Quality Management

QMG1215N_QMG1245N_QMG1225N_2246N

APPLICATION-BASED ASSIGNMENT
(May 2024 Examination Cycle)

Due Date: 16 February 2024

EXAMINER: Marumo Mathibela MODERATOR: Hannes Louw

MARKS: 100 NQF LEVEL: 5

INSTRUCTIONS
1. Read and follow all instructions in the assignment.
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completing the assignment; doing so will result in disciplinary action and/or a zero mark
will be assigned.
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the student.
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not be accepted and, as a result, will not be assessed.
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 SECTION A: SHORT ANSWER TASKS 50
TASK ONE
1.1 What is the standard deviation? (5)

The standard deviation is a measure of the amount of variation or dispersion in a set of values. It quantifies
how much individual data points in a dataset differ from the mean (average) of the dataset. A low standard
deviation indicates that the data points are close to the mean, while a high standard deviation indicates that
the data points are spread out over a larger range.
The formula for calculating the standard deviation (σ) is as follows:

Where:
 N is the number of data points in the dataset,
 xi represents each individual data point,
 ˉxˉ is the mean of the dataset.

1.2 Calculate the standard deviation of the following set of numbers

76;84;69;92;58;89;73;97;85 and 77 (10)

Step 1: Find the mean

Mean = sum of all numbers/N
Where N is the number of items ie 10
Mean = 800/10 = 80

Step 2: Calculate (X-Mean) squared.

(x-mean)
X X-mean squared
76 -4 16
84 4 16
69 -11 121
92 12 144
58 -22 484
89 9 81
73 -7 49
97 17 289
85 5 25
77 -3 9
1234

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Step 3: Calculate standard deviation

Standard deviation = (X-mean)^2/N

= 1234/10 = 123.4

1.3 The test scores of a maths class with 800 students are distributed normally with a mean of
75 and a standard deviation of 7.

Use the normal curve to determine the following?

1.3.1 What percentage of the students have a test score between 68 and 82? (3)

Step 1: convert both scores to Z-scores using the following formula

where X is the raw score, μ is the mean, and σ is the standard deviation.

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For the lower bound (68)

Which is (1 standard deviation)

For the upper bound (82):

Which is (1 standard deviation)

Therefore percentage = 68.3%

1.3.2 Approximately how many students have a test score between 61 and 89? (4)

For the lower bound (61)

= -2

For the upper bound (89)

=2

These Z values are within 2 standard deviations therefore it is 95.4%

1.3.3 What is the probability that a student chosen at random has a test score between 54 and 75?
(4)

For the lower bound (54)

= -3

Which is

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For the upper bound (89)

=1

Which is

Which is 99.7% - 68.3% = 31.4%

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 1.3.4 Approximately how many students have a test score greater than or equal to 96? (4)

=3

The probability of 3 standard deviations is approximately 1, therefore 800 students multiplied by the
probability of 1 is equal to 800. Therefore all the 800 students had a score that is greater than or equal to 96.

1.4 You are working at a snack factory, packing nuts in 500g bags. To do quality control a
sample of 5 bags will be collected every day for 10 days. The objective is to determine if the
process of variability is in control.

Day Weight of peanuts in grams Range values (R)

1 496 504 496 505 509 13
2 501 492 510 496 521 29
3 501 498 510 499 482 28
4 493 490 506 506 505 16
5 477 460 460 478 490 30
6 503 495 493 505 499 12
7 495 494 481 490 510 29
8 502 528 520 490 505 30
9 509 502 502 489 503 20
10 499 492 503 506 490 16

 The upper control limit = 48.83

 The lower control limit = 0

1.4.1 Determine R (range values for 10 days). (3)

1.4.2 Calculate the mean of the ranges, R bar. (3)

Rbar = sum of ranges/number of ranges = 223/10 = 22.3

1.4.3 Draw the R chart and plot the R values, connect the points with a line. (3)

1.4.4 Draw the centerline on the graph. (3)

1.4.5 Draw the upper limit. (3)

1.4.6 Draw the lower limit. (3)

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Chart shows solution from 1.4.3 to 1.4.6

1.4.7 Is the process within statistical control? Explain your answer. (2)

Yes, the process appears to be within statistical control. All points fall within the control limits.

SECTION B:

TASK TWO 40

2.1 A 1000 square meter double story house (Tuscan style) will be built on stand
123 in Kyalami estate. The developer will purchase his own materials and will
appoint his own sub-contractors with contracts. The house will be developed
for R8million and then sold to a buyer for R10 million. The building project will
take place strictly according to the architect’s plan and building regulations.

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 2.1.1 As a quality manager of the construction company explain to your boss the 4 different
costs of quality. Give practical examples (referring to case study) of each cost and explain
how you are going to manage these costs. (4)

1. Prevention Costs: These are proactive investments in preventing defects.

 Example: Training workers on proper construction techniques to minimize errors

(e.g., using prefabricated wall panels reduces on-site errors).
 Management: Allocate budget for regular training sessions, quality control checklists, and
invest in efficient tools and technologies.

2. Appraisal Costs: These are expenses incurred in evaluating quality conformance.

 Example: Inspections throughout the project by our team and independent professionals to
ensure adherence to plans and regulations.
 Management: Optimize inspection schedules based on risk assessment, utilize digital
inspection tools for faster data collection, and train inspectors for accuracy and efficiency.

3. Internal Failure Costs: These are costs associated with defects identified before customer
handover.

 Example: Rework due to incorrect material installation, fixing leaks found during internal
testing, or replacing damaged finishes.
 Management: Implement clear communication protocols, ensure proper material handling
and storage, and incentivize defect prevention through rewards and recognition programs.

4. External Failure Costs: These are costs associated with defects identified after customer
handover.

 Example: Warranty claims due to structural issues, resolving customer complaints about
faulty finishes, or repairing damage caused by construction errors.
 Management: Implement robust customer service processes, conduct post-occupancy
inspections to identify early issues, and establish a proactive communication plan to
address customer concerns promptly.

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 2.1.2 As a quality manager of the construction company explain to your boss what the graph
represents and how the company can benefit if the relationship between costs and quality of
production is optimised. (4)

The graph depicts the relationship between total quality costs and quality. It is divided into three
cost categories: prevention costs, appraisal costs, and failure costs. These categories are stacked
on top of each other to create the total quality cost curve. The quality level is depicted on the x-
axis, ranging from zero to one, with zero being poor quality and one being perfect quality.

Here's a breakdown of the different cost categories and how they relate to quality:

 Prevention costs: These are the costs associated with preventing defects from occurring
in the first place. Examples include quality planning, training, and process improvement. As

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 quality increases, prevention costs typically increase as well, but at a decreasing rate. This
is because as you invest more in prevention, you catch and fix more potential problems
early on, which can lead to significant cost savings down the line.
 Appraisal costs: These are the costs associated with evaluating the quality of products or
services. Examples include inspection, testing, and calibration. Appraisal costs typically
increase as quality increases, as more inspection and testing is required to ensure high
quality standards are met.
 Failure costs: These are the costs associated with defects that are not prevented or
detected before they reach the customer. Examples include rework, scrap, warranty
claims, and lost sales. Failure costs typically decrease as quality increases, as there are
fewer defects to fix or replace.

The optimal quality level is the point where the total quality cost curve reaches its minimum point.
This is the point where the combined cost of prevention, appraisal, and failure is lowest. The
optimal quality level appears to be around 0.8.

Here are some ways that the company can benefit from optimizing the relationship between costs
and quality:

 Reduce overall quality costs: By understanding the different cost categories and how
they relate to quality, you can make informed decisions about where to invest your
resources to achieve the lowest total quality cost.
 Improve product quality: By investing in prevention and appraisal activities, you can catch
and fix defects early on, which can lead to higher quality products and services.
 Increase customer satisfaction: By delivering high-quality products and services, you can
improve customer satisfaction and loyalty.
 Reduce rework and scrap: By preventing defects, you can reduce the amount of rework
and scrap that is generated, which can save your company money and resources.
 Boost profits: By optimizing quality costs, you can free up resources that can be
reinvested in other areas of the business, such as marketing or product development.

2.1.3 When looking at the graph (point 1) discuss the relationship between the 4 costs and the
quality. (4)

At point 1, the prevention and appraisal costs are still lower but as they are rising, the quality is also
increasing, this shows that as these two types of costs increase the quality of production also increases.

2.1.4 When looking at the graph (point 2) discuss the relationship between the 4 costs and the
quality. (4)

At point 2, the failure costs are still lower but as they are rising, the quality is, however, decreasing, this
shows that as this type of cost increase the quality of production decreases.

2.1.5 When looking at the graph (point 3) discuss the relationship between the 4 costs and the
quality. (4)

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This point shows the total of the quality costs which is failure, appraisal and prevention costs. This graph
depicts that as we increase the quality of production the total quality costs continue to fall until an optimum
level of quality, beyond that level of quality the cost starts to increase.

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 2.2 You are working as a quality manager for a property developer who is building 50 townhouses
on a big stand in Kyalami. The size of a house is 100 square meters each selling for a million
rand. The developer decided to build one townhouse as a pilot project. Your purpose is to
quality check every process (incoming material and sub- contractors). After 100 days of
observing the process, you come to the following conclusions:
 The contractors wasted cement mix. Cement mix fell on the floor dries out and gets thrown
away. Wastage
 Contractors stole building materials. Theft
 Contractors built incorrectly and the walls need to be broken down and rebuilt.
Workmanship
 Plumber installed inferior products (not according to contract specifications). Inferior
products
 The electrician didn’t arrive on time causing the project to fall behind schedule.
Reliability
 The painter worked slowly, delaying the project. Slow working

The quality problems are diversified so you quantify the losses in rand value:
Problems Rand Root cause
value
Wastage R20000-00 Work method
Theft R8000-00 Control measure
Workmanship R8000-00 Work method
Inferior products R5000-00 Control measure
Reliability R4000-00 Ethics
Slow working R3000-00 Work method

2.2.1 When looking at each problem and root cause, explain what measures you will put in place to
minimise it. Please provide practical solutions. (4)

Problem: Wastage (R20,000)

Root Cause: Work Method

 Solution:
o Implement pre-measured material distribution: Instead of bulk deliveries, provide
pre-measured quantities of cement mix directly to work areas, minimizing excess
and potential spills.
o Invest in reusable mixing containers: Eliminate disposable containers and utilize
reusable buckets for mixing, reducing waste and promoting sustainability.
o Train workers on proper mixing techniques: Conduct workshops on efficient
mixing practices to avoid over-preparation and subsequent drying and discarding.

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 o Designate waste collection areas: Set up specific bins for cement mix
waste, allowing for potential reuse in non-critical applications like backfill.

Problem: Theft (R8,000)

Root Cause: Control Measure

 Solution:
o Install security cameras and alarms: Monitor key material storage areas and
construction zones visually and electronically.
o Implement access control: Issue personalized ID cards or access codes to
authorized personnel only.
o Conduct random inventory checks: Regularly reconcile material deliveries with
usage to identify discrepancies.
o Partner with reputable subcontractors: Verify subcontractor backgrounds and
references before hiring.

Problem: Workmanship (R8,000)

Root Cause: Work Method

 Solution:
o Provide comprehensive training: Offer workshops on proper construction
techniques specific to the project's materials and methods.
o Implement clear and detailed construction plans: Ensure blueprints and
specifications are easily accessible and readily understood by workers.
o Assign experienced supervisors: Have skilled individuals readily available to
guide and troubleshoot issues on-site.
o Establish a quality control inspection process: Conduct regular checks at key
stages of construction to identify and rectify errors promptly.

Problem: Inferior Products (R5,000)

Root Cause: Control Measure

 Solution:
o Clearly define material specifications in contracts: Specify precise
brands, certifications, and performance requirements for all materials.
o Conduct pre-purchase inspections: Physically inspect materials before delivery to
ensure compliance with specifications.
o Develop relationships with reliable suppliers: Partner with trustworthy vendors
known for quality products and ethical practices.
o Implement a material testing program: Randomly test samples of delivered
materials to verify adherence to specifications.

Problem: Reliability (R4,000)

Root Cause: Ethics

 Solution:

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 o Establish clear work schedules and expectations: Outline project
timelines, milestones, and individual task deadlines explicitly.
o Implement performance tracking systems: Monitor subcontractor progress and
address delays proactively.
o Offer incentives for timely completion: Consider bonuses or early payment
discounts for meeting or exceeding deadlines.
o Enforce consequences for delays: Have a clear system of penalties for missed
deadlines to discourage tardiness.

Problem: Slow Working (R3,000)

Root Cause: Work Method

 Solution:
o Analyze task workflows and identify bottlenecks: Pinpoint areas where work
slows down and implement process improvements.
o Optimize resource allocation: Ensure the right number of workers with the
necessary skills are assigned to each task.
o Provide performance feedback: Offer constructive feedback to workers to identify
areas for improvement and encourage efficiency.
o Offer training on productivity techniques: Share time-management and efficient
construction practices with workers.

2.2.2 Do a pareto analysis, draw a graph and analyse the graph according to Pareto

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 principles. (4)
A Pareto chart is a type of chart that combines bars and a line graph. The bars represent
individual values in descending order, while the line represents the cumulative total.

2.2.3 Draw a Pareto chart of the root causes. (4)

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 2.2.4 On the same chart draw the cumulative percentage of the root causes. (4)

2.2.5 Do a pareto analysis, explain what the graph is showing you. (4)

The Pareto chart visually represents the 80/20 rule applied to the quality problems identified in the
project. Here's what it means:

1. Work Method Issues Dominate: Two root causes, "Work Method" and "Control Measure,"
contribute to nearly 80% of the total quality-related cost (R48,000). This signifies that
inefficiencies and lack of proper controls in these areas are the biggest contributors to
problems like material wastage, theft, workmanship errors, and slow working.

2. Focus on Work Method Improvements: Addressing "Work Method" issues should be

your top priority. Implement solutions like pre-measured material distribution, training, clear
plans, and performance feedback to address wastage, rework, and slowness.

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3. Control Measures Matter: Although not as significant as "Work Method," strengthening
"Control Measure" can further reduce costs. Improve security measures, conduct
background checks, clearly define material specifications, and implement quality control
checks to minimize theft and inferior products.

4. Ethics and Reliability Can Be Addressed: While "Ethics" and "Reliability" contribute less
to the overall cost, they still deserve attention. Establish clear expectations, offer incentives,
and enforce consequences to improve subcontractor timeliness and ethical behaviour.

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 SECTION C:

TASK THREE 10

3.1 The following results came out for Class of 23 (26 pupils) History, English and
Mathematics. Their test results are as follows:

3.1.1 Draw a frequency distribution histogram for History. (10)

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