Maintain the Application of Quality Procedures - Report Example

SUBJECT CODE MEM15012B SUBJECT NAME Maintain/Supervise the Application of Quality Procedures TEXT To be developed However any good book in Statistics can be used REFERENCES Bank, John (1992). The Essence of Total Quality Management - Prentice Hall, New York. (203pp). The chapters are: 1. Focus on the customer; 2. Core concepts of total quality management; 3. Learning from the quality gurus; 4. Counting the cost of quality; 5. Case studies of total quality management; 6.Tools and techniques of total quality management; 7. Avoiding the hype. LEARNING OUTCOMES This unit covers improving the quality system, and collecting and summarising data to support the quality improvement process.   The data would be used to produce statistical information such as averages and ranges, and charts such as tally, run or control charts. Element Performance Criteria 1 Improve quality system Specifications to meet customer needs (internal and external) are interpreted Leadership role as a supplier is undertaken to ensure quality within the supply chain 2 Collect and summarise data   Data is recorded and interpreted accurately in accordance with standard operating procedures Data is used to produce relevant statistical information, for example, average and range or the production of charts such as tally, run or control charts ASSESSMENT Complete the following activities: ASSESSMENT QUESTIONS ONE Organisations are like living organisms. They are composed of inputs, processes and outputs. Consider some of the specific inputs processes and outputs of your organisation (Around 7) INPUTS PROCESSES OUTPUTS Technologies Recruitment and employment Super Smoothies Raw materials Franchising Fresh juices Employees Manufacturing processes Crushes machinery Marketing Boosters Money Design and development Boost snacks Technologies Expansion processes Protein smoothies Financial resources Supply chain procedures Smoothie bars a. Do you believe that the inputs are in balance with the processes used and the outputs achieved? Explain. I believe that the inputs, processes and outputs are balancing because the company has been growing financially since it began in 2000. In the last four years Boost Juice Bars have increased by 23 and the company has had a turnover that exceeds $AUD 135 million per annum. The fact that the company is growing and producing high turnovers shows that it its inputs are balancing with the processes and output achieved. TWO This activity considers the issues raised by the concept of having internal suppliers as well as external suppliers. In its broadest sense, your internal suppliers are all those people and workgroups who provide you with input. For example, the suppliers to a data entry operation in a government department could be the teams who complete applications from clients they see at a counter. Section 1: a. Examine the relationship that exists between one internal supplier and your organisation and one external supplier to your organisation. Is the current relationship maximising the benefit flowing to each party in the relationship? In the case of Boost Juice, one of the main internal suppliers is the staffs that are involved in the manufacturing of the juices and smoothies. These include the people that serve clients and the staff involved in the making of the products. The relationship between the staff that serves the client and the organization depends on employee satisfaction that leads to excellent customer service. In the organization, the relationship between the two people is good which has led to excellent customer service. One of the external suppliers of the organisation are the suppliers that supply raw materials that are kept frozen and used when required. The relationship between the external suppliers and the organisation is good and this is exhibited by the continued growth of the boost juice. Despite of the good relationship, there are instances that involve late supply of products. b. If not, what barriers stand in the way of this relationship being improved? The main barrier to the relationship between external suppliers and the organization is the logistical mistakes on the side of the supplier and poor communication between the organization and the suppliers. c. How can these barriers be eliminated? The main method of eliminating the problem of late supply of some raw materials is timely and appropriate communication. d. What are the possible causes of your problems? The main cause of the problem is poor communication between the organisation and the external supplier. e. How may you deal with customers to find out what issues are important to them? In order to deal with customers, there are three main ways. One of them is to have suggestion boxes in the juice bars in which customers can write their feedback after being served in the. Secondly, open avenues of communication between the customer and the organization must be opened and maintained. These include email, telephone lines, social media sites and alternative appropriate communication channels. Lastly, customers can be presented with questionnaires( either written or personal) that will enquire on issues that affect the customer such as quality of products, customer service and customer satisfaction. f. Why do you believe you are likely to learn from speaking to your suppliers? What should you reasonably expect of one another? Speaking with external suppliers will help in understanding the challenges that they go through in the supplying and they can define what their side on issue of delayed supplies. A talk with internal suppliers such as the staff will help in understanding internal challenges that are affecting the progress of the organization. Section 2: a. Identify a product or service provided by the internal supplier to your organisation that can be sub-contracted to an external supplier. One of the services that can be contracted to an external supplier is the provision of transport services. b. Why it is being done in house It was perceived to be more reliable, available and faster. c. The reason for changing this service to an outside contractor This will help in reducing the overhead expenses that are involved in maintaining the staff and the means of transport used as it is a periodic service. d. Identify a product or service provided by the external supplier to your organisation that can be sub-contracted to an internal supplier. The packaging materials and cans used in packaging of juice, smoothies and other products are sub contracted from outside. e. Why it is being done outside It is done outside to reduce the high overhead costs that include cost of raw materials, manufacturing costs and employee costs in comparison to the lower costs of buying ready goods. f. The reason for changing this service to an internal service contractor. Changing of the provision of these service to an internal supplier will reduce cases of late delivery of packaging materials. THREE Many techniques exist to help us in monitoring inputs and activities, such as the level of quality being maintained and customer service offered. Some are informal and others formal. In this activity we consider what a frontline manager can learn through good management practices. All managers should be able to learn from asking variations of a very simple question - "What's going on here?" Managers can get answers to this question by: Looking around to see what is happening. Asking questions to find out what is happening Listening to the information that colleagues and subordinates want to give them. They can record what they learn in a format that enables them to analyse their findings. a. What might you look at in order to identify areas in which there are potential productivity improvements? Employee satisfaction feedback. Customer satisfaction feedback. Employee presence and availability Internal and external supplier reliability Surveys conducted and questionnaires administered. b. What questions would help you in the process? To whom would you direct these questions? Questions for customers Are you satisfied with the service you have received? Is there anything you would like the management to know? Are there improvements that you can recommend? Questions for employees What are the challenges that you are facing in your workstation? What improvements can we make as a management to help you work better? How timely are suppliers with materials that you require to work? c. Who or what should we be listening to? We should listen to the feedback that is presented by our customers, suppliers as well as employee satisfaction issues that may arise. Draw a process model for a process in your organization. Clearly identify suppliers, process owners and customers. FOUR Rate a product (or service) of your organisation against the following features. Ask your customers to score against the features (is applicable) Use action flag column to indicate the feature that you need work on. Briefly explain what your action plan would be if any feature is flagged. Feature Customers’ Importance rating How the Product Rates Action Flag Value for money 1 2 3 4 5 1 2 3 4 5 This will require an improvement of the quality and quantity that is sold to customers. On time delivery 1 2 3 4 5 1 2 3 4 5 This will require an improvement on the delivery time and usage of faster means of delivery like motorcycles. Reliability 1 2 3 4 5 1 2 3 4 5 The company should work on assuring its customers that it is reliable through good delivery and constant standards of production. Maintainability 1 2 3 4 5 1 2 3 4 5 After sales Service 1 2 3 4 5 1 2 3 4 5 Safety 1 2 3 4 5 1 2 3 4 5 Ease of use 1 2 3 4 5 1 2 3 4 5 Image, Status 1 2 3 4 5 1 2 3 4 5 This will require making the branding more appealing through increased marketing and promotional activities. Color 1 2 3 4 5 1 2 3 4 5 The company will customize colours of the product packaging to reflect the product raw material. Size 1 2 3 4 5 1 2 3 4 5 The company will work on increasing the size and quantity of the product. Smell 1 2 3 4 5 1 2 3 4 5 Package 1 2 3 4 5 1 2 3 4 5 Availability 1 2 3 4 5 1 2 3 4 5 Disposal 1 2 3 4 5 1 2 3 4 5 Operating Instructions 1 2 3 4 5 1 2 3 4 5 Pre sale Promotions 1 2 3 4 5 1 2 3 4 5 This will be improved through marketing, adverts and promotional activities. FIVE In what form does contract review take at your company? How do you ensure that you understand your customer's needs? Contract review in the company is carried out through several strategic steps. These steps include understanding the main rules of the contract, pointing out the key responsibilities and expectations outlined in the contract, point out any barriers presented in the contract, understand the time set for delivery of goals of the contract and point out any losses. These five aspects are important in helping to ensure that all contracts will add value to the company. Customer needs are understood through understanding what they prefer through questionnaires and surveys. They can also be understood through understanding the products that are bought more frequently and increasing their availability. This will help in increasing customer preference awareness. Additionally, feedback received from customers through emails and telephone calls are used to understand their needs. SIX Give an account of a successful customer recovery, where you were either the customer or the supplier to the customer. As I was browsing two months ago, I came across an online shopping mall where I saw a pair of shoes that I decided to buy after calling to confirm that they will deliver at my door in 24 hours. After the call, three days passed before the shoes were delivered. I called a second time to enquire only to find out that the staff had forgotten to send the delivery. I was frustrated and immediately cancelled the order and hung up. After a few minutes, the manager of the online shop called to personally apologize and I reordered the shoes that were then delivered early the next day. SEVEN Femtree Photo Finishing Corporation is concerned at the level of rejects from its developing tanks. The important variables for the tanks are the temperature, the length of time that the film is left in the tank, and the chemical balance within each tank. Historical records for the past few months show: January 5% May 25% September 15% February 8% June 23% October 14% March 5% July 21% November 12% April 24% August 18% December 6% The company has also broken down the figures on a daily basis, for a three week period (figures are % rejects): Mon Tues Wed Thurs Fri Week 1 2% 7% 11% 16% 23% Week 2 5% 8% 9% 11% 17% Week 3 6% 4% 16% 9% 11% Finally, Femtree broke down the figures on an hourly basis, for three particular days: 8 am 9 am 10 am 11am 12Noon 1 pm 2 pm 3 pm 4 pm Day 1 7% 9% 8% 6% 11% 5% 6% 7% 5% Day 2 6% 4% 7% 5% 9% 5% 5% 6% 7% Day 3 10% 12% 10% 8% 14% 9% 8% 10% 9% 1. Use Run Charts and employing all the data consider the opportunities for improvement that this company enjoys. RUN CHARTS Annual run charts Weekly run charts Daily run charts 2. What recommendations would you make? The company should cease production around noon since it reports the highest number of produced rejects. Production should be increased in the earlier days of the first and second week because the percentage of the rejects is low but steadily increase as the week progresses. However, in the third week, the production should be increased in the earlier and later days of the week since the highest number of rejects are produced in the middle of the week. Annually, the company should increase its productions from the December to March period. It is seen that the highest number of rejects are reported in the April to June season. EIGHT The Lilli Pilli Fruit Juice Corporation is experiencing Customer Complaints. The complaints are that their 285-ml varieties are not filled with correct amount. The Specification sates that each bottle should contain 290-ml +/- 5-ml. The company has ordered an investigation and following 60 volumes were recorded from a production run. 287 284 285 287 291 293 290 295 288 291 297 295 289 294 292 292 289 290 288 286 291 291 290 292 295 296 294 294 292 293 288 288 289 286 288 294 292 290 290 290 293 290 290 291 289 289 293 291 288 291 290 287 291 290 286 287 289 290 291 292 1. Draw the Tally Volume Tally marks Frequency 284  I 1 285  I 1 286  III 3 287  IIII 4 288  IIII I 6 289  IIII I 6 290  IIII IIII I 11 291  IIII IIII 9 292  IIII I 6 293  IIII 4 294  IIII 4 295  III 3 296  I 1 297  I 1 2. Draw the Histogram 3. Draw the Frequency Curve 4. Estimate the Process Mean Process mean = Total sum /Total number = 17424/60 = 290.4 5. Identify the Maxima and Minima and calculate the Range Maxima= 297 Minima= 284 Range= 297 – 284 = 13 6. Estimate the Process Capability: Cp = (USL-LSL)/6s where s: standard deviation which is 2.76 in this case. Cp: capability index USL and LSL: upper and lower specification limit Cp = (295-285) / (6) (2.74) = 0.08 7. If the Customer Specifications are 290-ml +/- 5ml, are defectives being produced? Yes, defectives are being produced because there are three volumes that are not within the 290-ml +/- 5ml. 8. Decide whether the Process is: Capable: the process is not capable because it is unable to produce volumes that are within the set limits. In Control: the process is in control because it has produced volumes that are stable. 9. What actions if any, are recommended Recommended actions are the reduction of defectives from 3 defectives among the 60 volumes to 0 defectives. NINE A company manufactures Shafts on a Production Lathe. 20 sets of Samples of four were taken and the information is provided in the following table. Draw the charts for Mean and Range and determine if process is in control Sample X1 X2 X3 X4 Mean Range 1 51.0 50.9 51.2 51.2 51.075 0.3 2 51.0 51.4 52.0 51.7 51.525 1 3 51.1 51.3 51.5 51.5 51.35 0.4 4 51.2 51.0 51.6 50.9 51.175 0.7 5 50.9 51.6 51.7 51.0 51.3 0.8 6 51.0 51.3 50.8 51.4 51.125 0.6 7 51.3 51.4 50.9 51.0 51.15 0.5 8 51.3 52.0 51.0 51.6 51.475 1 9 52.0 51.2 51.4 51.0 51.4 1 10 51.8 52.3 51.9 52.0 52 0.5 11 51.9 51.7 51.5 51.5 51.65 0.4 12 51.3 51.9 51.3 51.8 51.575 0.6 13 51.7 51.2 51.3 51.3 51.375 0.5 14 50.8 50.7 50.9 50.6 50.75 0.3 15 51.8 52.0 51.3 51.3 51.6 0.7 16 51.4 51.0 50.9 51.5 51.2 0.6 17 51.6 51.5 52.0 51.2 51.575 0.8 18 52.0 51.6 51.0 51.4 51.5 1 19 50.9 51.2 51.1 51.0 51.05 0.3 20 51.6 51.0 51.3 51.4 51.325 0.6 Mean of Means 2.56  12.6 Mean of Range  0.63 Chart of Range Chart of Mean TEN The quality assurance manager of Hermann Plastics has been conducting some internal audits and has noticed the following issues. What part of the ISO/AS/NZS 9001:2008 Standard would appear to be breached by the identified issues? a) In the raw material store, there were several unlabelled bags of plastic raw material. `It's all right', said the storeman, `I know what's in them'. Control of records and appropriate documentation and identification of products is breached in this case. b) In the purchasing section, no standard procedures were available. `Everyone knows what to do. We do not need written procedures', they said. This is a breach of the fact that the standards require for specific documentation requirements under quality management systems. c) In the injection moulding section, an unlabelled box of mouldings was next to a press where new parts were being produced. On making enquiries, the QA manager was told `When the customer has too much stock on hand they start rejecting batches. So we slip a few of the rejects in the bottom of each box of good ones. The customer never complains and it saves us a lot of money. Everyone is happy'. This is a breach of customer satisfaction because bad quality goods are slipped among the good ones. This does not meet the customer’s quality expectations d) In the moulding shop, a box of clear plastic mouldings was marked `rejects' although no other paperwork exists. `Sometimes we get black specks coming through into the moulding. With this clear plastic, the customer will not accept them, so we just put them to one side. It just happens. Nobody can do anything about it.' This is a breach of the good control of records which is under correct documentation in the standards. e) In the moulding shop, an inspector was check-weighing mouldings on a weighing machine that had no calibration history. `These electronic balances are pretty accurate', the manager was told, `you don't have to calibrate them'. This is a breach of the requirement under control and monitoring equipment which requires that all equipment are calibrated before use. This will lead to poor product realisation. f) In the extrusion shop, there were written operating procedures, but they were not being followed. The manager was told, `Extruding plastics is a bit of an art-it changes with the batch of raw material, the weather, who knows? You can't be tied down to a set procedure-you'd just finish up making rejects that way.' This is a breach of the nonconformity to the standard operating procedures that have written down. g) The Quality Assurance Manager noticed a drill jig-used in drilling holes in a particular product-being put into service without checking. When questioned, an amazed die setter said `We've been using this drill jig on and off for about two years. Why would I bother checking it?' This is a breach of the rules set in usage of tools. It is required that tools are calibrated before use and at regular intervals. The fact tht the drills jig is not frequently calibrated is a breeach of the rules. h) On one extrusion line, the operator was supposed to measure the width of the continuously extruded product every ten minutes then record it in a log. The measurements weren't being made and no log existed. `We stopped doing it', said the operator, `nobody ever looked at the log. It was a waste of time.' The breach that is done in this stage is the requirement that all decisions are carried out based on factual approach. It is against the standards to make decisions without considering the important facts. i) In the vacuum forming section, the operator was setting up for a product run, using a very old, grease-stained copy of the drawing, which had a large number of pencilled instructions on it. `They won't give me a copy of the drawing', said the operator, `so I write down any changes on this old copy and keep it in the bottom of my tool box'. This is a breach of the continual improvement of resources because the worker is not allowed to constantly improve the diagram. j) In the finished goods store, a disaster had happened. All the finished goods were stored in cardboard boxes, stacked from floor to ceiling. A burst water pipe had flooded the store, causing the bottom row of cartons to soften and collapse, bringing down the entire warehouse of cartons in one jumbled mess. `That's the third time this year!' the stores supervisor shouted as the Quality Assurance Manager rapidly disappeared out the door. This shows that there is a breach of the continued improvement which requires that corrective and preventive actions are carried out. This is due to the fact that the problem has occurred for the third time in one year. Read More