Scenario:
You have recently joined a small electronic circuit manufacturing company as a quality manager, with the aim of introducing quality management systems to improve operational performance.
A recent survey by the production manager highlighted an increase in the number of faulty circuits postproduction, leaving output at an all-time low,n while overall unit cost of production has increased.
Activity:
In a bid to convince the CEO that quality control processes should be put in place, you are tasked with completing a report on the topic on statistical process control in engineering and the cost effectiveness of quality control implemented by organisations.
Task 1
a) Your report will include discussions on the following topics:
- The techniques used to support quality control, explain how these techniques could be used in an industrial and business environment.
- Describe the processes used in statistical process control for an industrial environment, also consider whereabouts these processes could be applied.
Give justified reasons as to why you would recommend the use of statistical process control within an engineering environment.
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Chat Nowb) To give your report some Engineering industry context you will include a discussion on:
- Quality control tools that are available, and where their use would be most effective. When discussing the quality control techniques that can be used to improve business performance, justify whether you think these methods would be effective.
- An analysis of the costing techniques that are used within an industrial environment, and the benefits of using them.
Task 2:
Further to your discussion in task 1, you will complete the below practical to highlight the effects of implementing a quality control tool.
A company manufactures electronic circuits in batches of 100. Each circuit is tested by QC for the current drawn when connected to a constant voltage. The acceptable limits for the current drawn is between 41 − 70 mA, any circuits that do not fall within the limits will have to be scrapped. The typical test results pre and post the introduction of QC are shown in table 1.1 below.
a) Produce a graphical presentation of the data shown in Table 1.1 to illustrate the effects of adopting a culture of quality control.
b) Using the standard costing method and the template shown in Table 1.2, produce a basic account sheet to calculate the net profit/loss for a month pre and post the introduction of QC. Assume that the values before QC are the standard, and you have also been given the following information:
- The company produces 50 batches of circuits each day.
- There are 20 production days in a month.
- Raw materials for each circuit costs £0.10.
- Each circuit is sold for £0.75.
- All units that pass quality control are sold.
- The monthly wage bill is £19,500 before the new manager is hired, and £21,000 afterwards.
- The company pays £3,000 a month in rent.
- Overheads were £300 in the month before QC, and £275 in the month after QC.
- Variances were £8.460 in the month before QC, and £10,320 the month after.
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