YARDESTIC INTERNATIONAL COLLEGE

SUBMITTED BY:

ID:

FEBRUARY 2024

ADDIS ABABA, ETHIOPIA

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 Contents
1.INTRODUCTION...................................................................................................................3
1.1 Concept of Facility Location............................................................................................3
1.1.1 Need for Facility Location Planning.........................................................................3
1.1.2 FactorsAffecting Facility Location Decisions..........................................................3
1.1.3 Procedures and Techniques for Selecting Facility Location.....................................4
1.2. Concept of Facility Layout..............................................................................................5
2.1.1 Types of Facility Layouts..........................................................................................5
1.2.2 Factors Affecting a Facility Layout..........................................................................6
1.2.3 Prerequisites for Developing a Facility Layout........................................................6
1.2.4 Process of Facility Layout Designing.......................................................................7
1.2.5 Techniques for Designing a Facility Layout.............................................................7
1.2.6 New Approaches to Layout Design..........................................................................9
1.2.7 Revision of a Current Layout....................................................................................9
1.3 Service Facility Layouts...................................................................................................9
1.3.1 Types of Service Facility Layouts...........................................................................10
conclusion................................................................................................................................10
2.QUALITY CONTROL.........................................................................................................11
2.1 INTRODUCTION..........................................................................................................11
2.2 Introduction to the Basic Concepts of Quality Control..................................................11
2.3 ISO 9000’s Basis............................................................................................................13
2.4 ISO QS 9000..................................................................................................................16
2.5 ISO 14000......................................................................................................................17
2.6 What is zero-defect?.......................................................................................................19
2.6.1 Principles of Zero Defect:...........................................................................................20
2.6.2 What are the benefits of Zero Defect?........................................................................20
2.7 Application of Computer in Production and Operations................................................21
REFERENCES.........................................................................................................................22

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 1.INTRODUCTION
1.1 Concept of Facility Location
 Facility location may be defined as a place where the facility will be set up for producing
goods or services. The need for location selection may arise under any of the following
conditions:

a. When a business is newly started.

b. When the existing business unit has outgrown its original facilities and expansion is not
possible; hence a new location has to be found.

c. When the volume of business or the extent of market necessitates th establishment of

branches.

d. When the lease expires and the landlord does not renew the lease.

e. Other social or economic reasons.

1.1.1 Need for Facility Location Planning

 Facility location planning is also required for providing a cost benefit to the organisation.

 The location planning should help in reducing the transportation cost for the organisation.
This ultimately helps in decreasing the cost of production and generating cost advantage for
the organisation.

 It is also needed to identify proximity to the sources of raw materials and transportation
facilities.

 A facility should ideally be located at a place where raw materials are available. This is
necessary for maintaining continuity in the production process.

1.1.2 FactorsAffecting Facility Location Decisions

 While selecting a facility location, an organisation should consider various factors that may
have significant impact on its performance. These factors are explained below:

➢ Availability of power

➢ Transportation

➢ Suitability of climate

➢ Government policy

➢ Competition between states

➢ Availability of labour

➢ Civic amenities for workers

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➢ Existence of complementary and competing industries

➢ Finance and research amenities

➢ Availability of water and fire-fighting facilities

1.1.3 Procedures and Techniques for Selecting Facility Location

 An organisation follows certain steps to make a correct location choice. These steps are:

 Following are some main techniques used in making location decisions:

➢ Location rating factor technique: In this technique, first of all an organisation needs to
identify the factors that influence its location decision. Next, each factor is provided a weight
between ‘0’ to ‘1’ according to the level of importance, where ‘0’denotes least important and
‘1’denotes most important.

➢ Centre-of-gravity technique: This technique emphasises on transportation cost in the

determination of facility location. Transportation cost mainly depends on distance, weight of
merchandise and the time required for transportation. Centre-of-gravity maps various supplier
locations on a Cartesian plane and suggests a central facility location with respect to the
locations of suppliers.

➢ Transportation technique: In simple words, the transportation technique evaluates multiple

transportation routes of shipping goods from multiple origins to multiple destinations and
finds or develops the least cost route. The technique is often used in determining facility
locations for evaluating transportation costs of routes by selecting different facility locations.
In the transportation technique, multiple facility locations fits are identified and their relative
transportation costs are calculated. Finally, the location that is related to the lowest cost
routes is selected.

1.2. Concept of Facility Layout

 Facility layout may be defined as the arrangement of machinery, equipment, and other
amenities in a facility, which should ensure a smooth movement of materials.
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 According to Moore,

facility layout is the plan of or the act of planning an optimum arrangement of facilities,
including personnel, operating equipment, storage space , material handling equipment, and
all other supporting services along with the design of the best structure to contain these
facilities .

Objectives of an Effective Facility Layout

2.1.1 Types of Facility Layouts

 Process layout: Process layout, also called functional layout or batch production layout, is
characterised by the grouping together of similar machines, based upon their operational
characteristics.

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 Product layout: In product layout, also called straight line layout, machinery is arranged in
one line as per the sequence of production operations. Materials are fed into the first machine
and finished products come out of the last machine.

 Fixed position layout: This type of facility layout is used to assemble products that are too
large, heavy or fragile to move to a location for completion. In the fixed position layout,
machinery, men, as well as other pieces of material, are brought to the location where the
product is to be assembled.

 Cellular manufacturing layout: In Cellular Manufacturing (CM) layout, machines are

grouped into cells, which function somewhat like a product layout in a larger shop or a
process layout. Each cell in the CM layout is formed to produce a single part family, that is, a
few parts with common characteristics.

 Combination or hybrid layout: It is difficult to use the principles of product layout, process
layout, or fixed location layout in facilities that involve fabrication of parts and assembly.
Fabrication tends to employ the process layout, while assembly areas often employ the
product layout.

1.2.2 Factors Affecting a Facility Layout

1.2.3 Prerequisites for Developing a Facility Layout

 Developing process charts: A process chart is the graphical representation of production
activities performed by an organisation. Process charts facilitate a systematic analysis and
demonstration of the entire production process. These charts are further classified into two
categories, namely operation process chart and flow process chart.

 Making process flow diagrams: A process flow diagram represents the movement of
materials on a floor layout. These diagrams help an organisation in avoiding needless
material movement and rearranging facility operations.

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 Developing machine data cards: A machine data card helps in developing equipment
layout (pieces of equipment layout in relation to everything including the persons using them)
by providing information related to power and materials handling requirements and capacity
and dimensions of different machines.

 Visualising the layout: It represents the most common technique that is deployed for layout
planning. It involves creating duplication of machines and equipment and arranging them in
two- or three-dimensional plans for determining the effectiveness of a layout.

1.2.4 Process of Facility Layout Designing

1.2.5 Techniques for Designing a Facility Layout

 Two main techniques of designing a facility layout are:

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 Block diagramming: The block diagram can be prepared by following the steps given
below:

1. Analyse the unit load summary that provides information about the average number of unit
loads moved between different departments of an organisation.

2. Calculate the composite movements (back-and-forth movement) of the unit load between
the departments and rank them from the highest movement to the lowest movement.

3. Place the trial layouts, which are designed using the ranking between departments, on a
grid. This grid represents the relative distance between the departments.

 Richard Muther’s systematic layout planning (SLP): In this technique, a grid displays the
ratings of the relative importance of the distance between different departments of an
organisation. This grid is also called ‘closeness rating chart’. In this chart, the rating for
department A relative to department B is similar to the rating of department B to department
A. Closeness ratings are given to departments in the form of codes, which depict the desired
closeness of the departments according to the relative strength of their closeness.

1.2.6 New Approaches to Layout Design

1.2.7 Revision of a Current Layout

 The following developments necessitate the revision of the existing layout:

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1.3 Service Facility Layouts
 The objectives of service facility layouts differ from those of manufacturing facility
layouts.

 This is because a manufacturing facility aims to make on-time delivery of products to

customers, whereas customers come to a service facility to receive services.

 Therefore, customers usually prefer a service facility that is close to them, especially when
the service delivery process requires considerable customer contact. For example, if you are
hungry, you would prefer to go to a restaurant near you.

 Service facility layouts are often categorised under three heads, which are:

➢ Product layout: This type of layout is used only in cases where services are organised in a
sequence.

➢ Process layout: These layouts are highly common in service facilities as they successfully
deal with the varied customer processing requirements.

➢ Fixed position layout: In this type of service layout, materials, labour and equipment are
brought to the customer’s place. This layout is used in services like appliance repair,
landscaping, home remodelling, etc.

1.3.1 Types of Service Facility Layouts

 Warehouse and storage layouts: The layouts of warehouse and storage facilities are
designed by considering the frequency of order. Items that are ordered frequently are placed
near the facility entrance. However, items that are not ordered frequently are placed at the
rear of the facility. Apart from this, correlation between two merchandises is also important
while designing a layout for a warehouse and storage facility.

 Retail layouts: A retail store layout refers to a systematic arrangement of merchandise

groups within a store. A well-planned retail store layout provides a description of the size and

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location of each department of the store, fixture locations, and traffic patterns. It also helps
consumers find products of their choice in a short time. Different retail layouts are:

➢ Grid layout

➢ Free-form layout

➢ Loop layout

➢ Spine layout

 Office layouts: Designing of office layouts is witnessing revolutionary changes as

paperwork is now replaced with different modes of electronic communications. Today, office
layouts focus more on creating an image of openness. Low-rise partitions are preferred
between departments to facilitate easy communication among workers.

conclusion
 A facility location may be defined as the place where a facility will be set up for producing
goods or services.

 Selection of a suitable facility location is important as it decides the fate of a business. A

good location may reduce the cost of production and distribution to a considerable extent.

 Once established, a location cannot be changed frequently as it incurs huge costs.

 A facility layout is defined as the arrangement of machinery, equipment and other

amenities in a facility to ensure the smooth movement of materials.

 The objectives of service facility layouts differ from those of manufacturing facility
layouts. This is because a service operation aims to organise all activities and processes to
deliver services to customers.

2.QUALITY CONTROL
2.1 INTRODUCTION
In every organization, both management and the general workforce tend to resist change,
whether it be in systems, culture or environment. That is natural – people are usually happy to
continue with what they have always done. There are various reasons for implementing a
quality system that conforms to an ISO standard. The primary reason is that customers or
marketing are suggesting or demanding compliance to a quality system. Other reasons are
needed improvements in processes or systems and a desire for global deployment of products
and services. As more and more organizations become registered, they are requiring their
subcontractors or suppliers to be registered, creating a snowball effect.

Establishing a quality management system is not rocket science. The intent of any QMS is
simply to provide a system for developing or improving processes through a structured

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approach, effective deployment and better control. The quality management system not only
provides a structure and framework, it also ensures the rigor of an audit mechanism that
enforces corrective action. Continuous improvement happens within all processes in a
systematic manner.

ISO or International Organization for Standardization that promotes worldwide, standards for
the improvement of quality, productivity and operating efficiency through a series of
standards and guidelines.

2.2 Introduction to the Basic Concepts of Quality Control

The quality movement can trace its roots back to medieval Europe, where craftsmen
began organizing into unions called guilds in the late 13th century.

Until the early 19th century, manufacturing in the industrialized world tended to
follow this craftsmanship model. The factory system, with its emphasis on product
inspection, started in Great Britain in the mid-1750s and grew into the Industrial Revolution
in the early 1800s.

In the early 20th century, manufacturers began to include quality processes in quality
practices.

After the United States entered World War II, quality became a critical component of
the war effort: Bullets manufactured in one state, for example, had to work consistently in
rifles made in another. The armed forces initially inspected virtually every unit of product;
then to simplify and speed up this process without compromising safety, the military began to
use sampling techniques for inspection, aided by the publication of military-specification
standards and training courses in Walter Shewhart’s statistical process control techniques.

The birth of total quality in the United States came as a direct response to the quality
revolution in Japan following World War II. The Japanese welcomed the input of Americans
Joseph M. Juran and W. Edwards Deming and rather than concentrating on inspection,
focused on improving all organizational processes through the people who used them.

By the 1970s, U.S. industrial sectors such as automobiles and electronics had been
broadsided by Japan’s high-quality competition. The U.S. response, emphasizing not only
statistics but approaches that embraced the entire organization, became known as total quality
management (TQM).

By the last decade of the 20th century, TQM was considered a fad by many business
leaders. But while the use of the term TQM has faded somewhat, particularly in the United
States, its practices continue.

In the few years since the turn of the century, the quality movement seems to have
matured beyond Total Quality. New quality systems have evolved from the foundations of

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Deming, Juran and the early Japanese practitioners of quality, and quality has moved beyond
manufacturing into service, healthcare, education and government sectors.

The word quality is often used indiscriminately for many different meanings. Quality
can be defined as “fitness for use,” “customer satisfaction,” “doing things right the first
time,” or “zero defects.” These definitions are acceptable because quality can refer to degrees
of excellence. Webster’s dictionary defines quality as “an inherent characteristic, property or
attribute.” Quality Review will define quality as a characteristic of a product or process that
can be measured. Quality control is the science of keeping these characteristics or qualities
within certain bounds.

In a manufacturing or service environment, there are two major categories of quality:

quality of design and quality of conformance. A poorly designed product will not function
properly regardless of how well it meets its specifications. Conversely, a product that does
not conform to excellent design specifications will not properly perform its intended function.

The costs associated with providing poor quality products or services. There are four
categories: internal failure costs (costs associated with defects found before the customer
receives the product or service), external failure costs (costs associated with defects found
after the customer receives the product or service), appraisal costs (costs incurred to
determine the degree of conformance to quality requirements) and prevention costs (costs
incurred to keep failure and appraisal costs to a minimum).

Cost of quality is a methodology that allows an organization to determine the extent to

which its resources are used for activities that prevent poor quality, that appraise the quality
of the organization’s products or services, and that result from internal and external failures.
Having such information allows an organization to determine the potential savings to be
gained by implementing process improvements. Quality-related activities that incur costs
may be divided into prevention costs, appraisal costs, and internal and external failure costs.

2.3 ISO 9000’s Basis

What is ISO 9000?

ISO 9000 is a set of international standards on quality management and quality assurance
developed to help companies effectively document the quality system elements to be
implemented to maintain an efficient quality system. They are not specific to any one
industry and can be applied to organizations of any size.

ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and
achieve continual improvement. However, it should be considered to be a first step, the base
level of a quality system, not a complete guarantee of quality.

The thrust of ISO 9000 is for organizations to implement a QMS conforming to the
standard’s requirements and, through the consistent, rigorous employment of the QMS, to

 Improve customer satisfaction by fulfilling customer requirements;

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 Achieve continual improvement of organizational performance and competitiveness;
 Continually improve its process, products, and services; and
 Comply with regulatory requirements.

ISO 9000’S OBJECTIVE

The original aim of ISO 900 was to ensure that the products or services provided by
registered organization were consistently fit for their intended purpose. The ISO 9000 raised
the standard’s aim to a new level. Customer focus and continual improvement, along with the
other six principles that have been incorporated into the standard, are intended to make
registered organizations more competitive.

20 ELEMENTS OF ISO 9000 SERIES STANDARDS

 Management Responsibilities
 Quality system
 Contract review
 Design control
 Document and data control
 Purchasing
 Control of customer supplied product
 Product identification and traceability
 Process control
 Inspection and testing
 Control of inspection, measuring, and test equipment
 Inspection and test status
 Control of non conforming product
 Corrective and preventive actions
 Handling, storage, packaging, preservation and delivery
 Control of quality records
 Internal quality audits
 Training
 Servicing
 Statistical techniques

HOW TO GET CERTIFICATION

 Get top management commitment

 Train personnel
 Prepare Quality Policy Manual
 Prepare Operating Procedures
 Hold internal audit

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  Select registrar
 Go through registration process
 Obtain ISO 9000 registration

The Eight Principles: ISO 9000’s Basis

The ISO 9000 QMS is based on the eight principles from total quality management
(TQM):

1.Customer Focus.

Understand the costumer’s needs, meet the customer’s requirements, and strive to
exceed the costumer’s expectations.

2.Leadership.

Establish unity of purpose and organizational direction and provide an environment

that promotes employee involvement and achievement of objectives.

3.Involvement of People.

Take advantage of fully involved employee, using all their abilities for the benefit of
the organization.

4.Process Approach.

Recognize that things accomplished are the results of processes and that processes along with
related activities and resources must be managed.

5.System Approach to Management

The multiple interrelated processes that contribute to the organization’s effectiveness

are a system and should be managed as a system.

6.Contunual Improvement

Continual improvement should be a permanent objective applied to the organization

and to its people, processes, systems and products.

7.Factual Approach to Decision Making.

Decisions must be based on the analysis of accurate, relevant, and reliable data and
information.

8.Mutually Beneficial Supplier Relationships.

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 Both the organization and the supplier benefiting from one another’s resources and
knowledge results in value for all.

ADVANTAGES OF ISO 9000

 Create a more efficient, effective operation

 Increase customer satisfaction and retention
 Reduce audits
 Enhance marketing
 Improve employee
 motivation, awareness, and morale
 Promote international trade
 Increase profit
 Reduce waste and increase productivity.

DISADVANTAGES OF ISO 9000

 The amount of money, time and paperwork required for registration

 Company can intend to produce a poor quality product and providing it does so
consistently and with the proper documentation can put an ISO 9001 stamp on it
 The standard is seen as especially prone to failure when a company is interested in
certification before quality
 Certifications are in fact often based on customer contractual requirements rather than
a desire to actually improve quality
 Competition among the numerous certifying
 bodies, leading to a softer approach to the defects noticed in the operation of the
Quality System of a firm

2.4 ISO QS 9000

What is QS 9000
QS 9000 is the name given to the Quality System Requirements of the automotive industry
which were developed by Chrysler, Ford, General Motors and major truck manufacturers and
issued in late 1994. QS-9000 replaces such quality system requirements as Ford Q-101,
Chrysler's Supplier Quality Assurance Manual, GM's NAO Targets for Excellence and the
Truck Manufacturer's quality system manuals. The influence of QS-9000 is being seen
throughout the automotive industry as it has virtually eliminated varying demands and waste
associated with redundant systems.

Proof of conformance to QS-9000 is certification/registration by an accredited third party

such as Underwriter's Laboratories (UL) or the American Bureau of Shipping (ABS).
Companies that become registered under QS-9000 will be considered to have higher

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standards and better quality products. This paper will describe the steps a company needs to
take to achieve this goal.

WHY QS-9000?
QS-9000 will help companies to stay ahead of their competition. It will do this by filling gaps
in the business and quality systems that can cause problems. QS-9000 eliminates redundant
and unnecessary work practices. QS-9000 tells current and potential customers that the
product has consistent quality and is manufactured under controlled conditions. This system
is globally accepted as proof of quality in the automotive industry and is also a major
customer requirement. Surprisingly, it was not a Chrysler, Ford or General Motors idea.
Actually the automotive suppliers suggested it, and while automotive standardization work
began in 1988, the problem appeared much earlier.

Years ago, customers were closer to their suppliers. Think back to the rural general store. The
customer could go to the proprietor to purchase or barter for goods. If the quality of the goods
was found to be poor, the customer could return to the store and deal directly with the
proprietor to get satisfaction.

With the advent of the Industrial Age, the distance between customers and suppliers
increased. As the population grew, new companies were formed and fitted into material
supply chains. It became difficult for companies to obtain what is called the "voice of the
customer."

As an interim step, suppliers worked to a specification. As specifications multiplied,

terminology became difficult to understand. There were multiple terms with the same
meaning and terms that had multiple meanings. Over time, multiple specifications led to
standards development.

By the mid-1980s, suppliers were subject to numerous military, national and customer
standards. Some companies dedicated full-time employees to each customer account just to
understand the varying quality requirements

How Does QS-9000 Differ From ISO-9000?

QS-9000 is sometimes seen as being identical to ISO 9000, but this is not true. Even though
each element of ISO 9000 is an element of QS-9000, QS-9000 adds clauses to the majority of
the ISO 9000 elements. For example, QS-9000 adds requirements for a business plan,
tracking customer satisfaction and bench marking to element 4.1 of ISO 9000, Management
Responsibility. QS-9000 also uses sector-specific requirements. The following requirements
are not based on ISO 9000:

 production part approval process

 the requirements for gaining approval from the customer to run a new or altered part
or process
 continuous improvement
 automotive suppliers are required to have systems in place to ensure that organized,
measurable improvement activities take place for a variety for business aspects
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  manufacturing capabilities
 requirements for planning and effectiveness for equipment, facilities and processes
 requirements for mistake proofing, and tooling management.

2.5 ISO 14000

What is ISO 14000?

is a series of international, voluntary environmental management standards, guides, and

technical reports. The standards specify requirements for establishing an environmental
policy, determining environmental impacts of products or services, planning environmental
objectives, implementing programs to meet objectives, and conducting correctiveaction and
management review.

The primary objective of the ISO 14000 series of standards is to promote effective
environmental management systems in organizations. The standards seek to provide cost-
effective tools that make use of best practices for organizing and applying information about
environmental management.

The ISO 14000 family was developed in response to a recognized industry need for
standardization. With different organizational approaches to environmental management,
comparisons of systems and collaboration had proved difficult.

The ISO 14000 standards are voluntary environmental management system standards being
created under the auspices of the International Organization for Standardization. ISO has 111
member countries represented mainly by industry and government standards groups. The
American National Standards Institute represents the United States.

The standards can be classified according to their focus:

 Organization and process evaluation standards-Environmental management system

(ISO 14001, 14004), environmental auditing (ISO 14010, 14011/1, 14012) and
environmental performance evaluation (ISO 14031).
 Product-oriented standards-Life-cycle assessment (ISO 14040, 14041, 14042, 14043),
environmental labeling (ISO 14021, 14024, 14025) and environmental aspects in
product standards (ISO 14060).
 Definition standard - A terms-and-definitions standard (ISO 14050) harmonizes the
language among the others.

ISO 14001, the environmental management system specification, is intended as the only
standard establishing requirements against which companies will be audited for certification.
It is the backbone of the series and was marked by heated debate over how prescriptive it
should be.

What are the major requirements?

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The standard's first requirement is that your company have a publicly available
environmental policy articulated by top management. It should be appropriate to the nature of
the organization and include commitments toward pollution prevention and continual
improvement of the EMS.

Along with the policy, you shall establish and maintain procedures to identify significant
environmental aspects and their associated impacts. Procedures to ensure compliance should
be consistent with the environmental policy and include legal and other requirements.
Objectives and targets will also be documented and must be consistent with the goals of the
environmental policy, including continual improvement and pollution prevention.

Each employee's role and position must be clearly defined, and all employees must be aware
of the impact of their work on the environment. Your company is responsible for ensuring
that all employees are adequately trained.

The EMS should be set up to facilitate internal communication. To that end, all relevant
documentation should be easily available and usable, in either print or electronic form.

Organizations must continually monitor and document their environmental effects and
periodically review them to ensure continual improvement and the effectiveness of the EMS.
Management is responsible for an internal review of the EMS on a regular basis.

How does ISO 14001 relate to other environmental standards?

ISO 14001 is the heart of the series while the other standards provide guidance on specific
aspects of environmental management. The ISO 14004 EMS guidance document explains
how to implement ISO 14001. You will find auditing guidance for both internal and external
audits in the ISO 14010 standard on auditing principles, ISO 14011/1 on procedures and ISO
14012 on auditor qualifications.

Experts speculate that companies will look to the ISO 14031 environmental performance
evaluation standard to help them measure the environmental impacts of their processes and
performance improvement. Environmental labeling (ISO 14020) covers everything from
labeling principles and practices to standards for practitioner programs. These are the
standards most likely to affect your corporate presence in the retail market because they deal
with product marks and their meanings, and attempt to harmonize the 25 existing labeling
standards. ISO 14020 doesn't relate directly to the other standards.

Life-cycle assessment standards (ISO 14040) will help you evaluate the make-up of products
themselves and the totality of their individual effects on the environment, from cradle to
grave.

ISO requires that every family of standards include a dictionary of common terms and
phrases, and ISO 14050 fulfills this need. TC 207 delegates are seeking to ensure that as
much language as possible coincides with that in the ISO 9000 quality standards.

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Delegates also decided to create a guide for other ISO standards writers called environmental
aspects of product standards (ISO 14060).

The European Union has developed the Eco-Management and Audit Scheme, which
explicitly ties the concept of performance directly to environment management, unlike ISO
14001. The EU probably will adopt ISO 14001 as meeting EMAS requirements, along with a
document bridging the few remaining gaps.

The Chemical Manufacturers Association and the American Petroleum Institute are both
looking at revising their management system standards, such as Responsible Care, to be more
in step with ISO 14001.

2.6 What is zero-defect?

In quality management, zero defects refer to a company’s aim to assure that all items leaving
its facility are defect-free. Companies can do this by implementing detailed planning and
employing diligent personnel who are continuously on the lookout for mistakes.

Zero faults is a quality management concept that refers to the release of products and services
with no discrepancies. Its goal is to reduce the defect rate in manufactured products and
services to the absolute minimum. Let’s have a look at the concept of Zero Defects.

The Zero Defects method considers prevention to be the most important quality principle.
The cost of failing to achieve the criteria serves as a quality standard. Zero Defects should be
seen as the goal of delivering products that are free of faults or executing processes that are
free of errors.

It means that if a simple product meets the first requirements, it is a quality product. That is,
if it meets the customer’s needs, it’s only reasonable to declare it meets quality standards and
has (almost) zero flaws.

Subsequent defects and difficulties are prevented, and overall product or service quality is
enhanced, by addressing the root cause of the defect quickly and not accepting or passing on
defects. In all reality, it means getting it right the veryfirst time.

2.6.1 Principles of Zero Defect:

Quality is essential to ensure that all of the critical aspects of manufacturing are addressed,
allowing for efficient processes and procedures.

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Quality must be given equal consideration and corrected. It is incomprehensible that the
corporation begins with manufacturing and then attempts to determine quality standards. The
number of problems found must be kept to a minimum. If not, the cost of putting things right
will be enormous for the company.

Money is spent on quality. To compare the statistics, the company must calculate its waste,
production, and revenues in monetary terms.

The company must have zero flaws as its goal and strive for excellence, despite the fact that it
is practically impossible to achieve.

2.6.2 What are the benefits of Zero Defect?

It boosts worker morale and increases consumer perception.

The mindset of “we’re going to make mistakes regardless” should be avoided at all costs, as
it can be detrimental to an organization’s productivity. Despite this, it’s quite common today,
particularly in the computer field. Many specialists in this field believe it is difficult to
execute their professions without a considerable margin of error, which can quickly erode
team morale without anybody knowing.

It gets rid of the concealed expenditures.

Many businesses mistakenly believe that a new product’s development costs finish when it is
released to the market. However, anyone who has had to maintain something for several
months knows that this is far from the case. On the one hand, zero faults can help you get
away from that troublesome situation to some level, while on the other hand, it can make it
much more evident what additional expenses you’re suffering from post-release maintenance
and how to avoid them.

Customer interaction is improved.

Customers will be thrilled and will return if the product is of higher quality. At the end of the
day, this translates to long-term client connections and increased company profitability.
However, the company must guarantee that the tight environment developed to secure zero
faults does not result in low employee morale.

Boosts employee morale

Workers frequently believe that little errors will occur while they are working. The zero-
defect idea, on the other hand, shifts workers’ mindsets and motivates them to work without
making any mistakes. This boosts employee morale.

2.7 Application of Computer in Production and Operations

Computers play a crucial role in production and operations across various industries. Some of
the key applications include:

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Automation: Computers are used to automate production processes, leading to increased
efficiency, reduced errors, and lower production costs.

Inventory Management: Computer systems are employed to track and manage inventory
levels, ensuring optimal stock levels and minimizing stockouts or overstock situations.

Quality Control: Computers are utilized for quality control processes, including monitoring
and analyzing production data to ensure products meet quality standards.

Supply Chain Management: Computer systems help in managing the flow of goods and
services, optimizing the supply chain, and improving overall operational efficiency.

Scheduling and Planning: Computers aid in production scheduling, resource allocation, and
planning, optimizing production timelines and resource utilization.

Simulation and Modeling: Computers are used to simulate production processes, allowing for
testing and optimization of production systems before actual implementation.

Data Analysis: Computers facilitate the analysis of production data, enabling businesses to
make informed decisions and identify areas for improvement.

Maintenance and Monitoring: Computerized systems are employed for monitoring equipment
performance and scheduling maintenance, reducing downtime and enhancing equipment
lifespan.

These applications demonstrate the significant impact of computers in enhancing production

and operations within various industries.

REFERENCES
Besterfield, Dale 1999 ( Total Quality Management) Prentice Hal International Inc.

Evans, James R/ Lindsay William 2014 (Total Quality Management) Ninth Edition, Cengage
Learning Asia Pte.Ltd

Goetsch David L/ Davis Stanley (Quality Management for Organizational Excellence) 7 th

Edition, Copy write 2014

Stevenson, William J. and Chuong, Sum Chee. Operations Management: An Asian

Perspective. McGraw-Hill,(2007).

Randall, Richard C. Randall’s practical guide to

ISO 9000: implementation, registration, and beyond. Reading, Mass. Addison-Wesley,

(1995).

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http://www.cqeweb.com/Chapters-HTML/Chap2_html/chapter2.htm

www.mastercontrol.com/iso14000/ISO_14000_Certification.html

https://www.qualitydigest.com/oct/iso14000.html

http://asq.org/learn-about-quality/iso-9000/overview/overview.html

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