OPERATIONS MANAGEMENT

Advantages of Work Study

1. It helps to achieve the smooth production flow with minimum interruptions.

2. It helps to reduce the cost of the product by eliminating waste and unnecessary operations.
3. Better worker-management relations.
4. Meets the delivery commitment.
5. Reduction in rejections and scrap and higher utilization of resources of the organization.
6. Helps to achieve better working conditions.
7. Better workplace layout.
8. Improves upon the existing process or methods and helps in standardization and simplification.
9. Helps to establish the standard time for an operation or job which has got application in manpower planning,
production planning.

Recording Techniques for Method Study

The next step in basic procedure, after selecting the work to be studied is to record all facts relating to the existing
method. In order that the activities selected for investigation may be visualized in their entirety and in order to
improve them through subsequent critical examination, it is essential to have some means of placing on record all
the necessary facts about the existing method. Records are very much useful to make before and after comparison to
assess the effectiveness of the proposed improved method.

The recording techniques are designed to simplify and standardize the recording work. For this purpose charts and
diagrams are used.

Method Study techniques

The method study techniques are explained below

Recording techniques for method study

CHARTS USED IN METHODS

STUDY
This is the most popular method of
recording the facts. The activities
comprising the jobs are recorded using
method study symbols. A great care is
to be taken in preparing the charts so
that the information it shows is easily
understood and recognized. The following information should be given in the chart. These charts are used to
measure the movement of operator or work (i.e., in motion study).

a. Adequate description of the activities.

b. Whether the charting is for present or proposed method.
c. Specific reference to when the activities will begin and end.
d. Time and distance scales used wherever necessary.
e. The date of charting and the name of the person who does charting.

Types of Charts
It can be broadly divided into (A) Macro motion charts and (B) Micro motion charts. Macro motion charts are used
for macro motion study and micro motion charts are used for micro motion study. Macro motion study is one which
can be measured through ‘stop watch’ and micro motion study is one which cannot be measured through stop watch.
MACRO MOTION CHARTS
Following four charts are used under this type:

1. Operation Process Chart

It is also called outline process chart. An operation process chart gives the bird’s eye view of the whole
process by recording only the major activities and inspections involved in the process. Operation process
chart uses only two symbols, i.e., operation and inspection. Operation, process chart is helpful to:
a. Visualize the complete sequence of the operations and inspections in the process.
b. Know where the operation selected for detailed study fits into the entire process.
c. In operation process chart, the graphic representation of the points at which materials are introduced
into the process and what operations and inspections are carried on them are shown.
2. Flow Process Chart
Flow process chart gives the sequence of flow of work of a product or any part of it through the work centre
or the department recording the events using appropriate symbols. It is the amplification of the operation
process chart in which operations; inspection, storage, delay and transportation are represented. However,
process charts are of three types:
a. Material type— which shows the events that occur to the materials.
b. Man type—Activities performed by the man.
c. Equipment type— how equipment is used.

The flow process chart is useful:

d. to reduce the distance travelled by men (or materials).

e. to avoid waiting time and unnecessary delays.
f. to reduce the cycle time by combining or eliminating operations.
g. to fix up the sequence of operations.
h. to relocate the inspection stages.

Like operation process chart, flow process chart is constructed by placing symbols one below another
as per the occurrence of the activities and are joined by a vertical line. A brief description of the
activity is written on the right hand side of the activity symbol and time or distance is given on the
left hand side.

3. Two Handed Process Chart

A two handed (operator process chart) is the most detailed type of flow chart in which the activities of the
workers hands are recorded in relation to one another. The two handed process chart is normally confined to
work carried out at a single workplace. This also gives synchronized and graphical representation of the
sequence of manual activities of the worker. The application of this charts are:
 To visualize the complete sequence of activities in a repetitive task.
 To study the work station layout.
4. Multiple Activity Chart
It is a chart where activities of more than subject (worker or equipment) are each recorded on a common time
scale to show their inter-relationship. Multiple activity chart is made:
 to study idle time of the man and machines,
 to determine number of machines handled by one operator, and
 to determine number of operators required in teamwork to perform the given job.

Diagrams Used in Method Study

The flow process chart shows the sequence and nature of movement but it does not clearly show the path of
movements. In the paths of movements, there are often undesirable features such as congestion, back tracking and
unnecessary long movements. To record these unnecessary features, representation of the working area in the form
of flow diagrams, string diagrams can be made:
 1. To study the different layout plans and thereby; select the most optimal layout.
2. To study traffic and frequency over different routes of the plant.
3. Identification of back tracking and obstacles during movements.

Diagrams are of two types:

1. Flow diagram and

2. String diagram.

1. FLOW DIAGRAM
Flow diagram is a drawing, of the working area, showing the location of the various activities identified by
their numbered symbols and are associated with particular flow process chart either man type or machine
type.The routes followed in transport are shown by joining the symbols in sequence by a line which
represents as nearly as possible the path or movement of the subject concerned. Following are the procedures
to make the flow diagram:
1. The layout of the workplace is drawn to scale.
2. Relative positions of the machine tools, work benches, storage, and inspection benches are marked on
the scale.
3. Path followed by the subject under study is tracked by drawing lines.
4. Each movement is serially numbered and indicated by arrow for direction.
5. Different colors are used to denote different types of movements.
2. STRING DIAGRAM
The string diagram is a scale layout drawing on which, length of a string is used to record the extent as well
as the pattern of movement of a worker working within a limited area during a certain period of time. The
primary function of a string diagram is to produce a record of a existing set of conditions so that the job of
seeing what is actually taking place is made as simple as possible.

One of the most valuable features of the string diagram is the actual distance travelled during the period of
study to be calculated by relating the length of the thread used to the scale of drawing. Thus, it helps to make
a very effective comparison between different layouts or methods of doing job in terms of the travelling
involved. The main advantages of string diagram compared to flow diagram is that respective movements
between work stations which are difficult to be traced on the flow diagram can be conveniently shown on
string diagram.

Following are the procedures to draw string diagram:

1. A layout of the work place of factory is drawn to scale on the soft board.
2. Pins are fixed into boards to mark the locations of work stations, pins are also driven at the turning
points of the routes.
3. A measured length of the thread is taken to trace the movements (path).
4. The distance covered by the object is obtained by measuring the remaining part of the thread and
subtracting it from original length.

Symbols Used in Method Study

Graphical method of recording was originated by Gilberth, in order to make the presentation of the facts clearly
without any ambiguity and to enable to grasp them quickly and clearly. It is useful to use symbols instead of written
description.

METHOD STUDY SYMBOLS

Operation
An operation occurs when an object is intentionally changed in one or more of its characteristics (physical or
chemical). This indicates the main steps in a process, method or procedure.
An operation always takes the object one stage ahead towards completion.
Examples of operation are:

 Turning, drilling, milling, etc.

 A chemical reaction.
 Welding, brazing and riveting.
 Lifting, loading, unloading.
 Getting instructions from supervisor.

Inspection
An inspection occurs when an object is examined and compared with standard for quality and quantity. The
inspection examples are:

 Visual observations for finish.

 Count of quantity of incoming material.
 Checking the dimensions.

Transportation
A transport indicates the movement of workers, materials or equipment from one place to another.

Example:
Movement of materials from one work station to another.
Workers travelling to bring tools.

Delay D: Delay (Temporary Storage)

A delay occurs when the immediate performance of the next planned thing does not take
place.

Example:

 Work waiting between consecutive operations.

 Workers waiting at tool cribs.
 Operators waiting for instructions from supervisor.

Storage
Storage occurs when the object is kept in an authorized custody and is protected against unauthorized removal. For
example, materials kept in stores to be distributed to various work.

Steps or Procedure Involved in Methods Study

The basic approach to method study consists of the following eight steps. The detailed procedure for conducting the
method study is shown in the following figure.
 Method study procedure

1. SELECT the work to be studied and define its boundaries.

2. RECORD the relevant facts about the job by direct
observation and collect such additional data as may be needed from
appropriate sources.
3. EXAMINE the way the job is being performed and
challenge its purpose, place sequence and method of performance.
4. DEVELOP the most practical, economic and effective
method, drawing on the contributions of those concerned.
5. EVALUATE different alternatives to developing a new
improved method comparing the cost- effectiveness of the selected
new method with the current method with the current method of
performance.
6. DEFINE the new method, as a result, in a clear manner and
present it to those concerned, i.e., management, supervisors and
workers.
7. INSTALL the new method as a standard practice and train
the persons involved in applying it.
8. MAINTAIN the new method and introduce control
procedures to prevent a drifting back to the previous method of
work.

Scope of Method Study

The areas to which method study can be applied successfully in manufacturing are:

1. To improve work methods and procedures.

2. To determine the best sequence of doing work.
3. To smoothen material flow with minimum of back tracking and to improve layout.
4. To improve the working conditions and hence to improve labor efficiency.
5. To reduce monotony in the work.
6. To improve plant utilization and material utilization.
7. Elimination of waste and unproductive operations.
8. To reduce the manufacturing costs through reducing cycle time of operations.

Principles of Motion study

There are a number of principles concerning the economy of movements which have been developed as a result of
experience and which forms the basis for the development of improved methods at the workplace. These are first
used by Frank Gilbreth, the founder of motion study and further rearranged and amplified by Barnes, Maynard and
others. The principles are grouped into three headings:

A. Use of the human body.

B. Arrangement of workplace.
 C. Design of tools and equipment.

USES OF HUMAN BODY

When possible:

1. The two hands should begin and complete their movements at the same time.
2. The two hands should not be idle at the same time except during periods of rest.
3. Motions of the arms should be made simultaneously.
4. Hand and body motions should be made at the lowest classification at which it is possible to do the work
satisfactorily.
5. Momentum should be employed to help the worker, but should be reduced to a minimum whenever it has to
be overcome by muscular effort.
6. Continuous curved movements are to be preferred to straight line motions involving sudden and changes in
directions.
7. ‘Ballistic’ (i.e., free swinging) movements are faster, easier and more accurate than restricted or controlled
movements.
8. Rhythm is essential to the smooth and automatic performance of a repetitive operation. The work should be
arranged to permit easy and natural rhythm wherever possible.
9. Work should be arranged so that eye movements are confined to a comfortable area, without the need for
frequent changes of focus.

ARRANGEMENT OF THE WORKPLACE

1. Definite and fixed stations should be provided for all tools and materials to permit habit formation.
2. Tools and materials should be pre-positioned to reduce searching.
3. Gravity fed, bins and containers should be used to deliver the materials as close to the point of use as
possible.
4. Tools, materials and controls should be located within a maximum working area and as near to the worker as
possible.
5. Materials and tools should be arranged to permit the best sequence of motions.
6. ‘Drop deliveries’ or ejectors should be used wherever possible, so that the operative does not have to use his
hands to dispose of finished parts.
7. Provision should be made for adequate lightning, and a chair of type and height to permit good posture
should be provided. The height of the workplace and seat should be arranged to allow alternate standing and
seating.

DESIGN OF TOOLS AND EQUIPMENTS

1. The color of the workplace should contrast with that of work and thus reduce eye fatigue.
2. The hands should be relieved of all work of ‘holding’ the work piece where this can be done by a jig or
fixture or foot operated device.
3. Two or more tools should be combined where possible.
4. Where each finger performs some specific movement, as in typewriting, the load should be distributed in
accordance with the inherent capacities of the fingers.
5. Handles such as those used on screw drivers and cranks should be designed to permit maximum surface of
the hand to come in contact with the handle.
6. Levers, cross bars and wheel bars should be in such position that operator can manipulate them with least
body change and with greatest mechanical advantage.

Recording Techniques of Motion Study

Most of the techniques mentioned in method study is used in the motion study. They are as follows:

Macro Motion Study

 a. Flow process chart
b. Two handed process chart.

Micro Motion Study

SIMO chart.

Introduction
Just-In-Time (JIT) Manufacturing is a philosophy rather than a technique. By eliminating all waste and seeking
continuous improvement, it aims at creating manufacturing system that is response to the market needs.

Jit in Production and Operation Management

JIT provides an efficient production in an organization and delivery of only the necessary parts in the right quantity,
at the right time and place while using the minimum facilities”.

Seven Wastes
Shiego Shingo, a Japanese JIT authority and engineer at the Toyota Motor Company identifies seven wastes as being
the targets of continuous improvement in production process. By attending to these wastes, the improvement is
achieved.

1. Waste of over production eliminate by reducing set-up times, synchronizing quantities and timing between
processes, layout problems. Make only what is needed now.
2. Waste of waiting eliminate bottlenecks and balance uneven loads by flexible work force and equipment.
3. Waste of transportation establishes layouts and locations to make handling and transport unnecessary if
possible. Minimize transportation and handling if not possible to eliminate.
4. Waste of processing itself question regarding the reasons for existence of the product and then why each
process is necessary.
5. Waste of stocks reducing all other wastes reduces stocks.

Wastes in operations

6. Waste of motion study for economy and consistency. Economy improves productivity and consistency
improves quality. First improve the motions, then mechanize or automate otherwise. There is danger of
automating the waste.
 7. Waste of making defective products develop the production process to prevent defects from being produced,
so as to eliminate inspection. At each process, do not accept defects and makes no defects. Make the process
fail-safe. A quantify process always yield quality product.

Benefits of JIT

The most significant benefit is to improve the responsiveness of the firm to the changes in the market place thus
providing an advantage in competition. Following are the benefits of JIT:

1. Product cost—is greatly reduced due to reduction of manufacturing cycle time, reduction of waste and
inventories and elimination of non-value added operation.
2. Quality —is improved because of continuous quality improvement programs.
3. Design—Due to fast response to engineering change, alternative designs can be quickly brought on the shop
floor.
4. Productivity improvement.
5. Higher production system flexibility.
6. Administrative and ease and simplicity.

Steps in Making Time Study

Stop watch time is the basic technique for determining accurate time standards. They are economical for repetitive
type of work. Steps in taking the time study are:

1. Select the work to be studied.

2. Obtain and record all the information available about the job, the operator and the working conditions likely
to affect the time study work.
3. Breakdown the operation into elements. An element is a instinct part of a specified activity composed of one
or more fundamental motions selected for convenience of observation and timing.
4. Measure the time by means of a stop watch taken by the operator to perform each element of the operation.
Either continuous method or snap back method of timing could be used.
5. At the same time, assess the operators effective speed of work relative to the observer’s concept of ‘normal’
speed. This is called performance rating
6. Adjust the observed time by rating factor to obtain normal time for each element

Normal =
Observed time Rating
100

7. Add the suitable allowances to compensate for fatigue, personal needs, contingencies etc. to give standard
time for each element.
8. Compute allowed time for the entire job by adding elemental standard times considering frequency of
occurrence of each element.
9. Make a detailed job description describing the method for which the standard time is established.
10. Test and review standards wherever necessary. The basic steps in time study are represented by a block
diagram in the figure “Steps in time study”

Computation of Standard Time

Standard time is the time allowed to an operator to carry out the specified task under specified conditions and
defined level of performance. The various allowances are added to the normal time as applicable to get the standard
time “Components standard time”.

Standard time Calculation time study

Standard time may be defined as the, amount of time required to complete a unit of work: (a) under existing working
conditions, (b) using the specified method and machinery, (c) by an operator, able to the work in a proper manner,
and (d) at a standard pace.

Thus basic constituents of standard time are:

1. Elemental (observed time).

2. Performance rating to compensate for difference in pace of working.
3. Relaxation allowance.
4. Interference and contingency allowance.
5. Policy allowance.

Steps in time study Components standard time

Allowances
The normal time for an operation does not contain any allowances for the worker. It is impossible to work
throughout the day even though the most practicable, effective method has been developed.

Even under the best working method situation, the job will still demand the expenditure of human effort and some
allowance must therefore be made for recovery from fatigue and for relaxation. Allowances must also be made to
enable the worker to attend to his personal needs. The allowances are categorized as:

1. Relaxation allowance,
2. Interference allowance, and
3. Contingency allowance.
RELAXATION ALLOWANCE
Relaxation allowances are calculated so as to allow the worker to recover from fatigue. Relaxation allowance is a
addition to the basic time intended to provide the worker with the opportunity to recover from the physiological and
psychological effects of carrying out specified work under specified conditions and to allow attention to personal
needs. The amount of allowance will depend on nature of the job.
Relaxation allowances are of two types: fixed allowances and variable allowances.

Fixed allowances constitute:

a. Personal needs allowance:

It is intended to compensate the operator for the time necessary to leave, the workplace to attend to personal
needs like drinking water, smoking, washing hands. Women require longer personal allowance than men. A
fair personal allowance is 5% for men, and 7% for women.
b. Allowances for basic fatigue:
This allowance is given to compensate for energy expended during working. A common figure considered as
allowance is 4% of the basic time.

VARIABLE ALLOWANCE
Variable allowance is allowed to an operator who is working under poor environmental conditions that cannot be
improved, added stress and strain in performing the job. The variable fatigue allowance is added to the fixed
allowance to an operator who is engaged on medium and heavy work and working under abnormal conditions. The
amount of variable fatigue allowance varies from organization to organization.

INTERFERENCE ALLOWANCE
It is an allowance of time included into the work content of the job to compensate the operator for the unavoidable
loss of production due to simultaneous stoppage of two or more machines being operated by him. This allowance is
applicable for machine or process controlled jobs. Interference allowance varies in proportion to number of
machines assigned to the operator. The interference of the machine increases the work content.

CONTINGENCY ALLOWANCE
A contingency allowance is a small allowance of time which may be included in a standard time to meet legitimate
and expected items of work or delays. The precise measurement of which is uneconomical because of their
infrequent or irregular occurrence.

This allowance provides for small unavoidable delays as well as for occasional minor extra work: Some of the
examples calling for contingency allowance are:

 Tool breakage involving removal of tool from the holder and all other activities to insert new tool into the
tool holder.
 Power failures of small duration.
 Obtaining the necessary tools and gauges from central tool store. Contingency allowance should not exceed
5%.

POLICY ALLOWANCE
Policy allowances are not the genuine part of the time study and should be used with utmost care and only in clearly
defined circumstances.The usual reason for making the policy allowance is to line up standard times with
requirements of wage agreement between employers and trade unions.

The policy allowance is an increment, other than bonus increment, applied to a standard time (or to some constituent
part of it, e.g., work content) to provide a satisfactory level of earnings for a specified level of performance under
exceptional circumstances. Policy allowances are sometimes made as imperfect functioning of a division or part of a
plant.
Seven Tools for Quality Control
To make rational decisions using data obtained on the product, or process, or from the consumer, organizations use
certain graphical tools. These methods help us learn about the characteristics of a process, its operating state of
affairs and the kind of output we may expect from it. Graphical methods are easy to understand and provide
comprehensive information; they are a viable tool for the analysis of product and process data. These tools are effect
on quality improvement. The seven quality control tools are:

1. Pareto charts
2. Check sheets
3. Cause and effect diagram
4. Scatter diagrams
5. Histogram
6. Graphs or flow charts
7. Control charts

1. PARETO CHARTS
Pareto charts help prioritize by arranging them in decreasing order of importance. In an environment of
limited resources these diagrams help companies to decide on the order in which they should address
problems. The Pareto analysis can be used to identify the problem in a number of forms.
a. Analysis of losses by material (number or past number).
b. Analysis of losses by process i.e., classification of defects or lot rejections in terms of the process.
c. Analysis of losses by product family.
d. Analysis by supplier across the entire spectrum of purchases.
e. Analysis by cost of the parts.
f. Analysis by failure mode.

Example:
A Pareto chart of reasons for poor quality. Poor design will be the
major reason, as indicated by 64%. Thus, this is the problem that
the manufacturing unit should address first.

G. Poor Design
H. Defective Parts
I. Operator Error
J. Wrong Dimensions
K. Surface Abrasion
L. Machine Calibrations
M. Defective Material
2. CHECK SHEETS
Check sheets facilitate systematic record keeping or data collection observations are recorded as they happen
which reveals patterns or trends. Data collection through the
use of a checklist is often the first step in analysis of quality
problem. A checklist is a form used to record the frequency of
occurrence of certain product or service characteristics related
to quality. The characteristics may be measurable on a
continuous scale such as weight, diameter, time or length.

Example:
The table is a check sheet for an organization’s computer
related problems.

Checklist
3. CAUSE AND EFFECT DIAGRAM
It is sometimes called as Fish-bone diagram. It is first developed by Kaorv Ishikawa in 1943 and is
sometimes called as Ishikawa diagram. The diameter helps the management trace customer complaints
directly to the operations involved. The main quality problem is referred to Fish-head; the major categories
of potential cause structural bones and the likely specific causes to ribs. It explores possible causes of
problems, with the intention being to discover the root causes. This diagram helps identify possible reasons
for a process to go out of control as well as possible effects on the process.

Fishbone diagram

4. SCATTER DIAGRAM (SCATTER PLOTS)

It often indicates the relationship between two variables. They are often used as follow-ups to a cause and
effect analysis to determine whether a stated cause truly does impact the quality characteristics.

Scatter diagram

Example:
The plots advertising expenditure against company sales and indicates a
strong positive relationship between the two variables. As the level of
advertising expenditure increases sales tend to increase.

5. HISTOGRAM (OR) BAR CHARTS

It displays the large amounts of data that are difficult to interpret in their raw form. A histogram summarizes
data measured on a continuous scale showing the frequency distribution of some quality characteristics (in
statistical terms the central tendency and the dispersion of the data).

Histogram

Often the mean of the data is indicated on the histogram. A bar

chart is a series of bare representing the frequency of
occurrence of data characteristics, the bar height indicates the
number of times a particular quality characteristic was
observed.

6. FLOW CHARTS (OR) GRAPHS

It shows the sequence of events in a process. They are used for
manufacturing and service operations. Flow charts are often used to diagram operational procedures to
simplify the system. They can identify bottlenecks, redundant steps and non-value added activities. A
 realistic flow chart can be constructed by using the knowledge of the person who are directly involved in the
particular process. The flow chart can be identifies where delays can occur.

Flowchart

7. CONTROL CHARTS
It distinguishes special causes of variations from common causes of
variation. They are used to monitor and control process on an ongoing
basis. A typical control chart plots a selected quality characteristic
found from sub-group of observations as a function of sample number.

Characteristics such as sample average, sample range and sample proportion of non-conforming units are plotted.
The centre line on a control chart represents the average value of characteristics being plotted. Two limits know as
the upper control limit (UCL) and lower control limit (LCL) are also shown on control charts. These limits are
constructed so that if the process is operating under a stable system of chance causes, the problem of an observation
falling outside these limits is quite small. The following figure shows a generalized representation of a control chart.

Control chart shows the performance of a process from two points of view. First, they show a snapshot of the
process at the moment the data are collected.

Second, they show the process trend as time progresses. Process trends are important because they help in
identifying the out-of-control status if it actually exists. Also, they help to detect variations outside the normal
operational limits, and to identify the cause of variations. Fig. shows a generalized representation of a control chart.

Control charts

Causes of Variation in Quality

The variation in the quality of product in any
manufacturing process is broadly classified
as:

A. Chance causes
B. Assignable causes.

A. CHANCE CAUSES
The chance causes are those causes
which are inherit in manufacturing
process by virtue of operational and constructional features of the equipments involved in a manufacturing
process.
This is because of
1. Machine vibrations
2. Voltage variations
3. Composition variation of material, etc.

They are difficult to trace and difficult to control, even under best condition of production. Even though, it is
possible to trace out, it is not economical to eliminate. The chance causes results in only a minute amount of
variation in process. Variation in chance causes is due to internal factors only the general pattern of variation
under chance causes will follow a stable statistical distribution (normal distribution). Variation within the
control limits means only random causes are present.

B. ASSIGNABLE CAUSES
These are the causes which creates ordinary variation in the production quality. Assignable cause’s variation
can always be traced to a specific quality. They occur due to
 1. Lack of skill in operation
2. Wrong maintenance practice
3. New vendors
4. Error in setting jigs and fixtures
5. Raw material defects

Variation due to these causes can be controlled before the defective items are produced. Any one assignable cause
can result in a large amount of variation in process. If the assignable causes are present, the system will not follow a
stable statistical distribution. When the actual variation exceeds the control limits, it is a signal that assignable causes
extend the process and process should be investigated.

Control Charts for Variables:

These charts are used to achieve and maintain an acceptable quality level for a process, whose output product can be
subjected to quantitative measurement or dimensional check such as size of a hole i.e. diameter or depth, length of a
screw/bolt, wall thickness of a pipe etc.

Various advantages of control charts for variables are as follows:

(1) Control charts warn in time, if required rectification is done, well in time the scrap and percentage rejection can
be reduced.

(2) Thus ensures product quality level.

(3) A control chart indicates whether the process is in control or out of control thus information about the selection
of process and tolerance limits are provided.

(4) The inspection work is reduced.

(5) The control charts separate out the chance and assignable causes of variations in the observation thus substantial
quality improvement is possible.

(6) Determines process variability that and detects unusual variations taking place. So reputation of the concern/firm can be
built by application of these charts.

Control Charts for Attributes:

These charts are used to achieve and maintain an acceptable quality level for a process whose output products are not
subjected to dimensional or quantitative measurement but can be classified as good or bad or acceptable and non-
acceptable, for example surface finish of a product brightness of an item is either acceptable or not acceptable.
The four most commonly used control charts for attributes are:

(1) Control charts from fraction defectives (p-charts)

(2) Control charts for number Defectives (n p charts)

(3) Control charts for percent defectives chart or 100 p-charts.

(4) Control charts for number of defects per unit or C-chart.

Control Charts for Number of Defects per Unit (C-chart):

This is another method of plotting attribute characteristics. In number of cases, it is more convenient to work with
number of defects per unit rather than with fraction defective. The r-chart is used for the control of the number of
defects observed per unit.

The difference between p-chart and the r-chart is that the former takes into account the number of items found
defective in a given sample size (each defective item may have one or more defects in it) while the latter records the
number of defects found in a given sample size.

Although the application of c-chart is somewhat limited, compared with p-chart, there are instances in industry
where it is very useful e.g. in the control of number of defects in a bus body, an aircraft a T.V. set, a computer,
welding defect in a truss etc.

The construction of the control chart is similar to that of the p-chart except that here the control limits are based on
the Poisson distribution which has often been found fit to describe distribution of defects.

The standard deviation in this case is given by

Acceptance Sampling

Sampling is the tool or technique of statistical quality control. Webster defined a sample as a product to represent the quality
of the whole lot. Frequently, we in our daily life come in contact with sampling.
 Role

1. Acceptance Sampling is much less expensive than 100 percent

inspection.

2. It is general experience that 100 percent inspection removes

only 82 to 95 percent of defective material. Very good 100
percent inspection may remove at the most 99 percent of the
defectives, but still cannot reach the level of 100 percent. Due to
the effect of inspection fatigue involved in 100 percent
inspection, a good sampling plan may actually give better results
than that achieved by 100 percent inspection.

3. Because of its economy, it is possible to carry out sample

inspection at various stages. Acceptance number is evaluated
using sampling plan and confidence level.

4. The 100 percent inspection is not possible, where quality can be tested only by destroying the items. In such case,
sampling inspection is the only solution.

Quality indices for acceptance sampling plan are:

1. Acceptance Quality Level (AQL):

It is a fraction defective that can be tolerated without serious effect on further processing operation or customer
reaction. In other words, AQL is the maximum percent defective that, for the purpose of sampling inspection, can be
considered satisfactory as a process average. AQL can also be termed as maximum number or percentage of
defective pieces in a ‘good lot’.

2. Rejectable Quality Level (RQL):

This is also known as ‘lot tolerance percent defective (LTPD)’. It represents the percentage defectives in a lot that
can be tolerated in only as specified proportion of lots. By adopting a sampling plan that will reject most of the lots
offered that would cause too much unfavourable reaction of the customer.

This, RQL helps in real protection against unsatisfactory material, reaching the customer. RQL or LTPD can also be
expressed by the minimum number or percentage of defective pieces in a “bad lot”. This can also be termed as
‘Limiting Quality Level’ (LQL).

3. Average Outgoing Quality Limit (AOQL):

This is the limit of quality, worst than which a consumer will not
get in any lot.
Following points need emphasis regarding O.C. curves:

(i) There is some chance that good lots will be rejected.

(ii) There is some chance that bad lots will be rejected.

(iii) These risks can be calculated by the theory of probability and depends on the number of samples inspected, the
acceptance number, and the percent defectives in the lot offered for sample inspection. Given the amount of risks
which can be tolerated, a sampling plan can be devised to meet these requirements.

(iv) The larger the sample used for inspection, the nearer the O.C. curve approaches the ideal. However beyond a
certain point, the added cost in inspecting a large number of parts far exceeds the benefit derived.

This acceptance number C is the maximum allowable number of defective articles in the sample. If more than C
defectives are found in a sample the lot is liable to be rejected. Since the lot size has little affect on the probability of
acceptance, therefore lot size is generally ignored in deriving a sampling plan.

O.C. curve of an acceptance sampling plan (i.e. for a particular combination of n and C) shows how well the
sampling plan discriminates between good and bad lots. In order to examine the suitability of an acceptance sam-
pling plan, it is necessary to compare their performance over a range of possible quality levels of the product.

The graph of this performance is known as operating characteristic curve. Fig. 60.2 below shows an ideal O.C. curve
where it is desired to accept all lots having 3% or less defectives, and to reject all lots having more than 3%
defectives.

In this curve, all lots with less than 3% defectives have a probability of acceptance of 100%, while all lots with more
than 3% defectives have a probability of acceptance as 0%. However such a plan does not exist in reality.

Zones of O.C. Curve:

O.C. curve can be divided into following 3 zones:

(a) Acceptance Zone:

In this zone all the batches are accepted, therefore, the O.C. curve should be so selected that its acceptance zone
accepts what is considered to be satisfactory lot.
(b) Rejection Zone:

In this zone, all the batches are rejected. Hence the O.C. curve selected should be such that it rejects what is
considered to be an unsatisfactory lot.

(c) Zone of Indecision:

This is the zone where there is no purity that whether any particular batch or lot will be accepted or rejected. This
problem can be solved either by adopting 100% inspection or by taking larger sample, but these will increase the
inspection costs.

A batch or lot in this zone is worse than acceptable lot, and better than those what is considered as unacceptable.
Thus its quality is border-line, and practically does not matter much whether a lot is finally accepted or rejected from
this zone.

Kanban systems

Kanban is a system which controls inventory and make production more efficient. This system provides
opportunities to identify and improve production process.

Some advantages of the Kanban system are:

1. Better visualization of any problems that might occur in the production cycle.
2. Teams can communicate more efficiently due to the highly visual nature of the system.
3. Achieve just-in-time (JIT) manufacturing by noting the lead time and cycle time of full production process.

The Kanban system reduces the idle time that is experienced in the production cycle making the team more efficient.
Teams might be wasting time within the production cycle with issues like low stocks. All these challenges can be
identified by the manager by implementing Kanban system.

The implication of Kanban on these elements are:

1. Inventory: Kanban is used in operation management to keep the stock levels low and helps in controlling
costs. However, inventory levels cannot simply be lowered without having information and capacity in place.
It can be disastrous in the production line.
2. Information: Two elements are related to information: How well can the information be collected on-
demand for the product and how fast can the supplier deliver materials for an order? Strong communication
between the customer and supplier is important to reduce the inventory levels. Kanban will be more accurate
when the information collected is very reliable.
3. Capacity: It is important to know the response time from the supplier when the inventory is ordered, as this
helps to be more tolerant of lower inventories. In order to identify major supply issues with the suppliers, it's
important to keep communication open.

In Operations Management, Kanban is used to define a reorder system that is undertaken through visuals. These
visuals are easy to use and utilized to improve company operations while reducing inventory. Kanban can also assist
in eliminating inventory shortages. We will now discuss the two methods used in the application of Kanban: