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Quality Assessment will be the term used to describe a companywide review of the status of Quality
Assessment of quality comprises four elements: 1. Cost of poor quality 2. Standing in the market place 3. Quality culture in the organisation 4. Operation of the company quality system
Manufacturer needs to perform several activities to assure that only conforming products (services) are delivered to the customer.
Quality cost is the cost of performing all such activities (for conformance) along with the cost of failure.
Quality Cost
Quality costs are the reflection of activities
Not done right first time Non adherence to justified manufacturing activities
The quality that is produced today will not satisfy the end-user of the future!
Detection Prevention Appraisal Repairing etc. of a product that doesn't meet the requirements.
2 Parts of COQ
COQ
COQ
Cost of Conformance Prevention Cost Quality Planning Engineering New product review Product / process design Process control SQC / SPC ISO 9001
Training
QC Data collection Supplier quality evaluation
COQ
Cost of Conformance Appraisal Cost
Inspection and testing of incoming materials In-process inspection and testing Final inspection and testing Product quality audits Materials and service consumed Maintain accuracy of test equipments Evaluation of stock
COQ
Cost of Non - Conformance Cost of Internal failure
Down time
Yield loss Down grading
COQ
Cost of Non - Conformance Cost of External failure
Complaint investigation & resolution Product / material return Warrantee claims Liability cost
Penalties
Indirect cot (low reputation, low brand image)
The picture below illustrates the some of the costs associated with poor quality. All of these represent areas of opportunity.
Prevention
QFD Reliability analysis Reducibility analysis Design reviews FMEA DOE VA / VE GD & T
Appraisal
Design verification Prototype testing Design validation Field testing Pilot testing Reliability testing
Internal Failure
Engineering and corrective actions Rework due design errors Scrap due to design errors
Design
Prevention
Supplier evaluation supplier audit Supplier development PO Tech. data review
Appraisal
Supplier product inspection & tests Supplier monitoring Source inspection
Internal Failure
Disposition cost of incoming rejection Replacement cost of supplier products CA investigation cost Premium frights
Purchase
Prevention
Capability study Inspection and testing planning Measurement system analysis Process control measurement Quality audits Training
Appraisal
Planned inspection & Tests Set up inspections Special tests Lab support Calibration
Internal Failure
material review and CA (incl. Failure analysis) Re inspection and Re test Re work Scrap Sorting and Down grading Idle time (Breakdown, defective material)
QC & Production
DEFENITION
the possible operation of a business with all systems and employees at 100% performance. or
revenues could be if all customers were always satisfied, that is , No Unhappy Customers.
Strategy Premise
The Strategy is based on the premise that:
For each failure there is a root cause. Causes are preventable. Prevention is always cheaper.
Decreases
Defects Overall Costs Returned Goods Employee Turnover Customer Complaints Owner & Mgmt. Stress
Increases
Revenue Sales Capacity Employee Satisfaction Customer Satisfaction Market Share Competitive Edge Personal Time Away
Share information in a widely accepted common language Expose critical problems Prioritize the problems Consciously attack them in a systematic way for continuous improvement Set quantitative goals & develop COQ indices Measure the effectiveness of the Quality system
Any Questions?