CHAPTER 5

Quality Specification
and Inspection

Instructor: Mr. Rizwan Tanveer malik

THE TRANSFORMATION AND VALUE-
ADDED CHAIN
Customer
Converter Supplier
Customer Supplier
Converter
Converter
Customer Supplier
Each department in organization is responsible to bring continuous improvement in
minimizing cost and controlling process in congruence with organizational goals
and strategies.

Continuous examination of present & future customer needs will help organizations
know their requirements.

Organizations can not accomplish their goals of transformation and value-added
chain unless combine efforts are made by all departments.


OPPORTUNITY TO AFFECT VALUE
1.
Need
recognition
2.
Description
3.
Potential
suppliers
4.
Selection
5.
Receipt
6.
Payment
Acquisition Process Steps
Low
High
Opportunity
to affect
value
By brand
Or Equal
By specification
Physical or chemical characteristics
Material or method of manufacture
Performance
By engineering drawing
By miscellaneous methods
Market grades
Sample
By a combination of two or more methods
METHODS OF DESCRIPTION
EXPLANATION CONT
Descri pti on by brand and trade name i ndi cates a rel i ance on the
i ntegri ty and the reputati on of the suppl i er.

When brand sati sfi es the needs of i ts purchaser as i t promi sed,
purchaser has ri ght to expect same qual i ty fi rst obtai ned i n
addi ti onal purchases of same brand.

REASONS TO DESCRIBE BY BRAND NAME:
When, ei ther manufacturi ng process i s secret or i tem i s covered
by patent.
When i ntangi bl e l abor qual i ty such as ski l l s and experti se can
not be defi ned accuratel y.
When the quanti ty bought by the buyer i s so smal l to make
setti ng of speci fi cati ons.
When testi ng by the buyer i s i mpracti cal due to hi gh expense
i nvol ved.
When buyers have other brand preferences.
BY BRAND
It i s not unusual, parti cularly i n the publ ic sector, to see
requests for quotati ons or bi ds whi ch wi l l speci fy a brand or a
manufacturer s model number fol l owed by the words or
equal.

In these ci rcumstances, the buyer tri es to shi f t the
responsibili ty for establishing equality or superiority to the
bi dder wi thout goi ng to the expense of having detailed
specifications.
OR EQUAL
Physical or chemical characteristics: It defines the properties of
material the purchaser desires, that are necessary for
satisfactory use at the least cost consistent with quality.

Material or method of manufacture: This method is used when
special requirements exist and when the buyer is willing to
assume the responsibility for the result.

Performance & function: A functional specification does not
define the inner workings of the proposed system; it does not
include the specification of how the system function will be
implemented.

DESCRIPTION BY SPECIFICATION
DESCRIPTION BY SPECIFICATION
ADVANTAGES
When a buyer has to purchase or is required to purchase a particular type of goods from more
than one supplier, specifications ensure the identity of goods purchased.

Specifications provide an exact standard to the inspection department of the buyer against
incoming materials can be inspected or measured or tested with great accuracy and this
ensures uniformity in quality of materials purchased.

Specification buying includes more suppliers to bid an offer because all of them know exactly
what is required and they also know what the other suppliers are bidding for.

Specifications may result in simplification of design, reduction in the quantity of materials
used, increasing the productivity, decreasing the cost of production, lower selling price etc.

If the suppliers combine specifications with quality control measures, the buyers have not to
worry much about the testing or inspecting of the products purchased and in such
circumstances buyers money and time both are saved by doing less complete inspection.

Specifications buying is a necessary step towards industry wide standardization that helps a
lot in saving cost.
DISADVANTAGES:

Specifications becomes inappropriate in case of patented items or items with brand
names or items manufactured by patented process. Product of each manufacturer is
unique and the buyers purchase the products of a particular manufacturer because they
have confidence in the unique skill of that manufacturer e.g. Telco Trucks, Bajaj scooters,
Maruti cars etc

Items purchased to specifications require detailed inspection to decide whether they are
in conformity with specifications prescribed or not. This proves costlier. While items with
brand names require only a casual check.

In case of very stringent specifications, the buyers have to pay more than necessary for
the items.

Specifications buying proves economical only in case of large purchases. It is not wise or
advisable step to prepare specifications for small purchases.

When a buyer purchase items as per his / her specifications and if the product does not
prove satisfactory even though the supplier has complied with the terms of the purchase
the responsibility rests with the buyers for unsatisfactory performance.

If the buyers do not review the specifications once fixed, considering technological
developments, they may be thrown out of the markets by the consumers. -
It i s parti cularly appl icable to the purchase of construction,
el ectronic and el ectrical assemblies, machined parts,
forgi ngs, casti ngs and stampings.

It i s an expensive method of description because of the cost
of prepari ng the pri nt or computer program and i ts special ty
concerns for supplier.

Therefore, thi s i s the most accurate form of descri ption and
parti cularly adapted to purchasi ng those i tems requi ri ng a
hi gh degree of manufacturing & cl ose tol erances.

DESCRIPTION BY ENGINEERING
DRAWING
Descri ption by market grades: purchases on the basis of
materials are confi ned to certai n pri mary materials. For some
purposes, purchase by grades i s enti rely sati sfactory
depending upon the abi l ity wi th whi ch grading i s done.
Furthermore, grading must be done by those i ndi viduals who
are bei ng trusted by purchasers.

Descri ption by sample: i t i s another method of description
that i s done by submission of a sampl e of the i tem desi red.
Example: wood, grai n, col or, smel l & appearance.

Organi zations of ten al so use combi nation of
descri ptive methods
MISCELLANEOUS METHODS OF
DESCRIPTION
Standardization: Agreement on defi nite si zes, design, qual ity,
or other aspects of the product or servi ce.

A technical and engineering concept

Si mplification: A reduction i n the number of si zes, desi gns or
other aspects of the product or servi ce.

It is a selective and commercial problem
It may be applied to articles already standardized or as a step
preliminary to standardization

STANDARDIZATION AND SIMPLIFICATION
QUALITY, SUITABILITY & BEST BUY
Meaning of
quality
Producers
perspective
Quality of
conformance
Consumers
perspective
Quality of
design
Fitness for
consumer
use
Suitability refers to the ability of a material,
good or service to meet the intended functional
use.

The Best buy, assumes, of necessity, a certain
minimum measure of suitability but considers
ultimate customer needs, cost and procurability
transportation and disposal as well.
Qual ity must be i ntegrated
throughout the organi zation s
acti vities.

There must be employee
commi tment to conti nuous
i mprovement.

The goal of customer sati sfaction,
and the systematic and conti nuous
research process rel ated to
customer sati sfaction, dri ves TQM.

Suppliers are partners i n the TQM
process.
TOTAL QUALITY MANAGEMENT
Performance
Aesthetics
Special features: conveni ence, hi gh technol ogy
Safety
Rel i abili ty
Conformance (meeting pre- established standards)
Durability
Servi ce af ter sal e
QUALITY DIMENSIONS
THE CURRENT VIEW OF THE
QUALITY-COST TRADE-OFF
Preventi on cost: Rel ated to the acti vi ti es that el i mi nate the
occurrence of future defects.

Apprai sal cost: Represents the cost of i nspecti on, testi ng, measuri ng
and other acti vi ti es desi gned to ensure conformance of the product or
ser vi ce.

I nternal fai l ure cost: Costs i ncurred wi thi n the operati ng system as a
resul t of poor qual i ty. E. g. extra transpor tati on and management ti me
to expedi te repl acement materi al s.

External fai l ure cost: I ncurred when poor qual i ty goods or ser vi ces are
passed on to the customer and i ncl ude cost of returns, warranty cost
and management ti me handl i ng customer compl ai ns.

Moral e cost: One cost sel dom recogni zed i n an accounti ng sense i s
the moral e cost of produci ng ( or havi ng to use) defecti ve products or
ser vi ces.
FIVE QUALITY-RELATED COST CATEGORIES
PREVENTION & APPRAISAL COST
E.g.: Machine, tool, material, labor
checkouts, preventive maintenance
etc.
E.g.: extra handing and inventory tie-up
costs, inspection of space, people,
equipment, materials costs etc.
Exampl es:

Scrap
rework
l ost or
mi ssi ng
i nformati on
changi ng
processes
redesi gni ng
of hardware
or
processes
etc.
INTERNAL &
EXTERNAL
FAILURE
COST
Product planning - to determine design requirements

Parts deployment - to determine parts characteristics

Process planning - to determine manufacturing
requirements

Production planning - to determine production
requirements

THE FOUR INTEGRATED STAGES OF
QUALITY FUNCTIONAL DEPLOYMENT
QUALITY FUNCTIONAL DEPLOYMENT
PROCESS
Product pl anning - Provi de expertise i n anal yzing customer
requi rements and generating a l i st of new product i deas

Parts deployment - Provi de al ternative desi gn concepts and
esti mate the manufacturing costs of vari ous parts

Process pl anning - Suppliers can determine thei r exi sting
processes constrai nts

Production pl anning - Hel p devel op performance measurement
cri teri a for production pl anning

THE ROLE OF SUPPLIERS IN QFD
I t i s the
sor ti ng/segregat
i on of Non-
conformi ng
i tems from the
conformi ng
i tems.

Means
separati on of
Defecti ve i tems
from the ri ght
i tems.

INSPECTION
PROCESS
T
Q
M

Total quality
management
Quality
assurance
Quality control
Inspection
EVOLUTION
OF TQM


The process of
individual &
organizational
development the
purpose of
which is to
increase the
level of
satisfaction of
all the
stakeholders
Process capability - The ability of the process to
meet specifications consistently

Statistical process control (SPC) - A technique that
involves testing a random sample of output from a
process in order to detect if nonrandom changes in
the process are occurring
common causes versus special or nonrandom causes
PROCESS CONTROL
CONTROL CHART
Control Chart
0.027
0.028
0.029
0.03
0.031
0.032
0.033
0.034
1 2 3 4 5 6 7 8 9 10
Sample Number
UCL
LCL
Sample
Average