Quality and Quantity Control Chapter 24 Quality and Quantity Control

Control Helps assure that actual operational results conform with desired or anticipated results.

Steps in the Process of Control 1. Define the parameters of the work being subjected to the control process. 2. Determine actual results. 3. Evaluate actual results. 4. Compare actual results with expected results. 5. Apply corrective measures when needed.

Objectives of Control (1 of 2) 1. To increase the operating efficiency of the organi- zation. 2. To assess the degree to which anticipated results and actual results conform. 3. To coordinate the various elements of a program or a task.

Objectives of Control (2 of 2) 4. To increase the likelihood that the organization’s objectives will be achieved. 5. To assist the office employees in performing their jobs more efficiently. 6. To maximize the organization’s profits by decreasing the amount of work that has to be redone and by reducing the misuse of supplies and materials.

Advantages of Control 1. It helps maximize the profits of the organization. 2. It helps employees improve their productivity because they are aware of quantity and quality output requirements. 3. It provides a yardstick by which an organization can measure its operating efficiency. 4. It identifies the areas in which actual and anticipated results do not coincide, which facilitates the modification of various work processes. 5. It helps in the meeting of scheduled deadlines.

Identification of anticipated results Elements of Control Factors to control Identification of anticipated results Measurement devices Application of corrective measure

Factors to Control Factors should be significant. Important documents are often considered.

Identification of Anticipated Results Unless anticipated results are clearly identified, trying to compare actual results and anticipated results is impossible. Employees must be informed about the anticipated results.

Measurement Devices Actual results have to be measured before actual and anticipated results can be compared. Measurement may involve determining quantity output, using performance standards, for example. Some programs, such as TQM, use specialized measurement processes.

Application of Corrective Measures Corrective measures must be taken when actual results are less than anticipated results. Type of corrective measures to be taken varies from situation to situation.

Quality Control Is used to help organizations improve their operating efficiency when employees fail to produce error-free work. Without quality control measures, errors are likely to go unnoticed.

Quality Control Techniques Total Inspection Spot Checking Statistical Quality Control Zero Defects

Total Inspection This technique involves a complete and total inspection of each unit of work produced by each employee. This is done to determine whether minimum quality standards have been attained. Some types of office work, such as proofreading, require total inspection.

Spot Checking This technique involves a periodic inspection of an employee’s work. Its desirability is frequently challenged because it does not use a statistical process to determine how much, who, and when the checks are to be made.

Statistical Quality Control (1 of 3) Uses several statistical elements that make its use more desirable than other techniques. Sampling Is used to determine what percentage of the total output has to be examined to be relatively certain that total output is as error-free as the sample. Statistical tables are used to determine proper sample size.

Statistical Quality Control (2 of 3) Normal Distribution A certain percentage of errors are normal and are due to chance. Those that exceed the number due to chance are of concern.

Statistical Quality Control (3 of 3) Control Limits Cause of errors that exceed the control limits must be determined. Those that fall within the control limits are due to normal distribution.

Zero Defects Is based on the assumption that if employees do their work correctly the first time, then errors will take care of themselves. It also involves motivating employees to do their work correctly the first time.

Total Quality Management (TQM) (1 of 2) Is a widely encompassing program. Is concerned with the quality of an organization’s products and/or services as well as the delivery of those goods/services to the customer.

Total Quality Management (TQM) (2 of 2) Components 1. Customer satisfaction. 2. Accurate statistical measurement. 3. Ongoing improvement of products and/or services. 4. New employee relations.

Six Sigma Program (1 of 2) Allows no more than 3.4 defects per million units produced, which is the equivalent of six standard deviations. Organizations that use it generally require their suppliers to use it as well. Programs require employee “buy-in” for the concept to work well.

Six Sigma Program (2 of 2) Ongoing employee commitment and teamwork are critical. Program installation begins with identifying area(s) that will be subject to the program. When more defects than 3.4 per million units produced are found, then the causes of the problems are identified and corrected.

Uses standards that are based on data Quantity Control Uses standards that are based on data collected through work measurement.

Techniques Used to Control Fluctuations in Amount of Work to be Done (Too Much Work) Employee Overtime Temporary Help Part-Time Help Floating Work Unit Cycle Billing

Techniques Used to Control Fluctuations in Amount of Work to be Done (Too Little Work) Time Off Work Backlog Maintenance Projects

Short-Interval Scheduling This technique helps assure the completion of a given amount of work in a given amount of time. It provides the mechanism for determining whether or not the work is completed according to schedule.

Assumption on which short-interval scheduling is based: When employees are trying to attain production goals, they improve their chances of being successful by using short-range rather than long-range production goals.

Short-Interval Scheduling Procedures 1. Employee is given a short-time production goal. 2. Employee determines production level. 3. If employee is short meeting goal, he/she attempts to make up shortage during the workday that remains.

Is used to help assure the successful completion of a given project. Work Scheduling Is used to help assure the successful completion of a given project.

Work Schedule Calendar Scheduling Devices Schedule Log Work Chart Work Schedule Calendar Gantt Chart Program Review Evaluation Technique

Identifies who is to complete each element of Schedule Log Identifies who is to complete each element of a project, the expected completion date, and whether or not the element got completed.

Work Chart Supervisor works backward from expected completion date to determine the date by which each element of the project must be begun for the project to be completed on time.

Work Schedule Calendar Identifies the projects that are to be started each day as well as the person who is responsible for the project.

Gantt Chart Is generally used for more complex projects than the other charts discussed this far. Identifies the projects that must be completed on a given day.

Program Evaluation Review Technique (PERT) Was originally developed for the Polaris missile program. Identifies a project’s critical path, which is comprised of the components that must be completed for the project to be completed on time. Noncritical subprojects can be completed any time during the duration of the project.