EFFECTIVE UTILIZATION OF QUALITY COST REDUCING TOOLS IN AUTOMOBILE INDUSTRY

International Journal of Advanced Technology & Engineering Research (IJATER)

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ISSN No: 2250-3536 Volume 3, Issue 2, March 2013 44

EFFECTIVE UTILISATION OF QUALITY COST REDUCING

TOOLS IN AUTOMOBILE INDUSTRY

V.G. Surange, Asst.Professor, Mech.Engg.Dept. SCOE, Kharghar, Maharashtra, India; Prof. S.N.Teli, Associate Professor & Head Mech.Engg.Dept. SCOE, Kharghar, Maharashtra, India;

Datta D. Adak, B.E. Student, Mech. Engg. SCOE, Kharghar, Maharashtra, India;

Siddhesh S. Rane, B.E. Student, Mech.Engg. SCOE, Kharghar, Maharashtra, India.

Abstract Purpose: the main objective behind presenting this paper is

that with proper use of cost of quality methods, great

difference can be observed in spend that we are doing on a

product for to improve cost of quality & to reduce poor cost of

quality.

Design/methodology/approach: The objectives are achieved

by application of cost of quality tools to quality improvement

project in automotive industry. The applied cost of quality

tools includes team work through several phases like define,

measure (observation), analyze, improve & control (DMAIC). Findings: By proper use of cost of quality tools &

methodology for automotive parts in industry we reduced the

cost of quality.so we can achieve profit improvement

opportunities while at the same time, ensuing conformance to

customers requirement.

Research implications: The use of several cost of quality

tools such are critical to quality and critical to process, Pareto

analysis, SIPOC diagram, fishbone analysis, control charts,

scatter plot, why-why analysis

Practical implications: Improvement through reduced

production time, control time. Material & Internal scrap have been yield significant financial. Furthermore, this pilot project

enabled introduction of cost of quality tools in wider range of

manufacturing activities.

Value: whenever there is quality improvement issue than this

paper helps to researcher in the field of quality management

& quality improvement to select the best path.

Keyword: Quality management; Pareto analysis; fishbone

analysis; why-why analysis.

Introduction The "cost of quality" isn't the price of creating a quality

product or service. It is the cost of not creating a quality

product or service. Every time work is redone, the cost of

quality increases. The cost of quality places a fundamental

role to make the product cost efficient &competitive. The

primary purpose of a cost of quality program is to identify

profit improvement opportunities while at the same time, ensuing conformance to customers requirement.

Cost of quality includes cost of conformance & cost of non

conformance

Cost of conformance:

1) Prevention Cost- These costs are associated with

preventing defects and imperfections from occurring. The

focus of a prevention cost is to assure quality and minimize or avoid the likelihood of an event with an adverse impact on the

company goods, services or daily operations. This also

includes the cost of establishing a quality system.

2) Appraisal costs- These cost are direct costs of measuring

quality. In this case, quality is defined as the conformance to

customer expectations. This includes: lab testing, inspection,

test equipment and materials.

Cost of non conformance:

1) Internal Failure Costs - Failure costs occurring prior to

delivery or shipment of the product, or the furnishing of a service, to the customer

2) External Failure Costs - Failure costs occurring after

delivery or shipment of the product and during or after

furnishing of a service to the customer.

Table 01: Examples of cost of quality

Prevention Appraisal Internal

Failure

External

Failure

Design and

development

of equipment

Receiving

inspection

Scrap Lost

profit/sales

Quality review Laboratory

inspection and testing

Rework and

repair

Loss of

goodwill

Maintenance and

calibration of

production

and inspection

equipment

In-process

inspection

(sensors and

signals)

Rescheduling

due to

downtime

Warranty

Supplier quality

audits

Final inspection

(100%/sampling

inspections)

Overtime to

cover

production

losses

Product

recalls

Quality training

(seminars,

workshops/lectures)

Field testing

(performance tests and status

reporting)

Downgrading Allowances

Quality

improvement

programs

Inspection and

test

equipment

Complaint

adjustment

Cost of

support

operations


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Fig.01: Impact of failure cost in cost of quality.

This pyramid shows impact failure cost is more as compare to

prevention & correction cost. That’s the reason that we use

cost of quality tools to reduce this failure cost.

Fig.02: Graphical representation of types of cost of quality on

total quality costs.

From this graph we can conclude that if cost of quality is

increase than customer satisfaction will be less.so our

approach to reduce quality cost so that increase the ability to

meet customer requirement.

Methodology:

Critical to quality and critical to process: Critical to quality is a general term that refers to methods used to

optimize a key measurable characteristic that is 'Critical To'

the performance or customer expectation. Critical to Process

(CTP) are the key process input variables. These are the

process parameters which influences other critical. With the

help of critical to quality approach it is possible to obtain what

exact quality requirement customer have in his mind.& by

using critical to process approach we can find what changes in

process is required to achieve these changes. By reading case

study given in this paper you will get more clear idea about

this concept.

Pareto analysis: Pareto Analysis’s a statistical technique in decision making that is used for the

selection of a limited number of tasks that produce

significant overall effect.

A Pareto chart has the following objectives:

1) Separate the few major problems from the many possible problems so you can focus your

improvement efforts.

2) Arrange data according to priority or importance.

3) Determine which problems are most important

using data, not perceptions.

Fig.03: Effect of Pareto analysis

The idea is that by doing 20% of the work you can

generate 80% of the benefit of doing the whole job.

SIPOC diagram: SIPOC stand for supplier-input-

process-output –customer. A SIPOC diagram is a tool

used by a team to identify all relevant elements of a

process improvement project before work begins. It

helps define a complex project that may not be well

scoped, and is typically employed at

Fig.04: SIPOC

Fishbone analysis: The main goal of the Fishbone diagram

is to illustrate in a graphical way the relationship between a

given outcome and all the factors that influence this outcome.

The main objectives of this tool are

1) Determining the root causes of a problem & identify areas

where is lack of data.

2) Focusing on a specific issue without resorting to complaints

and irrelevant discussion.

We called this analysis as a fishbone analysis because it looks

like a fish bone

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Fig.05: Fishbone analysis

Control chart: A statistical tool used to distinguish between process variation resulting from common causes and

variation resulting from special causes. The purpose of a

control chart is to detect any unwanted changes in your

process. Control charts use two types of data: variables data

and attributes data.

.Control charts use two types of data: variables data and

attributes data. In general, if you want to use variables data,

you have to take measurements in units such as length,

temperature, etc. On the other hand, attributes data requires a

good/bad or go/no-go decision and counting (for example,

number of defects, percent late, etc.).

Fig.06: Control chart

This graph shows lower control limits and upper control limit.

For getting best quality control, reading must lie within these

limits.

Scatter plot: A scatter diagram is a tool for analyzing

relationships between two variables. One variable is

plotted on the horizontal axis and the other is plotted

on the vertical axis. The pattern of their intersecting

points can graphically show relationship

Pattern.

We use scatter diagram to examine theories about cause-and-effect relationships and to search for root causes of an

identified problem.

Scatter diagrams will generally show one of six possible

correlations between the variables:

Table 02: Types of correlation

Strong Positive

Correlation

The value of Y clearly increases as

the value of X increases.

Strong Negative

Correlation

The value of Y clearly decreases as


Weak Positive

Correlation

The value of Y increases slightly as


Weak Negative

Correlation

The value of Y decreases slightly as


Complex

Correlation

The value of Y seems to be related

to the value of X, but the relationship

is not easily determined.

No Correlation There is no demonstrated connection

between the two variables.

Why-Why analysis: Why-Why analysis is to identify root

cause by asking question why to the related faculty. In the

meeting every person asked the question why till get the root causes.

Case study: Project title: Improve Breaker centering in Truck Tyre, Using

Structured problem solving method.

Step 1: Defining &understanding problem Project Definition: Premature failure of tires due to Tread

shoulder separation

2. Objective of the project: To reduce Premature failure of tyre due to Tread shoulder separation by Improving Ppk of Breaker

Centering in Truck tyre from -0.10 to 1.33

3. Business case: The Company will lose customers due to

premature failure of tyres.


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Critical to quality & critical to process:

Step1.1: Importance of the selected problem. Justification For the problem selected.

Pareto of premature failure in lug sizes:

Fig.07: Pareto analysis


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Inference: From above Pareto it is clear that Tread /shoulder

separation and Tread /shoulder separation burst are the two

causes which are contributing more than 50 % in premature

failure of Lug pattern in Truck tyre size & from above Pareto analysis it is clear that for tread shoulder separation the root

cause is off centering of breaker

Step 2: Observation Tyre cross section to see Breaker

position in tyre

Fig.08: Strip down section to see breaker position of tyre

Fig.09: Tread shoulder separation in tyre

Step 2.1: Observation, 3rd Band and Breakers& process

Fig.10: First & second breaker position on band

Fig.10: Tension roll position

Step 2.2: Observation

Observations from Process walk through

1. Specification display for breaker centering is not visible

from standing position of band builder & breaker getting

stretched while applying on band.

2. No method for squeegee centering on the band & Perimeter

checking operation can be eliminated & checking of breaker

centering light position can be eliminated

Step 2.3: Observation: Quick Wins & Qualitative Analysis

Table 04: Qualitative analysis

Results of Quick Wins:

No change in “Y” (i.e. Breaker off center) was noticed after

implementation of Quick wins

Step: 2.4: Observation - SIPOC Diagram


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Table05: SIPOC

End point: Finished product stores

Step 2.5 Observation: Data collection Format Breaker 1 offcenter


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Step 2.6 Observation: Understanding Current Situation

Fig.11: Understanding of current situation

Data is normally distributed, Standard deviation is 4.98, Ppk is -0.10

Step 2.7 Observation: Data Summarization (Y)

Table 08: Baseline definition

Output indicator Average Standard deviation Ppk Sigma Level

Y1 7.52 4.98 -0.10 -0.3

Step 3: Analysis: Possible Causes are 23.

After Process Walkthrough probable Causes &Compiling Similar one (all rounded are the similar cause)

Fig.12: Fishbone analysis Causes which are rounded are of similar type


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Step 3.1: Analysis: Main Causes 4

Based on C-E diagram and process walkthrough prioritized

X’s to be selected for data collection

Variation in Ply and Breaker width

Breaker stretching

Canvass shifting on drum

Step 3.3: Analysis: Prioritized Xs

Based on C-E diagram and process walkthrough prioritized

X’s to be selected for data collection

1. Variation in Ply and Breaker width Not Valid

2. Breaker stretching

3. Canvass shifting on drum

4. Ply stretching

Step 3.4: Analysis: Validation of 3 Causes Breaker 1 Off

center

Table 09: Validation of three causes

Step 3.2: Analysis validation of Xs through Hypothesis testing

Co-relation between breaker O/C and breaker stretch (0.642 )

& Co- relation between breaker O/C and canvass shifting

(0.947) .From above 2 diagram. They have correlation with

break centering. As P-value is less as per standard deviation.

Co- relation between breaker O/C and Ply stretch

(0.069).There is no correlation between breaker off center &

ply stretching ply stretch=.069 <.716=P-value

Fig.13: Control chart


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Step 3.3: Analysis: Summary of Validated Xs

Table 10: Summary of validated Xs

Why-Why Analysis

From above Why- Why analysis we concluded that fault is

due to design Step.

4: Actions:

Table 11: Possible solution

Solution 1.4 for canvass shifting on drum & 2.2 for breaker

stretching is selected by solution selection matrix after all

changes has been done.

Step 5: Check, Breaker centering “Y” Before & After

Fig.15: Breaker centering of Y before & after

Step 5: Check: Results


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Fig.16: Result

Benefits: Tangible:

1. Improved process performance of breaker centering.(Ppk of

breaker centering from -0.10 to 0.44 )

Benefits: Intangible:

1. Learned use of Q.C tools: Pareto analysis, Ishikawa diagram.

2. Improved understanding of Q.C. Story approach.

3. Improved Team work and Morale.

4. Improved confidence of the team.

Conclusion:

The target of apply a quality system is to reduce the total

quality cost to achieve biggest profit. The aim of this paper is

to carry out study on cost of poor quality in Indian automobile

industries to overcome various related problems, can be

resolved by application of cost of quality tools which is played

an important role to minimize cost of poor quality. We should

make an analysis before we implement a model in a company.

The findings are then used as criteria for decision making, in

the context of suitable prevention techniques.

References:

[1] Mark De Feo Juran “Institute of Research on Cost of Poor

Quality”- August-2005 Juran.

[2] Xiaobing Liu, Fajing Cui, Qiunan Meng, Ruilin Pan Rese

rch on the “Model of Quality Cost in CIMS

Environment”- 2008 ISOB&IM ,SOMDUOT,

DUTDalian, China.

[3] J.S. Oakland, “Total Quality Management”, 2nd ed.,

Butter worth-Heinemann Ltd, Oxford, p: 186-210, 1993.

[4] A. Ramudhin, C. Alzaman, A. Bulgak, “Incorporating the

cost of quality in supply chain design”, J. Quality

Maintenance Eng. 14 (1) (2008) 71–86.

[5] Andrea Schiffauerova , Vince Thomson “A Review of

Research on Cost of Quality Models and Best Practices” –

IJOQ&RM, Vol.23, No.4, 2006

[6] H. James Harrington, “Poor –Quality Cost” Marcel

Dekker inc. ASQC Quality.

[7] Engineering Quality Systems: “Cost of Quality: Dadi He

School of Economics,” Peking University

[8] Impacts of cost of poor quality in Indian automobile

sector: international journal of engineering research and

applications (IJERA),

[9] Five essential strategies for Managing cost, Robert Clancy.

[10] Cost of quality usage and its relationship to quality

system maturity, Victor E. Sower and Ross Quarles,

IJQRM, emerald

Biographies

V.G.Surange Pursuing M.E. (mechanical Engg.); COE,

kharghar,university of Mumbai ,B.E. (Mechanical Engg.)

RMCET, University of Mumbai

Prof.S.N.Teli Associate Prof. & Head Mech Engg. Dept.

SCOE ,kharghar,Navi Mumbai.

Datta D. Adak, B.E. Student, SCOE, Kharghar,

Siddhesh S. Rane, B.E. Student, SCOE, Kharghar,

EFFECTIVE UTILIZATION OF QUALITY COST REDUCING TOOLS IN AUTOMOBILE INDUSTRY

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