Effects of Advanced Product Quality Planning (APQP) on Manufacturing of Industrial Products

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1 Effects of Advanced Product Quality Planning (APQP) on Manufacturing of Industrial Products Kamal Rasouli 1, Mehran Molavi 2 1. Department of Public Administration, College of Human Sciences, Mahabad Branch, Islamic Azad University, Mahabad, Iran. 2. Department of Public Administration, College of Human Sciences, Mahabad Branch, Islamic Azad University, Mahabad, Iran. (Corresponding Author). Abstract Most of organizations and institutes are subject to failure and collapse in such a world with lots of extra-ordinary changes. Great threats for organizations are appearance of competitors in competition field for providing of services and manufacturing of high quality products with suitable prices. Only those institutes are successful in such a competitive world with even one step ahead than their competitors. As a result, the real goal of this research is to determine any effects of Advanced Product Quality Planning (APQP) on manufacturing of industrial products from viewpoint of customer satisfaction, increasing of quality, quantitative costs and establishment of the same at producing units at Maku Industrial Area. Research method is descriptive-survey one. Statistical volume is equal to 90 persons. Sample volume was determined by the use of Cochran formulation including 30 persons with simple random sampling method and questionnaire as the relevant measuring tool. Firstly we could evaluated the advanced production and qualitative manufacturing in accordance with Likert scope for validity purposes. Then it was possible to confirm reliability of questionnaire by the use of Cronbach s alpha which was equal to Finally after data collection, we could obtain following results by the use of t test of student theories. There is a significant relationship between APQP and quality and satisfaction and also qualitative costs of customers. Also it is impossible to have any APQP at Maku Industrial Area without providing required conditions. Keywords: Advanced Product Quality Planning, Quality, Quality costs, Customer satisfaction Introduction Quick and technological changes in ultra-industrial world of today make the organizations think globally and make them ready for facing with some unexpected competitions. Most of organizations and institutes are subject to collapse due to extra-ordinary changes of this world. Great threats for organizations are appearance of competitors in competition field for providing of services and manufacturing of high quality products with suitable prices. Only those institutes are successful in such a competitive world with even one step ahead than their competitors. Customer satisfaction is the most important duty of companies management and a necessity for permanent loyalty of master managers. (Sajjadi, 1998) On the other hand, all organizations found out that customer satisfaction is in debt for increasing the quality of products and services. Customer satisfaction and providing quality services are the most important advantages. Any competition among various institutes and agencies for finding more shares along with customers efforts to find more satisfaction make 33

2 the agencies find excellent situation in market. Also the customers are seeking to find the best suppliers and find the best products and services. These two concepts in manufacturing markets are really sensitive and important even for manufacturing units. (Tadbir, No. 141). Advanced Product Quality Planning (APQP) is a method for defining and creation of new functions to be ensured about acceptable products by customers. APQP includes %75 of planning and %25 of implementation through production and for finding customers satisfaction and continuous production. APQP is accompanied with product promotion and ensuring about meeting all customers needs. The real goal of APQP is to submit a quality product in suitable times. In order to find out required progress we should find out real goals of project and communicating channels between involved parties. (Customers, Suppliers and sub-contractors). APQP has facilitated any relationship between seller and customer. It may clarify any relationship among them through translating of mutual expectations and partial specifications. Followings are some of the advantages in product quality planning: 1- Handling of resources for finding more customers satisfaction 2- Promotion and on-time recognition of required changes 3- Prevention from any changes with lapsed times 4- Preparing an on-time & quality product with little costs APQP is a method including various special rules and systematic processes for regular integrated quality in plan & production process of new products and presenting required services by customers. In other words, it is a method out of official structure to create different steps of customers satisfaction. (Mehrban, 14, 1998) APQP technique is one of the six parts of QS International Standard. Followings are the mentioned six parts of this standard: - Statistical Process Control (SPC) - Products Parts Approving Process (PPAP) - Measurement Systems Analysis (MSA) - Quality System Assurance (QSA) - Advanced Product Quality Planning (APQP) - Failure (FMEA) The term QS is the relevant standard of quality management systems. It has been written by great American automobile makers such as Chrysler, Ford and General Motors for domestic& foreign suppliers which are responsible for supplying of required materials of production, spare parts, heating functions, painting, overlay works and other relevant operations. It was accepted by European automobile makers in Today it is considered as a valid certificate for entrance into European & American Automobile Making markets. As a result, APQP is one of the major six folds of international standards which was used firstly by American companies and its techniques in planning and producing processes. In the past, most of automobile makers such as Chrysler, Ford and General Motors considered their own guidelines for evaluation of suppliers. There were lots of problems due to some differences and disputes among the guidelines presented by the mentioned companies and suppliers. Therefore all those companies agreed to write and distribute a unique system for suppliers of automobile parts. The mentioned system includes some general guidelines for suppliers. The real goal of unique system was making any relationship between domestic and foreign suppliers, contractors and presenting better guidelines for production control and qualitative planning by Chrysler, Ford and General Motors. The mentioned system presents 34

3 better guidelines for qualitative planning of product and promotion of customers satisfaction. (Mehrban, 2000, 57). Any application of APQP at Maku Industrial Area may lead to following advantages either inside or outside of the organization: - Reduction of planning & production time - Reduction of planning & production costs - Ensuring about high quality in planning & production of products - Promotion of working relations - Increasing of safety issues in products But followings are the relevant reasons for APQP at Maku Industrial Area: - Creation a general framework for plans, functions and qualitative activities - Creation of logical, correct and systematic relations among qualitative methods and techniques - Meeting customers satisfaction & planning / production according their ideas - Reduction of qualitative costs - Meeting customer needs and creation of considered duties in plan and environmental conditions APQP has the most applications in planning and producing of new products and even those products with some changes in primary ones and/or under production items. Since most of products at Maku Industrial Town is traditional and free from any standards, therefore any continuation of this process may cause great increase in qualitative costs and reduction of qualitative of them and also lack of on-time delivery and further reduction of customers satisfaction and increase of their claims. The only solution for this problem is establishment of a plan such as APQP with integrated procedures and instructions for finding out necessary goals. Therefore this research intends to establish this system in various companies at Maku Industrial Town. Advanced Product Quality Planning (APQP) - APQP means advanced planning in product quality and with designed quality instead of controlled one. - APQP is a defined system and process for promotion of products - APQP is a legal procedure for finding more quality in planning & manufacturing process - APQP is a legal and official method for finding customers satisfaction in nature of plan and production - APQP is an effort for ensuring about inter-organizational relationships among company and customers The real goal is facilitation of involved people relations and ensuring about required steps for on-time completion. Effectiveness of APQP depends upon more obligations and supports of master manager and for ensuring about customer satisfaction. Goals of APQP 1- Changing of customer voice into a plan not only for satisfying their current needs but for their more satisfaction 2- Making required tools and procedures to provide such a product. 3- APQP is obliged to present various products and services in shortest periods of time and finding customers satisfaction. 35

4 4- APQP is obliged to supply more profits and advantages of supplier along with more competitions. APQP steps 1- Guidance of personnel for meeting customers satisfaction 2- Encouragement and on-time changes 3- Ensuring about correct & on-time performance of steps 4- Making communicative facilities for promotion of quality with minimum costs APQP advantages 1- Ensuring about quick programming 2- Handling of resources towards the customers 3- Providing required changes in minimum time limits 4- Providing quality products with minimum costs and specified time tables 5- Quick evaluation of potential problems in planning and production 6- Reduction of planning & production costs 7- Reduction of planning & production times 8- Increasing of safety issues in products 9- Supplying of relevant environmental conditions and 10- Ensuring about high quality in plans & products Research method The present research is descriptive and survey from viewpoint of data collection. Conceptual /descriptive method was applied for better understanding of collected data in a library and field method. It is applicable from viewpoint of research goal. It is also a survey one because of searching to find any effects of APQP on manufacturing of industrial products at manufacturing organizations at Maku Industrial Area. Generally our research method is descriptive/survey and applicable for its goal. The real goal in applicable researches is promotion of an applicable knowledge in a special field. Data analysis Testing of first hypothesis Second hypothesis: There is a significant relationship between APQP system & quality of products. Table (1): Descriptive table of results in t-test of single sample for effects of APQP with quality t Freedom Average difference of variant and test Quality of products amount The mean in single t-test is equal to and significant of test is Since the mean is greater than 15 and significant is lower than 0.05, it is decided to reject null 36

5 hypothesis. As a result, there is a significant relationship between APQP system and quality of products. It means that applying of APQP system is effective on quality of products. Testing of second hypothesis Second hypothesis: There is a significant relationship between APQP system &customers satisfaction. Table (2): Descriptive table of results in t-test of single sample for effects of APQP with customers satisfaction T Freedom Average difference of variant and test amount Customers satisfaction The mean in single t-test is equal to and significant of test is Since the mean is greater than 12 and significant is lower than 0.05, it is decided to reject null hypothesis. As a result, there is a significant relationship between APQP system and customers satisfaction. It means that applying of APQP system is effective on customers satisfaction. Testing of third hypothesis Third hypothesis: There is a significant relationship between APQP system & qualitative costs. Table (3): Descriptive table of results in t-test of single sample for effects of APQP with qualitative costs. t Freedom Average difference of variant and test amount Qualitative costs The mean in single t-test is equal to and significant of test is Since the mean is more than 15 and significant is lower than 0.05, it is decided to reject null hypothesis. As a result, there is a significant relationship between APQP system and qualitative costs. It means that applying of APQP system is effective on qualitative costs. Testing of fourth hypothesis Fourth hypothesis: There is a significant relationship between APQP system &its application at Maku Industrial Area. 37

6 Table (4): Descriptive table of results in t-test of single sample for applying of APQP t Freedom Average difference of variant and Application of APQP test amount The mean in single t-test is equal to 8.87 and significant of test is Since the mean is lower than 18, it is decided not to reject null hypothesis. As a result, there is not a significant relationship between APQP system and its application at Maku Industrial Area. It means that it is impossible to apply APQP system at Maku Industrial Area. Conclusion This research was made for finding out any effects of APQP on manufacturing of industrial products (at producing units of MakuIndustrial Area). According to the results, there is a relationship between APQP on manufacturing of industrial products from viewpoints of quality, customers satisfaction and qualitative costs. Therefore Advanced Product Quality Planning is in line with product promotion. It should be considered for ensuring about all customer needs. The real goal of which is submission a high quality product in suitable periods of time. For finding more progress, it is necessary to recognize all project goals and mutual communication channels among involved parties (Customers, Suppliers and subcontractors). As a result, advanced product quality planning is a method including some specific and systematic rules for ensuring about integrated quality of plan and producing of new products and supplying required services to customers. Applying of advanced product quality plan may cause some advantages like an increase in safety issues in products, reduction of planning & manufacturing time, reduction of planning & manufacturing costs, ensuring about high quality of products, reduction of planning / production time and promotion of working relations along with some inter-outer organizational effects. References [1] Sajjadi, Ali Akbar (1998), The role of customer satisfaction in business, new bulletin of management No. 22 [2] Mehrban, Reza (1998), Applicable method of advanced product quality planning (APQP), Tehran: Peykan press [3] Javadian Nasser, (2000), The role of advanced planning, quality of products in functions of Iranian Industrial Machinery of Iran, Master of Science Thesis, Islamic Azad University, Tabriz Branch [4] Feghhi Farahmand, Nasser (2002), Active management of organization, Foroozesh press, Tabriz, 1 st Edition, 308 to 679 [5] Lamei, Abolfath, (1999), Basics in quality management, State Committee in quality upgrade in Ministry of Health, Therapeutic and Medical Education, Tehran, 1 st edition 38

7 [6] Briscoe G., Arthur G.,(1998). CQI Teamwork: Reevaluate, Restructure, Renew. NursingManagement.29 (10), PP: [7] Lewis P., Goodman S. H, Fandt PM.(1995) Management challenges in the 21st century. West Publishing Co, U.S.A [8]Sakharkar BM., (1998).Principles of Hospital Administration & Planning. Jaypee Brothess Medical Publishers (p) Ltd.New Dehi.India. 39