MANUFACTURING TECHNOLOGY Questions ( Section A)

MANUFACTURING TECHNOLOGY

Welding Questions:

1)      Differentiate between TIG and MIG welding? Explain their working with the help of neat sketches.

2)      Discuss the advantages and disadvantages of TIG welding over MIG welding. Give any three examples where TIG welding is used.

3)      Sketch different types of Ox y- Acetylene flames and explain the importance and applications of each.

4)      Draw a neat diagram of Arc – Welding and explain its working. List out its advantages over gas welding method.

5)      What do you understand by under-water welding? Explain the working of such method and list out the extra care to be taken compared with conventional welding.

6)      What is the main function of the flux? Name the materials used a s flux and list out the important properties of a good flux.

7)      Describe and differentiate between TIG and MIG welding methods with neat sketches and explain their workings. List our the advantages, limitations and applications of each welding method.

8)      How brazing is different from gas welding? Discuss its advantages and disadvantages over gas welding.

9)      What are the different types of resistance welding? Describe the working of any one method.

10)  Why welding electrodes are coated? Mention the materials used for coating and their special properties required.

11)  Differentiate between brazing and soldering and give any three uses of each.

12)  Explain the working of gas welding method with the help of neat diagram. Give any two industrial examples where gas welding is more preferable than other welding methods.

13)   List out the defects associated with gas welding method and suggest the method to avoid them.

14)  What do you understand by under water welding? Repeat the earlier question.

15)  Explain the principle of resistance welding and explain its working with the help of neat sketch.

16)  List out the advantages of resistance welding over arc and gas welding.

17)  Give any five any five applications of resistance welding and mention why this welding is preferred?.

18)  Differentiate between TIG and MIG welding with the help of neat diagrams. Describe the working of any one with the help of neat sketch. Name any three parts which can be manufactured with the help of TIG welding.

19)  Mention any three defects of welded joints and explain the methods of their detection.

20)  What are different types of resistance welding? Describe the working of any one method.

21)  Why welding electrodes are coated? Mention the materials used for coating and their special properties required.

22)  Differentiate between brazing and soldering and give an three uses of each.

23)  Describe the principle and operation of resistance welding with the help of neat sketch.

24)  Discuss the advantage and disadvantages of resistance welding over arc welding. Give three examples where resistance welding is only used.

25)  Sketch any 3 different types of joints which are welded by arc welding.

Last three years Question papers and answers

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Flexible manufacturing System (Operations Management, Section - B) - 10 marks

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http://www.scribd.com/doc/146014725/Flexible-Manufacturing-System

Difference between PERT & CPM ( Operation Management - Section B) - 10 marks

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http://www.scribd.com/doc/146013666/Difference-Between-PERT-CPM

Quality circle Question and answers ( Section B, TQM)

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Question and answers (Section B - TQM)

1.What is strategic quality planning?

Strategic Quality planning means that the quality processes are planned in a way that it helps the company to achieve its strategic objectives. The Planning here is not done to achieve routine
production targets or to dispatch goods as per the agreed contractual terms but planning goes beyond the routine activities intended to run the business. Strategic Quality planning involves the activities for a new product introduction to its servicing in a comprehensive manner.
The product’s features are defined by discussions with customer groups and the prioritisation of what features are to be incorporated is decided through a Quality Function Deployment exercise. Then the features and characteristics are designed by the design team. Though the design function is responsible for the design the review is done by a cross functional team and with tools like Failure Mode Effect analysis.

Then, critical processes are identified and the people are trained in the skills required. The monitoring of the performance of the new product in the field is done to verify whether the customers are getting the value for the money and whether the product is reliable.
Thus strategic Quality planning is an activity that extends from collection of customer requirements to customer satisfaction determination.

2. What do you understand by quality circles?

Quality Circles are the small groups which are formed voluntarily by workers or employees of a
specific location to carry out systematic improvements. QC Circle movement started in Japan in 50s and spread to all the countries. Some of the unique features of QC Circles are a) the voluntary nature of the circles b) the meetings held weekly outside the office hours c) the use of 7 QC Tools to solve the problems. Each circle takes about 3 to 4 weeks to solve a problem which may something to do with poor housekeeping or erratic machine and then present the solutions to the management.

All countries including India hold annual contests for encouraging the Quality Circles. Apart from

workers, many companies even encourage their staff and managers to take part in Quality circles.

3.What is bench marking? Link the various factors that have impact on customer satisfaction through quality process.

Benchmarking is the process by which one organization learns the best practices of another
organization which is better than itself in some of the processes. Benchmarking is widely adopted in
all countries and in some of the well known companies like Xerox.
Benchmarking consists of the following steps.
1. Map the process you are interested in benchmarking.
2. Identify the key Characteristics in the process which are to be improved.
3. Identify the partners who are good at these processes
4. Visit the partners and observe the processes at close quarters.
5. Adapt or adopt the process to suit at your end.

The various factors that have impact on customer satisfaction through Quality process are as follows:
1. Achieving Conformance of product /service to specifications which is ensured by the design.
2. Achieving reliability of the product which is ensured by the process capability.
3. Timely delivery which is a result of meticulous planning and coordination.
4. Aesthetic packing which is due to packing quality.
5. Clear user manual and service attention in case of problems
6. Hazard free operation which is built in by the safety in design.
Quality process enables these to happen with the help of a) Team work across the functions b)
Ensuring Process capability c) Monitoring the process with the help of control charts
By the Quality process which flows through all operations leading to the supply of the product or

delivery of service we are able to improve the customer satisfaction steadily.

4. Describe “Poka Yoke” .

“Poka Yoke” means “Error Proofing” in Japanese language and it is adopted to eliminate defects on line due to carelessness of employees.

For example, a worker may forget to put on the safety guard or tighten the screws of a lid thus
causing major problem. This is due to error and not due to any other problem. Since it is not possible to avoid this possibility of error and mistakes Japanese companies started error proofing the operation or activity. Toyota practiced it in large scale and became known for its defect free products.

To do “Poka Yoke”, the operation is observed and with the involvement of the operator and others,

various possibilities are examined in order to eliminate the possibility of mistake occurring.
For example, in an operation if it is observed that operator may forget to fill up the right quantity of brake fluid then, it is discussed how the operation can be made error free.

The alternatives to make the operation error free are
1. Can the process be eliminated?
2. Can it be automated?
3. Can there be a guide or a tool which will make the operator to know that he has filled the
correct amount?
4. Can the warning go on in case the quantity is short of the requirements?
5. Can the product stop if the quantity is not Ok at that spot and not e released till the quantity is right?

Through these discussions and brain storming, suitable devices are incorporated in the process to

make it error proof.

The Malcolm Baldrige National Quality Award (MBNQA) (Section B - TQM) - 10 marks

The Malcolm Baldrige National Quality Award was established in 1987, when Congress

passed the Malcolm Baldrige National Quality Improvement Act. The award is named after

the former Secretary of Commerce,Malcolm Baldrige, and is intended to reward and

stimulate quality initiatives. It is designed to recognize companies that establish and

demonstrate high quality standards. The award is given to no more than two companies

in each of three categories: manufacturing, service, and small business. Past winners include

Motorola Corporation, Xerox, FedEx, 3M, IBM, and the Ritz-Carlton.

To compete for the Baldrige Award, companies must submit a lengthy application,

which is followed by an initial screening. Companies that pass this screening move to

the next step, in which they undergo a rigorous evaluation process conducted by certified

Baldrige examiners. The examiners conduct site visits and examine numerous

company documents. They base their evaluation on seven categories, which are

shown in Figure 5-11. Let’s look at each category in more detail.

The first category is leadership. Examiners consider commitment by top management,

their effort to create an organizational climate devoted to quality, and their active involvement

in promoting quality. They also consider the firm’s orientation toward meeting customer

needs and desires, as well as those of the community and society as a whole.

The second category is strategic planning. The examiners look for a strategic plan

that has high quality goals and specific methods for implementation. The next category,

customer and market focus, addresses how the company collects market and customer

information. Successful companies should use a variety of tools toward this

end, such as market surveys and focus groups. The company then needs to demonstrate

how it acts on this information.

The fourth category is information and analysis. Examiners evaluate how the company

obtains data and how it acts on the information. The company needs to demonstrate

how the information is shared within the company as well as with other parties,

such as suppliers and customers.

The fifth and sixth categories deal with management of human resources and

management of processes, respectively. These two categories together address the issues

of people and process. Human resource focus addresses issues of employee involvement.

This entails continuous improvement programs, employee training, and

functioning of teams. Employee involvement is considered a critical element of quality.

Similarly, process management involves documentation of processes, use of tools

for quality improvement such as statistical process control, and the degree of process

integration within the organization.

The last Baldrige category receives the highest points and deals with business

results. Numerous measures of performance are considered, from percentage of defective

items to financial and marketing measures. Companies need to demonstrate progressive

improvement in these measures over time, not only a one-time improvement.

The Baldrige criteria have evolved from simple award criteria to a general framework

for quality evaluation. Many companies use these criteria to evaluate their own

performance and set quality targets even if they are not planning to formally compete

for the award.

Section B Question Paper Feb 2013(TQM)

POWDER METALLURGY - Preliminary

POWDER METALLURGY

         

POWDER METALLURGY (PM) IS A METAL WORKING PROCESS FOR FORMING PRECISION METAL COMPONENTS FROM METAL POWDERS. THE METAL POWDER IS FIRST PRESSED INTO PRODUCT SHAPE AT ROOM TEMPERATURE. THIS IS FOLLOWED BY HEATING (SINTERING) THAT CAUSES THE POWDER PARTICLES TO FUSE TOGETHER WITHOUT MELTING.

THE PARTS PRODUCED BY PM HAVE ADEQUATE PHYSICAL AND MECHANICAL PROPERTIES WHILE COMPLETELY MEETING THE FUNCTIONAL PERFORMANCE CHARACTERISTICS. THE COST OF PRODUCING A COMPONENT OF GIVEN SHAPE AND THE REQUIRED DIMENSIONAL TOLERANCES BY PM IS GENERALLY LOWER THAN THE COST OF CASTING OR MAKING IT AS A WROUGHT PRODUCT, BECAUSE OF EXTREMELY LOW SCRAP AND THE FEWER PROCESSING STEPS. THE COST ADVANTAGE IS THE MAIN REASON FOR SELECTING PM AS A PROCESS OF PRODUCTION FOR HIGH – VOLUME COMPONENT WHICH NEEDS TO BE PRODUCED EXACTLY TO, OR CLOSE TO, FINAL DIMENSIONS. PARTS CAN BE PRODUCED WHICH ARE IMPREGNATED WITH OIL OR PLASTIC, OR INFILTRATED WITH LOWER MELTING POINT METAL. THEY CAN BE ELECTROPLATED, HEAT TREATED, AND MACHINED IF NECESSARY.

THE RATE OF PRODUCTION OF PARTS IS QUITE HIGH, A FEW HUNDREDS TO SEVERAL THOUSANDS PER HOUR.

INDUSTRIAL APPLICATIONS OF PM PARTS ARE SEVERAL. THESE INCLUDE SELF – LUBRICATING BEARINGS, POROUS METAL FILTERS AND A WIDE RANGE OF ENGINEERED SHAPES, SUCH AS GEARS, CAMS, BRACKETS, SPROCKETS, ETC.

PROCESS DETAILS:

IN THE PM PROCESS THE FOLLOWING THREE STEPS ARE FOLLOWED IN SEQUENCE: MIXING (OR BLENDING), COMPACTING, AND SINTERING.

MIXING: A HOMOGENEOUS MIXTURE OF ELEMENTAL METAL POWDERS OR ALLOY POWDERS IS PREPARED. DEPENDING UPON THE NEED, POWDERS OF OTHER ALLOYS OR LUBRICANTS MAY BE ADDED.

COMPACTING: A CONTROLLED AMOUNT OF THE MIXED POWDER IS INTRODUCED INTO A PRECISION DIE AND THEN IT IS PRESSED OR COMPACTED AT A PRESSURE IN THE RANGE 100 MPA TO 1000 MPA. THE COMPACTING PRESSURE REQUIRED DEPENDS ON THE CHARACTERISTICS AND SHAPE OF THE PARTICLES, THE METHOD OF MIXING, AND ON THE LUBRICANT USED. THIS IS GENERALLY DONE AT ROOM TEMPERATURE. IN DOING SO, THE LOOSE POWDER IS CONSOLIDATED AND DENSIFIED INTO A SHAPED MODEL. THE MODEL IS GENERALLY CALLED “GREEN COMPACT.” AS IS COMES OUT OF THE DIE, THE COMPACT HAS THE SIZE AND SHAPE OF THE FINISHED PRODUCT. THE STRENGTH OF THE COMPACT IS JUST SUFFICIENT FOR IN – PROCESS HANDLING AND TRANSPORTATION TO THE SINTERING FURNACE. 

FIG 10.1 TYPICAL SET OF POWDER METALLURGY TOOLS.

TO ILLUSTRATE THE PROCESS, LET US TAKE A STRAIGHT CYLINDRICAL PART SUCH AS A SLEEVE BEARING. FIG 10.1 SHOWS A TYPICAL SET OF TOOLS USED FOR PRODUCING THIS PART. THE COMPACTING CYCLE FOR THIS PART (FIG 10.2) FOLLOWS THE FOLLOWING STEPS.

 FIG 10.2 POWDER METALLURGY COMPACTING CYCLE.

1. WITH THE UPPER PUNCH IN THE WITHDRAWN POSITION, THE EMPTY DIE CAVITY IS FILLED WITH MIXED POWDER.
2. THE METAL POWDER IN THE DIE IS PRESSED BY SIMULTANEOUS MOVEMENT OF UPPER AND LOWER PUNCHES.
3. THE UPPER PUNCH IS WITHDRAWN, AND THE GREEN COMPACT IS EJECTED FROM THE DIE BY THE LOWER PUNCH.
4. THE GREEN COMPACT IS PUSHED OUT OF THE PRESSING AREA SO THAT THE NEXT OPERATING CYCLE CAN START.

         THIS COMPACTING CYCLE IS ALMOST THE SAME FOR ALL PARTS. 

SINTERING: DURING THIS STEP, THE GREEN COMPACT IS HEATED IN A PROTECTIVE ATMOSPHERE FURNACE TO A SUITABLE TEMPERATURE, WHICH IS BELOW THE MELTING POINT OF THE METAL. TYPICAL SINTERING ATMOSPHERES ARE ENDOTHERMIC GAS, EXOTHERMIC GAS, DISSOCIATED AMMONIA, HYDROGEN, AND NITROGEN. SINTERING TEMPERATURE VARIES FROM METAL TO METAL; TYPICALLY THESE ARE WITHIN 70 TO 90% OF THE MELTING POINT OF THE METAL OR ALLOY. TABLE 10.1 GIVES THE SINTERING TEMPERATURES USED FOR VARIOUS METALS. SINTERING TIME VARIES WITH SIZE AND METAL OF PART. TABLE 10.1 ALSO GIVES TYPICAL RANGE OF SINTERING TIME NEEDED FOR VARIOUS METALS.

TABLE 10.1 SINTERING TEMPERATURE AND TIME FOR VARIOUS METAL POWDERS

MATERIAL	TEMPERATURE ( 0C)	TIME
COPPER, BRASS, BRONZE NICKEL STAINLESS STEELS FERRITES TUNGSTEN CARBIDE MOLYBDENUM TUNGSTEN TANTALUM	760-900 1000-1150 1100-1290 1200-1500 1430-1500 2050 2350 2400	10-40 30-40 30-60 10-600 20-30 120 480 480

          

SINTERING IS A SOLID STATE PROCESS WHICH IS RESPONSIBLE FOR PRODUCING PHYSICAL AND MECHANICAL PROPERTIES IN THE PM PART BY DEVELOPING METALLURGICAL BOND AMONG THE POWDER PARTICLES. IT ALSO SERVES TO REMOVE THE LUBRICANT FROM THE POWDER, PREVENTS OXIDATION, AND CONTROLS CARBON CONTENT IN THE PART. THE STRUCTURE AND POROSITY OBTAINED IN A SINTERED COMPACT DEPEND ON THE TEMPERATURE, TIME, AND PROCESSING DETAILS. IT IS NOT POSSIBLE TO COMPLETELY ELIMINATE THE POROSITY BECAUSE VOIDS CANNOT BE COMPLETELY CLOSED BY COMPACTION AND BECAUSE GASES EVOLVE DURING SINTERING. POROSITY IS AN IMPORTANT CHARACTERISTIC FOR MAKING PM BEARINGS AND FILTERS.

SECONDARY AND FINISHING OPERATIONS

          

SOMETIMES ADDITIONAL OPERATIONS ARE CARRIED OUT ON SINTERED PM PARTS IN ORDER TO FURTHER IMPROVE THEIR PROPERTIES OR TO IMPART SPECIAL CHARACTERISTICS. SOME IMPORTANT OPERATIONS ARE AS UNDER.

1. COINING AND SIZING. THESE ARE HIGH PRESSURE COMPACTING OPERATIONS. THEIR MAIN FUNCTION IS TO IMPART (A) GREATER DIMENSIONAL ACCURACY TO THE SINTERED PART, AND (B) GREATER STRENGTH AND BETTER SURFACE FINISH BY FURTHER DENSIFICATION.
2. FORGING. THE SINTERED PM PARTS MAY BE HOT OR COLD FORGED TO OBTAIN EXACT SHAPE, GOOD SURFACE FINISH, GOOD DIMENSIONAL TOLERANCES, AND A UNIFORM AND FINE GRAIN SIZE. FORGED PM PARTS ARE BEING INCREASINGLY USED FOR SUCH APPLICATIONS AS HIGHLY STRESSED AUTOMOTIVE, JET – ENGINE AND TURBINE COMPONENTS.
3. IMPREGNATION. THE INHERENT POROSITY OF PM PARTS IS UTILIZED BY IMPREGNATING THEM WITH A FLUID LIKE OIL OR GREASE. A TYPICAL APPLICATION OF THIS OPERATION IS FOR SINTERED BEARINGS AND BUSHINGS THAT ARE INTERNALLY LUBRICATED WITH UPTO 30% OIL BY VOLUME BY SIMPLY IMMERSING THEM IN HEATED OIL. SUCH COMPONENTS HAVE A CONTINUOUS SUPPLY OF LUBRICANT BY CAPILLARY ACTION, DURING THEIR USE. UNIVERSAL JOINT IS A TYPICAL GREASE – IMPREGNATED PM PART.
4. INFILTRATION. THE PORES OF SINTERED PART ARE FILLED WITH SOME LOW MELTING POINT METAL WITH THE RESULT THAT PART'S HARDNESS AND TENSILE STRENGTH ARE IMPROVED. A SLUG OF METAL TO BE IMPREGNATED IS KEPT IN CLOSE CONTACT WITH THE SINTERED COMPONENT AND TOGETHER THEY ARE HEATED TO THE MELTING POINT OF THE SLUG. THE MOLTEN METAL INFILTRATES THE PORES BY CAPILLARY ACTION. WHEN THE PROCESS IS COMPLETE, THE COMPONENT HAS GREATER DENSITY, HARDNESS, AND STRENGTH. COPPER IS OFTEN USED FOR THE INFILTRATION OF IRON – BASE PM COMPONENTS. LEAD HAS ALSO BEEN USED FOR INFILTRATION OF COMPONENTS LIKE BUSHES FOR WHICH LOWER FRICTIONAL CHARACTERISTICS ARE NEEDED.
5. HEAT TREATMENT. SINTERED PM COMPONENTS MAY BE HEAT TREATED FOR OBTAINING GREATER HARDNESS OR STRENGTH IN THEM.
6. MACHINING. THE SINTERED COMPONENT MAY BE MACHINED BY TURNING, MILLING, DRILLING, THREADING, GRINDING, ETC. TO OBTAIN VARIOUS GEOMETRIC FEATURES.
7. FINISHING. ALMOST ALL THE COMMONLY USED FINISHING METHOD ARE APPLICABLE TO PM PARTS. SOME OF SUCH METHODS ARE PLATING, BURNISHING, COATING, AND COLOURING.

PLATING. FOR IMPROVED APPEARANCE AND RESISTANCE TO WEAR AND CORROSION, THE SINTERED COMPACTS MAY BE PLATED BY ELECTROPLATING OR OTHER PLATING PROCESSES. TO AVOID PENETRATION AND ENTRAPMENT OF PLATING SOLUTION IN THE PORES OF THE PART, AN IMPREGNATION OR INFILTRATION TREATMENT IS OFTEN NECESSARY BEFORE PLATING. COPPER, ZINC, NICKEL, CHROMIUM, AND CADMIUM PLATING CAN BE APPLIED.

BURNISHING. TO WORK HARDEN THE SURFACE OR TO IMPROVE THE SURFACE FINISH AND DIMENSIONAL ACCURACY, BURNISHING MAY BE DONE ON PM PARTS. IT IS RELATIVELY EASY TO DISPLACE METAL ON PM PARTS THAN ON WROUGHT PARTS BECAUSE OF SURFACE POROSITY IN PM PARTS.

COATING. PM SINTERED PARTS ARE MORE SUSCEPTIBLE TO ENVIRONMENTAL DEGRADATION THAN CAST AND MACHINED PARTS. THIS IS BECAUSE OF INTER – CONNECTED POROSITY IN PM PARTS. COATINGS FILL IN THE PORES AND SEAL THE ENTIRE REACTIVE SURFACE.

COLOURING. FERROUS PM PARTS CAN BE APPLIED COLOUR FOR PROTECTION AGAINST CORROSION. SEVERAL METHODS ARE IN USE FOR COLOURING. ONE COMMON METHOD TO BLACKEN FERROUS PM PARTS IS TO DO IT CHEMICALLY, USING A SALT BATH.

8. JOINING. PM PARTS CAN BE WELDED BY SEVERAL CONVENTIONAL METHODS. ELECTRIC RESISTANCE WELDING IS BETTER SUITED THAN OXY- ACETYLENE WELDING AND ARC WELDING BECAUSE OF OXIDATION OF THE INTERIOR POROSITY. ARGON ARC WELDING IS SUITABLE FOR STAINLESS STEEL PM PARTS.

Macro and Micro Economics - Preliminary

What's the difference between macroeconomics and microeconomics?

Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions.Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers:

Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry. (Find out more about microeconomics in Understanding Microeconomics.) 

Macroeconomics, on the other hand, is the field of economics that studies the behaviour of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate. (To keep reading on this subject, see Macroeconomic Analysis.)

While these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public. 

The bottom line is that microeconomics takes a bottoms-up approach to analysing the economy while macroeconomics takes a top-down approach. Regardless, both micro- and macroeconomics provide fundamental tools for any finance professional and should be studied together in order to fully understand how companies operate and earnrevenues and thus, how an entire economy is managed and sustained. 

Cost of Quality (COQ) - Section B

Definition: 

Cost of Quality (COQ) is the sum of the costs incurred by a company in preventing poor

quality, the costs incurred to ensure and evaluate that the quality requirements are being

met, and any other costs incurred as a result of poor quality being produced. Poor quality

is defined as non-value added activities, waste, errors or failure to meet customer needs

and requirements. These COQ costs can be broken down into the three categories of

prevention, appraisal and failure costs. The COQ model is often referred to as the PAF

model after these three categories.

Prevention Cost:

The Planned costs incurred by an organization to ensure that errors are not made at any of the various stages during the delivery process of that product or service to customer. The delivery process many include design, development, production and shipping.

Examples: Education and training, continuous improvement efforts, quality administration staff, process control, market research, field testing and preventive maintenance.

Appraisal cost:

The costs of verifying, checking or evaluating a product or service at the various stages during the delivery process of that product or service to the customer.

Examples: Incoming inspection cost, internal product audit, inspection activities, inventory counts, Quality administration salaries, supplier evaluation and audit reports.

Failure cost:

The costs incurred by a company because the product or service did not meet the requirements and the product had to be fixed or replaced or the service had to be repeated. These failure costs can be further subdivided into two groups.

                Internal failure cost:

                Internal failure include all the costs resulting from the failures that are found before the product              or service reaches the customer.

                Examples: Scrap, rework, extra inventory, repair stations, re-design, salvage, corrective action

                reports and overtime due to nonconforming product or service.

                External Failure:

                External failures are all the costs incurred by the company resulting when the customer finds the             failure. These external failure costs do not include any of the customer’s personal costs.

                Examples: warranty, customer complaint administration, replacement product, recalls, shipping                               costs, analysis of warranty data, customer follow-up and field service departments.

Transaction processing system

Section A – Information Technology

 

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