Unit-3- Managing of Work Environment: – Automation --Technology Management -

Waste Management. Quality Assurance and Quality circles– Statistical Quality Control –
Control Charts for Variables- Control charts for Attributes. Acceptance Sampling Plans
Automation (Meaning): It is the use of computers and other automated machinery for
the execution of business related tasks. It includes right from simple sensing devices to robots
and other sophisticated equipment. It helps in reducing the production time, increase
manufacturing, flexibility, reduce costs, eliminate human error and labour shortage problems.
Definition: According to M.H.Arousan,” Automation is a substitution of mechanical,
hydraulic, electrical and electronic devices for human organs of decisions and efforts”.
According to Ruddlerl Read, “Automation is nothing more than the extension of principles of
mechanisation to the integration of machines one with another in such a manner as to have the
group operate as an individual processing and controlling units.”
Need and importance of Automation: The following are the reasons for need and
importance of automation:

1. Facilitates efficient and detailed information through the use of computers

2. Ensures speedy recording, processing and presenting of information
3. Increases the volume of work, scarcity of time and reduces the manual process
4. Facilitates better quality of work by reducing errors created by manual work.
5. Achieves greater accuracy and speed through the use of automation.
6. Increases the goodwill and reputation of the firm because automation adds to the
prestige and status of the firm.
Scope of Automation: The following are the reasons:
1. Leads to increase in productivity: It increases speed of work and reduces the
consumption of time taken for production of products.
2. Improved quality: The quality of goods produced is better when there is
automation of goods passes through definite process till it comes out as finished
goods.
3. Reduction of cost per unit: It results in reduced total cost per unit of output.
When the goods are produced in a bulk cost per unit will be low. Since labor is not
involved, labor cost can also be saved.
 4. Ensures high safety: Since labor does not intervene in production working on
machines which all otherwise dangerous can be avoided. Proper safety measures are
incorporated by introduction of automation.
5. Complex decision: Automation helps to take complex decisions with ease.

6. Handling monotonous jobs: It helps in handling the boring and monotonous

jobs effectively and efficiently.
7. Lesser accidents: In automation accidents are very less as the machine will
perform its jobs as per instructions.
8. Less scrap: The scrap and wastage will be less as the machine will perform as
intended.
9. Less rework: When there are no defects, then there will be less or no rework

Types of Automation: Automated production systems can be classified into three basic
types:
1. Fixed Automation: It is a system in which the sequence of processing (or assembly)
operations is fixed by the equipment configuration. The operations in the sequence are
usually simple. It is the integration and coordination of many such operations into one piece
of equipment that makes the system complex. The typical features of fixed automation are:
a. High initial investment for custom–Engineered equipment;
b. High production rates; and
c. Relatively inflexible in accommodating product changes.
The economic justification for fixed automation is found in products with very high demand
rates and volumes. The high initial cost of the equipment can be spread over a very large
number of units, thus making the unit cost attractive compared to alternative methods of
production. Examples of fixed automation include mechanized assembly and machining
transfer lines.
2. Programmable Automation: In this the production equipment is designed with the
capability to change the sequence of operations to accommodate different product
configurations. The operation sequence is controlled by a program, which is a set of
instructions coded so that the system can read and interpret them. New programs can be
prepared and entered into the equipment to produce new products. Some of the features that
characterize programmable automation are:
a. High investment in general-purpose equipment;
 b. Low production rates relative to fixed automation;
c. Flexibility to deal with changes in product configuration; and
d. Most suitable for batch production.
Automated production systems that are programmable are used in low and medium volume
production. The parts or products are typically made in batches. To produce each new batch
of a different product, the system must be reprogrammed with the set of machine instructions
that correspond to the new product. The physical setup of the machine must also be changed
over: Tools must be loaded, fixtures must be attached to the machine table also be changed
machine settings must be entered. This changeover procedure takes time. Consequently, the
typical cycle for given product includes a period during which the setup and reprogramming
takes place, followed by a period in which the batch is produced. Examples of programmed
automation include numerically controlled machine tools and industrial robots.
3. Flexible Automation: It is an extension of programmable automation. A flexible
automated system is one that is capable of producing a variety of products (or parts) with
virtually no time lost for changeovers from one product to the next. There is no production
time lost while reprogramming the system and altering the physical setup (tooling, fixtures,
and machine setting). Consequently, the system can produce various combinations and
schedules of products instead of requiring that they be made in separate batches. The features
of flexible automation can be summarized as follows:
1. High investment for a custom-engineered system.
2. Continuous production of variable mixtures of products.
3. Medium production rates.
4. Flexibility to deal with product design variations
 (or)
Types of Automation: The following are the types of automation:
1. Numerically Controlled (NC) Machines: It uses computers to store,
calculate and execute operations that are performed by hands. Eg: computerized
numerical controlled mills.
2. Industrial Robots: It also helps in higher quality parts, reduced cycle times and
increases savings. They can work 24/7 to keep up the industrial demands. They can be
suitable to work in an environment which may be dangerous to humans. They perform
tasks like welding, material handling, assembling etc.,
3. Flexible manufacturing systems (FMS): It is a combination of NCM, IR and
other types of automation into one automation system. It produces similar products
and parts but maintains flexibility to change parts or processes.
4. Computer aided manufacturing (CAM): It uses computers in different
functions of production planning and control. It also includes computer aided process
planning (CAPP), group technology (GT), and production scheduling, manufacturing
flow analysis.
5. Support automation: It refers to the software packages which focuses on the
routine work of help desk personnel. It includes CAM, knowledge base applications
for self service etc.,
6. Run book automation: They define a set of items along with work flows through
GUI. It offers connectors and interfaces to existing items suitable for the user.
 7. Policy based automation: This type of automation works on the basis of term
policy for the rules management. They provide a rich set of features for designing and
managing policies.
8. IT-Workload automation: They allow the processing of job scheduling for
improvement and automate recurring tasks. They offer multi-platform compatibility,
policy based execution etc.,
9. Data center automation: This is the fastest growing area in the recent world. It
helps in bringing the high demand for automated tools to provision, change and
manage vast number of components.
Different types of Automation Tools: The following are the different types of tools:
1. Artificial Neural Network (ANN): It is also called as neural network. It is a
mathematical model or computational model inspired by structure / functional aspects
of biological neural network. It consists of inter connected group of artificial neurons
and information for computation.

2. Distributed Control system (DCS): It is the control system for manufacturing

and processing any kind of system in which the controller elements are not central in
location but distributed throughout the system. But they are connected by networks
for communication and monitoring.

3. Human Machine Interface (HMI): It is the interface in which the interaction

between the human and the machine occurs. It is to have effective operation and
control machine, feedback from the machine for making operational decisions.

4. Supervisory control and data acquisition (SCADA): It refers to the

industrial control system, computer systems that monitor and control industrial,
infrastructure and other facility based processes.

5. Programmable logic controller (PLC): It is a digital computer used for

automation of electro mechanical processes like control of machinery, light fixtures,
amusement rides etc., it helps in extended temperature, immunity to electrical noise,
resistance to vibration etc.,

6. Programmable automation controller (PAC): It is a compact controller

that combines the features and capabilities of a PC based control system with typical
programmable logic controller. It is used for process control, data acquisition, remote
equipment monitoring, and machine vision and motion control.
 7. Instrumentation: It is defined as the art and science of measurement and
controlling of process variables within a production or manufacturing area. It is a
device that measures and regulates physical quantity/process variables such as flow,
temperature, pressure etc.,

8. Motion control: It is a sub-field of automation. It is the position or velocity of

machines which are controlled using some types of devices like linear actuator,
electric motor etc., it is an important part for robotics.

9. Robotics: It is a branch of technology that deals with design, construction,

operation, structural disposition, manufacture and application of robots and computer
systems for controlling, sensory feedback and information processing.
Advantages of Automation: The following are the advantages:
1. Increases output and productivity: It increases the speed of work and reduces
the consumption of time taken for production of products. Since there is no intervention
of lab or involved the goods passes from one process to another, smoothly and quickly.
2. Improves and enhances quality: The quality of goods produced is better when
there is automation .the goods pass through definite process till it comes out as finished
goods. Thus, there is an increase in the quality of goods produced.
3. Consistency and uniformity in quality: The products produced are identical in
nature. Since all the raw materials are fed into the machines the finished goods are
uniform in nature which is very important from the point of view of satisfying the
customers.
4. Reduction in cost per unit of output: Automation results in reduced total cost
per unit of output. When the goods are produced in a bulk cost per unit, will be low.
5. Lesser industrial accidents: Automation eliminates the use of labour force.
Hence the number of accidents to workers is eliminated to a greater extent.
6. Better production control: The speed of production increases the productivity.
Since no labour is involved control on production is easier. The machines are arranged
in such a sequence that raw materials pass from one process to another without human
intervention. Thus, production can be controlled.
7. Ensures high safety: Since labour does not intervene in production working on
machines which all otherwise dangerous can be avoided. Proper safety measures are
incorporated by introduction of automation.
 8. Reduces labour problem: Goods are produced without the involvement :of men
hence labor problems are eliminated.
Disadvantages of Automation: The following are the disadvantages:
1. Heavy capital investments: Automation involves heavy capital investment. The
cost of capital, power consumption etc. increases tremendously.
2. Displacement of labour: Replacement of workers by machines affects the
morale of workers.
3. Benefit of employee suggestion lost: Labour being displaced the benefits of
suggestion from employee is lost. High cost of depreciation: Since automation
eliminates labour, machines are used instead of labour. Machines tend to depreciate
every year. Therefore, depreciation is high in automation.
4. Not suitable for small firm: Since heavy investments are required in the
automated plants, it is not suitable for small industries. Moreover, the expenses
involved like power, consumption, depreciation etc. are very high
5. Lack of ready market: Automation results in increased production. If increased
production does not find a ready market, the pieces will fall and results will be
disastrous.
6. Unemployment problem: Automation poses certain peculiar problems for
developing countries. These countries are characterized by a high rate of
unemployment scarcity of foreign exchange shortage of highly skilled personnel,
shortage of capital etc.
Technology Management: Technology management can also be defined as the
integrated planning, design, optimization, operation and control of technological products,
processes and services, a better definition would be the management of the use of technology
for human advantage.
Technology management is a set of management disciplines that allows organizations to
manage their technological fundamentals to create customer advantage.
Integration of Technology with Production System: Technology drives efficiency
in organization and increases’ productivity of the organization. However, bringing
technology in the production system is highly complex process, and it needs to following
steps:
1. Technology Acquisition: technology acquired should align with overall
objectives of the organization and should be approved after elaborate cost-benefit
analysis.
2. Technology Integration: technology affects all aspects of production i.e. capital,
labour and customer. Therefore, a solid technology integration plan is required.
3. Technology Verification: once technology integrated, it is important to check
whether technology is delivering operational effectiveness and is been used to its
fullest.
Technology in Manufacturing and Design: Technology is getting extensively used
in customization of design products and services. The usage of computers and supporting
electronic systems is integral part of modern industrial and services industry. Current
techniques can be broadly classified into following categories:
1. Computer-Aided Design (CAD): CAD facilitates linking of two more complex
components of design at very high level of accuracy thus delivering higher
productivity.
2. Computer-Aided Manufacturing System (CAM): Precision is very
essential in operating any machines and therefore, Computerized Numerically
Controlled machines are used, thus ensuring highest level of accuracy.
3. Standard for the Exchange of Product Data: As the name suggests product
design is transmitted among CAM and CAM in three dimensions. Standard for The
Exchange of Product Data process sharing of product across all phases of product life
cycle and serves as neutral file exchange.
Impact of Technology Management on POM: In last few years, technology has
changed the way organization conduct their business. Advent of technology in operation
management has increased productivity of the organization. The scope of technology has
evolved over a period of time and has moved from development of products into design,
management and improvement of operating system and processes. Over the years, advances
in technology have transformed key aspects of operations management. New tools and
technologies have been incorporated into the design and operation of service and production
systems.
Usage of technology in operation management has ensured that organizations are able to
reduce the cost, integrate suppliers with the organization, improve the delivery process,
standardize and improve quality and focus on customization, thereby creating value for
customers. Areas of major impact have been discussed below:
1. Supply Chain Management: A well-managed supply chain links the suppliers,
manufacturers, distributors and customers by a suitable information system for
controlling across boarder in order to achieve optimum productivity, overall satisfaction
and joyful relation at cheaper cost. Quick and effective information system helps
manager to understand the customer response, their demands, inventory in the stock, how
much to be produced and where to deliver and when to deliver? Here comes the role of
internet, which is considered as a cheapest inter-organizational information system,
which helps in aligning the interdependent strategies to achieve co-operative rather than
competitive role of supply chain management partners. To achieve integration and
effective information sharing across and beyond the organizations, IT in SCM is
required. The organisations are moving towards the virtual supply chain with help of
rapid changes in technology and IT applications viz; EDI, RFID, barcode, e-commerce,
DSS, ERP package etc., It is also easily applicable in curbing the e-risks.
2. Reduction in costs: It is possible to gather data of costs of materials from various
sources and also to compare it in real time. No longer does one have to carry out a
manual search for sources, call for quotations or wait for replies in a slow postal system.
The internet gives access to ready information across the globe and materials can be
obtained from the cheapest sources. Similarly, production processes can be performed
globally wherever labour costs or costs of production and operation are the lowest. This
has resulted in the considerable reduction of transaction and operation costs.
3. Customer Relations Management: It is possible to track the preference of every
customer with latest technology that is available. Data about customers can be mined and
systems designed not only to meet customer satisfaction but also offer customer delight.
Greater customization of products is possible. For instance, Dell computers can assemble
and deliver computers according to the specifications suggested by the customer in a
matter of hours.
4. Productivity: The growth of information technology has improved productivity
because of inventions of new tools and software. That makes productivity much easier
and less time consuming.
5. Decision making: Internet-based technologies ensure that timely and accurate
information is available to the decision maker at the right time. This enhances the quality
and timeliness of decisions. Information technology is helping to integrate the supply
system, the production and operations system and the customer. Decisions can be taken
speedily at appropriate levels. A flatter organizational structure is emerging where
authority can ne delegated rather than following a strictly hierarchical chain of
command.
6. Globalization: Today, operations can be spread globally. Business process
outstanding(BPO) is a common feature. Operations are carried out globally in such a
manner that costs are reduced. For instance, credit card companies and banks are
outsourcing all their telemarketing and related operations to India because Indian labour
is cheaper than the labour in USA or Europe. Information technology has made this
possible.
7. New business processes: New and efficient business process are evolving because
of information technology. Designs can be developed by different people working from
different places. In the developed countries, there is a marked shift to the provision of
knowledge based services than manufacturing.
Waste Management: Waste management is the actions and activities that are taken to
manage the waste from its inception until its disposal and the time between its inception and
disposal includes many stages; collection, transport, sorting, and treatment of waste while
monitoring it.
Waste management is the collection, transport, processing or disposal, managing and monitoring of
waste materials. Waste management is a distinct practice from resource recovery which focuses on
delaying the rate of consumption of natural resources
Sources of Waste: The seven main sources of waste are:
1. Overproduction: Producing sooner or in greater quantities than the customer
actually demands. Overproduction leads to higher storage costs and material losses
(e.g. because food products must be thrown away after a certain shelf time) and
reduces the number of inventory turns. The solution to overproduction is to match
supply and demand as closely as possible.
2. Transportation: Unnecessary movement of people and / or materials between
process steps. Transportation causes costs and production delays and thus often
reduces the overall efficiency of a process (e.g. peeling crabs caught in the North Sea
in Africa before shipping them back to Europe). The best way to reduce transportation
waste is to optimize the process layout (“short ways”).
3. Rework: Correction processes within the main process. Rework is always the result
of a failure to do something right in the first place. Reworking something creates
double labour costs while not actually producing more, thus productivity is reduced. It
also requires holding additional resources just for reworking, so that normal
production processes are not disrupted by reworking processes. The solution lies in –
very simply put – making it right the first time as wells as in analysing and
subsequently eliminating sources of failure.
4. Over-processing: Doing more than the customer requires, e.g. keeping a patient in
the hospital for a longer period of time than medically absolutely necessary. Over-
processing is a form of waste that might have positive reasons such as workers having
higher standards than the customers or employees being overly proud of their work.
Still, over-processing adds to waste and thus to the reduction of productivity. One
possible solution to this problem lies in the definition of quality and process
standards, to which all employees then have to adhere.
5. Motion: Unnecessary movement of people or parts within a process (similar to #2
but on a smaller scale), e.g. an office worker having to switch rooms every couple of
minutes because the files are stored in different cabinets. One solution to this problem
lies in optimizing the layout of workspaces (ergonomic design) in order to minimize
unnecessary motion.
6. Inventory: Too many flow units in the system. Inventory has already been
discussed at length during the first week. It is by far the biggest source of waste in
most companies and costs a lot of money because inventory requires costly storage
space and drives down inventory turns. Possible solutions include “on time”
production schemes and the reduction of so-called “comfort stocks”.
7. Waiting: Employees or resources just sitting around waiting for something to
happen, e.g. for a meeting to start, a customer to call or a customer waiting to be
served. Per definition, waiting is an unproductive use of time. Waiting waste
includes idle time as well as long flow times.
Types of Waste: The different forms of waste are:
1. Scrap: Scrap is the incidental residue from certain types of manufacture usually of
small account and low value recoverable without further processing. It is unavoidable.
Scrap metal originates just as frequently between businesses and homes as well. The
proper disposal and recycling of scrap metal is typically done by a business or service.
Typically a "scrapped' will advertise his services to conveniently remove scrap metal for
people who don't need it, or need to get rid of it.
2. Surplus: Surplus refers to those materials which are in excess of the reasonable
operational requirements of the concern. These are imperial sells materials and
equipment that are no longer required by the organization. This could range from scrap
metals, warehouse materials and production equipment to entire refineries
3. Spoilage: Spoilage is outcome of materials being damaged in manufacturing operations
in such a way that they cannot be rectified and brought back to normal Specifications. It
can be avoided. It is the term used for materials which are badly damaged in the
Manufacturing operations, and they cannot be rectified economically and hence taken out
of process to be disposed of in some manner without further processing. Spoilage may
either be normal or abnormal.
4. Detectives: Defective work is that portion of production which is below standard
specification or quality and can be rectified by incurring additional expenditure on
material, labour and works overheads known a "rectification cost`.
5. Salvaged items: Salvaged items are those which cannot be put to use for their original
purpose for which they were procured and they have hitherto been used.
Steps in Handling Waste: The following are the steps in handling waste:

1. Evaluate your waste: To be able to handle the waste properly, the company first needs
to determine whether the waste is hazardous or not, and whether handling of that particular
 waste is regulated by legislation. For more information, see: Demystification of legal
requirements in ISO 14001. This step is often called classification or categorization of the
waste.
2. Store your waste: Depending on the type of waste, there will be different requirements
in terms of storage facilities. Waste can be in solid or liquid form, so it is important to
store it according to its characteristics. Hazardous waste must be stored in a sturdy, leak-
proof container that is kept closed when not adding or removing waste. Different kinds of
waste may require different types of storage containers. The container must be labelled
with the words “Hazardous Waste“, a clear description of the contents, and the date when
the waste is first placed in the container. Containers must be stored on an impermeable
surface with enough aisle space to allow for weekly container inspections. Additional
requirements for outdoor storage include:
 Controlling access to the containers
 Protecting the containers from the elements
 Storing containers of liquid waste on a curbed and impermeable surface to
contain accidental leaks.

3. Label the waste: Non-hazardous waste doesn’t have to be labelled in any special way.
On the other hand, hazardous waste labelling is often prescribed by law and in most
countries, the company must obtain a license for even generating some kinds of hazardous
waste. The label for marking packed hazardous waste usually contains the following
information:
 Warning: HAZARDOUS WASTE
 Information about the waste owner who packed the waste: name, address,
telephone, date of packaging, name and surname of the person qualified to be
responsible for that job

 Physical characteristics of the waste: powder, solid, viscous substances, pastes,

sludge, liquid substance, gaseous substances
4. Transport and dispose your waste properly: The company is responsible for its
hazardous waste forever. To help ensure that hazardous waste is transported and disposed
of properly, and to reduce your liability, choose a transporter that fulfils the following
requirements:
 Has a hazardous waste identification number
  Is currently licensed or permitted as a hazardous waste transporter
 Has fulfilled specific training requirements
 Maintains adequate liability insurance
 Carries credentials in the vehicle
 Transports the waste to a permitted hazardous waste facility
5. Plan for emergencies: Handling hazardous waste leaves room for emergency
situations caused by mistreatment of the waste or any other cause. Plan for emergencies in
the following ways:
 Maintain spill and appropriate emergency response equipment in an accessible
area.
 Train employees in the emergency response procedures that are appropriate for
your site.
 To manage your environmental incidents, use this free online tool for ISO
14001 compliance.
6. Train personnel: Training all employees who have any role in handling, storing, or
otherwise managing hazardous waste is a necessary step for ensuring compliance with
hazardous waste rules. Personnel must be familiar with each waste’s hazards, appropriate
safety procedures, and all aspects of compliance. For each of the employees who will be
engaged in any segment of the waste management system, it is necessary to provide
adequate training and working conditions. The training should include an introduction to:
 Basic procedures for waste management;
 Human and environmental risks;
 Measures of precaution in waste management; and
 Responsibilities and authorities.
 In the process of implementing a waste management system, the training should
be conducted by professionals who have worked on the creation of the waste
management plan.
7. Keep records: The purpose of keeping records is to provide evidence that the waste is
stored according to the procedures. The usual records to be kept are the ones of generated
waste by type and amount, and records of waste deployed to an authorized organization.
Methods of Disposal of Waste: The various methods of disposal of waste are as
follows:
 1. Landfill: Disposing of waste in a landfill involves burying the waste, and this
remains a common practice in most countries. Landfills were often established in
abandoned or unused quarries, mining voids or borrow pits. A properly designed and
well-managed landfill can be a hygienic and relatively inexpensive method of disposing
of waste materials. Older, poorly designed or poorly managed landfills can create a
number of adverse environmental impacts such as wind-blown litter, attraction of
vermin, and generation of liquid leach ate.
2. Incineration: Incineration is a disposal method in which solid organic wastes are
subjected to combustion so as to convert them into residue and gaseous products. This
method is useful for disposal of residue of both solid waste management and solid
residue from waste water management. This process reduces the volumes of solid waste
to 20 to 30 percent of the original volume. Incineration and other high temperature
waste treatment systems are sometimes described as "thermal treatment". Incinerators
convert waste materials into heat gas, steam and ash. Incineration is carried out both on
a small scale by individuals and on a large scale by industry. It is used to dispose of
solid, liquid and gaseous waste. It is recognized as a practical method of disposing of
certain hazardous Waste materials. Incineration is a controversial method of waste
disposal, due to issues such as emission of gaseous pollutants.
3. Recycling: Recycling refers to the collection and reuse of waste materials such as
empty beverage containers. The materials from which the items are made can be
reprocessed into new products. Material for recycling may be collated separately from
general waste using dedicated bins and collection vehicles, or sorted directly from
mixed waste streams. The most common consumer products recycled include
aluminium such as beverage cans, copper such as wire. steel food and aerosol cans, old
steel furnishings or equipment, polyethylene and PET bottles, glass bottles and jars,
paperboard cartons, newspapers, magazines and light paper, and corrugated fibre board
boxes.
Advantages and Disadvantages of Waste Management: The following are the
advantages and disadvantages of waste management:
S.n Advantages Disadvantages
o
1 Practice is highly lucrative Process is not always cost-effective
2 Keeps the environment clean and fresh The resultant product has a short life
 3 Saves the Earth and conserves energy Needs More Global Buy-In
4 Reduces environmental pollution The sites are often dangerous
5 Waste management will help you earn Practices are not done uniformly
money
6 Creates employment Waste management can cause more
problems
Quality Definition: Quality is the degree of excellence at an acceptable price and the
control of variability at an acceptable cost.
Quality is the totality of features and characteristics of a product or service that bear on its
ability to satisfy given needs.
Quality Assurance: Quality Assurance Contains all those planned and systematic
activities needed to provide adequate confidence that a product/service would satisfy given
requirements for quality.
Quality assurance (QA) is the process of verifying whether a product meets required
specifications and customer expectations.
In this way ‘Quality Assurance’ consists of all those planed and systematic activities essential
to provide adequate confidence that a product/service will provide satisfaction when asked to
perform. Quality control is part of quality assurance. Quality assurance serves the following
purposes:
1. To assure that all is fine e.g.
i. The procedures being adopted.
ii. The process adopted is normal.
iii. The product is fit for the use.
2. To provide with early warning if all is not well and some corrective action is required.
The warning recipient can take preventive action to avert any loss.
Principles of Quality Assurance: The following are the principles:
1. Customer focus: The customer is always the most important factor for any business,
which is why organizations need to understand current and future customer needs and aim
to surpass expectations. Quality assurance relies on researching and understanding the
customer’s needs and ensuring that the organizations objectives are in line with those
expectations. A quality management system needs to be in place to manage customer
relationships and communicate those needs across the organisation.
2. Leadership: Quality assurance principles also suggest that an organisation needs
leadership in order to have purpose and direction. Quality assurance relies on a business
 having a clear vision of the future – a vision which should consider the needs of all
relevant parties including customers, directions, employees, local community etc. Good
leadership within an organisation should establish trust and remove fear, whilst
encouraging and recognizing employee’s contributions.
3. Involvement of people: An organisation needs to be able to put quality management
training into practice. People at all levels of the business need to be motivated, committed
and fully involved in the organisation. This principle of quality assurance involves people
evaluating their own performance and identifying their constraints, as well as actively
seeking opportunities.
4. Process approach: ISO 9001 training encourages that in order to achieve a desired
result, resources and activities should be managed as a process. The process should focus
on resources, methods and materials which affect the key activities within a business. In
order to maintain quality assurance within a service or product, risks, consequences, the
impact on customers and suppliers and other relevant parties should be continuously
evaluated.
5. System approach to management: Quality assurance training demonstrates how to
create a structured system which is designed to achieve the organizations aims and
objectives using the most effective and efficient methods. Quality management system
training should provide a better understanding of the roles and responsibilities necessary
for achieving those objectives and should be continually improved by evaluating and
measuring its performance.
6. Continual improvement: Another quality assurance principle is that continual
improvement should always be an objective for any business. To maintain quality
assurance, it is essential to provide people with the necessary tools and knowledge for
continual improvement. Continual improvement of products, processes and systems
should be promoted as an objective for every employee throughout all levels in the
organization.
7. Factual approach to decision making: This quality assurance principle simply
ensures that decisions are based on analyzed data and information. To comply with this
quality management standard, data and information should be accurate and reliable,
accessible to those who need it and analyzed using valid methods.
8. Mutually beneficial supplier relationships: The Quality management standard
ISO 9001 encourages organizations to create mutually beneficial relationships with its
 suppliers. These mutually beneficial relationships allow the organization to benefit from
optimized costs and resources, clear and open communication and being able to share
knowledge and plans on market changes and consumer expectations.
Quality Assurance Standards: There are four models of quality assurance standards:
1. ISO-9001 Quality System: This model is for quality assurance in
design/development, production, installation and servicing. This standard specifies quality
system requirements for use when a contract between two parties requires a demonstration
of the supplier’s capacity to design or develop a product, produce and install and to ensure
after sales service.
2. ISO-9002 Quality System: This model is for quality in production and installation.
This standard is applicable in situations where the specified requirements of products are
stated in terms of established design or specifications. Confidence in product quality can
be obtained by adequate demonstration at the supplier’s capabilities in production,
installation and service.
3. ISO-9003 Quality System: This model is for quality assurance in final inspection
and testing. This standard is used for external quality purposes. It is suitable for two-party
contractual purposes, where conformance to specified requirements is to be assured by the
supplier solely at final inspection and testing.
4. ISO-9004 Quality System: This model is for providing guidance on the technical,
administrative and human factors affecting the quality of products and services at all
stages of the quality loop from detection of need to the customer’s satisfaction.
Throughout this standard, emphasis is placed on the satisfaction of customer’s need, the
establishment of functional responsibilities and the importance of assessing the potential
risks and benefits.
Steps in Quality Assurance: The following are the steps in quality assurance:
Step 1: Identify Organizational Goals: The process of quality assurance starts by
defining how employees’ jobs are tied to your company or organizations goals. Employees
need to know the organization’s mission, vision, values, how they relate to the company and
their role in it. All new employees should receive a thorough orientation with regards to the
company’s vision, mission, values and goals. Knowing their individual goals and how it
relates to the organization’s goals is the first step in the process of quality assurance.
Step-2: Identify Critical Success Factors: The factors that make an
organization’s quality assurance system successful should be identified. These factors can be
a well-designed production process, great product, technical support, customer support,
financial security, or employee satisfaction. Make a list of the primary factors that influence
the process of quality assurance in order to continuously and consistently manage those
factors.
Step-3: Identify Internal and External Customers: Identify the key groups
of customers that make your quality assurance system work. Knowing these customers and
their needs can help you develop programs and services for these people.
Often customers are vendors, suppliers, employees, volunteers or direct customers.
Step-4: Customer Feedback: Customer feedback is essential in the process of quality
assurance. Consistent customer feedback enables organizations to detect and solve quality
problems before it become a serious issue.
 Customer feedback could be obtained through regular customer surveys, by phone,
email, focus groups or in person.
 Calling customers after they buy a product or use a service is an easy feedback
mechanism to determine customer satisfaction.
 Another method to consider is in-person surveys directly after the work or product is
delivered.
 An important method of monitoring customer satisfaction (dissatisfaction) is to
review customer complaints and Returned Products.
Whatever method your organization use, the objective is continuous feedback from
your customers to ensure a successful process of quality management.
Step-5: Implement Continuous Improvements: Quality assurance is synonymous
with continuous improvement. The results or information gleamed from an organization’s
survey or other customer feedback tools must now be used to make the necessary changes to
the quality assurance process.
Step-6: Select Quality Management Software: Select quality assurance
software that not only helps you to implement a quality assurance process, but also helps you
to maintain and improve the process.
Step-7: Measure Results: Though there may be many reasons for implementing a
process of quality assurance, one of your main goals is to ensure your organization meets the
needs of your customer. When an organization does not reach this goal, it is difficult to show
a positive ROI and the existence of the organization is brought into question.
Quality Circles: Quality circle is a small group of employees in the same work area or
doing similar type of work who voluntarily meets regularly for about an hour every week to
identify, analyse and resolve work related problems. The objective is to improve quality,
productivity and the total performance of the organisation and also to enrich the quality of
work life of employees.
Objectives: The three major aspects of quality circle programme are “Motivation,
Participation and Recognition”. Job satisfaction and team work are two driving forces behind
all motivation activities. The quality circle encourages each individual to develop to the limit
of his ability. It facilitates an employee to satisfy his self-esteem requirements and supports
his ago with well-earned recognitions.
The main objectives of quality circles are listed below:
1. To enable employees to develop by using their skills/knowledge.
2. To satisfy the need of human beings with respect to self-development , achievement
and recognition.
3. To improve communication in the concern.
4. To develop the concern by improving quality and productivity.
5. To reduce the cost of products.
6. To fully use human resources of the organization by bringing out their talent.
7. To identify and solve work related problems.
8. To increase loyalty/ commitment of the employees towards the concern.
9. To elevate the attitude and confidence of employees.
Characteristics of Quality Circles:
1. Membership is purely Voluntary
2. Group should consist of 5 to 10 members
3. Membership is drawn from the people who are doing similar work or from same
work area.
4. Group selects the problem to be tackled.
5. Leadership is formed from within the group but it is usually the supervisor
6. The group members are trained in communication, problem solving, quality control
techniques and group processes.
7. The group recommends solutions to management and where possible has authority to
implement agreed solutions.
Features of Quality Circles: The following are the features of quality circles:
1. People Building Philosophy: A quality circle is a homogeneous group. The
number of employees in a quality circle is between six to ten and they generally come
from a particular area. It consists of small group of persons who normally work at the
same place and perform similar work. Every member and the management have the
sincere desire to help others to grow and develop. They must look out for the
development and growth of everyone working in the organisation.
2. Voluntary Group: No coercion or pressure is brought on any member to join or not
to join. Nor can any member be barred from joining quality circles. Quality circles are
voluntary associations of persons having common cause. Members must understand that
quality circles are formed for their benefit—they are completely free to take or not to
take advantages of it.
3. Participative Program: Quality circles represent collective effort. Every one
working in the organisation must get a chance to say what is in his mind. Everyone
should have interest and value for the projects chosen for quality circles. The circle as a
whole should receive recognition for any achievements accomplished by it.
4. Supportive Management: Quality circles need the encouragement to grow and
mature. Management must be willing to give support, advice and also some commitment
in the beginning. Members normally meet once in a week for about one hour in
consultation with the manager. Each quality circle is managed by an elected leader and
the manager/supervisor may act as the leader.
5. To Improve the Performance: Collective and participative efforts must result in
 the improvement of quality, productivity and performance. Cost and wastage must be
reduced as a result of quality circles. The whole organisation must gain both
quantitatively as well as qualitatively.
6. Enrichment of Work life: Apart from team culture and attitudinal changes, the
quality circles must result in improved working environment, happier relations and
greater job satisfaction.
7. To Identify and Resolve Work Related Problems: Members of quality circles
identify their problems through brainstorming sessions. Then they start analysing the
problems through statistical quality control techniques and problem solving methods. A
unique feature of Quality Circles is that they do not pass on the decision without
interacting with other levels of functional agencies.
Techniques of Quality circles: The following are the techniques:
1. Brainstorming Processes: Under these techniques a complete and free
environment is created where employees can voice all their worthy and stupid ideas.
All these ideas are recorded seriously. This technique is useful to generate as many
ideas as possible. Later, the plus and the minus points of each idea are discussed before
taking final decision.
2. Cause and Effect: Members are asked to find out the causes for the identified
problem. In this process they identify one important effect of this cause on the problem.
Then they identify other causes and their effects. Charting out of those causes and
effects resembles a fish bone diagram.
3. Sampling and Charting Methods: The quality circles observe the events and
their consequences in the form of positive or negative results. They chart out all their
observations either in sequence or in some other relationship, which gives a clear idea
of the problem. These techniques will work effectively in attaining objectives only
when the organization structure of the quality circle is sound and systematic. The
following chart explains the various stages/steps in the process of quality circle and
techniques used by the business organization in the present competitive and global
word.
Benefits of Quality Circles: The following are the benefits:
1. Self-Development: Every person who joins the quality circle program gets training to
enhance his knowledge and skills. Training helps them to improve their abilities and
promote success in other areas of life also. Quality circles are formed in those areas
 where people can work in a group.
2. Job Satisfaction: People get a sense of pride when opportunities are given to them to
use their ideas and brain power. They get a sense of achievement and satisfaction when
their ideas are considered and executed. They work with more enthusiasm while
performing their jobs.
3. Reduction of Waste: Quality can be achieved by cutting down the waste in material,
labour and time. By working together and helping each other, these wastages can be
avoided. By reducing/avoiding the waste, the cost of operations can be brought down
considerably.
4. Improvement of Quality: A quality circle is one of the best answers to solve
problems and improve the quality image. Improving quality is a never-ending job. There
is always a scope for further improvement. Consumers constantly demand better quality
and a business has to come up to the expectations of consumers in order to survive and
grow in the competing market.
5. Improvement of Communication: Good communication is very important for a
working life. Quality circles improve communication through group activities which take
place frequently. Poor communication can cause dissatisfaction and undue tension. It can
lead to misunderstandings and confusion due to the mis-interpretation of the messages.
In quality circles, people become more open-minded, they talk more about their
problems and develop a positive working atmosphere.
6. Improve Participation: Membership in a quality circle means a participative
environment—an interaction with the work group. Participation encourages commitment
of the employees in producing quality goods. The involvement of everyone working in
the organisation gets involved and improve the operations of the enterprise. Everyone
from top to bottom works towards a common goal i.e., success through quality.
7. Improvement in Productivity: Quality circles have proved to be a valuable tool
for increasing the productivity and improving the work quality by enhancing worker’s
participation and job- satisfaction. Reduction of costs and elimination of waste/rejects
also contribute towards the improvement in productivity. Japan, Germany and France are
ahead of many industrial nations due to their adoption of quality circles as a means to
improve their productivity.
8. Problem Solving Opportunities: An excellent opportunity to solve many work
problems is provided by quality circle programs. People get a chance to get together and
 think about their problems and then try to solve them through this program. People get
more satisfaction when the ideas generated by them are used to resolve the organisational
problems and conflicts.
9. Team Spirit: A sense of team-spirit is inculcated among the group members working
in the quality circles. While working with each other, a feeling of togetherness is created.
They start helping each other. They start talking about business and other problems
during lunch time. The teams become a strong force to combat growing competition and
inflationary problems.
10. Reducing Absenteeism and Grievances: Various studies have proved that there
has been a remarkable reduction in absenteeism in the quality circle departments. People
start enjoying the work and they prefer to come to the job rather than sitting at home. By
linking all kinds of people together, the grievances of many employees get reduced. They
start spending their time and energy on higher productivity and better quality by setting
aside their minor differences. Thus, quality circles help many companies in reducing
their absenteeism and industrial grievances.
Limitations of Quality Circles: The following are the limitations of quality circles.
1. Resistance: In many companies, there is resistance on the part of employees to
implement quality circles. People resist change fearing that they might have to treat
people differently or listen to them more carefully. The wrong notions of the people
about quality circles need to be cleared. People must understand the basic principles
and techniques of quality circles to make the operation smoother.
2. Lack of Time: Many people feel that they are already so busy for their routine jobs
and have no time for quality circle work. They have no time to work harder for the
company. But they need to understand that by giving little extra time in the beginning,
they are saving money, avoiding wastage and improving quality by implementation of
quality circle program.
3. Lack of Ability: Workers in India have a low level of education and initiative.
People dislike change and hesitate to try something new. They need to be educated
about the benefits of quality circles.
4. Lack of Management Commitment: The success of any program depends
upon the commitment and support of the top management. Without the top support,
employees will be least interested in devoting their personal time to the quality
circles. On the other hand, employees may not be allowed to hold meetings of quality
 circles during the working hours. So the work of quality circles cannot be conducted
smoothly without the participation and commitment of the top management.
5. Non-Implementation of Suggestions: Employees get disheartened if their
suggestions are turned down by the top management. The suggestions of each quality
circle need to be given due weightage, otherwise the enthusiasm of employees will
come down. Every suggestion likely to improve the quality of work must be
implemented by the top management in the right perspective.
6. Negative Attitude: Negative attitude of the people that ‘why should I help my
company’ is also a big hindrance in the smooth work of quality circles. Many people
feel that company is something apart and close the doors of initiative and creative
ideas to improve the quality and productivity of their company.
Statistical Quality Control: Statistical quality control is defined as the technique of
applying statistical methods based on the theory of probability and sampling to establish
quality standard and to maintain it in the most economical manner.
Elements of SQC: The following are the main elements of SQC:
1. Sample Inspection: We know that 100% inspection needs huge expenditure of
time, money, labour and resources. Further, if the nature of the product is such that it
is completely destroyed during the process of inspection, e.g., a bulb, candle,
ammunition, food, etc., 100% inspection is not practicable. Therefore, SQC is based
on sampling inspection. In sampling inspection method, some items or units (called
sample) are randomly selected from the process and then each and every unit of the
sample is inspected.
2. Use of Statistical Methods: Some commonly used statistical tools such as
random sampling, mean, range, standard deviation, mean deviation, standard error
and concepts such as probability, binomial distribution, Poisson distribution, normal
distribution, etc., are used in SQC. Since, quality control method involves extensive
use of statistics, it is termed as Statistical Quality Control.
3. Fundamental Objective: The fundamental objective of SQC is to decide
whether the unit produced is according to its specifications or not. If the unit produced
is not according to its specifications and there is a variation in quality, it becomes
necessary to trace the causes of variation and eliminate them if possible.
4. Decision Making: With the help of SQC, we decide whether the quality of the
product or the process of manufacturing/producing goods is under control or not.
 5. Specifications, Production and Inspection: SQC method helps in deciding
about the specifications, production and inspection of a product.
Techniques of Statistical Quality Control: The important techniques used for
statistical quality control can be broadly classified into two categories:

1. Statistical Process Control (SPC) or simply Process Control

2. Product Control.
These techniques are further classified into different categories as shown in figure:

Techniques of SQC

Process Control Product Control

Control Charts Acceptance Sampling

Variables Attributes Variables Attributes

P Chart
X bar Chart
np Chart
R Chart
C Chart

Statistical Process Control (SPC): Statistical process control is a technique used for
understanding and monitoring the process by collecting data on quality characteristics
periodically from the process, analysing them and taking suitable actions whenever there is a
difference between actual quality and the specifications or standard. Its major tools are:

1. Histogram
2. Check sheet
3. Pareto chart
4. Cause and effect diagram
 5. Process flow diagram
6. Scatter diagram
7. Control chart
Of these seven tools we shall describe only the technique of “control chart” given by W.A.
Shewhart in 1924 because it is the most preferred technique today. In fact, it is probably an
outstanding technique for controlling and improving quality. We introduce the basics of
control charts.
Control Charts: A control chart is a two-dimensional graphical display of a quality
characteristic that has been measured or computed in terms of mean or other statistic from
samples and plotted against the sample number or time at which the sample is taken from the
process.
The concept of control chart is based on the theory of sampling and probability. In a control
chart, a sample statistic of a quality characteristic such as mean, range, proportion of
defective units, etc. is taken along the Y-axis and the sample number or time is taken along
the X-axis. A control chart consists of three horizontal lines, which are described below:

1. Centre Line (CL): The centre line of a control chart represents the value which can
have three different interpretations depending on the available data. First, it can be the
average value of the quality characteristic or the average of the plotted points. Second, it
can be a standard or reference value, based on representative prior data or an aimed
(targeted) value based on specifications. Third, it can be the population parameter if that
value is known. The centre line is usually represented by a solid line.

2. Upper Control Line: The upper control line represents the upper value of the
variation in the quality characteristic. So, this line is called upper control limit (UCL).
Usually, the UCL is shown by a dotted line.

3. Lower Control Line: The lower control line represents the lower value of the
variation in the quality characteristic. So, this line is called lower control limit (LCL).
Usually, the LCL is shown by a dotted line.
Interpretation of UCL and LCL: The UCL and LCL also have three interpretations
depending on the available data same as the centre line depends on the 3 sigma limits:
 1. If all sample points lie on or in between the upper and lower control limits, the control
chart indicates that the process is under statistical control. That is, only chance causes
are present in the process. No assignable cause is present in the process.

2. However, if one or more sample points lie outside the control limits, the control chart
alarms (indicates) that the process is not under statistical control. Some assignable
causes are present in the process.

3. To bring the process under statistical control, it is necessary to investigate the

assignable causes and take corrective action to eliminate them.
For example,

Types of Control Charts: Control charts can be used to measure any characteristic of a
product, such as the weight of a cereal box, the number of chocolates in a box, or the volume
of bottled water. The different characteristics that can be measured by control charts can be
divided into two groups: variables and attributes.
1. Control chart for variables: It is used to monitor characteristics that can be
measured and have a continuum of values, such as height, weight, or volume. A soft drink
bottling operation is an example of a variable measure, since the amount of liquid in the
bottles is measured and can take 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.
Types of Control Charts for Variables: There are two types:

a. Mean (x-Bar) Charts: A mean control chart is often referred to as an x-bar chart. It
is used to monitor changes in the mean of a process. To construct a mean chart we first need
to construct the center line of the chart. To do this we take multiple samples and compute
their means. Usually these samples are small, with about four or five observations. Each
sample has its own mean. The center line of the chart is then computed as the mean of all
sample means, where _ is the number of samples:
1. It shows changes in process average and is affected by changes in process
variability.
2. It is a chart for the measure of central tendency.
3. It shows erratic or cyclic shifts in the process.
4. It detects steady progress changes, like tool wear.
5. It is the most commonly used variables chart.
6. When used along with R chart:
a. It tells when to leave the process alone and when to chase and go for
the causes leading to variation;
b. It secures information in establishing or modifying processes,
specifications or inspection procedures;
c. It controls the quality of incoming material.
7. X-Bar and R charts when used together form a powerful instrument for diagnosing
quality problems.
b. Range (R) charts: These 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 are the
same as that for x-bar charts. The center line of the control chart is the average range, and the
upper and lower control limits are computed. The R chart is used to monitor process
variability when sample sizes are small (n<10), or to simplify the calculations made by
process operators. This chart is called the R chart because the statistic being plotted is the
sample range.
1. It controls general variability of the process and is affected by changes in process
variability.
2. It is a chart for measure of spread.
3. It is generally used along with X-bar chart.
Plotting of and R charts: A number of samples of component coming out of the
process are taken over a period of time. Each sample must be taken at random and the size of
sample is generally kept as 5 but 10 to15 units can be taken for sensitive control charts. For
each sample, the average value of all the measurements and the range R are calculated.
The grand average (equal to the average value of all the average ) and (is equal to
the average of all the ranges R) are found and from these we can calculate the control
limits for the and R charts. Therefore,
Here the factors , and depend on the number of units per sample. Larger the

number, the close the limits. The value of the factors , and can be obtained from
S.Q.C tables. However, for ready reference these are given below in tabular form:

2.Control Chart 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.
1. It can be a fraction defective chart.
2. Each item is classified as good (non-defective) or bad (defective).
3. This chart is used to control the general quality of the component parts and I
checks if the fluctuations in product quality (level) are due to chance alone.
Plotting of P-charts: By calculating, first, the fraction defective and then the control
limits. The process is said to be in control if fraction defective values fall within the control
limits. In case the process is out of control an investigation to hunt for the cause becomes
necessary

Usually, the Z value is equal to 3 (as was used in the X and R charts), since the variations
within three standard deviations are considered as natural variations. However, the choice
of the value of Z depends on the environment in which the chart is being used, and on
managerial judgment.
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.
Control charts involving counts can be either for the total number of nonconformities
(defects) for the sample of inspected units, or for the average number of defects per
inspection unit.
Defect vs. Defective
• ‘Defect’ – a single nonconforming quality characteristic.
• ‘Defective’ – items having one or more defects.
C charts can be plotted by using the following formulas:

UCL  c  3c

LCL  c 3c
Acceptance sampling: It is a statistical measure used in quality control. It allows a
company to determine the quality of a batch of products by selecting a specified number for
testing. The quality of this designated sample will be viewed as the quality level for the entire
group of products.
Types of Acceptance Sampling Plans: There are 4 types:
1. Single Sampling Plan: In single sampling plan, the decision regarding the
acceptance or rejection is made after drawing a sample from a bigger lot. Inspection is done
and if the defectives exceed a certain number the lot is rejected. Otherwise, the lot is
accepted when the number of defectives is less than the acceptance number.

2. Double Sampling Plans: In this, a

small sample is first drawn. If the number of defectives is less than or equal to the
acceptance number (C1) the lot is accepted. If the number of defectives is more than another
acceptance number (C2) which is higher, then C1 then the lot is rejected. If in case, the
number in the inspection lies between C2 and C1, then a second sample is drawn. The entire
lot is accepted or rejected on the basis of outcome of second inspection.
3. Multiple Sampling Plan: This is an extension of the double sampling plans where
more than two samples are needed to reach a conclusion. The advantage of multiple sampling
is smaller sample sizes.
4. Sequential Sampling Plan: This is the ultimate extension of multiple sampling
where items are selected from a lot one at a time and after inspection of each item a decision
is made to accept or reject the lot or select another unit.