Assignment 5

Virtual Company – Quasar Consolidated Parts 

IE-673 Total Quality Management (TQM)

Date: May 4, 2008

Fall 2007

eLearning Pack ID: IE673-Spring 2007-63-40

Contents

1. Introduction/Objectives
2. Methodologies
3. Main Body of Project

RFID

Quality Audit

4. Summary
5. Further work needed / proposed
6. References and Bibliography

1) Introduction/Objectives

The objective of the first part of this assignment is to review the supplied videos on RFID and show the effects of adding RFID tags and RFID processing power to our virtual company.  Unfortunately, my group of collaborating companies already is fully automated with RFID tagging.  

The second part of this assignment is to apply the learned methods and tools in this class and improve the illustrated company following the ISO 9001:2000 audit procedure. They principles include Customer Focus, Leadership, Involvement of People, Process Approach, System Approach to Management, Continual Improvement, Factual Approach to Decision Making and Mutually Beneficial Supplier Relationship.

2) Methodologies

The methodology used for this assignment is a collection of all of the TQM methods learned in the course. They included CIMpgr Process Model, CORA, Process Control Charts and PFRA risk analysis.   

3) Main Body of Project

RFID

Radio Frequency Identification (RFID) is an automatic identification method that utilizes electronic radiowaves to transmit data to identify and track items.  The system uses RFID tags to store the data and these tags are attached or imbedded onto items that are required to be tracked.  RFID can be passive, active or semi-passive. 

Passive tags have no internal power supply and rely on the reader to transfer power by radio frequency.  The tags antenna receives enough power from the incoming radio frequency to power up and transmit a response.   

Active tags have their own internal power source for the micro chip and can transmit data to the reader.  An active tag can be farther away from the reader then a passive tag.

The semi-passive or semi-active tag has its own internal power but it only powers the microchip.  It still needs the reader to get enough power to broadcast its data.

Two of the collaborative companies in my group use RFID technology.  iGPS has 100% RFID tagged all-plastic pallets.  Its procure states that it incorporated all pallets with an Electronic Product Code (EPC) Global Reusable Asset Identifier (GRAI).  The GRAI codes provide unique identification for each pallet when read by RFID readers, allowing transparent, real-time tracking of every pallet.   

Quasar Consolidated Parts (QCP) uses this technology to track all of the pallets of parts through the supply chain to Yamaha.  The tracking is tied to the schedule software and the schedule is updated.  Also our warehouse supplied by Retrotech is radio frequency to track pallets within the warehouse.

Quality Audit of FARO

Part to of this assignment is to answer the question: How could you apply the learned methods and tools in this course to improve the shown company?  The methods and tools introduced in this course include CIMpgr Process Model, CORA, Process Control Charts and PFRA risk analysis.  FARO could benefit from all of these areas. 

The CIMpgr Process Model would show FARO, QCP would show how the process uses diagrams to indicate relationships between the processes including constraints, resources, inputs and outputs.  FARO would have a sales process as well as a R&D process. The first layer or Parent layer would show the overall CIMpgr process model.  The second or child layer would expand the flow and information of the process.  QCP would help diagram the process and elaborate on the areas that the collaborative companies could help FARO.

The methodology CORA was developed by Professor Paul G. Ranky, PhD.   As stated in his e-book “CORA is a Team Oriented Problem Solving (TOPS), method, aimed at minimizing dissatisfaction, and financial loss due to inadequate requirements specification, and poor communication between customers and providers.”  QCP is dedicated to working closely with FARO to develop a list of their requirements and develop engineering solutions utilizing COR.  By utilizing CORA, QCP and FARO will be able to better define and verify the current needs and desires.  Using this tool give QCP insight as to what is truly important not just a perceived crucial item. Rating the items across all requirements shows a more defined overall importance.  An item that is rated high on one requirement might not actually be rated high when evaluated across all requirements

QCP will have to understand the process and procedures of FARO before determining which Process Control Chart would be best.  Depending on the type of information QCP may use the p-chart for constant samples. 

FARO would benefit greatly by a PFRA method due to the technical sophistication of their equipment.  The unit heats up, has mechanical parts and sensors, and interfaces with a software program.  The following are the step to follow when performing a process failure risk study:

·        Define scope, function and purpose

·        Identify potential risks and failure modes and their effects

·        Prioritize potential failures

·        Select and manage subsequent actions

·        Observe and learn

·        Document the process

·        Enter the values into the PFRA / DFRA spreadsheet on a relative scale

QCP and the collaborative companies will work with FARO to identify and prioritize any potential risk or failure.

Purchase Controls: QCP is focused on purchase controls in its scheduling software.  There is a strict policy and procedure to evaluate, select and audit the suppliers selected for our customers.  FARO should follow the same guidelines.  These guidelines include evaluating the safety records, delivery reliability, quality or rejection rate of the supplied parts and overall cost.  The lowest unit price is not always the lower overall cost once you include safety, reliability and quality.  FARO is an international company and will require all parts to comply with ISO9001:2000.

Audits:  To constantly improve our delivery times and verify our production schedule audits are performed on all suppliers.  All vendors of manufactured parts will go through an extensive qualification audit.  Subsequent audits will be done at the warehouse and if quality drops or delivery dates are missed a formal on-site audit would be required.

Incoming Inventory Inspections:  All incoming inventory would be inspected for general compliance to specifications and quantity.  All electronic components will be spot checked and traced.  If the quality of an item is found to be in question, additional inspections will be ordered.

Non-conformance:  All incoming raw material should be checked for general compliance to specifications.  Any product that does not pass the inspection will be rejected and returned to the supplier.  If a product is found to be non-conformance during production then it will be removed from the production line and tested to determine the cause of the non-conformance.  Once the cause is isolated, it will be traced back to the manufacture and all materials supplied in that lot will be tested and replaces as needed.  The same process would be followed for a product found to be in non-conformance as a finish product.

Traceability: QCP promotes traceability of all parts from cradle to grave.  All raw material suppliers are required to use iGPS’s RFID tagged all-plastic pallets.  These pallets are tracked to the warehouse, resorted and placed on iGPS pallets and tracked within the warehouse.  These pallets are then shipped directly to the assemble line giving the client 100% traceability.

Controls of Production Documents: All documents are tracked and stored electronically on the company’s intranet.  Access to the data is limited per security levels.

Controls of Production Equipment: Equipment qualifications are performed by our in-house engineering group to determine compatibility with the existing systems.  Validation of any equipment is performed by an independent third party with supervision.  Equipment calibration is performed in-house in the calibration lab.

Product Release: All final produce passes through the Quality Assurance department.  All final produce is visually examined and a percentage of the units are fully tested.  If defects are found then the testing is expanded.

CAPA or PAR/CAR: QCP would request FARO to conduct a Process Failure Risk Analysis (PFRA) to identify possible risks prior to manufacturing.  Corrective action would be implemented to avoid or mitigate these risks.  Corrective Action/Preventive Action or Preventive Action Request/Corrective Action Request would be followed for any problems arose during manufacturing.

Product Realization: Through quality controls and customer satisfaction poles FARO will be able to verify product realization. 

Customer Service: All customer service personnel must be familiar will all products and procedures.  Employees are required to complete online training seminars and special classroom training of new products and services.

Customer Satisfaction: Customer satisfaction is tracked on the customer service log and analyzed by the department manager.  One of the tools used by the manager is CORA.  These analyses are performed for new client and with existing clients to anticipate market changes.

Recalls: With the use of PFRA risk analysis recalls can be reduced to a minimum.  Finding problems or issues with the product prior to releasing the product is more cost affective and will reduce lawsuits.  Recalls notices are sent to customers based on the warranty/product registration.  Our website has recall notices posted and clients are notified.

Continuous Improvement: All companies including FARO are requesting feedback from its customers using such tools as CORA.  In order to compete in the market place the company must develop and change with the market.  To verify effectiveness of the company’s efforts, market share rate and gross sales must be tracked.

4) Summary

 In this assignment we have identified the learned methods and applied them to a new company.  The methods are standardized and easily applied to most companies.    

5) Further work needed / proposed

As a continuing process, QCP will need to investigate potential problem areas utilizing the TQM tools.

6) References and Bibliography

“Paul G. Ranky, IE6783 Total Quality Management, eLearning Pack ID: IE673-Spring 2007-63-40.”  Including DVD #2 with Faro Technologies

 http://www.cimwareukandusa.com

“http://www.buckhorninc.com”

“http://www.yamahaoutdoors.com”

“http://www.retrotech.com”

“http://www.igps.com”