Applied Commercial and Quality Principles in
Engineering
Assignment 3: Quality Systems and Value Management
Learning Aim C: Explore how engineering organisations use quality systems and value management
to create value
(a) A research exploring the quality management systems and value management processes used
by engineering organisations.
(b) An applied value analysis exercise to determine if further value can be created from a given
engineering product or service, and an evaluation of findings based around the principles of
value management and quality systems.
,Contents
Task 1 3
Introduction 3
Quality Systems 3
ISO Series 3
Family of Standards 3
ISO 9000 Series 3
ISO 14000 Series 4
Quality Assurance Systems 4
Principles/Purposes of Total Quality Management (TQM) 4
Implementing Total Quality Management with (PDCA) 5
PDCA is as follows: 5
Plan 5
Do 6
Check 6
Act 6
Fundamental Purposes of Implementing a Quality System 6
Benefits of a Quality Management System 7
A customer-led business and customer focus 7
Leadership 8
Engagement of people 9
Process approach 9
Improvement and Innovation 10
Evidence-based decision making 11
Relationship management 11
Quality Control Systems 12
Inspection 12
Sampling 13
Testing 13
Characteristics of System Testing 13
Condition Monitoring 14
Planned maintenance 14
Principles of Value Management 14
How Quality Management Systems and Value Management can give an Engineering
Organisation a Competitive Advantage? 15
Task 2 15
Carrying out a Value Analysis exercise 15
Information phase (IP) 15
Function Analysis Phase (FAP) 16
Creativity Phase (CP) 17
Evaluation Phase (EP) 18
1
, Development Phase (DP) and Presentation Phase (PP) 18
Task 3 18
Inspection for a Valve 18
Hydraulic Valve Sampling 19
Hydraulic Valve Testing 19
The Importance of Hydraulic System Condition Monitoring 19
Planned Maintenance for a Hydraulic Valve 20
Costing for processes making up the activity 20
Benefits of employing a ‘right first time’ philosophy 20
Impact of efficiencies and how an engineering company can gain a competitive advantage 20
Task 4 21
Value added to product 21
Products Design 21
Value added to processes 21
Manufacturing 21
Competitive advantage of the value added to products and processes 22
Task 5 22
2
Engineering
Assignment 3: Quality Systems and Value Management
Learning Aim C: Explore how engineering organisations use quality systems and value management
to create value
(a) A research exploring the quality management systems and value management processes used
by engineering organisations.
(b) An applied value analysis exercise to determine if further value can be created from a given
engineering product or service, and an evaluation of findings based around the principles of
value management and quality systems.
,Contents
Task 1 3
Introduction 3
Quality Systems 3
ISO Series 3
Family of Standards 3
ISO 9000 Series 3
ISO 14000 Series 4
Quality Assurance Systems 4
Principles/Purposes of Total Quality Management (TQM) 4
Implementing Total Quality Management with (PDCA) 5
PDCA is as follows: 5
Plan 5
Do 6
Check 6
Act 6
Fundamental Purposes of Implementing a Quality System 6
Benefits of a Quality Management System 7
A customer-led business and customer focus 7
Leadership 8
Engagement of people 9
Process approach 9
Improvement and Innovation 10
Evidence-based decision making 11
Relationship management 11
Quality Control Systems 12
Inspection 12
Sampling 13
Testing 13
Characteristics of System Testing 13
Condition Monitoring 14
Planned maintenance 14
Principles of Value Management 14
How Quality Management Systems and Value Management can give an Engineering
Organisation a Competitive Advantage? 15
Task 2 15
Carrying out a Value Analysis exercise 15
Information phase (IP) 15
Function Analysis Phase (FAP) 16
Creativity Phase (CP) 17
Evaluation Phase (EP) 18
1
, Development Phase (DP) and Presentation Phase (PP) 18
Task 3 18
Inspection for a Valve 18
Hydraulic Valve Sampling 19
Hydraulic Valve Testing 19
The Importance of Hydraulic System Condition Monitoring 19
Planned Maintenance for a Hydraulic Valve 20
Costing for processes making up the activity 20
Benefits of employing a ‘right first time’ philosophy 20
Impact of efficiencies and how an engineering company can gain a competitive advantage 20
Task 4 21
Value added to product 21
Products Design 21
Value added to processes 21
Manufacturing 21
Competitive advantage of the value added to products and processes 22
Task 5 22
2
