Calculation of Rejection from On-line Customer Feedback Mechanism for Rejection Analysis and Quality Improvements in MSMEs

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ISSN (Print): 2319 - 2526, Volume-2, Issue - 6, 2013 80

Calculation of Rejection from On-line Customer Feedback Mechanism for Rejection Analysis and Quality Improvements in

MSMEs

1Ishita M. Thanki, ²Kamal N. Kotecha, ³Jimil M. Shah

1Faculty of Engineering and Technology, Noble Group of Institutions, G.T.U., Gujarat

2 Faculty of Engineering and Technology, Noble Group of Institutions, G.T.U., Gujarat

3 Engineering Consultant, Vadodara, Gujarat

Email : [email protected], [email protected], [email protected]

Abstract- one of the major problems in all Medium Scale manufacturing industries is of Rejection and data collection for the same. This paper gives practical means of facilitating participatory steps taken in productivity enhancement by methodological approach with the emphasis on rejection minimization by first analyzing it and then by taking CAPA(Corrective and Preventive Action). By using the computer applications, we have derived a mechanism to convert customer feedback into rejection data. We have categorized the feedback data and from that derived a system to calculate and analyze the rejection so that the company can step towards its analysis and quality improvements. By analyzing those feedback data, company can produce the rejection analysis graph.

The main focus is to deal with External Rejection.

Index Terms: external rejection, customer feedback mechanism.

I. INTRODUCTION

In any industry whether it is a small scale or large scale, since ancient times and even in recent days the most prominent problem and fatal problem is the “PROBLEM OF REJECTION”. Rejection means the act or process of rejecting something whether it may be product/raw material/resources in relating to a particular industry/company. Whenever a product for example a car, bike, bearing etc. is manufactured then it is brought into market for sale and due to unpredictable or by means when it gets failed to use by customers or in short rejected due to various defects in the product. This problem is known as the problem of rejection. In other words, even in company due to lack of management or uncertain things when a product is rejected by the company itself and the company recalls their product in large numbers is also called a rejection. [1] But this kind of rejection is included in internal rejection problem. In

many large scale industries, when a large number of products get rejected then the company faces a loss.

There are two types of rejections viz. internal rejection and external rejection.

Internal Rejection: Whenever a product is rejected before it is distributed in market and when a fault occurs in the phases of manufacturing process and the product is rejected internally during the final inspection by the company and has no effect to the outside market is said to be Internal Rejection. [7] Examples: When raw materials are rejected during sampling process in the industry. When Laboratory checkup is done in the items selected from small scale industry units. When products are rejected from Assembly and sent to scrap yard directly during final inspection. Here we focus more on external rejection only. [1]

External rejection occurs when the customer rejects the product or the company calls back its product after it’s distributed in the market. [1]

In this era, Computers are omnipresent. And also there are many platforms and frameworks are available in computers to make such works in a simple way. It is necessary to derive a system that can short list the nature of defect and help to analyze the rejection for betterment of quality of product in time.

II. CONCEPT AND METHODOLOGY

.NET is a framework which provides technologies like ASP.NET for developing web based application and c#

an object oriented programming language in which we can calculate or manipulate our data to produce result.

So by using such technology and framework we have derived an online feedback system to take valuable

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feedback from customer for the analysis of external rejection.

For developing digital system of analysis of external rejection we have followed agile model. The steps to derive any system using agile model is shown in below figure

Fig. 1 Agile Model Step 1:

The first thing to develop digital system for external rejection analysis is to understand the organization of working environment of the conventional system in MSME`s. For this we had taken training in one of the MSME’s and observed their conventional methods.

After that step, the first and foremost step was to gather the requirement of the company which we had done in Requirement gathering phase. For this effective communication with the company was done for further upcoming steps.

Step 2:

The architecture of the system was designed according to the requirements of the company. This architecture had plans to build the software which facilitated with working towards the digitalized system from the conventional system. Eventually the outcome was visually designed and shown to the company further development. This would help the company to visualize the digitalized system which was being developed.

Step 3:

The development of the system was done using languages like C# and .Net. This included several coding methods inclusive of various classes and packages designed especially for each requirement which was covered in the first phase of the agile model. Each and

every class was designed in accordance to the requirements.

Step 4:

This phase includes Testing and Feedback from the users and generates the calculated result with graphs. In this stage, first the beta version is submitted to the company for testing and even internal testing was done during this phase. After that the digitalized software was deployed in the company and it was familiarized with the employees to get the feedback regarding the digitalized software which was being developed.

III. DESIGN AND IMPLEMENTATION

By using visual studio software and technologies like Asp.Net and C# we have derived system to fulfill below given algorithms.

[1.] ALGORITHMS Algorithm for Customers:

1. Customers have to login into their account for giving feedback.

1.1 Must have to enter username and password.

1.2 If username & password both match.

1.3 Then customer is now logged in & can give the feedback.

1.4 Not matched then re-enter username &

password.

2. Customers can view the products of the company.

3. Customers can view the help page for giving feedback.

4. Customers can give feedback or manage the account.

5. In feedback form, customers have to rate each fields for submitting their feedback & have to enter manufacture code for product.

6. After feedback customer must have to log out from the website.

Algorithm for HR Department:

1. Initially HR people must have to log in into their account.

1.1 Must have to enter username & password.

1.2 If username & password both matched.

1.3 Then HR is going to access their account.

1.4 If not matched re-enter username & password.

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2. Insert/Update/Delete the product.

3. Analyze the feedback by avoiding fake feedbacks on basis of manufacture code.

4. Generating report & charts.

4.1 Generate weekly, monthly & yearly reports based on feedback of customers.

5. Analyze the rejection from the poor ratings of the customers.

6. Forwards the final reports to the management.

7. after completion of Rejection Analysis HR have to log out from the website.

Algorithm for Management:

1. Initially management must have to log in.

1.1 Must have to enter username & password.

1.2 If username & password both matched.

1.3 Then Management is going to access their account.

1.4 If not matched re-enter username & password.

2. After the Login, management can see all the feedback given by customers globally.

3. Management can see Rejection analysis, reports &

charts calculated by the HR Department.

4. As per the report, management can take steps towards improvements in quality.

5. After this, management has to log out from the website.

[2.] Calculation of Rejection

Calculation of rejection for every company has their own paradigms and norms which differ from company to company depending on what kind of work they manufacture or produce and we also need to consider both kinds of rejection to calculate the overall rejection i.e. internal as well as external rejection. But here we facilitate to reduce the external rejection of the company by taking the customer feedback.

In current trend, one of the key and significant factors which emphasizes on knowing about others opinion for a particular company is “Feedback mechanism”. It enhances better performance and guarantees a high rise in productivity clearing the hurdles involved in external rejection. Even company like Google is also interested to take their user's feedback for improving their products [7].

Here we have provided one such example of Medium

Scale Manufacturing Company where we have elaborated the calculation of rejection with reference to this company and its factors. It is an ISO certified company. Hence we summarize few feedback points related to this:

 Quality wise

 Price wise

 Packing wise

 Delivery wise

 Response of staff and communication

 Complaint handling

 Overall reputation of company’s brand

 Technical support during enquires

 Post-delivery service. [4]

We can now set this kind of fields in the feedback form which is going to be filled by the customers. Secondly we take ratings of customers based on these parameters as per five categories. Hence ratings are abbreviated as below :

Abbreviations Ratings

Excellent 5

Very Good 4

Good 3

Average 2

Poor 1

Hence this is one of the simplest methods to know about the company’s level of efficient working.

[3.] Methodology to Analyze Rejection

On receiving feedback from customers for the analysis we need to construct two tables shown as below:

Table 1 : Overall feedback Analysis

Table 2 : Rejection Analysis

Table 1: Types of analysis Tables

In table 1, we summarize all the feedbacks received and generate one single sheet consisting of every single feedback which is comparatively easy.

Table 2 is of much importance as it deals with the satisfactory level of customers. Hence while constructing Table 2, we summarize for each feedback field the ratings we have actually got from all feedbacks for any particular feedback field and then take percentage for that particular field. For example: Taking

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the percentage for all the feedback fields as stated below:

Quality Wise

5 4 3 2 1

40% 30% 25% 5% 0%

Table 2: Ratings and their conversion in Percentages Then for Table 2, calculation of average of each feedback field is done and thus we find the satisfactory level in ratings as shown in Table: 2 respectively. On basis of these both tables we can generate Pie-chart which shows the satisfactory level of customers. Let us assume that Excellent, Very Good and Good ratings are for satisfaction then,

Satisfied customer = Excellent rating Average + Very good rating average + Good rating average

And

Dissatisfied customer (Rejection analysis) = Average rating average + Poor rating average.

Expected Outcome:

The expected outcome of the derived system is to analyze the External rejection and to escalate the customer satisfaction and quality assurance.

The work flow of this system is that from the customer feedback (Online), we calculate the external rejection which involves an algorithm that is used to find the external rejection from the data given by the customer feedback form.

This feedback is filled by the customer online only through a website by which is to be designed for MSME’s via internet.

On basis of data given by customer feedback various pie charts and bar charts would be generated which would then be given as input in the rejection analysis algorithm to analyze the external rejection.

These pie charts and bar charts would be generated dynamically from customer feedback form – weekly, monthly, yearly basis online on my website.

This model will also help to short list the types of defects and will also check the rating of the product by the given feedback of customers.

After analyzing the rejection corrective and preventive actions are to be taken to avoid the rejection.

From this feedback, the company can easily conclude the lack of quality and take action for the betterment of the product through the relevant department.

MOVING TOWARDS QUALITY IMPROVEMENTS AND SIX SIGMA

From these ratings and graphs, company can improve their quality as early as possible. This will increase Statistical Process Control with Process Capability. That will move the company towards SIX SIGMA. [2]

Six Sigma emphasizes the use of facts and data to guide the decision making process. From a statistical view point, Six Sigma has a defect level of 3.4 per million operations [5].

Most of the Small and Medium Scale Companies operate at around 3 Sigma which translates into roughly 67,000 defects per million operations [6].

Achieving Six Sigma at the output of a business process decreases the number of defects to fewer than four per million. Hence with the help of this rejection analysis methodology; this is one of the best try to make a company Six Sigma or move it towards making it a six Sigma company. As the customer satisfactory level will increase; the rejection will be decreased and vice versa.

Here we just give the external rejection analysis; but internal rejection analysis is also effecting in the overall rejection calculation process and making a company Six Sigma.

Most companies today, however, view Six Sigma as a business strategy and methodology for improving process performance in such a way that customer satisfaction is increased and the bottom line is improved [5].

IV. CONCLUSION

In analysis process of External Rejection, the key aspect is to analyze the data from Customer Feedback Form of the company which is done online through a website and resulting in generation of Pie-charts and Bar-charts which include calculation of overall rejection of company based on customer’s rating. After analyzing the whole data, various CAPA can be taken for rejection. In external rejection, we focus on feedback of customers and find whether which department in the company is responsible for rejection i.e. for example:

Designing, Planning etc. Hence we can move towards customer satisfaction and quality assurance. [4]

Calculating and analyzing rejection of a company incurs many complexities and may cause fatal errors if any paradigms went wrong or can even degrade a brand value. Hence it is very important for a company to urge for taking feedbacks from customers for knowing the out bound and efficiency of the company which includes or cause external rejection. Here a simple method is provided which can be implemented by any

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manufacturing company to resolve their rejection problem and also lead their company towards Six Sigma. This is hence a mechanism to crack and bring down the rejection to the micro levels and up bring the company’s profits and reputation.

This is one of the best systems to improve customer satisfaction level through customer feedback.

V. FUTURE SCOPE

For Testing and Feedback from the users, first the beta version is submitted to the company. After that the digitalized software was deployed in the company and it was familiarized with the employees to get the feedback regarding the digitalized software which was being developed.

Once this takes place, the major task is to figure out the rejection ratio by comparing it to previous year’s rejection analysis data. Hence to avoid any problems;

feedback is taken at regular intervals. Certain kind of amendments was encountered during this task so they were successfully implemented as per company’s suggestion.

This model is having versatile aspects like feedback collection, form generation, feedback data conversion, short listing of type of defects, ratings for different services provided to customers etc.

It also generates graphs and comparison tables for better visibility.

In future, it will be loaded with other different applications and packages as per the company requirements.

This module will be very much useful in Small and Medium Scale Manufacturing companies especially the vendor companies in an Automobile, Bearing, Chemical and workshop etc. sectors.

VI. ACKNOWLEDGEMENT

We would like to thank to Austin Engineering Company Limited, Junagadh and its management for their willingness to give us a chance to understand their systems with co-supervise our work and helping us by

giving invaluable suggestions on the work. We would also like to heartily thank Mr. Shashikant Thanki , Managing Director of Austin Engineering Company Limited for providing his immense knowledge and inspiring us to build this work and strive ahead for future work in this project. The special guidance of Mr. Hitesh Ajmera was also highly appreciable.

We also owe a sincere gratitude to Management of our respective Institute Noble Group of Institution, Junagadh for their constant encouragement and help in all our endeavors.

VII. REFERENCES

[1]. http://en.wikipedia.org/wiki/2009%E2%80%93201 1_Toyota_vehicle_recalls.

[2]. http://www.businessballs.com/sixsigma.htm [3]. http://en.wikipedia.org/wiki/List_of_Six_Sigma_co

mpanies

[4]. Austin Engineering Co. Ltd. An ISO 9001:2008 &

ISO/TS 16949:2009 Company Village: Patla, Taluka: Bhesan, Junagadh 362030 Gujarat – India http://www.aec-bearings.com

[5]. Ronald D. Snee, Roger Wesley Hoerl. (2003) Pearson Education, Inc. Publishing as Financial Times Prentice Hall. Leading Six Sigma: A Step by Step Guide Based on Experience with GE and other Six Sigma Companies. Page No. 4

[6]. Achieving Quantum Leaps in Quality and Competitiveness: Implementing the Six Sigma solution in your company .ASQ’s 53rd Annual Quality Congress Proceedings Jerome A.

Blakeslee, Jr. Director PricewaterhouseCoopers Consulting Page No. – 486

[7]. http://www.toledoblade.com/business/2011/06/10/

Toyota-to-Face-Sudden-Acceleration-Trial-in- 2013-Judge-Says.html

[8]. Professional ASP.NET 4 in C# and VB, WROX Publication.

[9]. Msdn.microsoft.com [10]. Statistical Process Control.

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