as the name sounds-they are the responsible individuals for a specific process. For instance, in the legal department there is usually one person in charge-maybe the VP of Legal -that's the process owner. There may be a chief marketing officer for your business-mat's the process owner for marketing. Depending on the size of your business and core activities, you may have process owners at lower levels of your organizational structure. If you are a credit card company with processes around billing, accounts receivable, audit, billing fraud, etc., you wouldn't just have the process owner be the chief financial officer, you would want to go much deeper into the organization where the work is being accomplished and you can make a big difference. Black Belt (BB) - Black Belts .are.the.hearXaPjdsojôf the SixSigma quality initiative. Their main purpose is to lead quality projects and work full time until they are complete. Black Belts can typically complete four to six projects per year with savings of approximately Rs 20,00,000 per project Black Belts also coach Green Belts on their projects, and while coaching may seem innocuous, it can require a significant amount of time and energy. Green Belt (GB) - Green Belts are employees trained in Six Sigma who spend a portion of their time completing projects, but maintain their regular work role and responsibilities. Depending on their workload, they can spend anywhere from 10% to 50% of their time on their project(s). As your Six Sigma quality program evolves, employees will begin to include the Six Sigma methodology in their daily activities and it will no longer become a percentage of their time-it will be the way their work is accomplished 100% of the time.
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16.10 SUMMARY How to achieve TQM is no secret any more. The challenge is to make certain that a quality program really does have a customer focus and is sufficiently agile to be able to make improvements quickly without losing sight of the real time needs of the business. The quality system must be analysed for its own quality. Improvements in meeting customer CTQs and specification limits are objective measures of quality that translate directly into quality gains, because transactional processing errors, late deliveries and product defects are regarded as undesirable by all customers. 16.11 KEY WORDS Six Sigma A vision of quality which equates with only 3.4 defects per million opportunities for each product or service transaction. Strives for perfection. ^Design for Six Sigma\is a systematic methodology
' ' . * f
DFSS
utilizing tools, training and measurements to enable us to design products and processes that meet customer expectations and can be produced at Six Sigma quality levels. DMAIC (Define, Measure, Analyse, Improve and Control) is a process for continued improvement. It is systematic, scientific and fact based. This closed-loop process eliminates unproductive steps, often focuses on new measurements, and applies technology for improvement. Quality Tools Associates are exposed to various tools and terms related to quality. Below are just a few of them. Flowcharts Checksheets Flow chart describe a process in as much detail as possible by graphically displaying the steps in prper sequence. These are basic forms that help standardize data collection. They are used to create histograms such as shown on the Pareto chart. Monitors variance in a process over time and alerts the business to unexpected variance which may cause defects. Typically, they plot the median of a process.
Control Chart
206
Unit 16
Six Sigma
Defect Measurement Pareto Diagram
Accounting for the number or frequency of defects that cause lapses in product or service quality. Focuses on efforts or the problems that have the greatest potential for improvement by showing relative frequency and/or size in a descending bar graph. Based on the proven Pareto principle: 20% of the sources cause 80% of any problems. Illustrated description of how things get done, which enables participants to visualize an entire process and identify areas of strength and weaknesses. It helps reduce cycle time and defects while recognizing the value of individual contributions. The appl ication of statistical methods to analyse data, study and monitor process capability and performance. Graphically shows any broad goal broken into different levels of detailed actions. It encourages team members to expand their thinking when creating solutions. Also called fishbone diagrams, they show hypothesized relationships between potential causes and the problem under study. Once the C&E diagram is constructed, the analysis would proceed to find out which of the potential causes were in fact contributing to the problem. This is used to separate value-added from non-value added steps in a process. This is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process. It begins with identifying each element, assembly, or part of the process and listing the potential failure modes, potential causes, and effects of each failure. A risk priority number (RPN) is calculated for each failure mode. It is an index used to measure the rank importance of the items listed in the FMEA chart. These conditions include the probability that the failure takes place (occurrence), the damage resulting from the failure (severity), and the probability of detecting the failure in-house (detection). High RPN items should be targeted for improvement first.
207
Process Mapping
Statistical Process Control Tree Diagram
Cause-and-effeet diagrams:
Opportunity flow diagram; Failure mode and effect : analysis
17.1
INTRODUCTION
To increase productivity, two important functions of production management are: installation of the most effective method of performing the operation and the control of resources -mainly plant and labour -required in carrying out the operation. Work study, formerly known as Time and Motion throughlfslwo complimenfary specializations ' these two requirements andWork Measurement..
Method Study aims to determine the most effective method of performing a job, the most logical layout of manufacturing facilities, the smooth flow of men and materials throughout the organization and the right placement of inspection stages to enablerocessing of ajob through the smallest possible time and at the least possible cost. I Work Measurement on the other hand helps to determine the time required by the operator to complete a specified task for the defined method at the defined pace of performance. J "~" Method study and work measurement though they are considered as two separate techniques, yet they are closely related and complement each other. Needless to mention that the time for a job can be assessed accurately only after standardizing the method which implies that method study should precede work measurement. The relationship between method study and work measurement is shown in Fig. 17.1. Work study for long was known as "Time and Motion Study " but with the development of the technique and its application to a wide range of activities, it was felt that its old title was insufficiently descriptive. Work study term, therefore, was coined and the same is now generally accepted.
Unit 17
Work Study - I (Method Study)
WORK STUDY
Method Study
Work Measurement
Critical analysis of existing jobs to develop easier and effective method
Measurement of work to establish allowed time for a Job for the defined method
Define, install and maintain improved method
To achieve improved processes and procedures, better working conditions, better utilisation of resources, improved morale etc.
To achieve improved planning, improved manning, basis for financial incentive schemes, labour cost control, improved methods, reliable indices to measure an employee's progress etc.
Resulting in higher productivity
Fig 17.1 Relation Between Method Study and Work Measurement 17.2 METHOD STUDY _____________________________________________
According to British Standards Institution (BS - 3138) 'Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs.' The definition suggests the examination of existing as well as proposed production methods. Critical examination when conducted on existing methods helps the firm to identify unnecessary costs associated with the existing jobs. Such costs get added to the jobs due to various reasons and are not readily apparent especially to those who are responsible for causing them. They are brought to light when existing production methods are analyzed critically and impartially. Critical examinations of proposed production methods, on the
213
other hand, helps the organization to prevent the possibility of introduction of unnecessary cost in new jobs. Production methods, another term in the definition, refers to the manufacturing process by which materials and other resources get converted into goods and services. Since production method is a complicated combination of men, machines and materials, the scope of method study is more broad based J ~~ " The scope of method study is not merely restricted to manufacturing industries. It can be applied almost in any field, say offices, banks, hospitals, shops and even defence. In a manufacturing industry, method study can be successfully used in many areas of production management, namely: (i) (ii) to evolve creatively and innovatively improvement in processes and procedures, to determine correct sequence of operations and avoid duplication (if any).
(iii) to improve layout, smoothen materials flow, reduce backtracking and avoid obstacles, j I (iv) to reduce unoccupied time of the operator and thereby obtain effective use of human j efforts (v) to improve utilization of the equipment and thereby reduce manufacturing cycle time| per piece.
(vi) to select materials of right specifications, cut down process waste, reduce defectives, j and thereby reduce raw material consumption per unit of production. (vii) to achieve economy in human effort and reduction of unnecessary fatigue, (viii) to develop a better physical working environment.
17.3 BASIC PROCEDURE OF METHOD STUDY_______________

Method study is an organized approach and its investigation rests on the following six| basic steps outlined in the block diagram (Fig. 17.2) " 1. Select Record the work to be analyzed. all facts relating to the existing methd. Develop the most
Examine the recorded facts critically but impartially. 4. economical method commensurate with plant requirements.
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These six steps are in a logical order and indeed represent a commonsense approach to any investigation. The success of the analysis thus depends on correct order of the investigation and the rigor of the application. Each of the above steps is described below: 17.4 SELECTION OF THE JOB Selection of the jobs to be studied for methods improvement by the method stud) practitioner is a managerial responsibility and it (selection) may be based on economic technical or human consideration. Economic consideration justifies selection based on economic worth (i.e. money saving potential) of the job. Technical consideration identifies jobs which require studies to overcome manufacturing difficulties (excessive rejection, relaxation in prefixed performance standards, inability of the shops to stick to specified machining parameters such as speeds, feeds, depth of cut etc., inconsistent quality etc.) Human consideration in job selection is usually given weightage while introducing method study practices for the first time. The selection of the job should be such that the proposed method achieves one or more of the following results: (a) Increased production with same labour, material and equipment or same production with less labour, material and equipment. (b) Improved quality with lesser scrap. (c) Improved layout leading to elimination^ nimization of unproductive movements oi men and materials. (d) Improved working conditions leading to employee's satisfaction. -^gTActivity A: Visit a Bank or any service organization. Identify three jobs which can be taken upfoi method study. Give reasons for selection of jobs,
216
Unit 17
17.5 RECORDING OF FACTS

Systematic recording is the most crucial step in method improvement. Since recording by long hand (or by descriptive method) has its limitations, it is not recommended for use in method study. Instead, five symbols and eight charting conventions are used to record facts relating to the job under study. Recording is the preparatory step towards critical examination. The success of critical examination to a large extent, depends on how correctly, precisely and in comprehensive form the facts relating to method under study are recorded. Activities comprising a task in method study are recorded by means of certain symbols and charting conventions. Graphical method of recording is preferred over descriptive method since: i a) complicated processes are usually difficult to narrate in comprehensive form. N arrating aprocess by long hand (in words) is generally laborious and time consuming. Graphical method tends to reduce the effort involved in writing. (b) symbols and charting conventions not only reduce the effort involved in writings but also segregate the effective part from ineffective parts. (c) cntical examination is easier and more effective when activities are recorded by symbols. Attention is immediately drawn to unnecessary movements, delays, rejections etc. which otherwise may be hidden somewhere between the lines. American Society of Mechanical Engineers and British Standard Institute have advocated just five symbols. The author's own experience (the author has recorded over 3000 operations) is that just five symbols and eight conventions are sufficient to record different types of activities that are likely to be encountered in a factory situation. Method Study Symbols: Most of the processes /activities in method study can be recorded by means of standard five symbols. They are:
217
1. Operation
2.
Inspection
3. Transport
4.
Delay
5. Storage
\/ Meaning and usage of symbols is detailed below:
Operation An operation occurs when there is a distinct change in physical or chemical characteristic of an object or, when there is an addition or subtraction or, when there is consumption of j physical effort or, when information is given or received An operation always takes the object (materials, component, item or service) a stag further towards completion. A few illustrations are: ^c Turning, dri lling, grinding, punching, blank ing, or in general a machine shop or a press! shop operation (change in physical characteristic) A chemical reaction (changing in chemical characteristicj/X Welding, brazing, riveting, assembly (addition.) Removal of a worn-out part from a machine (subtraction). Getting instaictions from supervisor Information received). Giving directions/instructions înformation given) Lifting, loading, unloading, positioning, bending and other similar activities (consumptk of physical effort). Posting of a ledger (consumption of effort)
Operation is represented by circle. Inspection
218
Unit 17
An inspection occurs when the object is verified against predetermined standards of quality or quantity, or both. Inspection, unlike operation, does not take the object one step forward towards completion. It merely verifies whether or not the object has undergone the required operation as per specifications. A few illustrations of inspection activity are: A dimensional check with a measuring instrument. Visual check for burrs, mutilations, finish, etc. Physical count of incoming material to tally quantity actually received with the quantity mentioned on the delivery challan.
Inspection is represented by square Transport
A transport occurs when the object is moved from one place to another.
A few illustrations of transport are: Movement of materials or trolley. A workers trip to tool-crib (grinder) to procure tools (sharpen tools).
Transport is represented by "an arrow'
Delay
A delay occurs when the object is held up resulting in delay in the start of next event i.e. Next operation, inspection or transport. A few illustration of delay are: Worker waiting at the tool crib for his turn or while issue clerks collects tool(s) from rack(s). Jobs waiting at the machines for their turn. Operatives awaiting instructions from supervisor.
219
Delay is represented by letter dee.
Storage A storage occurs when the object is kept in an authorised custody and is protected against unauthorized removal. A few illustrations of storage are: Materials kept in the work distribution center. Copy of an outgoing letter filed in the master file.
Storage is represented by an inverted triangle. These symbols are placed one below another as per occurrence of the events and are joined by a vertical line. A brief description of the activity is given on the right hand of the symbol. And the time that the activity takes is written on left hand against all the symbols except the transport symbol. An illustration highlighting a simple activity (typing a letter) is given in the adjoining diagram (Fig. 17.3) Charting Conventions: Simple processes/activities can be recorded with the help of the foregoing symbols. Complicated processes-those involving rework, rejection, repetition, change of state, introduction of new material, combined activities etc, cannot be recorded clearly by symbols alone. The recording of such activities besides symbols requires use of charting conventions. Typical charting conventions are: To Director's cabin Take dictation Back to work table Type letter Verify for mistakes > To Director's cabin with the letter Await while director reads and signs letter *" Back to work take Fig 17.3: Typing a letter
220
Unit 17
(a) Composition of the chart There are three distinct parts of the chart: Introduction to record name of the chart, present or proposed method, task under study, chart begins, chart ends, charted by, date of charting. Body to show activities by relevant symbols written one below another according to the sequence. Summary to give frequency of each symbol, total time for each symbol and total distance travelled by the object. (b) Rejection Sometimes materials or components are rejected (or discarded) during processing. Such rejection-the stage at which it occurs and the place where this discarded material is taken to-requires to be shown in the chart (Fig. 17.4) 20' To inspection table Check for dimension
0.30 2% rejection 0.20
Clean components with air
(c) Repetition
Repetition concerns a situation where an activity or a series of activities are to be repeated. To show such activities by repeated use of symbols is unnecessary/laborious. Much of this extra effort can be saved by enclosing the activities by a loop (Fig. 17.5)
scrap bin (200') Fig 17.4: Convention regarding rejection 0.50 C~^} Load component into a drill jig into position,
arm 0.50 Swing lock arm,
0.50 Drill 3/4" X through hole
(d) Reprocessing-^)
Reprocessing concerns a situation Repea 0.50 where the component is not t 3 completely rejected but is to be times reworked. Such rework activity is represented as shown in Fig. (17.6).
Clear drill, move drill head to next hole, lower drill
Fig 17.5 : Convention regarding repetition
221
(e) Introduction of new materials Introduction of new materials considers the entry points of the materials. Such entries are indicated on the chart by horizontal lines with description of materials written above the line and quantity written below the line (Fig, 17.7) (f) Combined activities Sometimes, more than one activities are performed simultaneously by the / operator. Such activities are represented by combined symbols (Fig. 17.8) (g) Numbering of activities The symbols in a process chart are numbered to facilitate easy reference for comparison. Likewise symbols are numbered serially from the beginning to end. Fig. 17.9 and 17.10 explain this convention.
5.0
0 60'"T*" V) Secure part in a mi Him -r- fixture machine \ Mill part Clean work from tool 0.10 ( ^Move work to in i
Him 2.00
0.1.0] ^ j
i 110 times! I
Unsecure part and keep aside
~T<'
0.221 v i f ~\ Clean fixture to receive ne
V i O.Ooi
10.0 /__\ Contents unloaded and moisture checked while Con tents mixed unloading. in the machine
v-' piece To inspection bay

-- ,
I Inspect pads
_____ l
Fig 17.6: Convention regarding reprocessing Bottles 250 nos. ---------------------------j~> To 150' washing room 0.20 ( j Botties washeii 60' _^ ' 50 Kgs. Hair oil Corks 250 nos. Labels 250 nos.
To filling area Bottles , filled Botties corked
37.51 Fig 17.8 : Convention regarding combined activities 125.0 Bottles labelled
Fig 17.7 : Convention regarding introduction of new material
222
Unit 17
Charting Methods:
Different methods to record details of the existing method are as follow: (i) Charts.
(ii) Diagrams. (iii) Templates and Models. (iv) Photographic aids (Micromotion study). (v) Graphic Techniques (cyclegraph and chronocyclegraph). Charts: Charts are the most popular method of recording data. The activities comprising the job are recorded by means of symbols and charting conventions. There are different types of charts. There are charts to : give-a bird's eye view of the entire process (Operation process chart). show detailed sequence of activities performed by the workman (Flow process chart: Man type) show detailed sequence of activities performed on the materials (Row process chart: Material type). show detailed sequence of activities performed by the equipment (Flow process chart: Equipment type). study man-machine utilization, determine number of machines to be manned by an operator and the like (Multiple activity chart). study work bench layout (Two handed process chart).
study the movement of material s, men or equipment (travel chart).
a) Operation Process Chart (OPC) What is an operation process chart?

An operation process chart is a chart on which the major acti vities and entry points of materials are recorded to have graphic view of operations and inspections involved in the process. An operation process chart gives the detailed step by step account of what is done to the materials from beginning of the first stage to the last (finished product stage) stage. Only
223
operations and inspections performed on the materials are depicted on this chart. Activities like transports, delays and storages are not included. The chart, therefore, can be compared to a tower in the city (or the map of the city). One can have a fair idea of the layout of the city from its map (or from the tower top) but one cannot know from it about the lanes and by-lanes, and their inhabitants. This is what precisely an operation process chart does by recording only the principal operations and inspections. It gives an overall view of the entire process. The chart does not say anything regarding the person who does the work. the place where the work is performed and the time when it is performed. The delays. transports and storages are also not recorded,
Why is it made? Operation process chart is useful to :

visualize the complete sequence of operations and inspections involved in the process. know where the operation selected for detailed study fits into the entire process.
How is it made?
Operation process chart, as mentioned earlier, is the graphic representation of the points at which materials are introduced into the process and what operations and inspections are performed on them. Operations and inspections in the operation process chart of a single part or component is in the form of a single flow line consisting of a horizontal portion on the top of which is written the description of the materials and a vertical portion to depict operation and inspections performed on the part or component. The symbols representing operations and inspections as usual are placed one below another in the sequence of their occurrence and are joined by a vertical line. A brief description of the activity is written on the right hand side against the symbol representing that activity. The time required for the activity, which may be based on estimate or stop-watch studies, is recorded on left hand side of the symbol. The entry points of the materials, process rejection, rework, repetition etc. are indicated at the appropriate place. Operation process chart of an assembly contains a large number of flow lines, one for each component. The flow line for the component on which the largest number of components are assembled is charted on the extreme right hand side. The flow lines of other components are then placed on the left of the main flow line considering the order of assembly of components. The individual flow lines are inade to be fed into the main flow line at the stage at which their components are assembled. Each flow line records principi" operations and inspections performed on the component it represents. The symlv operations and inspections are numbered independently but serially starting with numbering of symbols in the main flow line. The serial numbering, beginning with 1 for the first symbol on the main flow line is continued down the line until the point where next component joir
224
Unit 17
Work Study - 1 (Method Study)
its. At this point, the symbols on the flow line of the component joining the main line are numbered. The symbol on the main flowline after the junction of the main and the other flow line is assigned the next higher serial number. The boughtout parts are also shown in the operation process chart. The flow line of a boughtout part is merely in the form of a horizontal line with description of the part written above the line. Like flow lines of works made parts, the flow line of the bougtout part terminates at the point the part enters the assembly. Finally, a brief note giving present or proposed method, task, the activity with which chart begins, the activity with which the chart ends, date of charting and charted by is written on the top of this chart. A case illustration on preparation of operation process chart: Auto-craft Pvt. Limited is engaged in the manufacture of various precision turned components and small auto part assemblies in their well established auto-shop. Out of many small auto part assemblies mass produced at this company is a small assembly called relief valve assembly. The relief valve assembly consists of a valve, a plunger, a spring and a lock. The following are the major activities. 1. Valve body: (a) Machine blanks from 17A/F ENIA bar-stock. (b) Remove pip. (c) Centerless grind OD. (d) Drill 2.5 (j> cross hole. (e) Counter sunk 2.5 cross hole on both sides. (f) Centerless grind threaded length to pre-rolling (j) (g) Roll threads M10X 1.0. (h) Drill 2.4 6 X 8 mm deep.
+ 0.078
(i) (j'l 1.
Drill and ream 4 + 0.030 X 25.5 mm deep. Counter sunk 2.4 (j) and 4 (k) Inspect
Plunger: (a) Machine blanks from 1/4 "(j) bar-stock
225
(b) Remove pip. (c) Heat treat. (d) Centreless grind OD. (e) Inspect. 3. 4. 5. 6. Spring (purchase item) Lock (Purchase item) Assemble components Inspect assemblies
Prepare operation process chart for the above auto-part assembly. Solution: Operation process chart for the above auto-part assembly is shown in Fig. 17.9 b) Flow process Chart
What is flow process chart ? Flow process chart is a chart which sets out the sequence of flow of work of a product, or any part of it through the section or the department or tHeTactory by recoTdlngtHe"events under re view using appropriate symbols. Flow process chart is prepared in a manner similar to that of operation process chart except that in addition to the symbols for 'operation' and 'inspection', symbols for 'transport' 'delay' and 'storage' are also made use of. Separate flow process charts (one flow process chart is prepared for each major component of the assembly) are prepared for components of the assembly. This implies that operation process chart is normally in multiple lines while flow process chart is usually in a single line. Flow process charts are of three types, the material type which shows the events that occur to the material (i .e. how material is handled or treated), the man type which depicts the activities performed by the man (i.e. what the man does), and the equipment type which exhibits the activities performed by the equipment (i.e. how the equipment is used). Flow process chart (materials) is also called product process chart while flow process chart (man) sometimes is called man process chart.
226
Why is flow process chart prepared?

Flow process chart is useful to explore the possibilities of reducing distance travelled by the workmen (or materials). avoiding waiting time and thereby reduce production losses. eliminating operations or combining one operation with another. evolving better sequence of activities. relocati ng inspection stages to reduce frequency of inspection.
How is FPC prepared?

I Flow process chart like operation process chart, consists of three parts introduction, I body and summary.'
/ ^B*..--^~
All the five symbols V operation, inspection, transport, delay and storage - are used in the making of this chart. The symbols are placed one below another as per occurrence of the activities and arejoined by a small vertical line. A brief description of the activity is inserted on the right hand of the symbol and the time or the distance, depending upon the symbol, is given on the left hand of the symbol. The identiity of the subject to be recorded is maintained while preparing the flow process chart. A chart intended to record flow of material shows only activities concerning the material and not those of the workman or vice-versa.
A Case illustration on chart:

One of the industrial jobs involved the following activities: (i) Component was brought from stores about 10 meters away from the machine. (ii) It waited near the machine for the operator to be free from his previous job (40; minutes) (iii) It was loaded on the machine (2 minutes), (iv) It was machined on one surface (4 minutes). (v) It was unloaded from the machine (I minutes). (vi) Activities (iii), (iv) and (v) are repeated till the component was machined on all the four surfaces. (vii) The components were then taken to the inspection bench, 20 meters away from the machine. (viii) The component's accuracy was checked (3 minutes).
228
Unit 17
(ix) It was the moved to work distribution centre, 10 meters away from the inspection bench. (x) It was finally placed in the appropriate rack (0.50 mts.) awaiting picking up by another operator for the next operation. Prepare flow process chart (materials) to record above activities. Solution : The flow process chart (materials) for the above mentioned set of activities is given in fig. 17.10 c) Multiple Activity Chart
What is multiple activity chart? A multiple activity chart is chart on which the activities of more than one subject are recorded to indicate their inter-relationship in a given cycle. Multiple activity chart in other words shows what each subject does at any time in relation to the other. Why is it made ? A multiple activity chart is made to: t detect idle time enforced on men and machines. establish number of machines that can be conveniently manned by an operator determine number of workmen necessary to perform a job involving team working. How is it made? A multiple activity chart consists of a series of bars (columns) placed against a common time scale. One separate bar is allotted for each subject (man or machine) and activities related to the subjects are represented in this bar. Each bar is further split up into three columns: bigger column to record the description of activities of the subject and two small columns to record time and the state of working or nonworking (symbol). The columns placed against a common time scale which starts with zero and terminates at cycle time of the job. The task to be recorded is broken into smaller activities and time for each activity is measured with the help of either a wrist watch or a stop watch. The activities and their times so observed are then recorded in the appropriate columns activities performed by the man are entered in the man column and those performed by the imdiine are shown in the machine column.
229
FLOW PROCESS CHART (MATERIALS) (PRESENT METHOD) Machining of a component TASK CHART Component lying in the rack of work distribution centre BEGINS before machining. Component lying in the rack of work distribution centre CHART ENDS after machining CHARTERED BY MR.L.C.JHAMB DATE OF CHARTING 10th February, 1977
Lying in the rack of work distribution centre To machine Waited for the operator to be free 1 Loaded on the machine Machined on one side 0Meters 20 Meters 10 Meters Replaced in the rack Lying [Repeat for [4 sides in the rack Unloaded from the machine To inspection bench inspected for accuracy To work distribution centre
Summary Symbol
Frequency
Time 28.50
Distance
1
j
13 1 1 2

40 Meters
3 40
D
V
230
hj
KP
Fig 17.10 : Flow process chart (materials)
Unit 17
Two symbols are used in the making of this chart, one representing working and other representing idle. "Working" is represented by a hatched bar and "idle " is shown by "Shaded bar" (Fig 17.11) The chart also carries general details such as name of the chart, present or proposed method, task, chart begins, chart ends, date of charting and charted by.
Idle Working Fig 17.11: Symbols used in the making of a multiple activity chart
How is multiple activity chart made use of?
Multiple activity chart on its completion is scrutinised to rearrange the work cycle to minimize enforced idle time of men or machines. work distribution. combine or eliminate some of the work elements. explore ways to improve utilizations of men and machines We present below a case study on how a multiple activity chart is prepared and used. A case illustration on multiple activity chart: The operator engaged on a facing and centering machine performs the operation as under: Pick up job and position it between hydraulic jaws of the vice Depress ''on switch'1 to secure pan : Depress "cycle on" switch to start automatic cycle of the machine : , Facing and centering of the workplace by the machine on its automatic cycle Await while jaws of the vice open out to release job Collect faced and centered job from between the jaws of the hydraulicvice Keep the job aside : pr we multiple activity chart for the facing and centering operation. : : : 1.60 mts. 0.05 mts. 0.05 mts. 0.05 mts. : 0.15 nits. 0.05 mts. 0.05 mts.
231
Solution: The multiple activity chart for the above set of activities is given in Fig. 17.12 d) Two Handed Process Chart What is two handed process chart ?
A two handed process chart is a chart on which the activities performed by two hands or two limbs of the operator are recorded to show their inter-relationships. Why is it made? Two-handed process chart is useful: to visualize the complete sequence of activities in a repetitive task of short duration performed within the confines of a work place. This chart is generally prepared to study a variety of assembly, machining and clerical jobs. to study a work bench layout.
How is it made ? Two handed process chart consists of two charts one for the left hand and the other for the right hand synchronized in space together. The chart for the left hand is drawn on the left hand side and the chart for the right hand is drawn on the right hand side. The simultaneous activities of both hands are recorded opposite to each other on the chart. This enables the, analyst to analyse as to what right hand does when left hand is working, or alternatively what left hand does when the right hand is working, or what both hands do at any point of time in a work cycle. To prepare this chart although all the five symbols-operation, inspection, transport, delay and storage - are used to record the activities of two hands yet two out of these symbols- inspection and storage - are not used in the conventional sense. Inspection symbol features when check by touch or feel is involved. And storage symbol is used when either hand is used as grip or vice to hold an object. A case on this chart: The activities performed by an operator in connection with assembly of a washer and nut j to bolt are as under: The operator moves simultaneously his left hand to bin 1 for bolt and right hand to bin 2 for washer. The left hand grasps bolt while right hand grasps washer. Both hand carry their objects back to assembly position where left hand holds bolt while right hand positions, washer over bolt. Right hand then moves to bin 3 for a nut, picks up nut, carries it backlog assembly position, positions nut over bolt, threads nut and checks nut for tightness. Left] hand then moves over to bin 4 and disposes off the completed assembly into it.
232
Unit
Work Study - 1 (Method Study)
Prepare two handed process chart for the above activities. Solution: Two handed process chart for the above set of activities are given in Fig. 17.13 Diagrams: Every business activity, be it manufacturing, servicing or office, requires movement of men and materials from one location to another. Every movement is not essential. Some of the movements can possibly be avoided by rearrangement of the facilities within the department or by effecting change in the sequence of activities. The number of movements if reduced, can result in substantial saving both in the labour cost as well as i n the efforts required to do the job. Therefore, recording of movements can serve a valuable guide for improving existing layouts. Operation process charts (OPC) though indicate the sequence of events but do not show movements while flow process charts do record movements but they do not provide a isual picture (i.e.do not give mental feel of the problem). The problems concerning iovements can be better visualized by drawing a diagram which may either be a flow iiagrwn or a string diagram. Diagrams highlight unnecessary long travels, cross traffics iid obstacles clearly than charts do. Diagram though do not give all the information yet 'iey are valuable aids to supplement information recorded on the charts. diagrams are useful to: i1) study the different plant layouts and thereby select the most optimum layout. Uidy the extent of traffic over the different routes of the plant. identify extent of back-tracking, cross traffic and obstacles encountered during movement of materials. tody the activity relationships between departments/work centres. Diagrams are of two types: Flw diagram String diagrams Flow Diagrams
;~ -
v diagrams are the scale plans on which the movements of an object are traced by mo.Thefiow diagram shows the relative position of the machine tools, work benches, storage racks, inspection benches etc. on a scaled diagram on which are marked the paths followed by the workmen and materials. Different colours are used to represent different es of movements. i he steps involved in the making of a flow diagram are as under: The layout of the shop (working places) is drawn to scale on a piece of paper.
233
Unit 17
Work Study -1 (Method Study)
(ii)
The relative position of the machine tools, work benches, storage areas, inspection benches etc. is marked on it. (i.e. on the above layout)
(iii) The paths followed by the subject under study (workman or material) are traced by drawing lines. (iv) Each movement is serially numbered and indicated by arrow for this directions. , (v) Different colours are used to denote different types of movement e.g. worker with empty trolley, worker with loaded etc. Fig. 17.14 shows a flow diagram of a workshop in which forgings (raw materials) are issued from stockyard (A) and moved to a capstan lathe (B) for rough turning. The rough turned blanks are moved to station (C) for broaching and then to a centre lathe (D) for "face on mandrel" operation. The subsequent operation is performed on chucking auto (E) where the pieces are finish turned. Finished blanks are next routed to inspection bench (F) and then to a gear hobber (G) for gear cutting. Gear cutting is followed by deburring operation (H). Lastly, pieces so machined are moved to final inspection (F) enroute to finished parts stores (I). (b) String Diagrams ^(jdC,. String diagrams are the scale plans on which the movements of an object are traced by neansofastring. String diagrams have certain distinct advantages over flow diagrams/ Repetitive movements._ between work stations which are difficult to be traced on flow diagrams can be conveniently shown on string diagrams. ] How is a string diagram drawn? The steps involved in drawing of a string diagram are as under: (i) The layout of the working places is drawn to scale on a soft wooden board. (ii) Pins are driven into the board to mark exact location of the work centres. Pins are driven in such a way that they protrude at least 10-15 mm above the board. Pins are :ilso driven at the turning points on the route. tiiij A measured length of thread is taken to trace the paths and its one end is fastened to the pin at the starting point. a j Each movement between the work places i s indicated by laying the thread around the corresponding pins driven on the layout. Repetitive movements are indicated by laying the thread in layers around the pins in the vertical plane. The distance covered by the object is obtained by subtracting the leftover length of the thread from its original length.
235
TWO HANDED PROCESS CHART (PRESENT METHOD) TASK CHART BEGINS : CHARTENDS CHARTERED BY : DATE OF CHARTING: : Assembly of washer and nut to bolt Both hands free before asembly Both hands free after assembly MR. L. C. JHAMB 18th Dec., 1973
236
Left hand
Right hand
to bolt Description her and nutSymbol To bolt 1 Grasp bolt 1 Backtopositio 2 4 Hold To dispose of n*
-------- w
Symbol 4 _____ T 1 Ic
P -l
Description > washer
\T assembly Drop assembly 3 ^ into bin Back assembly position
(\
^
$L,o
asp washer l~ ^ ~\ Back to position '} Position washer 3 on bolt ^\ To Nut 4 Grasp nut 1 ^ . ick to assembly sition sition nut over bolt iread nut spect for tightness vait for left hand be free
f
Dist.
Bj po PC TV 0-6) In
4 'd p
Symbol Left Hand Freq. Time 2 4 7
w,
fe &)
o
Fig 17. 13 : Tw o han ded pro ces s cha rt for ass em bly of was
D ID , V
Right Hand Freq. 6 1 4 3
"
Time "" Dist.
Production / Operations
Templates and Models :

Row diagrams and string diagrams exhibit movements of men and machines by drawing the scale plans to the shop/office facilities but they do not indicate clearly the bottlenecks and backtracking. The problems of congestion, bottlenecks and backtracking (if any) can be better visualised by use of templates and models. Templates are two dimensional cutouts of cardboard (or coloured paper). The) are made to scale and are placed on the scaled plan of the building drawn on a board or on a cross hatched surface or on a graph paper. Templates show the plan of the various facilitiq like machine tools, work benches, fittings, storage racks etc. Templates offer number of advantages over diagrams: (i) The congestion, bottleneck.-, and backtrackings can be better visualised with templates.^ (ii) They can be conveniently moved on the graph paper hereby providing the flexibilir to evaluate various feasible positions for the facilities. The usual approach istotakea photograph of each layout before rearranging the templates to have another la>uiiof the facilities. They are less laborious and save lot of time which otherwise is spent in making drawings for each alternate plant layout arrangement.
(iii)
Templates, however, have few limitations, namely: (i) (ii) Overhead facilities cannot be visualised. Non-technical persons find it difficult to comprehend the arrangement.
Three dimensional models are the models of the facilities resembling the actual in length. width and height. They are usually made up of wo ' .istic./rhey usually show less deTaTTslximplared to physical facilities. V
Models are commonly used to develop floor plans and elevations and are not most effective while preparing alternate pians for multistorey plant layouts. Typical examples of the uses / of the three dimensional models are layout plans of chemical factories, refineries etc. j Three dimensional models have numerous advantages; Non-technical persons find it easy to comprehend. Overhead facilities can be shown. Services such as lighting, ventilations, safety features can be easily incorporated.
linil i 7
Like templates, models too can be shifted easily and quickly. They represent more or less a real situation and as such comparison of alternate arrangements is easy and more effective.
Three dimensional models however are expensive and are difficult to be taken to the site for reference. Micromotion Study: Many a repetitive short cycle operations namely components assembly, packaging, inspection, machine shop operations involving loading and unloading of small components into jigs and fixtures, c'sinking of autoparts on a bench drill, segregation of small mixed up jobs, clerical operations etc. involve quick hand/limb motions which can not be accurately studied and timed using the operation charts such as two-handed process charts etc. This is because two handed process charts merely record macroscopic detailsjsuch as operations. inspections, transports etc. and study of such macroscopic motions in short cycle repetitive jobs is not enough. Short cycle jobs needs to be studied for microscopic motions (each macromotion consists of a number of micromotions e.g. operation of picking up a bolt rom a bin consists three motions namely reach hand for the bolt, grasp bolt and move hand back to assembly position) so that even if it is not possible to eliminate a macromotion, atleast the possibility of elimination of some of micromotions can be considered. Such a detailed analysis helps to develop the best possible pattern of motions, thus enabling the workman to perform the operation repeatedly with a minimum effort and fatigue. Since the jchniques used for this puipose frequently make use of filming, they are known collectively ^micromotion study. Other Recording Aids: \s an additional aid for micromotion study, Gilbreth also developed graphic techniques iicyclegraphand (ii) chronocyclegraph for the study of path of movements of an operator's ands. fingers etc. These are photographic methods and are used to trace especially those Movements which are too fast for human eye to pursue. Âctivity B : ; Draw a Flow process chart for the task of preparation of coffee.
239
17.6 CRITICAL EXAMINATION

Critical examination aims to analyse the facts crincally and thereby give rise to alternatives which form the basis of selection and development of easier and effective methods. Critical examination is conducted through a systematic and methodical questioning process. Each activity recorded on the chart, whether it relates to processing or inspection, or material handling, or to any other aspect, is picked up one at a time and is examined minutely. The questioning process is considered under five major heads, namely the purpose, the place, the sequence, the person and the means. These five aspects in critical examination are referred to as five governing considerations. The principles to be followed during critical examination are: (a) Facts should be examined as they are and not as they should be. (b) Each step, how insignificant it may be, should be analysed in a logical sequence. (c) Hasty judgements must be avoided. (d) Opinion regarding alternatives to the existing method should not be formed unless! aspects of the existing method have been exposed to critical examination. Critical examination is conducted through a systematic and methodical question^ process. Each activity recorded on the chart, whether it relates to processing or inspectio or material handling, or to any other aspect, is picked up, one at a time and.is examin minutely. The questioning process is considered under five major heads, namely the the place, the sequence, the person and the means. These five aspects in critic, examination are referred to as five governing considerations. Each governing consideration analyses one specific aspect of the job. For example. Purpose : analyses whether the job / activity is essential Place : analyses whether the job / activity is being performed at the right place. :
Sequence: analyse whether the job / activity is being done at the right time. Person analyses whether the job / activity is being performed by the right person. J; Means : analyse whether the job is done using right materials, right tools, right jigsi fixtures, right measuring instruments and guages.
To ensure that each of the above objectives is achieved, each governing consideratia subjected to a set of four questions (Please ref. Table 17.1)
240
Unit 17
Work Study - 1 (Method Studv)
17.7 DEVELOPMENT AND SELECTION

Critical examination gives rises to a number of creative ideas but creative ideas in themselves can not achieve a thing until they are expanded and put to use. Since not all ideas are practicable, some of the ideas may require to be discarded while others may need to be expanded, refined and developed, and yet some others may require to be kept aside until a future time. Development, therefore, involves analysis of creative ideas and giving them a practical shape. Development phase is the combination of three phases : evaluation, investigation
and selection.
(a) Evaluation
Since detailed investigation of each and every idea generated at the critical examination stage is neither practical nor desirable, their number must be narrowed down to ensure development of ideas an economical and plausible exercise. Evaluation assesses the true worth of each creative idea and thereby decide whether an idea should be pursued or discarded. It is therefore, an exercise to shortlist creative ideas.
Table 17.1: List of questions for critical examination

Governing Basic question Consideration (Facts) Purpose Place Sequence Person Means What is being done? Where is it done? When is it done? Who does it? The Necessity (Why) Why is it done? Why there? Why then? Why that person Alternatives
The best
What else could What should be done? be done? Where else? Where should be done? When else? When should be done? Who else? Who should it? How else? How should it done?
How is it done? W 7 hy that way?
Evaluation in order to shortlist ideas explores the following -
i) Fault finding and fault identification :

Evaluation investigates into advantages and disadvantages of each creative idea so as to identify creative ideas which.
241
appear usable. Such ideas are straightway adopted for further investigation.
possesses technical flaws. Such ideas are discarded and removed from the list. lack confidence and cannot be put to immediate use because of insufficient data or lack of requisite knowledge. Such ideas are not discarded or thrown away. They are kept aside until a future time when proper data or knowledge will make them usable. contain more disadvantages than advantages. Such ideas are again critically examined to see whether deficiencies can be removed failing which they are kept aside. Fault identification is not used as an excuse to reject an idea but an opportunity to improve.
(ii)
Combination of ideas:
Creative ideas covering different aspects of materials (e.g. material specifications, orginating process, maching allowance etc.) machines (e.g. changes in work cycle, speed, feed, work allocation during machine element, multiple machine allocation etc.), design (e.g. change of tolerance, surface, redesign of component etc.) and the like combined to reduce the number of creative ideas.
(iii) Estimation of cost of testing and implementation:

Estimates are made to forecast the kind of expenditure that shall require to be incurred to test an idea or a combination of ideas. Cost estimation of each idea helps to narrow down the list of available ideas. Based on cost estimates, the ideas are ranked beginning with least cost alternative.
(b)
Investigation
Investigation explores as to how the ideas cleared at the evaluation stage as suitable or promising can be converted into practical suggestions. Investigation usually involves preparation of drawings, holding discussion with personnel from design/ purchase/ finance/ quality control etc. making prototypes, conducting trial runs, getting work measurement studies redone from industrial engineerring or making cost accountant prepare fresh cost estimates. The aim is to test idea for its economic and technical feasibility so that each suggestion is definite and is supported by evidence of practicability. Investigation involves steps detailed below:
242
Test each idea for its technical feasibility. Predict performance of each technically feasible idea. Test each technical feasible idea for its economic feasibility.
Unit 17
Work Studv - I (Method Stuclv)
(c) Selection To select the optimum aJternative, each alternative needs to he evaluated against a set of specific factors. The most commonly selected factors are: investment required, production rale expressed in terms of cycle time per piece, manufacturing cost per unit of production (or return on investment) and physical effort. Using point system, weights are then assigned to each of the factors. The allocation of points to a particular factor depends on its importance, a consideration which vanes from company to company: To select a preferred alternative, the points scored by each alternative against each specific factor are totalled up. And the alternative scoring the maximum points is selcted as the preferred alternative.
17.8 INSTALLATION OF THE PROPOSED METHOD
Installation refers to the implementation of the proposed method and it serves she following objectives; to prepare and present the change proposal to the management. in develop sequential steps to he taken to implement the proposal on its acceptance. to secure formal approval from the management. to implement the accepted proposal in the most speedy and efficient manner. installation comprises of two vital steps lor phases) : recommendation phase and mplcmeniation phase. li! Importance of Recommendation Phase .veil if the management is solidly behind the methods improvement programme, it -sill requires facts and figures to support specific proposals. That is each change roposa! requires the method study practitioner to prepare a formal report of his proposal, present his recommendations to the management, provide information on implementation plan and secure approval of the management. aiplementation Phase io recommendation is effective until implemented. Though the responsibility of 'iiplementation is that of top management yet active assistance of methods man is -quired to n resoive problems encountered in the implementation process. :i) minimise delay in ihe implementation process.
243
(iii) ensure that change proposal is not modi fled during the implementation process would cause it lose its cost effectiveness or the basis for its original selection. Basic steps involved in the implementation of proposed changes are as under: Obtain written acceptance to the proposal. Prepare implementation plans. Authorise changes. Clear misconcepts and remove road blocks. Provide demonstration of the proposed method. Organise one or more trials to make employee get used to the new method. Arrange for traini ng of workmen in the use of new methods. Get work measurement studies done and revised method retimed^
17.9 MAINTENANCE OF THE PROPOSED METHOD Method change does not get completed with the implementation of the proposal. Follows up after the implementation is equally important. Follow up after the implementation: 1. 2. 3. 4. a) serves as a monitoring and control mechanism and helps to ensure that revised methods are followed in future. audits results (or savings) achieved from the implementation of the study. evaluates eftecti veness of the methodology followed and enables the practitioner to take corrective action for future projects. appraises the management of the contribution of method changes. Monitoring and control:
People generally have uncanny habit of reverting back to the old methods once initial tempo dies down. It is, therefore, necessary that the analyst should continually visitthe shops and maintain liaison with the management. Some feedback mechanism is a must and all those concerned should be informed of the results. The reporting frequency may be as under: -Daily reports Bi-weekly reports Weekly reports ..Monthly reports
244
Until one week after trial From one week after and upto four weeks after the trial. From one month after and upto two months after the trial. From two months and upto six months after the trial.
Unit 17
Work Study -1 (Method Study)
The above reporting frequency is sure to set the new method into concrete and eliminate the possibility of employees reverting back to the old method.
(b) Audit of the savings

Audit of the savings released too is the responsibility of the practitioner. Audit of savings enables the practitioner. (i) to know whether the implementation work is complete. This being the case when the savings show up as predicted. (ii) to do follow up on the shop floor for implementation of remaining parts of the project or review and correct estimates. This being the case when the actual savings fall short of targetted saving. i iii) to study those additional factors which contributed to enhance gains or to enable him to review and correct its estimates. This is being the case when the actual savings are far greater than the targetted savings. Irrespective of the above situations, audit feedback helps methods engineer in his future work..
;c) Review of the approach :

After the audit of the savings, method study should review the approach followed by him m his investigations. This helps the practitioner to draw conclusions: Was the approach followed by him effective? Does it require any correction for the next study? Was the implementation process smooth? Did the line management react favorably during implementation? if no, what changes in approach can help smooth implementation of future projects? What methods of data collection were used? Did those methods prove effective? Should same methods be used in future for similar projects?
id) Performance appraisal

Mere measurement of gai ns immediate after the implementation is not enough. Some sort of performance appraisal system needs to be devised to measure the gains of the productivity at regular intervals.
245
Âctivity C; For monitoring and control method study project implementation effectively identify and explore how use of technology can be made.
17.10 SUMMARY Method Study is the systematic selection, recording and analysis of the existing methods and means to develop easier, productive and cost saving methods. Method study can be applied both in the manufacturing as well as service organizations. It is an organized approach and it involves six steps-select, record, examine, develop, install and maintain in its basic procedure. Selection of the jobs to be studied for methods improvement by the method study practitioner is a managerial responsibility and it (selection) may be based on economic, technical or human considerations. Systematic recording is the most crucial step in method improvement. Besides charts, two types of diagrams - flow diagram and string diagrams - are drawn when recording details of an existing layout. Critical examination is the generation of creative ideas. Development, and selection stage concerns short listing of ideas generated at the critica. examination stage, testing each short listed idea for its technical feasibility and economic feasibility and making selection among the alternatives wherever choice exists. Maintenance phase is the follow up phase after implementation which serves as a monitorin and control mechanism 17.11 KEYWORDS Method Study Is the systematic selection, recording and analysis of tl existing methods and means to develop easier, productive] and cost saving methods. An operation occurs when there is a distinct changei physical or chemical characteristic of an object An operation process chart is a chart on which the ni activities and entry points of materials are recorded tot
Operation Operation Process Chart:
246
18.1 INTRODUCTION Work measurement is the application of a set of techniques intended to establish quantum of work to be done by an operator in a given time (standard of production) of a specified Task, under specified conditions and at the define level of performance. Work measurement in other words provides a scientific method of fixing standards of production (or alternatively, standard time for a job). \ Standards of production in fact exist in every organisation even if no formal scientific studies have been conducted. The supervisors and foremen generally know from their experience the average quantity being produced of each job in a shift by their workmen. Such standards which are based on past performance - Elwood S. Buff a calls them informal standards - have many weakness: They do not reflect true work content of the job since they normally include lot of f ineffective time. It has been studied and concluded by the experts that standards j based on past performance hardly represent 50 to 60 percent of what could bef expected to be produced under properly studied standards. Good performance; standards are expected to be free from ineffective time attributable to workmen.
s
They are generally based on different methods employed by different workmen. Good 1 performance standards, on the contrary, are expected to be set after standardisation of methods. They are strongly influenced by working speed of the workmen and as such they may be valid for a few selected workmen in the organisation. Good performance standards, on the contrary, are expected to accommodate 90-95% of the workmen population working at normal pace.
18.2 USE OF WORK MEASUREMENT DATA Work measurement which enables the management to set equitable standards for a specified task is a powerful tool available to them for the purpose of cost reduction and cost control. A number of areas can be spelled out where work measurement data is useful. Some of j them are: 1. Manning: Correct manpower requirements for different tasks in a plant can be very accurately! determined by work measurement data. The data enables the management to determine | future requirements of equipment and machines.
Unit IX
Work Study - IJ (Work Measurement)
The data also enables the management to determine the number of machines that can be conveniently manned by a single operator.
Is Planning:
The success of an enterprise depends upon its ability to make reliable delivery promises which to a greater degree depend on its effectiveness of planning and scheduling. Work measurement data on operation timings gives an idea as to when a particular job could be started and when it would be over.
3. Estimating production costs:

The success or failure of an enterprise in a competitive market depends on accuracy with which it is able to project its costs and correctly price its product. Over estimation may make the firm non-competitive and underestimation can make it lose financially. Importance of correct cost estimation, therefore, is second to none. For correct estimation of labour cost, correct knowledge of manufacturing time is necessary. Besides labour cost, many indirect costs namely depreciation, fuel and power consumption, rent and salaries of staff and supervision etc. depend on time. Work measurement provides the management with accurate data on manufacturing time.
4. Cost reduction and cost control:

Work measurement data can be used as an effective tool for labour and cost control. The very presence of fair standards makes the employees increase production. \ Information on man and machine utilisation and ineffective time too frequently proves an invaluable aid for the management to make sound decisions on ways to improve efficiency. Work measurement data also gives valuable information on lost time which is of various forms such as unoccupied time, hunting time, up-productive time, job splitting lime etc. It even suggest how a company can turn these little items of lost time into useful product] on. Further work measurement provides the basic information for setting standards of labour cost which serve as the basis of labour budgets and budgetary control. Comparison of actual performance against these budgetary figures enables management to exercise "control by exception".
253
Production / Operatic
ms Management
X"""
It)
Improved methods: Work measurement is a very useful tool to figure out better methods. Work measurement makes this possible by analysing the operations in their tiny details, called elements, which are the mirror to see ways to improve methods. The scrutiny of the elements draws attention to unnecessary work e.g. the operator putting more finish than required. They point out wasted motions e.g. unnecessary walking and reaching. They also identify elements which consume excessive time, a vital information for the method analyst. > Rational basis for incentives : An incentive is important for two reasons. Firstly, it tends to reward more productive workers. Secondly, it helps the company to reduce the cost of the goods it manufactures. To achieve these two objectives, the output standards must be: attainable: An average worker working at normal pace must be able to achieve them and earn a reasonable incentive. consi stent: They must prov ide equal opportunities to the operati ves even i f they are engaged on different jobs. Work measurement data provides a rational and equitable basis for evolving incentive schemes.
x
7. Comparing alternative methods: Work measurement data also aids in making a selection among the alternatives. As, some times it happens, method study practitioner ends up with two or more alternatives which appear to be equally advantageous. The method study practitioner then is faced with the problem of comparing these alternatives so as to make a judicious selection of the best method. This type of comparison can be done conveniently on ,
the basis of work measurement data.
8.
Standard data: Standard data which consists of tables, curves and charts is built up from numerous basic job constituents, called elements which are generally repeated in other jobs. A well prepared directory of these elements and their times enables the company to set output standards for the new jobs directly from their blue prints.
254
Unit 18
Work Study - II (Work Measurement)
9.
Substandard workers:
Work measurement aims at setting standards of production per hour or per shift. Not all the workers are able to meet them even if they are equitable. Apprentices and old workers simply are not able to attain them. Then there are some who are temporarily sick or who have not been trained properly. Over and above these, there is generally a group of "deliberate slackers", "bossy" or "moody" workers who set their own performance standards. Work measurement data helps to identify these substandard workers so that they can be, treated if sick. trained if not trained properly. transferred to some lighter work if old. reprimanded if slackers.
The information so obtained can also be used to base decisions regarding promotion and layoff policies. The feedback on performance standards can always be used to give preference for promotion to productive employees over those with seniority.
10. Training new employees:

Work measurement data also aids in training of new employees. The tiny details elements into which the job under study is broken into - can be used to explain just how exactly an operation is to be performed. This makes the process of training easier, faster and more effective.
11, Checking employees' progress :

Work measurement data can also be used to measure an employee's work progress. It enables line management to find out whether the new employee is: making satisfactory progress. fully trained or his period of training needs to be extended. suited to the type of work or should he be transferred to some other section.
Production / Opera! ions Management
Âctivity A; What can be the uses of Work Measurement data in a BPO/Service organization:
18.3 TECHNIQUES OF WORK MEASUREMENT Work Measurement embraces a number of techniques of which the i mportant ones are: * Time Study. Production Study. Work Sampling, alytical Estimating. Synthetic Data. Pre-determined Motion and Time Study (PMTS). Out of these, the first three techniques involve direct observations whereas the rest are data based and analytical in nature. Time Study-the study with the stop watch - is the most commonly used technique of work measurement. Work sampling helps to figure out the amount of time occupied by differenl activities associated with men or machines. Synthetic data is the compilation of known elements which have been observed by the stop watch studies. The standard time of a job is synthesized from these elemental timings. PMTS is a very fine work measuremcni technique whereby the time required to do a job is synthesized by combining ilr predetermined times for different elements of the job. The most commonly used technit F of PMTS is known as Methods Time Measurement (MTM). Table 18.3 suggests i typical uses of the different techniques of work measurement.
25 6
Unit 18
Table : 18.1 Technique

Time Study Work Sampling
Suitable for
Short-cycle-repetitive jobs. Long-cycle jobs/heterogeneous operations (Office, Stores etc.)/ operations involving team work. Short-cycle-repetitive jobs. Manual operations (confined to one work centre). Short-cycle-non-repetitive jobs.
Synthetic Data MTM Analytical Estimating
The work to be measured by any one of the techniques of work measurement is broken into small constituents, called elements. The elements in MTM are measured in TMUs (a TMU equals 0.0006 minutes); elements in time study and synthetic data are measured in centiminutes; elements in analytical estimating and work sampling are of several minutes duration. Table 18.2 gives such a comparative analysis :
Table 18.2
Technique Time Study and Synthetic Data Analytical Estimating Work Sampling MTM 18.4 TIME STUDY 11 me Study is the most widely used technique of work measurement.
-aSSSSS^r ,i* * '*'
;M J 1
Unit of measurement 1 Centiminutes Minutes
Equivalent to 0.01 minutes
TMU
0.0006 minutes
: ,;;u: ,,iudy is best suited for short-cycle-repetitive jobs. Most of shop operations can conveniently be timed by time study. The work elements into which the job under study is biokgniutQ are,gen.erally measured in centiminuii|Jrhe technique revolves around four important terms as highlighted by the following definition:
257
"Time Study is one of the techniques of work measurement to establish time for a qualified worker to carry out a specified task under specified conditions and at the defined level of performance," To explain the terms, let us try to answer the following questions. "How much time one should take to reach Poona station?" Obviously one can't answer unless: Distance is specified. The time to be taken from Chinchwad to Poona station will be more as compared to time to be taken from Kirkee to Poona station. Distance here refers to the 'specified task." Mode of transport is known. Time on foot will be more as compared to time in some vehicle. Similarly, travelling by bus will consume more time than travelling by a taxi. Mode of transport here implies 'defined level of performance'. Skill of the person who drives the vehicle is known. He may be adept in driving or just a beginner. Obviously, the former will take less time than the latter. Skill of the person here reflects 'qualified worker'. Traffic conditions on the road are specified. The time taken will be more if the roads are crowded, slippery, damaged or there are too many traffic signals on the way. Traffic conditions here represent 'working conditions'.
Time Study Procedure Basic steps in the time study procedure are : (i) (ii) (iii) Select the task to be timed. Standardise the method of working. Select the operator to be studied.
(iv) Record necessary details of the job and conditions of work. (v) Break the task into elements.
(vi) Measure the duration of each element and assess the pace of working (Rating). (vii) Establish representative time of elements. (viii) Extend observed time into normal (or basic) time. (ix) Assess relaxation and other allowances. (x) Calculate standard time of the job.
25 8
Unit IS
Brief Description of the steps in Time Study 1. Select the job to be timed :
If no work measurement studies have been conducted in the past, selection of the jobs for time study should be made on the basis of some priority (some jobs/products/ sections/operations may be given priority over others). Obviously, early choices are: (a.) "Bottleneck operations" on account of which subsequent operations are held up. (b) "Repetitive jobs" involving longer runs and liable to run over and over again. (c) Jobs using a great deal of manual labour. (d) Jobs with longer cycle time. (e) Sections frequently working on overtime to meet schedules.
2. Standardise the method:
The accuracy of the performance standards, to a large extent, depends on the correctness of method employed by the workmen. Wrong methods and untrained workmen should never be timed. Work measurement studies, therefore, must be preceded by method studies to simplify and standardise methods. Even if the methods have been standardised, there is no guarantee that the workmen shall follow the same when time study man arrives at the work place to study the job. There is a natural tendency on the part of workmen to mislead the time study man.
3. Select the operator :
Selection here refers to the choosing the operator among the many performing the task to be timed. The person selected should be skilled and steady man. His pace of performance should be average or close to average so that observed times are close to normal times. When a large number of workers are doing the same job, it is a good policy to take studies on more than one qualified worker. International Labour Organisation has defined a qualified worker as "One who is accepted as having the necessary physical attributes, who possesses the required intelligence and education and has acquired the necessary skill and knowledge to carry out the work in hand to satisfactory standard of safety, quantity and quality."
4. Record details:
Absolutely nothing should be left to the memory. Necessary facts must be recorded before commencing the study. The following information should be recorded:
259
\i
D Identification details which include rjart name, part number, machine^spmL feedjriaterials, operator's name, observer's name etc. (ii) Work variations such as type of fit, hardness of materials.1_sharjg of job and others which influence time of the job. (iii) /Conditions surrounding the job such as presence of disagreeable elements such as dust, heat, smoke, vibrations,jioiseetcT] (iv) Working conditions to indicate posture (standing, sitting, bending etc.), weight handled, protective clothing worn (if any) etc. 1
__
_ _ . _ -----------: --------- ,,û_jmomOTir-TTT ---------------------------------------------- ,- T- ,, :A ....... ..-.-^Jirff
5.
Break the task into elements :

The task under work measurement is never timed "as a whole" but "part by part." This process of splitting an operation (or a task) into parts is called "job breakdown." There are various reasons for breaking the task into elements. And there are different rules which govern the job breakdown.
6.
Measure the duration of each element and assess the pace of performance (Performance Rating):
LTime study is the study with the help of a stop watch. Each element of the job is timed with the help of a stop watch. Two well-known timing methods are : cumulative method and flyback method. Elemental times in flyback method are obtained directly from stop watch readings while in cumulative method, they need to be computed after the study. Cumulative method is good for experienced hands. Beginners, until they attain proficiency, should use cumulative method. When elemental sequence can vary from job to job, fly back method is the only choice. While recording time of the elements, operator's speed of working is assessed and entered on the observation sheet as rating. Rating is the time study enginec-assessment of the operator's pace of working in relation to what the time study engintx i thinks as normal (or standard pace). Rating is used as a levelling factor to convert observed time of an element (time taken by the workman working at any pace) into normal time (time to be taken by the workman if he performs the same element at normal pace). Four different methods to determine performance rating are speed rating, westinghouse system of rating, synthetic rating, and objective rating.
7.
Determine representative time of each element:

Rarely, time taken by the operator to perform an element of an operation is constant , from piece to piece (cycle to cycle) of the job. It varies from cycle to cycle even if tlr workman works at uniform pace throughout the study.
260
Unil 18
The variations can be reduced to some extent by using standardised raw materials, good quality of tools and equipment, trained operators and better working conditions, but they can not be totally eliminated. Therefore, enough cycles of the job are timed to arrive at the representative time of each element. Once sufficient cycles have been timed,a representative time value of each element is calculated from the observation data/Arithmetic mean is thejmpjt^gjnmMrûsed^ method of selecting the representetiv^^^^S7nruTe"tirne values recorded against each element are added up and then divided by the number of cycles timed. However, tail end figures (i.e. extreme low and high figures) may be dropped.
8.
Extend observed time into normal time:

The representative time established from the observation data is the time which an operator has taken while working at a certain pace. Since this pace may not be normal, the observed time requires to be extended into normal time. Normal time, therefore, is the time that an operator would consume if he works at a normal pace. Normal time is also called basic time and is obtained by multiplying the observed time by the performance rating and divided by 100(onlOO/133 - scale) Observed time x Performance rating (%)
Normal time =
Too
9.
Assess relaxation and other allowances :

Normal (or basic) time of the elements of the job if added gives normal (or basic) time of the job. But the same can not equated to the standard time. This is because no body can work continuously. Some additional time need to be added to the normal time to arrive at the standard time (the time to be allowed for the job). Additional time is needed to (i) to provide the operator an opportunity to attend to personal needs and recover from fatigue caused by doing his work (Relaxation allowance).
(ii) compensate the operator for the time lost due to simultaneous stoppage of more than one machine being manned by him (Interference allowance). (I) compensate the operator for the time lost due to unavoidable delays and interruptions (Contingency allowance). (iv) to provide workers an opportunity to increase their earnings (Policy allowance). Relaxation allowance to be considered can be picked up from a "Table of Relaxation Allowances" given in the book dealing with the subject. These allowances are based
261
on recommendations of Bodies such as International Labour Organisation (ILO), Indian Labour Organisation etc.
10. Calculate standard time of the job: Standard time, as mentioned earlier, is the time allowed to an operator to cany out a specified task under specified conditions and at the defined level of performance. The basic constituents of standard time, therefore, are:
(i) Elemental times (Observed times). (ii) Compensation for the difference in operative's pace of performance and standard performance. (iii) Relaxation allowance, (iv) Interference and contingency allowances. (v) Policy allowance. These constituents are considered as per Fig. 18.16 to build up standard time.
| Persona! Needs I Allowance
i Constant Fatigue ! Allowance Variable Fatigue Allowance
Fig 18. 1: Co nst itu ent s of sta nd ar
26 2
Unit 18
Example:
1.
Standard time computation (giv en the normal time of the job and the allowance)
The workmen in an engineering company are expected to work for 400 minutes in a shift of 8 hours. The remaining time is meant for rest and personal needs etc. (a) Determine the standard time per piece of a job whose normal time is 2 minutes. (b) Calculate number of pieces to be produced per day. (c) If the workmen engaged on the above job produced 180 pieces in the shift, what is his efficiency?
Solutions:
(a)
Standard time per piece Normal time per pi ece Allowance in a shift of 8 hours = = 2.0 minutes 480 - 400 80 minutes 80 -xlOO
400
% allowance
= =
Standard time per piece
20% of normal time 20 2.00 + X2.00 100 2.40 minutes
(b) Quantity to be produced per day Time available for the day = 8 hours 480 minutes 2.40 Standard time per piece ' Quantity to be produced per day (c) Operator's efficiency Quantity actual ly produced " Efficiency = = =
200
= =
minutes
=200
2.40
180
180
90%
263
Unit IS
Normal (or Basic) time per piece Rest and personal needs allowance =
0.8660 minutes -^-xO.866 100 0. ! 299 minutes
Contingency allowance
-x 0.866 100 0.0173 minutes
Standard time per piece 0.866 + 0.1 299 + 0.0! 73 1 .0732 minutes 38.5 WORK SAMPLING Work sampling has been defined in B.S. Glossary (BS 3 i 38:! 969) as "a technique in which statistically competent number of instantaneous observations are taken, over a period of time, of a group of machines, processes or workers. Each observation records what is seen to happen and the percentage of observations recorded for a particular activity or delay is a measure of the percentage of time absorbed by the occurrence." Work sampling thus is a sampling technique wherein a large number of observations are conducted at random intervals of time and the state of each member of the group-working or not working is studied. The observations of non-working are further amplified and the cause of delay (idle) is recorded. The data so collected can be utilised in a variety of ways. Some of areas where work sampling is useful are as under:
w Cost red uction and cost control:

Work sampling data yields a lot of useful information on delays and interruptions and the causes underlying them. This serves a good basis for a work simplification programme.
(b) Assessment of allowances for output standards :

The output standards besides relaxation allowances include allowances for delays and interruptions incidental to the work. Measurement of such delays with stop watch especially when they are small and infrequent - is both difficult and time consuming. Such delays can economically be measured with work sampling technique.
265
(c) Fixation of output standards : Output standards for short-cycle-repetitive-jobs can economically be set with time study and allied work measurement techniques. Work sampling is useful for setting output standards for long cycle jobs and operations involving team work. This technique is also used to measure the work load of certain category of workmen such as personal assistants, stores clerks, crib clerks, maintenance crew, and in general those engaged in heterogeneous activities. (d) Testing the accuracy of the output standards : Work sampling can also be used to check the accuracy of the output standards set by means of other techniques of work measurement. Work sampling has certain advantages over time study or other techniques of work measurement. Unlike time study, the observer does not need to undergo long periods of training. Almost any member of the organisation can be easily trained for the task. The workers and their representatives do not object to work sampling since no stop watch is used. Further, more than one task can be studied simultaneously. Work Sampling technique was originally developed by L.H.C. TIPPET in Britain in 1934 for the British Cotton Industry Research Board. Procedure for Conducting a Work Sampling Study The following steps are required to conduct a work sampling study : 1. Decide on the objective of the study : The first step in conducting a work sampling study is to decide on the objective of the study. This is important because the duration of the study, the number of observations, the design of study sheet and elemental breakdown depend upon the objective of the i study, which may be either to (i) (ii) set output standard for the task(s), or measure percentage time lost due to various causes, or
At times, the study may be conducted to serve more than one objective. All objectives : should be recorded and then ranked into primary objectives and secondary objective
266
Unit 18
Work Study - fl (Work Measurement)
2. Explain to the concerned persons :

Work sampling should never be conducted until the concerned supervisors are fully appraised oi" the objectives of the study. Also workers to be studied should be explained the purpose of the work sampling study. The basic aim being to solicit the co-operation of the workmen to be studied.
3. Fix up work and delay elements :

Work and delay elements imply the headings under which the observations are to be recorded. The nature of" work and delay elements differs from company to company depending upon the objective of the study and the work to be studied.
4. Decide on the duration of the study :

The duration of study depends on following factors : (a) The objective of the study. (b) The number of observers. (c) The accuracy desired. (d) The frequency of occurrence of the activity being recorded. (e) Cyclical work patterns. In many cases, cyclical work pattern exists due to seasonal effects or holidays. If cyclical patterns are present, the longer needs to be the duration of the study. Alternatively, the cycles should be segregated into phases for separate observations.
5. Determine the desired accuracy of the final results and the confidence level:
Accuracy refers to the permissible variations of the results of the study from the true mean of the situation. Though the accuracy depends upon the objective of the study, yet it is a common practice to pick up the figure of accuracy from between the range of + 2% to + 5%. Confidence level represents the probability that the results of the study shall lie within the desired limits of accuracy. The most common confidence level is 95% which corresponds to 2 sigma or two standard deviations. The area under the normal curve at 2 sigma or two standard deviations is 95.45% which is rounded off to 95%. A confidence level of'95% represents the probability that 95% of the times the random observations will represents the true facts and 5% of the times they will not. 267
6.
Make a preliminary estimate of percentage occurrence of the activity or delay to be measured : The percentage of occurrence of the activity or delay is called activity percentage and commonly represented by 'p'. Activity percentage may be either based on past experience or a pilot study, the latter being a more common method. A pilot study spread over one to two days is conducted and a rough estimate of activity percentage is obtained by summarising the results of the study. Let us assume the following are the results of a pilot study conducted to determine activity delay percentage: Number of observations during the pilot study Observations of delay (idle) activity ' Activity percentage (p) 120 30 30 120
-x 100 = 25% 7. Design the study : Each of these aspects is detailed below : (a) Determine the required number of observations: The number of observations, which depends on three things, activity percentage (p), limits of accuracy (A) and confidence level, may be obtained from the following formula:
N=
C2(l-p) A2P
Since it is a common practice to pick up a confidence level of 95% for which thi formula for the number of observations will get reduced to:
N=
A2 P
An illustration to calculate required observations: ABC company has 50 general purpose machines in their workshop. A work sampling study was carried out in the shop to establish ineffective time in its various forms. The first two days' analysis revealed that the machine idle time was 40%.
268
I nil (8
(i)
How many observations will be necessary to ensure that the observed time has the accuracy of + 2% with confidence limit of 95%?
Solution:
N=
where N P
A2P
Number of observations to be conducted activity percentage (decimals) proportion of the Jeast activity (here it is proportion time lost due to delays)
A =
=
0.40 Limits of accuracy

+ 0.02 4x0.60
N .=
=
0.0004x0.40 15,000
(b) Determine the total number of rounds (R) and rounds per day (r) The total number of rounds equals the total observations divided by the number of subjects to be studied. (c) Prepare the schedule for the rounds : The observations in work sampling studies must be made at random intervals of time and should be spread over all hours of the study. The randomisation of rounds is essential to avoid bias in the studies . If rounds for the study are conducted at fixed intervals of time, the workmen being studied will be found to be present at the work, place each time the observer makes a round. To prepare the schedule for the rounds, one of the following methods may be used. One of the easiest method is to read four digits of random numbers picked up from a random number table or a telephone directory and treat them as if they were times on a twenty-four clock. The digits before use are analysed and those which are unusable (those which do not lie between 0000 to 2400) are omitted.
269
Table 18.5
Four digits of the random number
1622 8442 6301 3321 5760 1818
Meaning 16 hours and 22 mins. Reject (over 24 hours) -do-do-do1 8 hours and 1 8 mins.
Clock time to start cound 4.22 p.m.
_
6.18>p.m.
The time in the table are next arranged in chronological order and the list is scrutinised to see whether it contains any interval shorter than minimum time requi red to make a round. The latter time in the scheduled column is omitted if the above mentioned situation is found.
8.
Design observation data sheet

The design of the observation sheet depends upon the objective of the study. The observation sheet, however, should be such that the observations are recorded quickly and tabulated with ease. The capacity of the observations sheet is also important. It should be designed in such a way that observations for atieasl a day are recorded on the sheet. A typical work-sampling data sheets is given in Table ! 8.6 Atypical work-sampling datasheet.
Table 18.6
STUDY NO. -----------OBSERVER ----------OUN D NO. ON TIME OFF
1
WORK SAMPLING STUDY SHEET (WORKERS/MACHINE) ------------------------- LOCATION
I_f
------------
DATE
SYMBOLS FOR ACTIVITIES
Unit 18
9.
Make the observations according to the plan The step refers to actual making of the observations at the scheduled timings. The method of taking the study is very simple. The observer reaches the fixed location at the scheduled timing and observes at a glance all the individual members of the group. He records, using appropriate symbols, first the states of those who are working. Table 18.7 should give the readers an idea as to how these observations are recorded. Table 18.7 : Work sampling data sheet duly filled-in
The
ROUND NO. 1 2 3 a b 4 wI I 1
i1 I
MACHINES 1 2 w a a 3 w a w a wI i I 4 w w a wi i i
5
6 w w w
7 w b w
8 a w w
9 w w w
10 a b w aI
! I
a a w
! !
1
!
1 i 1 1
w| i 1
wI
i
cd in
89
i __ 10
Remarks :
a b w ww
w c c a -
b w w c w w b b w w w a Stands for working a a
w w -
c c a Stands a for Stands Stands for
w w b
Machine ideal for operator being away b for Machine idle for want of work c Machine idle for Breakdown
10. Summarise results The step involves making of element wise (or causewise) summary of observations.
271
Table 18.8: Atypical work sampling summary table

WORK SAMPLING SUMMARY Study NoJiO Total No. of Observations - 15,000 Activity Main Activity No. of Description observations of percentage (Details of the Activity) indicated Activity
I ________
1. Machine under setup 2. Machine working 600 2.1 Machine automatic cycle 6,000 2.2 Handling elements 3,750 performed by the operator 2.3 Inspection by the 300 14.1 Late start 14.2 Earlv close operator 14. Early close and late start Total
4% 40% 25%
The usual approach is make a table of four columns respectively titled as elemeiu code, element description, number of observations of the element and percentage observation. Table 18.8 shows a typical summary sheet used to summarise results ol the work sampling data.
11.
Check the accuracy of data at the end of the study :

After the study is over, calculations must be made to find out whether or not th results are within the desired limits of accuracy. To calculate accuracy, equation under may be made use of i.e. A.p = 2
The value of "p" (activity percentage obtained from results of the study) and value "N" (the number of observations made for the study) are substituted in the formulate obtain the value of A.
272
Unit 18
12. Prepare report with conclusions/recommendations The last step in the work sampling basic procedure is to prepare a report to communicate findings of the study to the management. The report should clearly spell out the purpose of the study, limits of accuracy and confidence level used, number of observations made, methodology used and inferences drawn from the study. The report may also include, the recommendations of the team to improve efficiency or reduce idle time. Table 18.9 below gives extracts from the summary of recommendations presented to the management of M/s. Di vgi Metalwares Pvt. Ltd., by their Industrial Engineering Department. Table 18.9: Extracts from summary of recommendations (Courtesy : M/s. Divgi Metalwares Pvt. Ltd.) 1. Summary of recommendations: 1.1 Mechanical breakdowns which account for 7.8% of the total time lost can be reduced by providing additional manpower in the maintenance department. The maintenance department therefore should be studied for the work load prior to new recruitment introducing preventive maintenance. A department headed by the qualified maintenance engineer is necessary. The proposed preventive maintenance team should be charged with the responsibility of preparing check-lists, periodical inspection of the equipment, planned lubrication and planned replacement of parts, fix ing operating levels (inventory levels) for various types of spares so as to ensure their availability with optimum capital lock-up. providing at a centralised place information regarding machines under breakdown at any point of time and the nature of such breakdowns. informing maintenance department every month through a formal performance appraisal report the extent of percentage time lost due to breakdowns. The very presence of such an appraisal system is sure to exert moral pressure on the department to improve their efficiency.
273
Advantages of Work Sampling
(i)
Work sampling is economical and less time consuming than time study since: (a) the observer unlike the time study engineer need not be present at the place of work for a long time. (b) more than one operator can be studied at a time.
(ii) Certain activities those involving team work etc. - which are impractical to be measured by time study can conveniently be studied by work sampling. (iii) Work sampling can be conducted by even shop personnel or by less trained personnel while time study needs trained staff. (iv) A work sampling study may be interrupted at any time without affecting the results. (v) Work sampling gives unbiased results since workmen are not under close observation.
Example 1:
A group of 10 workmen working 8 hours per day (one shift) on a group of engine lathes produced 320 pieces of a component. During the study, it was observed that workmen were idle for 20% of the total available time and 80% of the time they worked at an average performance of 75%. Calculate standard time for the job assuming. (i) (ii) The operation to be completely manual. The workmen are entitled to 20% allowance for this type of work.
Solution: Step 1 : Calculate overall time per piece (To) Since quantity produced is by 10 workmen, the duration of the study will mean time available for production to 10 workmen. Overall time per piece (To) = 10x8x60 320 15 minutes
274
Unit 18
Work Study - i! (Work Measurement)
Step 2: Calculate effective time per piece (Te)
Effective time per piece (Te) = Overall lime per piece x Proportion of time worked by workmen = 15x 80 100 = 12 minutes Step 3 : Split-up effective time per piece into "machine controlled time" per piece and "hand controlled time per piece". Since the operation is complete manual, this step is not applicable. Tm = 0, Th = i 2 minutes Step 4 : Calculate normal time per piece
r =
Tm ~ + Ih x
~, hi
Ratin
100
= 0 + 12 x ---- 100
= Step 5 :
9 minutes
Calculate standard time per piece (Ts)

1 s = fn x ( 100 + Allowances ")
= 9x = 9 x 1 .20 = 10.80 minutes
275
ctivity C :
Identify areas of application of Work Sampling technique in Warehousing operations.
18.6 INCENTIVE SCHEMES

Human beings are basically a lazy lot. Lef t to their own initiative rarely, rather never, they work even closer to their full capacity. To obtain better performance, they require to be motivated (motivation is the process which creates interest and urge among the people and drives them to act in a specific manner). Two commonly used methods for motivating people are fear and incentive. Fear motivation is based on punishment and it works only initially. People learn either to ignore the pressure of fear or run away from it, They at times collectively resist pressure of fear. Incentive motivation is based on reward and it works. Incentive, as mentioned above, is an inducement given to an employee to improve his effectiveness. Such an inducement need not always be of financial nature. Senior staff and those drawing heavy pay-packets generally respond better to non-financial and semi-financial inducements while workers and salaried employees respond more to monetary inducements. Incentives can be classified into three broad categories: 1. Non-financial-incentives are those incentives which do not offer any monetary benefit. Good work is appreciated. The names and photographs of outstanding workers are published in the company's house journal. Merit certificates are issued to sincere workmen. Similar other non-financial incentives are: job satisfaction, an employee's loyalty to the company, individual's desire for recognition, individual taking pride in carrying out a task better than others etc. These are termed as emotional incentives but they do act very forcibly. Only a good manager can make effective use of these emotional incentives. 2. Semi-financial incentives are those which provide some monetary benefit.' examples of incentives under this category are:
27 6
Unit i 8
Increments. Promotions. Long service awards. Sponsored training. Paid holidays. Convalescent home. Discount purchase scheme. Car maintenances service. House purchase facility. Paid absence. Company's car. Company's credit card.
Semi-financial incentives are equally forceful but require care to avoid appearance of partiality. 3. Financial incentives are those where earnings are related to effort. A salesman, for example, is paid commission on his sales, a workmen is paid premium on time saved, maintenance personnel are paid incentive bonus for limiting down time of the machines, and a group of workmen are paid production bonus on achieving production targets etc. Incentives, thus may be one of the above three types yet when we talk of incentive it is financial incentive which is thought of. Objectives of Incentive Scheme Most often the objective of an incentive scheme is higher production. Incentive schemes, however, can be designed to meet other objectives, namely: Improvement in quality. Reduction in down time of the machines. Reduction in absenteeism of the workmen. Minimisation of over time. Elimination of waste of inputs of production.
277
Irrespective of the objective, the incentive scheme in general must reduce cost of production and increase earnings of the workmen. Individual Versus Group Incentives Incentives can be broadly classified into two groups: Individual incentives" and "group incentives". Individual incentives are those where workmen earn incentive based on their Individual efforts and group incentives are those where the group of workers are rewarded for their combined effort. Individual incentives are feasible when it is possible to measure the performance (output) of individual workmen. These schemes though result in higher rate of production and consequently lower manufacturing cost but they cost more to administer. Group incentive schemes on the other hand are easier to install, cheaper to administer but are less effective than individual incentive schemes. Group incentives are desirable where ultimate production is dependent not on the individual efforts of workers but on the joint efforts of a group. output of the individual workman cannot be measured but that of the group can be measured. it is necessary to reward not only the direct workmen but also the indirect workmeninspectors, maintenance crew, machine tool setters, tool crib attendants and helpers etc. - who assist the direct workmen to increase their production.
Group incentive schemes enjoy a number of advantages over individual incentive schemes: 1. Active co-operation among different workmen: Group incentive schemes foster a sense of common interest and mutual co-operation among the workmen : senior operators tend to help new operators and unskilled operators in their difficulties. 2. Minimisation of loss of time : Group incentive schemes help the management to minimise waste of time. Workmen on their own ensure that unproductive time due to non-availability of materials. interruptions at the preceding operations, delay in receipt of tools after regrinding, waiting at tool crib etc. is kept at minimum. Each workman performs his own work carefully since he realises that defects in pieces producted by him will lower the performance of his co-workers in the next operation and reduce the cam ings of the group.
278
Unit 18
Work Study - I[ (Work Measurement)
3. Effective training of new employees :

Group incentive schemes offer very good training to the new entrants. The old operators in the interest of the group give sound and thorough training to the newcomers. 4. Equitable wage earnings: As the output of the group of workmen is pooled together to establish group earnings which are then distributed according to pre-drawn plan, hence earnings of the members are more rational. Individual efficiency based schemes on the contrary, tend to create division among the incentive workers and non-incentive workers and develop jealousies among low incentive earners. 5. Reduction in supervision : Group incentive schemes tend to reduce the requirement of supervision since group leader (skilled and old operators in the absence of the group leader) does a part of supervisory functions : The group leader instructs his worken and divides the work among them. The group leader takes the responsibilities of smooth flow of materials from and to the machines. The senior members pull up lazy operators, late comers and habitual absentees. Senior members of the group ensure that members do not waste away their time. Improvements in the managerial functions : Group incentive schemes tend to exert a moral pressure on the managerial staff to improve results in the following ways : t The foreman needs to be alert so that group earnings do not come down due to lack of foresight on his part. Purchase and sub-contract department ensure that suppliers effect deliveries on time failing which the group earnings will reduce, leading to labour problems. Sales department ensures that the firm's order position is sound and workmen do not lose earnings for want of work.
ft.
Elimination of surplus labour and reduction in indirect workmen : The group members in their own interest object to unwanted recruitment and wasteful employment of direct and indirect workmen.
279
Visit an organization which has implemented incentive scheme. Get some of the employee's and management personnels perception on the effectiveness of the scheme?
18.7 PRE-REQU1SITES OF INCENTIVE PLANS

An incentive scheme should neither be regarded as a substitute for bad management nor it should be looked upon as a substitute for a poor wage structure. It is, infact a tool to create more capacity, increase productivity and to reduce manufacturing cost per unit. A great deal of planning and preparation, therefore, is necessary to formulate a good incentive scheme.
1.
Fixation of performance standards:

The success of a wage incentive plan to a large extent depends on the quality of the performance standards. The standards should be accurate and must be based on scientific work measurement studies. An incentive scheme which considers past performance as its base is bound to fail to the determent of the management.
2.
Methods improvement:
Performance standards should be set after systematic analysis of methods failing which they will soon become loose because workers motivated by higher incentive earnings tend to improve their work methods. And any attempt on the part of the management to retime the worker-improved-job will not be acceptable to the workmen, which they call rate cutting. This fear of rate cutting makes the workmen resistant to any change even if these changes are the result of methods improvement or due to changes in material or equipment. It is, therefore, essential that all tasks prior to installation of the incentive scheme should be studied for methods improvement.
3.
Good production planning and control:

Good production planning and control system is an important pre-requisite to the installation of a wage incentive scheme. Ineffective time in all forms must be reduced to its minimum. Scheduling of work should be perfect so that chances of operator running out of work is kept at minimum. Each workman must know in advance his
280
Unit 18
next work assignment. Production aids such as raw materials, jigs and fixtures, measuring instruments, operational layouts, etc. should be made available to the workmen in advance. Temporary inventory banks should be created to avoid possibility of loss of time due to interruption at the preceding operations. Hunting time should be eliminated by fixing proper place for everything. The down time of the machines should be reduced to its minimum through systematic maintenance, planned replacement of parts on weekends, and optimum spares inventory. Materials movement on the shop floor between the machines should be smooth and work replenishment should be automatic. Overlapping of operations should be carefully planned to ensure continuous working of the machines. 4. Proper accounting of production: A sound system of accounting of an operative's daily output is a must. In the absence of proper accounting system, some workmen may record bogus figures of production to increase their earnings and thereby make the company lose heavily.This is especially important for machines where cycle times are short. 5. Fair wage structure: Incentive schemes cannot be and should not be regarded as a substitute for poor wage structure: 6. Base rates should be established by a scientific job evaluation programme to ensure that work differentials are reflected in wage differentials. Minimum decent wage must be present before installing a scheme and the same should be guaranteed irrespective of workers' performance. The guaranteed wage rates must be kept up-to-date. General increase in wage rate on conclusion of the wage agreements should be added to the base rate.
Elimination of overtime: Overtime is single factor which can thwart the success of an incentive scheme. Overtime must be eliminated to guarantee the success of the wage incentive scheme. This is because overtime tends to reward worken more than the incentive scheme.
7. Inspection and quality control: Proper system of inspection and quality control is a must before installation of an incentive scheme. Adequate controls are necessary to ensure that increase in production is not at the cost of quality of the product.
281
rrouucnon / uperations Management
Inspection points should be such that defectives are automatically segregated. The daily output of each operator should be tagged and moved to the inspection bay at the end of each shift. Inspection results should be made known to the worken as early as possible. The frequency of inspection should be adequate so that defects are highlighted and are corrected as production takes place. Scrapyard should be properly fenced so that pieces rendered defectives due to poor workmanship are not deposited directly by the workmen.
8.
Trial of performance standards: Many a incentive schemes fail in their objective due to 'loose standards'. Not only the output standards should be based on scientific work measurement studies, they should also be tried out. Work sampling and production studies are two other techniques of work measurement which can be used to test the viability of the standards.
9.
Accurate projection of future business : "It is easy to install a scheme but difficult to withdraw later." To use an incentive ' scheme as means of increasing production capacity for a short term boom period is to court disaster. The incentive scheme once installed must remain in operation for atleast next five years. This implies that prior to the installation of the scheme, the management must make sure that its order position is sound and the same is likely to last alteast for next 5 to 6 years.
10. Acceptance by labour body: Another important pre-requisite to the installation of the incentive scheme is its acceptance by the representatives of the employees.The following points are important: Management at all levels, especially shop management, and union should be told the need and desirability of incentive scheme. Each feature of the proposed scheme namely incentive plan, method of calculating incentive bonus, performance standards, period of payment, safeguards for the employer etc. should be explained, discussed and if necessary modified. Such an approach prevents misunderstanding and ill feeling later on. Modifications, if mutually acceptable, should be incorporated. The installation of the scheme should be postponed until agreement is reached.
282
Unit 18
11. Training of supervisors:

Thorough training in the scheme must be given to wage staff so that they carryout the calculations correctly. they understand all details of the permissible allowances.
Training of supervisors is equally important. The policy of the management on wage incentives should be made clear to each of the supervisors so that they understand each and every problem concerning the plan and are able to answer employees' questions to latter's satisfaction. Experience of the author is that with the introduction of an incentive scheme, the supervisor has to devote less time on chasing of workmen, but he has additional duties to perform, namely: concentrating on quality of the products so that workmen in their enthusiasm to earn more do not rush through and produce defectives. keeping facilities in order so that work can proceed smoothly. making available necessary production aids on time so that workmen's earnings are not affected unnecessarily. getting performance standards released for new jobs from industrial engineering department as early as possible. co-ordinating with methods department for restudy of jobs wherever necessary and getting performance standards refixed. maintaining proper records of time and output made by the workmen. assisting workmen to calculate incentive earnings when they approach him for clarification or confirming the payments received.
18.8 CHARACTERISTICS OF A GOOD INCENTIVE PLAN ______________

A good wage incentive plan should have the following characteristics :
1.
Administrative simplicity :
The incentive system should be simple and must be easily understood by the workers and their representatives. An incentive scheme which can be understood only by engineers and mathematicians or a scheme which involves the use of complex formulae or references and cross-references is sure to fail. The incentive scheme should be such that workmen can calculate their own earnings easily and quickly.
283
2.
Minimum clerical work: The system should fit into existing system of production and cost control. It should not involve any significant addition to the clerical work.
3.
Maximum coverage: The system should cover as many workan as possible. A scheme if applied to few workmen creates a demoralising effect on the morale of those not covered by the scheme.
4.
Direct: Incentive payments should increase atleast in direct proportion to the increase in output by the operator. There are two reasons: Firstly, because it is more difficult to produce extra units and secondly because saving in the overheads are far greater at higher levels of production.
5.
Period of payment: The period of payment should be as short as possible.
6.
Adequate guaranteed minimum hourly rate: The scheme must ensure adequate guaranteed minimum hourly rate to all incentive workers regardless of their output. Such an hourly guaranteed rate is normally referred to as the guaranteed base rate. The guaranteed base rate must be realistic and should be atleast equal to the hourly rate payable to a non-incentive worker doing similar job in the industry. Incentive earnings of the workers should never be regarded as a substitute for poor wages.
7.
Accurate and yet attainable performance standards: Performance standards should be set through systematic work measurement studies The standards of measurement should be based on the assessment by the experts ti that there is no dispute or malpractice and yet the standards are attainable so that a worker working at normal pace can attain them. Further the incentive plan should be such that it provides an opportunity to all average workers to earn reasonable earnings.
284
Unit 18
8.
Consistency of the standards : Standards once fixed should not be changed unless there is a permanent change in methods, or change in equipment, or change in material and plan should provide for the provisions to modify the performance standards.
9.
Inbuilt check on process rejection: A good incentive scheme should exercise a check on the operator against achieving higher bonus by poor workmanship. Payment should be made only for pieces declared acceptable by the inspection department and a workman constantly producing substandard pieces should be liable for disciplinary action.
10. Payment of partially completed jobs: The problem of payment for the incomplete work arises only in case of long cycle jobs. Situations do arise when the jobs are of very long cycle duration and cannot be finished within the bonus period. Similarly, a semi-finished job may require to be handed over by one operator to another at the end of shift, or prior to having a holiday. The scheme should clearly spell out as how assessment of work done by the workmen on the same job will be carried out and how disputes arising out of such assessment would be resolved.
.ve red
11. Payment of idle time : Adequate safeguards must be provided to compensate the operator for the time lost due to reasons beyond his control. A good incentive scheme should ensure that an operator does not suffer financial loss for reasons attributable to the managerial weakness, e.g., lack of material due to bad buying, breakdowns of the machines due to poor maintenance practices, non-availability of work etc. Thus an operator rendered idle because of factors attributable to the management should be given a lieu bonus. 12. Safeguards:
that erase
The scheme should be fair not only to the employees but also to the employer. Safeguarding clauses as under should be incorporated to protect. Management's right to change a standard when there are changes in methods, materials and machines. Management's right to withdraw or discountnue temporarily a scheme during bad period.
28 5
Management's right to initiate disciplinary action against operators who continually produce sub-standard articles/ do not achieve minimum standard of production
13. Maximum ceiling on the earnings:

The system should have built-in-control against higher earnings beyond a certain limit. Firstly, the system should discourage workers to work beyond a certain limit otherwise too attractive an incentive scheme may induce the worker to work more and more and thereby adversely affect his health. Secondly, the system should ensure that in case of loose standards the company does not lose financially.
14. Consistency of plan :

The plan should be consistent over a period of time. Frequent changes in the plan make its functioning difficult. Faith in plan is lost if there are frequent revisions.
15. Acceptance by labour body:

The scheme should finally have acceptance of labour body. The basic incentive plan and its provisions must be accepted by the body of workers' representatives to prevent any misunderstanding and ill-feeling later on.
16. Continuous use:

The scheme should be in continuous use. The temporary use of the scheme in good times and its discontinuation in bad times makes its functioning difficult.
17. Define end results :

The plan must result in reduction in per unit labour cost.
18.9 CLASSIFICATION OF INCENTIVE PLANS _______________________

Incentive schemes are of various types (Fig. 18.2) such as: Straight piece rate methods Straight piece rate with guaranteed base. Differential piece rate methods Time and piece rate methods Efficiency based incentive plans Premium bonus schemes Group incentive schemes
286
Each of these schemes has its own salient characeristics and is suitable for a particular type of work or its applicable to a particular type of industry. The selection criterion of scheme, therefore, is very important. Here in the unit we will discuss in brief only piece rate method and Scanlon plan the two widely used methods.
1.
Straight Piece Rate Methods
Straight piece rate method employs a rate per piece that remains constant at different levels of output. The workmen are paid strictly as per their output, their earning being governed by the product of their output and the pre-fixed rate called piece rate. Under the old piece rate system, the rate per piece was fixed by the supervisor based on his judgement. The nearest solution was to consider the average labour hourly rate and average production per hour. The old piece rate, however, has one major deficiency. When the piece rate is established by judgement, the workers usually speed up and boost their wages much beyond the expectations of the management. Taylor suggested the use of time and motion study to establish correct rate of output and to determine correct piece rate.
Characteristics of piece rate:

a) b) c) There is no guarantee of minimum wage (i.e., the wages payable to the workman are dependent upon his output and not on the time spent). Fixed rate (money) per unit of output (Rs. per piece, or per meter, per kg. or per tonne) is specified for each job. To determine the rate, time required to perform the job (i.e., standard quantity per hour) and prevailing local or national wage rate called basic hourly rate for such types of jobs is taken into account. Basic hourly rate is normally increased to constitute an inducement for bettei| performance. The wage payable to the workmen is calculated by multiplying the quantity produced by him by the specified rate per piece.
d) e)
Advantages:
The system is easy to understand and is the fairest of all since the operator gets full reward for his increased efficiency and skill. This itself provides a strong incentive.
288
Unit 18
Work Study - IJ (Work Measurement)
The reduction in overhead expenses per unit increases as the workmen increase their output. This allows a greater margin of profit to the employer and thereby provides him the scope to reduce the selling price. The worker does not require to be paid for idle time. The workmen are remunerated on their merits which makes the supervision easy. Production control is easier and the probable dates of completion are easily met. The measurement of labour cost for the purpose of cost estimation is considerably simplified.
Disadvantages
The method generally tends to increase the output of the workers, but at times in the absence of any penalty they may slacken after they have produced a certain number of unit, or may absent themselves or stop work or go home early under the impression that it is only they who are the losers. Such an attitude results in higher factory overheads. The plant rewards nothing but quantity. The usual practice in regard to quality is to pay only for good pieces. The quality of the product, therefore, may suffer a set back unless sufficient precautions are taken. Tool consumption, due to indiscriminate use of higher speeds and feeds, may increase in addition to the accelarated rate of wear and tear of the machines. Operators in their desire to achieve maximum production may overlook safety precautions and overstrain themselves. Savings in labour cost is nil as all the advantages of increased production go to the employees, the employer though gets benefit due to reduction in factory overheads. The system may lead to over production with consequent losses if limited market is available for the company's product. Alternatively, the discontentment may prevail if the workers are not fed with sufficient work. The loss of wages due to causes beyond the control of workmen such as hard materials, machine breakdowns, lack of orders due to shrinkage of market, non-availability of raw materials etc. make the scheme unfair to the workmen and therefore hard to introduce.
289
The system awakens greed in the workers and stimulates unrestricted competition among them with the result that discord, suspicion and selfishness soon takes the place of harmony, goodwill and brotherly feeling.
Straight piece rate system was very popular before World War II but is not used these days since most unions and governments insist on minimum guaranteed time wages.
Suitability of straight piece rate method:

The straight piece rate method is suitable where
: I' F
the workmen are engaged on indivdual jobs and their output can be identified separately. it is possible, without excessive cost, to ascertain or verify by weighing, counting or measuring - the quantity of work done by the individuals. the quality of work is of secondary importance failing to which piece rate system involves expensive inspection and quality control. the work is of repetitive nature and is either completely manual or is semi-automatic. the process of manufacture is devoid of unavoidable delays and interruptions. the fixed overheads represent a large portion of total overheads. it is impossible to control effectively the waste of time by the workmen.
Example:
ABC company manufactures a wide variety of turned components on its battery of automats. Each component produced on an automat involves deburring-countersinking or pip removal. The company has given this work to a contractor who is paid according to straight piece rate method. The method of payment is as under: Basic labour hourly rate Increase on rate Work piece rate = Rs. 5 20% Adj usted labour hourly rate Average output per hour A workman, Mr. P. while countersinking an item called L-15 ferrules, produced respectively 8,000,7,500 and 10,000 nos. on three consecutive days, each day of 8 hours duration. The average output per hour for the above job has been fixed at 1000 nos. Calculate day wise earnings of an operator.
290
Unit J8
Solution: Basic hourly rate Increase on rate Adjusted hourly rate Average output per hour ' Work piece rate Rs.5 20% 1.20x5.00 = 6.00 lOOOnos. Adjusted labour hourly rate Average output per hour 6.00 1000 = Rs. 6.00x10-3 The daywise earnings are computed and tabulated below:
Day I II
Day's Production 8,000 7,500 10,000
Work Piece Rate 6.00x1 0-3 6.00x1 0-1 6.00x1 0-3
Day's earnings 48.00 45.00 60.00
m
2.
Differential Piece Rate Methods
Differential piece rate methods employ different piece rates at different levels of operative's output. Two or more piece rates are specified for each job. The lower piece rate is considered upto certain level of performance and thereafter higher piece rate is applied. The objective to set more than one piece rate is to provide an addtional incentive to encourage further effort at the stages where the workers may begin to lose interest. Two well known differential piece rate methods are: a) Taylor's Differential Piece Rate Method
This plan was designed by F. W. Taylor, the father of scientific management. The scheme was evolved to reward efficient workers and to penalise inefficient ones. It considers both time and quantity. Differential rates are paid depending upon the quantity produced in a given time. The worker's wages are therefore dependent upon his output and not upon the time expended.
291
Characteristics of system: (i) There is no guarantee of the minimum wage.
(ii) A fair and equitable standard time is established by rate fixers for each job and the quantity to be produced at 100% efficiency is specified. (iii) Two piece rate - a lower piece rate and a higher piece rate - are specified for each job. The lower piece rate is lower than the standard piece rate and the higher piece rate is higher than the standard piece rate. (iv) The lower piece rate is considered for below standard performance while the higher piece rate is applied for standard and above standard performance. An illustration: Two workmen, A and B, while working on two identical machines produced respectively 750 and 850 numbers of the same job whose standard production is 100 nos. per hour. The following are the particulars of the wage incentive plan. Standard output per hour Labour hourly rate 100 nos. Rs.6
80% of the standard piece rate for Rate differentials to be applied below standard performance. : 120% of the standard rate for standard and above standard performance.
Calculate earnings of each operator. Solution: Standard output/hour Labour rate/hour Standard piece rate (Rs.) Lower piece rate (Rs.) Higher piece rate (Rs.) Earnings of operator A Earnings of operator B =100 = Rs. 6.00
= 0.06 100 = 0.06x0.80 = 0.048 = 0.06x 1.20 = 0.72 = 750 x 0.048 = Rs. 36.00 = 850 x 0.072 = Rs. 61. 20
292
.1
Unit 18
Advantages:
The system is easy to understand and is the fairest of all since the operator gets full reward for his increased efficiency and skill. The clerical work is reduced. The worker is not required to be paid for idle time. Supervision is easier. Production control is easier and the probable dates of completion are easily maintained.
Disadvantages : Excessive wastage may increase or quality of work may deteriorate if sufficient precautions are not taken. Operators in their desire to achieve maximum production may overlook safety measures. Discontentment may prevail if workers are not provided with sufficient work. Benefits due to increased production go to the employees. The employer gets benefit due to the reduction in factory overheads.
b)
The Scanlon Plan
The Scanlon plan is also a group bonus scheme and useful to the firm which are highly labour intensive. The Scanlon plan was developed by Joe Scanlon of United States.
Characteristics of the plan:

(i) (ii) All employees receive a guaranteed time wages. A standard for ratio of labour cost to total sales value is set as an index of total labour effectiveness.
(iii) Actual labour cost to total sales is calculated for the assessment period. (iv) An incentive bonus, equivalent to percentage reduction in the labour to sales ratio, is paid to each employee. Incentive bonus under the Scanlon plan:
293
Let labour cost during the base month Total sales during the base month
_ T3
Standard (base) labour to sales ratio for the base month = = R

a
Labout cost for the assessment month Total sales during the assessment month Actual labour to sales ratio for the assessment month =
L
R
a
Percentage reduction in the labour index An illustration on the plan:
Lb Rb La Ra Lb Rb x 100
XYZ company employs 200 workmen and is a job shop production unit. The sales during the base month were valued at Rs. 10.28 lakhs. Rs. 1.26 lakhs were spent by way of labour cost to achieve the above mentioned sales figures. Calculate incentive bonus due to each employee if the net sales during the assessment month was valued at (a) Rs. 12.66 lakhs for the expenditure of Rs. 1.42 lakhs towards labour cost. (b) Rs. 12.66 for the expenditure of Rs. 1.92 lakhs towards labour cost. Solution: Labour cost during the base months (Lb) Total sales during the base month (Rb) Standard labour to sales ratio 1.26 xlOO= 12.25% 10.28 (a) Labour cost for the assessment month : Rs. 1.42 lakhs
Rs. 1.26 lakhs Rs. 10.28 lakhs
294
Unit 18
Total sales for the assessment months Actual labour to sales ratio for the assessment month = x 100
Rs. 12.66 lakhs La Ra

xlOO= 11.22% 12.66
Since actual labour to sales ratio is lower than the standard labour to sales ratio, each employee is entitled for incentive bonus. 2.25-11.2 rnn Percentage incentive bonus payable to each employee = 1
12.25 xiUU ------------x 12.25 1.03 = l O 1.92 8.41% = Rs. O lakhs = Rs. 12.66 lakhs,
(b) Labour cost for the assessment month Net sales for the assessment month 1.92 Actual labour to sales ratio for the assessment month = 12.66 = 15.17% XlOO
As actual labour cost to sales ratio is higher than the ratio of standard labour cost to sales, productivity bonus is not payable.
$ Activity E:
From the internet or secondary data, find out the most commonly used incentive schemes and explain why you think they are used.
295
18.10 SUMMARY
Work measurement is the scientific method of setting performance (or output) standards. Work measurement data can be put to lot many uses in the organisation, namely manning, planning, estimating etc. Various techniques available for the purpose of work measurement are: PMTS, Time study, Work sampling, Production study, Analytical estimating, Standard data etc. Time study is one of the scientific techniques of work measurement and is best suited for short-cycle repetitive jobs. It is the study with the help of a stop watch. Work sampling is best suited for timing of long cycle jobs, operations involving team working and heterogeneous activities. The technique is more frequently used to find the percentage time lost due to different causes. Incentive is an inducement given to the employees for better performance and such an inducement may be non-financial, semi-financial or financial in nature. Incentive schemes are designed to meet specific objectives such as higher production, reduction in waste of factors of production etc. Incentive schemes can be broadly classified into two groups: individual incentive schemes and group incentives schemes. Group incentive schemes possess number of advantages over individual incentive schemes. A good incentive scheme must be simple to administer and it should involve minimum clerical work. The period of payment under the scheme should be as short as possible and it must reward the workmen proportional to their efforts. The scheme must be based on scientific pertbrmance^tandards and performance standards once set should not be changed unless there is a permanent change in methods, equipment, or materials. The scheme should provide inbuilt check on process rejection and it should incorporate suitable safeguarding clauses to protect interests of the workmen as well as that of management. It should incorporate the procedures to determine payment for the partially completed jobs and payment for the idle time due to reasons beyond the control of the workmen. The plan should be designed considering future and revisions in the plan should not normally be made. Acceptance of the labour body is a must for the scheme to succeed. And finally, the scheme must achieve the objectives of the organisation. There are various types of incentive schemes. Each scheme has its own characteristic, advantages and disadvantages. Incentive scheme is tobe tailored made for a company. The usual approach is to select a standard scheme and add/delete to suit the needs of the company.
296
Unit 18
18.11 KEYWORDS Work Measurement Is the scientific method of setting performance (or output) standards. The time required by the operator to complete a specified task for the defined method at the defined pace of performance The time required by the operator to complete a specified task for the defined method at the defined pace of performance. Is a sampling technique wherein a large number of observations are conducted at random intervals of time and the state of each member of the group-working or not working is studied. Is an inducement given to an employee to improve his effectiveness.
Standard time
Work sampling
Incentive
18.12 SELF-ASSESSMENT QUESTIONS How do the following factors influence the standard time of the job and how are they taken care of in time study : (i) Skill of the workman (ii) Work variations (iii) Pace of performance (iv) Working conditions On making a limited number of preliminary observations, a machine appears to be idle 40% of the total time available for its operation. Use a proper statistical formula to calculate how many observations should be made to obtain a more accurate estimate of idleness within limits of + 10% error at 95% confidence level. - ICWA/Inter/PPC/Dec. 87
3.
"A good deal of planning and preparation is necessary to introduce an incentive scheme in an organisation". Discuss. "You have been charged with the responsibility of designing a suitable wage incentive plan". What precautions would you take to ensure its success?
4.
297
5.
What are the characteristics of a well designed wage incentive plan? Discuss each characteristic briefly.
6.
Multiple choice questions :

a) One of the following is not a work measurement technique: i) ii) iii) iv) b) PMTS Work sampling Production Study Time rate system
Work sampling study can be carried out for the following also: i) ii) iii) To determine standard time for a j ob To determine allowances for a job To conform accuracy of rating iv)
To inspect items by sampling
7.
State True/False :
a) b) c) d) Work sampling is a method study technique Time study is a part of work study. Incentive schemes are always based on standard time. Allowances for operations are determined based on judgment of the time study man.
8.
Fill in the blanks:

a) b) Incentive is an inducement given to the employees for better f_ f\^
________________ technique is used to assess idleness of resources.
298

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Production !

Project Planning & Control : Critical Path Analysis (PfcRT/CPM)

Pmdtieiioii ' Opeiulions Management

General conventions concerning activities :

Project Planning & Control : Critical Path Analysis (PERT/CPM)

Combination of merge and burst event

12.1 (b) Fig 12.1: Method of representing activities and events