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Quality is to continuously satisfy customers satisfaction Total Quality is to achieve quality at low cost Total Quality Management is to achieve Total Quality through everybodys participation Cost of Quality -Refers to the costs associated with providing poor quality product or service. -The sum of Failure cost, Inspection/ Appraisal cost, and Prevention cost
Quality Control Cost Prevention Cost-Costs incurred in the process of preventing poor quality from occurring. [Cost of preparing and implementing a quality plan] Appraisal Cost- Costs incurred in the process of uncovering defects. [Costs of testing, evaluating, and inspecting quality]
Quality Failure Cost External Failure Cost- Costs associated with quality problems that occur at the customer site. [Costs of failure at customer site, including returns, repairs, and recalls] Internal Failure Cost- Costs associated with discovering poor product quality before the product reaches the customer. [Costs of scrap, rework, and material losses]
Aft er
Failure Cost
0 (100% defective)
Quality Level
Failure Cost
It can be possible to
achieve zero defects by continuous improvement- a never ending effort to totally eliminate all forms of waste.
0 (100% defective)
Quality Level
If we can define it- we can measure it; If we can measure it- we can analyze it; If we can analyze it- we can control it; If we can control it- we can improve it.
R.M. McNealy (1994)