Page 181 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes Background
Handling bank notes and other “documents of value” in automatic mechanisms gives rise
to a particular set of potential problems. We needed to provide a way of systematically
documenting and analysing the main risks in the mechanism design and to show how
these risks could be minimised or, at least, managed.

We chose to use the Failure Modes and Effects Analysis method as a well-proven approach
to risk identification, prioritisation and reduction.
Solution

The mechanism consisted fundamentally of a series of banknote transport and storage
systems and was used to validate and store customer deposits. The lifecycle of documents
through the machine was plotted so that none of the major risk contributors would be
missed. By dividing the mechanism into sections bounded by risk “hot spots”, it was
possible to define a set of segments that would undergo evaluation. Each of these segments
was addressed in turn by listing all of its possible failure modes and then, for each failure
mode, recording the “Severity Rating”, the “Detection Rating” and the “Occurrence Rating”.
The product of these three ratings gave an overall “Risk Priority Rating” for that failure
mode.
Severity Rating (SR)
The severity ratings of failure modes were defined in terms of the perceived impact that
the risk would have if it were realised. These ratings range from 10 (most severe
consequences) to 1 (least severe).

Priority Area affected by fault Severity Rating
1 Safety 10
2 Security against banknote and data theft 9
3 Regulatory compliance 9
4 Documents are transferred between owners 8
5 Accountancy error against customer-owned notes 8
6 Media damage (customer’s notes) 6
7 Machine out of service 6
8 Reject rate 4
9 Media damage (bank’s notes) 3
10 Mis-stored notes 3
11 Throughput performance 1

Detection Rating (DR)
The probability of detecting that a certain failure mode has occurred was then defined. If
there was no way of sensing that a failure mode had occurred this was rated at 10 and
conversely, if a failure mode was almost certain to be detected this was rated at 1.

Detection Rating Definition
1 No chance of detection
2 Very remote chance of detection
3 Remote chance of detection
4 Very low probability of detection
Contd...

176 LOVELY PROFESSIONAL UNIVERSITY