AnuThesis Front Part Final

FORMULATION OF A COQ MODEL AND MINIMIZATION OF
REWORKS IN A TOOL AND DIE MANUFACTURING COMPANY

MASTER THESIS REPORT
Submitted to
MAHATMA GANDHI UNIVERSITY
KOTTAYAM
In partial fulfillment of the requirements for the award of the degree of
MASTER OF TECHNOLOGY
IN
INDUSTRIAL ENGINEERING AND MANAGEMENT
Submitted by
ANU J.
Reg. No. 207214
Under the Guidance of
Prof. PRADEEP KUMAR P.
DEPARTMENT OF MECHANICAL ENGINEERING

RAJIV GANDHI INSTITUTE OF TECHNOLOGY
GOVERNMENT ENGINEERING COLLEGE, KOTTAYAM
2016
DEPARTMENT OF MECHANICAL ENGINEERING
RAJIV GANDHI INSTITUTE OF TECHNOLOGY
(GOVERNMENT ENGINEERING COLLEGE, KOTTAYAM)
CERTIFICATE
This is to certify that the thesis titled FORMULATION OF A COQ MODEL AND
MINIMIZATION OF REWORKS IN A TOOL AND DIE MANUFACTURING
COMPANY is a bonafide record of the work done by Anu.J, Fourth Semester,
Register Number 207214, towards the partial fulfillment of the requirements for the
award of the Degree of Master of Technology in Industrial Engineering and
Management under Mahatma Gandhi University, Kottayam.
Prof. Pradeep Kumar P.

Associate Professor & Guide,
Department of Mechanical Engineering
Prof. (Dr.) Ciby Thomas

Associate Professor & PG Co-ordinator
Prof. (Dr.) Biju Augustine

Professor & Head,
DECLARATION
I, Anu J., hereby declare that the project work entitled Formulation of a CoQ Model
and Minimization of Reworks in a Tool and Die Manufacturing Company
2
submitted to Mahatma Gandhi University, Kottayam towards the partial fulfillment of

the requirements for the award of the Degree of Master of Technology in Industrial
Engineering and Management, is a record of the original work done by me during
the period of study in Rajiv Gandhi Institute of Technology, Kottayam under the
guidance and supervision of Prof. Pradeep Kumar P., Associate Professor, Department
of Mechanical Engineering, Rajiv Gandhi Institute of Technology, Kottayam.
Anu J.
ABSTRACT
The tool and die making industry largely contributes to the economic performance of
major economies .. In an environment with highly rising competition and as new
competitors charging low cost, it is facing new challenges . Confronted with these
new competitors, tool and die manufacturers have an even higher need to lower the
costs. A huge share of the costs in the tool and die industry is caused by mistakes. For
eg : Scrap and rework costs. Scrap and rework costs are caused by many things
when the wrong parts are ordered, when engineering changes arent effectively
communicated or when designs arent properly executed on the manufacturing line.
No matter why scrap and rework occurs, its impact on an organization is always the
samewasted time and money.These expenses add up quickly and negatively impact
the bottom line. Although it is near-impossible to eliminate scrap and rework
completely, we can reduce the amount of scrap and rework in your organization
usimg a better the quality policy. The main objective of the thesis work is to apply
multi-disciplinary concepts; tools and technique to solve organizational problems and
to evolve innovative theoretical frame work. In this thesis work, the Quality policy of
the industry is improved by implementing a CoQ model in the industry, thus
calculating the total cost associated with the industry. The work aims to propose a
better quality policy for the industry which reduces the rate of reworks and the total
cost. FMECA analysis and Ishikawa diagram is used to reduce reworks. Current risks
are identified, current controls are evaluated and rework reducing actions are defined
in advance. Some measures are suggested to avoid reworks in future.
Keywords: Cost of Quality, Costing, FMEA, Quality, Reworks
CONTENTS
Chapter 1: Introduction
1.1. Cost of Quality
1.2. Failure Mode Effect Analysis
1.3. Objectives of study
1.4. Scope of study
1.5 Problem Description
1.6 Methodology
Chapter 2: Company Profile
2.1. Organisation Structure
2.2. Objectives of KELTRAC
2.3. Vision of KELTRAC
2.4 Quality Ploicy of KELTRAC
2.5 Facilities of KELTRAC
2.6 Major customers of KELTRAC
10
2.7 Product Profile
11
2.8 Functional Departments
12
Chapter 3: Literature Review
19
Chapter 4: Problem Definition
29
Chapter 5: Data Analysis and Research Methodology
35
5.1. Quality Cost elements identified
35
5.2. Total Quality Cost calculated
35
5.3. Data Analysis
38
5
Chapter 6: Results and Interpretation
42
Chapter 7: Conclusion
44
7.1. Limitations of the Study
44
References
45
Publications/Conferences
49
LIST OF FIGURES
Fig. No.
Title
Page No.
2.1
Organizational Structure of KELTRAC
2.2
High precision components manufactured at KELTRAC
11
2.3
Planning Department
12
2.4
Production Department
13
2.5
Marketing Department
14
2.6
QA & QC Department
15
2.7
Finance Department
16
2.8
Purchase Department
16
2.9
Stores Department
17
2.10
Maintenance Department
18
4.1
Turnover of the firm
29
4.2
4.3
Number of Projects handled
29
Fish bone diagram for decrease in turnover
30
4.4
Fish bone diagram for delay
31
4.5
Root Area vs. Frequency of Occurrence
34
5.1
5.2
Bar graph
38
Severity Ranking
39
7
5.3
Occurrence Ranking
39
5.4
Detection Ranking
40
5.5
Generated output of RAM Commander
40
LIST OF TABLES
Table No.
Title
Page No.
2.1
Calibration facility of KELTRAC
10
4.1
Problem & Root Area
33
4.2
Root area & frequency of occurrence
33
5.1
Quality Costs identified
35
5.2
Internal failure costs
37
5.3
FMEA analysis
41
6.1
Potential failure causes
42
6.2
Actions recommended
42
6.3
Comparison of strategies
43

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FORMULATION OF A COQ MODEL AND MINIMIZATION OF

REWORKS IN A TOOL AND DIE MANUFACTURING COMPANY

DEPARTMENT OF MECHANICAL ENGINEERING

(GOVERNMENT ENGINEERING COLLEGE, KOTTAYAM)

Prof. Pradeep Kumar P.

Prof. (Dr.) Ciby Thomas

Prof. (Dr.) Biju Augustine

submitted to Mahatma Gandhi University, Kottayam towards the partial fulfillment of

1.1. Cost of Quality

1.2. Failure Mode Effect Analysis

1.3. Objectives of study

1.4. Scope of study

1.5 Problem Description

Chapter 2: Company Profile

2.1. Organisation Structure

2.2. Objectives of KELTRAC

2.3. Vision of KELTRAC

2.4 Quality Ploicy of KELTRAC

2.5 Facilities of KELTRAC

2.6 Major customers of KELTRAC

2.7 Product Profile

2.8 Functional Departments

Chapter 3: Literature Review

Chapter 4: Problem Definition

Chapter 5: Data Analysis and Research Methodology

5.1. Quality Cost elements identified

5.2. Total Quality Cost calculated

5.3. Data Analysis

Chapter 6: Results and Interpretation

7.1. Limitations of the Study

Organizational Structure of KELTRAC

High precision components manufactured at KELTRAC

Turnover of the firm

Number of Projects handled

Fish bone diagram for decrease in turnover

Fish bone diagram for delay

Root Area vs. Frequency of Occurrence

Generated output of RAM Commander

Calibration facility of KELTRAC

Problem & Root Area

Root area & frequency of occurrence

Quality Costs identified

Internal failure costs

Potential failure causes

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