CASE STUDY

Sterlite Industry India Ltd.: Success Through Total Quality Management

Sterlite industry ltd. Install a Copper Rod Plant for making products:
1 Copper Cathodes
2 Copper Rods
It acquire 43% of market share in 2005-06
The business is further divided into 3 categories:
1 Copper Business (SIIL)
1,78,000 tn in 2007 7% increase in as compared to2006
2 Zinc Business (HZL)
3 Aluminum Business (BALCO)
3,13,000 tn 2007 80% increase in as compared to 2006

Restructuring the projects:

A.(SILL):
1 Copper
2 Zinc
3 LEAD
B.(MALCO):
1 Energy
2 Aluminum Operations
C.(Seas Goa)
1 Iron ore
After this Vedant Group become the world 5 largest aluminum
producer 2012
moreover, it become the 10 largest producer of iron ore
For improving the quality co. launches 26 new improvement project
in 2006-07

Questions
1. The company has installed a new machine in
one of the plants for producing 1 meter long
copper rods. To check the quality of product, the
company's control officer has taken a random
sample of copper rods after every hour. A total
of 7 sample of size 6 are taken & length is
recorded .data are given in the following table
.construct an X chart & R chart using the data

Sample x1
no.

x2

x3

x4

x5

x6

.98

1.00

.99

.99

.98

1.00

.97

.99

.98

.99

1.00

.98

.97

.98

.97

.96

.99

1.00

.99

.98

.99

1.00

.98

.97

.98

.97

.99

.98

1.00

.99

.98

.97

.98

1.00

.99

.96

1.00

1.00

.99

.99

.96

.98

Solution
Sam
ple
no.

x1

x2

.98

x4

x5

x6

Sigma
Xi

Mean
X-bar

Range
R

1.00 .99

.99

.98

1.00

5.94

.99

.02

.97

.99

.98

.99

1.00

.98

5.91

.99

.03

.97

.98

.97

.96

.99

1.00

5.87

.98

.04

.99

.98

.99

1.00 .98

.97

5.91

.98

.03

.98

.97

.99

.98

.99

5.91

.98

.02

.98

.97

.98

1.00 .99

.96

5.88

.98

.04

1.0
0

1.00 .99

.99

.98

5.92

.99

.04

6.89

.22

total

x3

1.00

.96

Calculation of x-bar and R-bar

Now,
x 6.89

0.98
m

R .22

.03
6

Control limits of X-Bar Chart

Factor for x-ChartFactors for R-Chart

Central line C.L

U.C.L =

x .98

x A2 * R
=.98 + ( .48)( .03)
=.99

L.C.L=

X A2 * R
=0.98 - (0.48) (0.03)
= .96

Sample Size
(n)

2
3
4
5
6
7
8
9
10
11
12
13
14
15

A2
1.88
1.02
0.73
0.58
0.48
0.42
0.37
0.34
0.31
0.29
0.27
0.25
0.24
0.22

D3
0.00
0.00
0.00
0.00
0.00
0.08
0.14
0.18
0.22
0.26
0.28
0.31
0.33
0.35

D4
3.27
2.57
2.28
2.11
2.00
1.9
2.86
2
1.82
1.78
1.74
1.72
1.69
1.67
1.65

Control limits of R-Bar Chart

Factor for x-ChartFactors for R-Chart

Central Line =

R 0.03

U.C.L = D 4 R ( 2.004 ) (0.03 )

=0.06

L.C.L = D3R (0) (0.03 )

=0

Sample Size
(n)

2
3
4
5
6
7
8
9
10
11
12
13
14
15

A2
1.88
1.02
0.73
0.58
0.48
0.42
0.37
0.34
0.31
0.29
0.27
0.25
0.24
0.22

D3
0.00
0.00
0.00
0.00
0.00
0.08
0.14
0.18
0.22
0.26
0.28
0.31
0.33
0.35

D4
3.27
2.57
2.28
2.11
2.00
1.9
2.86
2
1.82
1.78
1.74
1.72
1.69
1.67
1.65

2. The company has received an order to supply

copper rods form a well-reputed company.
For maintaining quality, the companys
control officer has taken a random sample of
size 30 with 150 copper rods in each sample.
The following table provides data relating to
the number of defective rods in a sample of
size 30 with 150 rods. With the help of this
data, construct a P chart

sample

defective

sample

defective

150 1

16

150

150 2

17

150

150 1

18

150

150 3

19

150

150 1

20

150

150 2

21

150

150 3

22

150

01

150 0

23

150

150 0

24

150

10

150 0

25

150

11

150 1

26

150

12

150 2

27

150

13

150 3

28

150

14

150 2

29

150

15

150 1

30

150

Solution:Sample n

Defective D/N

sam n
ple

defective Fraction
defective

150

0.006

16

150

0.020

150

0.013

17

150

0.020

150

0.006

18

150

0.020

150

0.020

19

150

150

0.006

20

150

150

0,013

21

150

0.013

150

0.020

22

150

0.0

150

23

150

0.006

150

24

150

10

150

25

150

0.020

11

150

0.006

26

150

0.013

12

150

0.013

27

150

0.006

13

150

0.020

28

150

0.013

14

150

0.013

29

150

15

150

.0006

30

150

Control limits of p Chart

d

P
n

Central line C.L =

U.C.L =

P3

42 0.009

4500
P 0.009

p (1 p )
n

0.009 3

0.009 (1 0.009 )
150

= o.017

L.C.L=

p (1 p )
P 3
n

=0.001

0.009 3

0.009 (1 0.009 )
150

3. Suppose as part of a quality control exercise,

the company has taken a random sample of
30 copper cathodes & examined the number
of defects in these pieces . The result are
displayed below. Use the data to construct a
C chart

Copper

No. of Defects(c)

Copper

No. of Defects(c)

16

17

18

19

20

21

22

23

24

10

25

11

26

12

27

13

28

14

29

15

30

Solution:C

C
N

25

30

0.8

Control limits of c Chart

CL C 0.8
UCL

C 3 C 0.8 3 0.8

3.5
LCL

C 3 C 0.8 3 0.8

1.9