Module V

Module V: Maintenance Management Function Types of Maintenance Total ProductiveMaintenance (TPM). Statistical Quality Control
(SQC). Cost of Quality (COQ). ISO 9000 certification. Total Quality Management.

MAINTENANCE MANAGEMENT
Maintenance Management is planning, organizing and controlling maintenance activities such
that the overall maintenance cost is minimum.
Benefits of Maintenance Management

The production capacity of the

facility is almost unaffected due
to well maintained machines and
thus, lesser breakdowns.
Production

cost

can

be

kept

Life of facilities and equipment

minimum as lesser breakdowns of

increases

equipment means less opportunities

due

to

proper

for workers being idle

maintenance

Benefits of
Maintenance
Management
The

delivery

schedules

of

customers are not disrupted due to

Quality of products and services

unexpected breakdowns, leading

remains unaffected due to proper

to customer satisfactions

maintenance of equipment, thus

reducing
The

Possibility

breakdowns

of

of

sudden
equipment

resulting in safety hazards to

workers is minimized.

Objectives of Maintenance
1. To prevent Breakdown
2. Ensure operational safety
3. Ensure Operational Efficiency
4. Reduce cost
5. Reduce Idle hours- Component Malfunction
6. Prevent rapid wear of components
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin

the

possibility

variation in the output

of

Module V
7. Eliminate defects.
Maintenance Functions
Maintenance functions can be grouped in two categories Basic functions and Composite
functions
Basic Functions
1. Replace To remove an unserviceable item and install a serviceable counterpart in its
place\
2. Repair- The application of maintenance services including fault location troubleshooting,
removal installation, and disassembly/ Assembly procedures, and maintenance actions to
identify troubles and restore serviceability to an item by appropriate corrections.
3. Overhaul- That maintenance effort prescribed to restore an item to a completely
serviceable/operational condition.
4. Rebuild- It consists of those services/actions necessary for the restoration of
unserviceable equipment to a like new condition in accordance with original
manufacturing standards.
5. Service/ Lubricate- Operations required periodically to keep an item in proper operating
condition ie to clean, to preserve, to drain, to paint or replenish fuel, lubricants, chemical
fluids or gases.
6. Inspect/ check- To determine the serviceability of an item by comparing its physical,
mechanical, and /or electrical characteristics with prescribed standards.
7. Test To verify serviceability by measuring the mechanical or electrical characteristics
of an item and compare those characteristics with prescribed standards.
8. Adjust- To maintain, within prescribed limit, by bringing into proper or exact position, or
by setting the operating characteristics to specified parameters.
9. Align- To adjust specified variable elements of an item to bring about optimum or desired
performance.
10. Calibrate- To determine and cause corrections to be made or to be adjusted on
instruments or test, measuring and diagnostic equipment used in precision measurement,
using a certified standard instrument.
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Module V
11. Measure The act or process of ascertaining the extend, dimension or quantity of
something. Like the extend of wear and tear, elongation,
12. Winding- Provide a symmetrically laid electrical conduction path in any device like the
motor winding.
13. Install- The act of seating or fixing into position an item, part or module in manner to
allow proper functioning of an equipment or system.
Composite functions
1. Protecting building, structures, plants, and factories.
2. Reducing downtime and increasing availability.
3. Analyze failures and arrange their elimination.
4. Forecast maintenance spares, tools consumables etc
5. Economy in maintenance department
6. Ensure safety in installations.
7. Cost reduction and cost control.
8. Prepare maintenance budgets.
9. Waste reduction and waste recovery.
10. Improving technical communication
11. Training of maintenance personnel on related job.

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Module V
T
Types
of Maaintenance
Maintena
ance
system
m

Plan
nned

Unplann
ned

Prroactive
Break do
own

scheduled

Predictive

Preventive
e

Shutdown

Conditio
on
based

Reliability
B
Based

TPM

Designoutt
Maintenancce

Planned Maintenance
M
e are
1. Corrective
C
Maintenance
M
2. Preventive Maintenance
M
a
and
3. Predictive Maaintenance
nance Maaintenance done
d
to rectify a fault that has occcurred is called
c
Correctiive Mainten
Correctivve Maintenaance. Corrective maintennance is norrmally done when the machinery
m
breaks
down (Brreak down maintenance)
m
) or during a shutdown.
Breakdoown Mainteenance: Also called Reactive mainntenance. Thhe philosophhy of Breakddown
maintenaance is to reaact to a breaakdown. Thee unit is allow
wed to run till
t it breaksddown after which
w
it is mainntained to pu
ut it back intoo operation.
Advantagges: Preventts wastage off resources on
o low prioriity assets.
Disadvanntages1. Work
W
is poo
orly plannedd, hence ineefficient utillization of manpower
m
a
and
maintennance
reesources
2. Iss very costly
y ( at least 2 or 3 times more
m
costly than when work
w
is propperly plannedd and
exxecuted)
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M
Notes ( Pvt Circulation Only)
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CMS Cochin

Module V
3. Could lead to reduction in the reliability of the machine as breakdown maintenance
concentrated on the failure and its obvious reason rather than the root cause.
Preventive Maintenance
Maintenance work is done at predetermined time or on the basis of other criteria like

Fixed no. of cycles of operations

Usage hours

Cumulative output

The basis assumption is that the failure of equipment is dependent on time in a predictable way.
ADVANTAGES
1. Less unexpected shutdowns
2.

Less consequential secondary damages ( damages caused on other components due to

failure of an equipment)

3.

Better Utilization of manpower and maintenance resources ( as the activity can be

properly planned in advance)

4.

Reduced Overtime costs

5. Better equipment condition hence less rejects and reworks

6.

Improved safety and quality

DISADVANTAGES
1. Does not ensure full protection against unexpected shutdowns. In spite of regular
preventive maintenance unexpected shutdowns can occur.
2.

Some maintenance may not be necessary.

3.

Periodic maintenance may increase running in failures. Running in failures are failures
that occur when new components are put in operation for the first time. The components
replaced during preventive maintenance can fail prematurely thus defeating the very
purpose of preventive maintenance.

Predictive Maintenance
1. Also known as condition based Maintenance. The condition of the equipment is
monitored regularly and equipment is taken for maintenance if the condition indicates a
likely hood of equipment failure.
2.

Equipment maintained when measurements indicate incipient failure.

Condition Monitoring

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Module V
1. Condition may be determined continuously or at regular intervals.
2.

Condition could be vibration, debris analysis, temperature, quality of product etc.

ADVANTAGES

Fairly effective protection from unexpected shutdowns.

Equipment rarely stopped for unnecessary maintenance.

Could help in reducing the stress on the machinery in case of an incipient failure

Could be used to check the quality of maintenance.

DISADVANTAGE

Has certain amount of subjectivity which could lead to the risk of planning maintenance
too early or too late.

Is justified only when the benefits are larger than the cost of monitoring. ( Monitoring
instruments, Analyses etc.)

TOTAL PRODUCTIVE MAINTENANCE

TPM is a philosophy of continuous improvement that creates a sense of ownership in the
operators and other connected persons for the machines. It combines the traditional practices of
preventive and predictive maintenance with total quality control and total employee
participation/ involvement to create a culture where operators develop ownership of their
equipment and become full partners with maintenance, engineering and management etc to
ensure that equipments operate properly everyday at required time.
The three different words of TPM can be defined as following
Total
1. All employees are involved in it.
2. It aims to eliminate all breakdowns, defects and accidents.
Productive
1. Many actions are performed while production goes on.
2. Troubles for production are minimized, if not eliminated.
Maintenance
1. Check Clean, lubricate and repair.
2. Keep Machine in good condition.

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Module V
The concept of Productive Maintenance was first introduced by M/s Nihon Denso Co. Japan in
the year 1971 and was subsequently promoted to national level in Japan in 1983, by Japanese
Institute of Plant maintenance.
Features / Principles of TPM
Some of the features / principles considered for successful TPM are as following

Increase Overall Equipment Effectiveness ( OEE)

The operator is the best condition monitor.

Involves all departments such as operations, maintenance, connected planning groups,

material management, quality, finance and administration.

Involves the participation (up-to required level) of members of all groups from
management level to shop-floor worker level.

Provides training to upgrade operation and maintenance skills.

Generally promotes small autonomous group concept for better motivation and
coordination:

Establishes a total system of completer maintenance and upkeep of the equipments,

generally covering the entire plant life cycle; etc.

Components or pillars of TPM

Following are the basic eight basic components or pillars of TPM
1. Autonomous Maintenance ( Jishu Hozen)
2. Equipment and process improvement, using KAIZEN
3. Planned Maintenance
4. Early management of new equipment
5. Process quality Management and Quality Maintenance
6. Education and Training
7. TPM in administrative and support departments
8. Safety and environmental Management
1. Autonomous Maintenance
It promotes small autonomous group concepts, involving operation, maintenance and all
connected disciplines to required degree. In order to increase the operators knowledge,
participation and responsibility for their equipment, following steps are taken-

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Module V
1. Train the operators to close the gap between them and the maintenance staff making it
easier for both to work as one team( flexible operator)
2. Change the equipment so the operator can identify any abnormal conditions and measure
deterioration before it affects the process or leads to a failure.
3. Operator to perform initial cleaning and inspection: take counter measures for the causes
and effects of dirt and dust; prove covers and other protective or self cleaning devices.
4. Other counter measures- In-accessible regions had to be reached easily. Instead of
opening a door for inspecting the machine, acrylic sheets can be used.
5. Establish cleaning and lubrication standards and operator to carryout minor lubrication
and monitor lubrication gadgets.
6. Eliminating the defects at source through active employee participation.
7. Autonomous inspection, including continuous monitoring and changing frequencies and
points and items for cleaning and inspection, depending on the results and experience.
8. Work environment is modified such that there is no difficulty or time loss in getting any
item.
9. Autonomous management- OEE (Overall Equipment efficiency) and OPE (Overall
production efficiency) and other PM targets must be achieved by continuous
improvement through Kaizen, PDCA( Plan, Do , Check, Act) cycle must be implemented
for Kaizen.
2. Equipment and Process improvement, Using Kaizen
The objective of this component (pillar) is to maximize efficiency by eliminating waste and
manufacturing losses. Basically kaizen is for small improvements, but is carried out on a
continual basis and involve all people in the organization. Kaizen is the opposite of big
spectacular innovation. It requires little or no investment. The principle behind is that a very
large number of small improvements are more effective in an organizational environment than a
few improvements of large value.
TPM identifies following major sources of losses and then works systematically to eliminate
them.
A) Losses that impede equipment efficiency( Equipment losses)
a. Downtime losses
i. Equipment failure/ breakdowns
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Module V
ii. Setup and adjustments
iii. Scheduled downtime loss
iv. Consumable breakage/ Change loss ( cutting blade loss etc)
b. Speed loss
i. Minor stopping / idling
ii. Reduced speed
c. Quality loss
i. Process errors
ii. Rework / Scraps
B) Losses that impede human efficiency ( Manpower loss)
i. Cleaning and checking
ii. Waiting for instructions
iii. Waiting for materials
iv. Waiting quality confirmation
v. Measurement and adjustment loss
C) Losses that impede effective use of production resources ( Material loss)
i. Material Yield loss
ii. Energy Loss
iii. Consumable material loss( Die, Jig, and tool breakage loss etc.)
3. Planned Maintenance
Objective of this component (Pillar) is to establish preventative, predictive maintenance systems
for equipment and tooling. Natural life cycle of individual machine elements must be achieved
for trouble free working, producing defect-free products for total customer satisfaction, by
planned maintenance. (Corrective, preventive, predictive, maintenance prevention) Correct
operation, correct set-up, proper cleaning, proper lubrication, necessary retightening, feedback
and repair of minor defects and quality spares etc are specifically taken care of.
4 Early Management of new equipment
The objective of this component is
1. To establish a system to shorten/ minimize the time for new equipment or product
development.

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Module V
2. System shortens the start-up, commissioning and stabilization time for quality and
efficiency.
3. New equipment needs to be
a. Easy to operate
b. Easy to clean
c. Reliable and easy to maintain
d. Have quick set-up times
e. Have easily visual and approachable built-in test equipment and condition
monitoring equipment.
f. Operate at lowest life cycle cost.
5. Process Quality Management and Quality Maintenance
This component (Pillar) calls for a process for controlling the condition of equipment and
machineries that affect variability in product quality and drives defect free products. Its
objective is to set and maintain conditions of equipments to accomplish zero defects as
the quality rate of any product has a direct correlation with

Material condition

Equipment condition and precision

Production methods

Process parameters.

6. Education and Training

TPM is a continuous learning process. It is aimed to have multi-skilled revitalized employees
whose morale is high and who is eager to come to work and perform all required functions
effectively and independently. Education and training is given to operators/workmen to upgrade
their skill. There are following four knowledge stages of a workman about a job
Stage 1 Do not know
Stage 2 Know the theory, but cannot do
Stage 3- Can do the job but cannot teach
Stage 4 Can do the job and can teach also.
The prerequisite of for this component (Pillar) is checking the present status of education,
training and skills of the available men and setting priorities and policies for improvement.

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Module V
7. TPM in administrative and support departments (Office TPM)
Administrative and support departments can be seen as process plants whose principal taks are to
collect, process and distribute information. The aim of this component is to improve
productivity, efficiency in the administrative and support functions and identify and eliminate
losses. This includes analyzing processes and procedures towards increased office automation.
Office TPM addresses many major losses, few of those are
1. Processing loss
2. Cost losses in areas like procurement, accounts, marketing , sales leading to high
inventories
3. Communication loss
4. Idle loss and set up loss
5. Office equipment breakdown
6. Communication channel breakdown
7. Time spent on retrieval of information
8. Non availability of correct on line stock status.
9. Customer complaints due to logistics.
10. Expenses on emergency dispatch/ purchases etc.
8. Safety and Environmental Management
Assuring safety and preventing adverse environmental impacts are important priorities of any
TPM effort. In this area focus is on to create a safe workplace and a surrounding area that is not
damaged by the processes or procedures. This component (Pillar) will play an active role in each
of the other pillar on a regular basis.
Aims and Targets
Zero Accidents, Zero health hazard/ damage and Zero fire etc.
The 5-S concept (Sort, Clean (Seiton), Set in order, standardize, and sustain/Progress)can also be
considered as an important component of TPM
Benefits of TPM
1. Increased equipment productivity
2. Increased plant capacity
3. Reduced equipment downtime
4. Lower maintenance and production cost
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Module V
5. Immediate attention of smaller problems to prevent its aggravation.
6. Approaching zero equipment caused defects.
7. Reduced inventory levels and inventory carrying costs in all parts of the supply chain.
8. Better utilization of work area and improved productivity of employees
9. Enhanced job-satisfaction and
10. Increased Return on Investment.
QUALITY MANAGEMENT
Quality
Statistical Quality ControlStatistical quality control is the set of statistical tools used by Quality professional. It can be
classified broadly into 3 categories
1. Descriptive Statistics Are used to describe quality characteristics and their
relationships. Included are statistics such as mean, standard deviation, range and a
measure of distribution of data.
2. Statistical Process Control (SPC) Involves inspecting a random sample of the output
from a process and deciding whether the process is producing products that fall within a
predetermined range. SPC answers the question whether the process is functioning
properly or not.
3. Acceptance sampling Is the process of inspecting randomly inspecting a sample of
goods from a lot and deciding whether to accept or reject the lot based on the result.
Acceptance sampling determines whether a batch of goods should be accepted or
rejected.
The tools in each of these categories provide different types of information for use in analyzing
quality. Descriptive statistics are used to describe certain quality characteristics, such as the
central tendency and variability of observed data. Although descriptions of certain characteristics
are helpful, they are not enough to help us evaluate whether there is a problem with quality.
Acceptance sampling can help us do this. Acceptance sampling helps us decide whether
desirable quality has been achieved for a batch of products, and whether to accept or reject the
items produced. Although this information is helpful in making the quality acceptance decision
after the product has been produced, it does not help us identify and catch a quality problem

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Module V
during the production process. For this we need tools in the statistical process control (SPC)
category.
All three of these statistical quality control categories are helpful in measuring and evaluating the
quality of products or services. However, statistical process control (SPC) tools are used most
frequently because they identify quality problems during the production process. For this reason,
we will devote most of the chapter to this category of tools. The quality control tools we will be
learning about do not only measure the value of a quality characteristic. They also help us
identify a change or variation in some quality characteristic of the product or process.
Variations from predetermined standards lead to quality issues. Two kinds of causes lead to
variations: Natural or random causes of variations and Assignable causes of variations. Natural
or random causes are neither identifiable nor explainable. They occur purely by chance. The
second type of causes of variations can be precisely identified and eliminated. These are called
the Assignable causes of Variations. Examples of this type of variations are poor quality in raw
materials, an employee who needs training, a machine that needs repair. In each of these
examples the problem can be identified and corrected.
Variables and attributes: The measures used by operations to describe quality characteristics
are of two types: variables and attributes. Variable measures are those that can be measured on a
continuously variable scale (for example, length, diameter, weight or time). Attributes are those
which are assessed by judgment and are dichotomous, ie. have two states (for example, right or
wrong, works or does not work, looks OK or not OK- deal or no-deal !).
Table below categorizes some of the measures which might be used for the quality
characteristics of a car.
Some variable and attributes of a car
Quality characteristic

Variable

Functionality

Acceleration

Attribute
and

braking Is the ride quality satisfactory?

characteristics from test bed

Appearance

Number of blemishes visible Is the colour to specification

on car

Reliability

Average time between faults

Is the reliability satisfactory

Durability

Life of the car- x years

Is the useful life as predicted

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Module V
Quality characteristic

Variable

Recovery

Time from fault discovered to Is the serviceability of the car

fault repaired

Contact

Attribute
acceptable

Level of help provided by Did customers feel well served

sales staff (1 to 5 scale)

(yes or no)?

DESCRIPTIVE STATISTICS
Descriptive statistics can be helpful in describing certain characteristics of a product and a
process. The most important descriptive statistics are measures of central tendency such as the
mean, measures of variability such as the standard deviation and range, and measures of the
distribution of data.
STATISTICAL PROCESS CONTROL
Statistical process control methods extend the use of descriptive statistics to monitor the quality
of the product and process. There are common and assignable causes of variation in the
production of every product. Using statistical process control we want to determine the amount
of variation that is common or normal. Then we monitor the production process to make sure
production stays within this normal range. That is, we want to make sure the process is in a state
of control. The most commonly used tool for monitoring the production process is a control
chart. Different types of control charts are used to monitor different aspects of the production
process.
A control chart (also called process chart or quality control chart) is a graph that shows whether a
sample of data falls within the common or normal range of variation. A control chart has upper
and lower control limits that separate common from assignable causes of variation. The common
range of variation is defined by the use of control chart limits. We say that a process is out of
control when a plot of data reveals that one or more samples fall outside the control limits

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Module V

The variaations betweeen UCL ( Upper

U
Control Limit) annd LCL ( Loower control limit ) is caaused
by normaal or random
m causes. The variation if it exceeds UCL or is leess than LCL
L then the caauses
can be atttributed to assignable
a
causes and inndicate that the
t process in not in a State
S
of Con
ntrol.
So UCL is the maxim
mum acceptaable variation from meann for a proceess that is in a state of coontrol
and LCL
L is minimum
m acceptablee variation frrom mean for a process that
t is in a Sttate of contrrol.
The uppeer and lowerr control limiits on a conttrol chart aree usually set at 3 standaard deviationns
from the mean. If wee assume thaat the data exxhibit a norm
mal distributiion, these coontrol limits will
w
capture 99.74
9
percen
nt of the norm
mal variationn. Control lim
mits can be set
s at 2 standdard deviatioons
from the mean. In thaat case, conttrol limits woould capturee 95.44 perceent of the vaalues.
Types off Control Ch
harts
Control charts
c
are on
ne of the mosst commonlyy used tools in statisticall process conntrol. They can
c
be used to
t measure any
a characterristic of a prooduct, such as the weighht of a cereall box, the
number of
o chocolatess in a box, or the volumee of bottled water.
w
The different
d
charracteristics that
t
can be measured
m
by control
c
chartts can be divvided into tw
wo groups:
1. Variables
V
an
nd
2. Attributes.
A
A controol chart for variables
v
is used to monnitor charactteristics that can be meaasured and have a
continuum
m of valuess, such as heeight, weighht, or volum
me. A soft drink bottlingg operation is an
example of a variablee measure, since
s
the amoount of liquiid in the botttles is measuured and cann take

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CMS Cochin

Module V
on a number of different values. Other examples are the weight of a bag of sugar, the
temperature of a baking oven, or the diameter of plastic tubing
A control chart for attributes, on the other hand, is used to monitor characteristics that have
discrete values and can be counted. Often they can be evaluated with a simple yes or no decision.
Examples include color, taste, or smell. The monitoring of attributes usually takes less time than
that of variables because a variable needs to be measured (e.g., the bottle of soft drink contains
15.9 ounces of liquid). An attribute requires only a single decision, such as yes or no, good or
bad, acceptable or unacceptable (e.g., the apple is good or rotten, the meat is good or stale, the
shoes have a defect or do not have a defect, the lightbulb works or it does not work) or counting
the number of defects (e.g., the number of broken cookies in the box, the number of dents in the
car, the number of barnacles on the bottom of a boat).
Statistical process control is used to monitor many different types of variables and
attributes.
Control Charts for Variables
1. Mean Charts : A mean chart is also known as the x-bar Chart . It is used to monitor
changes in mean of a process
The chart is constructed using the following parameters
Center line = the mean
UCL =

+ zx

LCL =

- zx

Where

is the average of the sample means

Z = standard normal variable ( 2 for 95.44% confidence and 3 for 99.74 confidence
x = Standard deviation of the distribution of sample means.
2. Range Chart or

chart.

Range (R) charts are another type of control chart for variables. Whereas x-bar charts measure
shift in the central tendency of the process, range charts monitor the dispersion or variability of
the process. The method for developing and using R-charts is the same as that for x-bar charts.
The center line of the control chartis the average range, and the upper and lower control limits
are computed as follows:
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Module V
CL =

UCL = D4
LCL = D3
Where the values for D3 and D4 are obtained from tables.
Control Charts for Attributes
Control charts for attributes are used to measure quality characteristics that are counted rather
than measured. Attributes are discrete in nature and entail simple yes-or-no decisions. For
example, this could be the number of nonfunctioning lightbulbs, the proportion of broken eggs in
a carton, the number of rotten apples, the number of scratches on a tile, or the number of
complaints issued. Two of the most common types of control charts for attributes are p-charts
and c-charts.
P-charts are used to measure the proportion of items in a sample that are defective. Examples are
the proportion of broken cookies in a batch and the proportion of cars produced with a
misaligned fender. P-charts are appropriate when both the number of defectives measured and
the size of the total sample can be counted. A proportion can then be computed and used as the
statistic of measurement. C-charts count the actual number of defects. For example, we can count
the number of complaints from customers in a month, the number of bacteria on a petri dish,
or the number of barnacles on the bottom of a boat. However, we cannot compute the proportion
of complaints from customers, the proportion of bacteria on a petri dish, or the proportion of
barnacles on the bottom of a boat. The center line is computed as the average proportion
defective in the population, . This is obtained by taking a number of samples of observations at
random and computing the average value of pacross all samples. To construct the upper and
lower control limits for a p-chart, we use the following formulas:
CL = Average proportion defective in the population
UCL =

+ zp

LCL =

- zp

Where z is the standard normal variable

is the sample proportion defective
p is the standard deviation of the average proportion defective

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Compiled by Santhosh.S, Associate Professor, SCMS Cochin

Module V
For constructing C-chart we use the following formula
CL = Is the average number of defects

UCL = + z
LCL = - z
Where Z is the standard normal variable.
ACCEPTANCE SAMPLING
Acceptance sampling is the third branch of Statistical Quality control, which refers to the process
of randomly inspecting a certain number of items from a lot or a batch in order to decide whether
to accept or reject the entire batch. The difference between Acceptance sampling and Statistical
process control is that Acceptance sampling is done either before or after a process rather than
during a process.
Acceptance sampling is used when inspecting every item is not physically possible or would be
overly expensive, or when inspecting a large number of items would lead to errors due to worker
fatigue. This last concern is especially important when a large number of items are processed in a
short period of time. Another example of when acceptance sampling would be used is in
destructive testing, such as testing eggs for salmonella or vehicles for crash testing. Obviously, in
these cases it would not be helpful to test every item! However, 100 percent inspection does
make sense if the cost of inspecting an item is less than the cost of passing on a defective item.
the goal of acceptance sampling is to determine the criteria for acceptance or rejection based on
the size of the lot, the size of the sample, and the level of confidence we wish to attain.
Acceptance sampling can be used for both attribute and variable measures, though it is most
commonly used for attributes.
Sampling Plan
A sampling plan is a plan for acceptance sampling that precisely specifies the parameters of the
sampling process and the acceptance/rejection criteria. The variables to be specified include the
size of the lot (N), the size of the sample inspected from the lot (n), the number of defects above
which a lot is rejected (c), and the number of samples that will be taken.
There are different types of sampling plans. Some call for single sampling, in which a random
sample is drawn from every lot. Each item in the sample is examined and is labeled as either
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good or bad. Depending on the number of defects or bad items found, the entire lot is
either accepted or rejected.
Another type of acceptance sampling is called double sampling. This provides an opportunity
to sample the lot a second time if the results of the first sample are inconclusive. In double sampling
we first sample a lot of goods according to preset criteria for definite acceptance or rejection. However, if the
results fall in the middle range,

In addition to single and double-sampling plans, there are multiple sampling plans.Multiple
sampling plans are similar to double sampling plans except that criteria are set for more than two
samples.
Operating characteristic Curves ( OC Curves)
Different sampling plans have different capabilities for discriminating between good and bad
lots. At one extreme is 100 percent inspection, which has perfect discriminating power.
However, as the size of the sample inspected decreases, the chance of accepting a defective lot
increases.We can show the discriminating power of a sampling plan on a graph by means of an
operating characteristic (OC) curve. OC curve shows the probability or chance of accepting a
lot given various proportions of defects in the lot.

Producers risk is the chance of rejecting a lot even though the percentage defective is less than
the Acceptable Quality Limit.( AQL). AQL is the max percentage defective that the consumers
are willing to accept.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin

Module V
Consumers risk is the probability of accepting a lot even though the percentage defect is larger
than the Lot Tolerance Percentage defect( LTPD). Even if the no. of defects is higher than AQL
consumers would tolerate a few more defects until it reaches a threshold limit. This upper limit
above which the percentage defects cannot be tolerated is called LTPD.
Statistical Quality Control in Services
Statistical quality control (SQC) tools have been widely used in manufacturing organizations for
quite some time. Manufacturers such as Motorola, General Electric, Toyota, and others have
shown leadership in SQC for many years. Unfortunately, service organizations have lagged
behind manufacturing firms in their use of SQC. The primary reason is that statistical quality
control requires measurement, and it is difficult to measure the quality of a service. Remember
that services often provide an intangible product and that perceptions of quality are often highly
subjective. For example, the quality of a service is often judged by such factors as friendliness
and courtesy of the staff and promptness in resolving complaints. A way to measure the quality
of services is to devise quantifiable measurements of the important dimensions of a particular
service. For example, the number of complaints received per month, the number of telephone
rings after which a response is received, or customer waiting time can be quantified. These types
of measurements are not subjective or subject to interpretation. Rather, they can be measured and
recorded. As in manufacturing, acceptable control limits should be developed and the variable in
question should be measured periodically.
Another issue that complicates quality control in service organizations is that the service is often
consumed during the production process. The customer is often present during service delivery,
and there is little time to improve quality. The workforce that interfaces with customers is part of
the service delivery. The way to manage this issue is to provide a high level of workforce
training and to empower workers to make decisions that will satisfy customers.
COST OF QUALITY- The Costs associated with quality ( for ensuring quality and the cost of
poor quality) is called the cost of quality. There are four broad categories of cost of quality1. Prevention
2. Appraisal
3. Internal failure
4. External failure

Operations Management Notes ( Pvt Circulation Only)

Compiled by Santhosh.S, Associate Professor, SCMS Cochin

Module V
1. Prevention Cost The cost incurred to prevent a quality failure is prevention cost. It
includes cost of training, planning, designing, equipping a quality control program, cost of
measurements, vendor certification, equipment maintenance etc.
2. Appraisal Cost Cost of evaluating, measuring, or inspecting for quality at plant or at the
field is the appraisal cost. It is cost of inspection, testing, and other tasks to ensure that the
product or process is acceptable.
3. Internal Failure cost- Costs attributable to errors and defects in production at plant. Cost for
defects incurred within the system: Scrap, rework, repair.
4. External Failure cost- Costs for defects that pass through the system: Customer warranty,
replacements, loss of customer or goodwill, handling complaints and product repair.
The following topics please consult your assignment write up and do an independent study
ISO 9000 CERTIFICATION
TOTAL QUALITY MANAGEMENT
TPM

Operations Management Notes ( Pvt Circulation Only)

Compiled by Santhosh.S, Associate Professor, SCMS Cochin