MIE 481

Production Planning and Control

Monowar Wadud Hridoy

Chittagong University of Engineering & Technology (CUET)

1
 Introduction
Quality:
•Quality refers to the characteristics of a product or service that
defines its ability to consistently meet or exceed customer
expectations.
•In simple words, quality means “Fitness for Use”, which
typically means its performance, conformance, safety,
durability and reliability.

2
Quality can be defined as:
i. Fitness for purpose: the component is said to possess
good quality, if it works well in the equipment for which it
is meant. Quality is thus defined as fitness for purpose.
ii. Grade: Quality is a distinguishing feature or grade of
the product in appearance, performance, life, reliability,
taste, odor, maintainability, etc. This is generally called as
quality characteristics.
iii. Degree of performance: Quality is degree to which a
specified product of equivalent grade, based on customer’s
preference.
iv. Degree of excellence: Quality is the measure of degree
of general excellence of the product.

3
Different Aspects of Quality:
The commonly considered aspects of quality that the
customer may value include:
Performance: Will the product do the intended job?
Reliability: How often does the product fail?
Durability: How long does the product last?
Serviceability: How easy is it to repair the product?
Aesthetics: What does the product look like?
Features: What does the product do?
Perceived quality: What is the reputation of the
company or its product?
Conformance to standards: Is the product made
exactly as the designer intended?

4
 Implications of Quality:
There are the several things which have direct implications
with quality. Either they want it and use it, or they are
responsible for delivering it. In other words, these are the
key elements that have direct relation with quality. The
basic elements those have implications with quality are of
four categories:
1.Customers (Ultimate users or beneficiaries)
2.Processes ( Responsible for transforming the inputs to
quality outputs)
3.Employees (Internal customers who need to be kept
satisfied in order to deliver quality product)
4.Materials (Role of suppliers in delivering quality goods)

5
Consequences of poor quality:
The consequences of poor quality are grave and of
many folds in business term. Poor quality means
rework, rejection, it adversely affects productivity
in manufacturing process. Some are worth
explaining.
•Lower productivity
•Loss of productive time
•Loss of material
•Loss of business
•Liability

6
Quality Control: In a word, controlling quality of a
product by a suitable reference is called quality control.
Sometime, it is the process of sorting good from bad.
Aims and Objectives of Quality Control:
•Improvement of quality
•Reduction of scrap and rework
•Efficient use of men and machines
•Decreased inspection cost
•Reduction in customer complaints
•To prevent the poor quality product reaching to customer

7
Quality Control Process
The quality control process is divided into three separate processes,
which are IQC(incoming quality control),IPQC(in-process quality
control) and OQC(outgoing quality control).
Incoming Quality Process:
Incoming quality control is the process to inspect the raw &
component materials from suppliers upon arrival. When defective
parts are found, you need to negotiate with the supplier for return or
exchange, and the final purpose is to make sure your product quality
will not be affected.
In-process quality control:
In-process quality control refers to the quality control during the
assembly process. It is very important because you can detect and
handle the problem that occurs ahead of time.

8
Outgoing quality control:
Outgoing quality control is the inspection of products before
shipping.
Classification of cost of quality:
Non-conformance: Cost “for loosing quality”. It incurs for several
reason like
Rework
Scrap
Down time
Conformance: “For achieving quality”. It occurs for-
Planning
Documentation
Training
Auditing

9
Cost of Quality:
The cost of carrying out the company’s quality functions (meeting
the quality needs of customers) are known as costs of quality.
Total quality costs are the sum of prevention costs, appraisal
costs, and internal and external failure costs.

10
 • Costs of quality or quality costs does not mean the use of
expensive or very highly quality materials to manufacture a
product.
• The term refers to the costs that are incurred to prevent, detect
and remove defects from products.
Quality costs are categorized into four main types. These are:
1. Prevention costs
2. Appraisal costs
3. Internal failure costs and
4. External failure costs.

11
These four types of quality costs are briefly explained below:
Prevention costs:
It is much better to prevent defects rather than finding and
removing them from products. The costs incurred to avoid or
minimize the number of defects at first place are known as
prevention costs. Some examples of prevention costs are
improvement of manufacturing processes, workers training,
quality engineering, statistical process control etc.
Appraisal costs:
Appraisal costs (also known as inspection costs) are those cost that
are incurred to identify defective products before they are shipped to
customers. All costs associated with the activities that are performed
during manufacturing processes to ensure required quality standards
are also included in this category. Identification of defective
products involve the maintaining a team of inspectors. It may be
very costly for some organizations.

12
Internal failure costs:
Internal failure costs are those costs that are incurred to remove
defects from the products before shipping them to customers.
Examples of internal failure costs include cost of rework, rejected
products, scrap etc.
External failure costs:
If defective products have been shipped to customers, external
failure costs arise. External failure costs include warranties,
replacements, lost sales because of bad reputation, payment for
damages arising from the use of defective products etc. The
shipment of defective products can dissatisfy customers, damage
goodwill and reduce sales and profits.

13
Optimum Quality Cost:

Figure: Quality cost (Juran Model)

14
The goal of any quality cost system is to reduce quality costs to the
lowest practical level. Juran and Gryna (1988) present these costs
graphically as shown in Fig. In the figure it can be seen that the cost
of failure declines as conformance quality levels improve toward
perfection, while the cost of appraisal plus prevention increases.
There is some “optimum” target quality level where the sum of
prevention, appraisal, and failure costs is at a minimum. Efforts to
improve quality to better than the optimum level will result in
increasing the total quality costs.

15
Juran acknowledged that in many cases the classical model of
optimum quality costs is flawed. It is common to find that quality
levels can be economically improved to literal perfection. For
example, millions of stampings may be produced virtually error free
from a well-designed and well-constructed stamping die. The
classical model created a mind-set that perfection was not cost
effective. The new model of optimum quality cost incorporates the
possibility of zero defects and is shown in Fig.

Figure: New Model of optimum quality cost

16
Quality Gurus
Contributor Known for

Deming 14 points, special and common

Ishikawa Cause and effect diagrams,

Shingo ZQC, TPM, PokaYoka, SMED

https://www.qualitygurus.com/9-quality-gurus-and-their-c
ontributions/
17
Quality Gurus

18
Juran’s Quality Trilogy
Juran’s Quality Trilogy consists of quality planning, quality control and
quality’s improvement.
•Quality planning provides a system that is capable of meeting quality
standards.
•Quality control is used to determine when corrective action is required.
• Quality improvement seeks better ways of doing things.
The role of quality planning is to design a process that will be able to
meet established goals under operations condition.
The role of quality control is to operate and when necessary, correct the
process so that it performs with optimal effectiveness.
The role of quality improvement is to devise ways to take the process to
unprecedented levels of performance.

19
Crosby: Zero Defects, Quality is free
The phrase "zero defects" was first
coined by Philip Crosby in his 1979 book
titled, "Quality is Free."
Zero defects is a way of thinking and
doing that reinforces the notion that
defects are not acceptable, and that
everyone should "do things right the first
time." The idea here is that with a
philosophy of zero defects, you can
increase profits by eliminating the cost of
failure and increasing revenues through
increased customer satisfaction.
Crosby's position was that, where there
are zero defects, there are no costs
associated with issues of poor quality. As
a result, quality becomes free.
20
 Let’s discuss
1. What is quality? What are the different types
of cost of quality? Explain.
2. What is quality? What is the importance of
controlling quality?
3. Describe classification of quality.
4. What is the function of a quality control
engineer (manager) in an industry?
5. Discuss the objectives of quality control?
Name a few tools for quality control.
6. What is the concept of optimum cost of
quality? Explain with figure.

21
 Let’s discuss
7. Define IQC & OQC. Distinguish between quality
conformance and non- conformance.
8. Explain different aspects of quality that the customer
may value.
9. Define Quality. Mention the dimensions of quality.
10. State Deming Philosophy. What do you mean by
Zero defect? Briefly discuss its importance in
manufacturing?
11. What are examples of quality prevention, appraisal
and failure costs?

22
Thank you so much
for your attention

23