QUALITY COST REPORT

PLANT : QUALITY COST ELEMENTS DIVISION: COVERAGE OF DATA MONTH: COST IN Rs. LAKHS
CURRENT MONTH CUMULATIVE FOR THE YEAR

A. Prevention Cost 1. Establishing and Maintenance of ISO 9000 Quality System 2. ISO 9000 Certification and Surveillance audit 3. Calibration and Maintenance 4. Periodic inspection and Maintenance of production tools, jigs and fixtures. 5. Preventive maintenance of machineries and equipments 6. Qualification of process and process equipments 7. Statistical Process Control 8. Vendor Quality Assurance

Cost of establishing and maintenance of QMS Certification, Surveillance audit fee and other incidental Charges Cost of internal and external Calibration Cost of maintenance and checking of such items Cost of preventive maintenance / AMC (materials and Man-hours) Design of experiments or similar study for process optimization Process capability study, Maintenance of control chart etc. Expences of activities associated with vendors qualification, vendor rating including Life Test Lab. Cost of training (in-house & external) Cost of training to customer Cost of analysis of critical non-conformities in mfg. & Critical customer complaints Cost of Man-hour spent by the members

9. Quality Training 10. Customer Training 11. Investigation and analysis of critical non-conformities 12. PQC & Steering committee meetings Sub Total B. Appraisal Cost 1. Inward goods inspection of purchased items 2. In-process inspection 3. Final inspection of finished products 4. Pre-shipment inspection of finished products 5. Environmental tests 6. Inspection and test equipments Sub Total Form No. COR/QM/QC/04-2

Cost of man-hour spent by IGI & Lab staff and material consumed for test Cost of Inspection man-hour spent for various stages of Inspection Cost of man-hour spent for final product inspection and testing Man-hour cost of packing and shipping inspection Cost of environmental tests on products as routine test for acceptance Depreciation cost on inspection and test equipments

Page:1/2

QUALITY COST REPORT

PLANT : QUALITY COST ELEMENTS DIVISION: COVERAGE OF DATA MONTH: COST IN Rs. LAKHS
CURRENT MONTH CUMULATIVE FOR THE YEAR

C. Internal Failure Cost 1. Scrap Components, Parts, Materials, Assembly, Raw Material Scrapped beyond Process Sheet Allowance 2. Excess material drawn 3. a) Rework

Cost of all such items which are scrapped

b) Reinspection 4. a) Trouble shooting b) Repair c) Retest 5. Idle Hours / Down Time 6. Liquidated damages (LD)

7. Interest on Sundry debtors (bill receivable) 8. Interest on Inventory (material, WIP, and Finished goods) 9. Materials written off Value of materials with interest Sub Total D. External Failure Cost 1. Repair / replacement of defective products returned by customer (within warranty) 2. Repair of defective products at site (within warranty) 3. Customer support w.r.t. external failure

Cost of excess material drawn Cost of man-hours for reworking the defective / cards / system (for visual defects) Cost of man-hours spent for reinspection of reworked items Cost of man-hours spent for trouble shooting, repair and retest (for functional faults) Cost of Idle Hours and Down Time (men and machines) Estimated LD for the delayed delivery for the Month Interest beyond 45 days on bills receivable Interest beyond 45 days on inventory

Cost of replaced items, man power for trouble shooting, repair and retest Cost of replaced items, man power spent at site (including journey) TA/DA claims & other misc. expences Expenditure on customer support group involved in providing customer support services within warranty

Sub Total Total Quality Cost (A+B+C+D) Production Value Quality Cost (%) : Total Quality Cost X 100 Production value Form No. COR/QM/QC/04-2 Page:2/2 QA Chief

Quality Cost A. Prevention Cost 1. Establishing and Maintenance of ISO 9000 Quality System 2. ISO 9000 Certification and Surveillance audit 3. Calibration and Maintenance 4. Periodic inspection and Maintenance of production tools, jigs and fixtures. 5. Preventive maintenance of machineries and equipments 6. Qualification of process and process equipments 7. Statistical Process Control 8. Vendor Quality Assurance

Coverage Cost of establishing and maintenance Certification, Surveillance audit fee and other incidentals Cost of int & ext Calibration Cost of maintenance and checking of such items Cost of preventive maintenance (materials and Man-hours) Design of experiments,similar study for process optimization Process capability study, Maintenance of control chart Activities associated with Vendors,qualification, rating including Life Test Lab. Cost of training (in-house & ext) Cost of training customer Analysis of non-conformities in mfg. Critical cust. complaints Man-hour spent by members

Apr-06 May-06 ##### Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Total

0.00 0.00

0.00

0.00 0.00 0.00 0.00

9. Quality Training 10. Customer Training 11. Investigation and analysis of critical non-conformities 12. PQC & Steering committee meetings Sub Total B. Appraisal Cost 1. Inward goods inspection of purchased items 2. In-process inspection 3. Final inspection of finished products 4. Pre-shipment inspection of finished products 5. Environmental tests 6. Inspection and test equipments Sub Total C. Internal Failure Cost 1. Scrap: Components, Parts, Materials, Assembly, Raw Material scrapped beyond Process Sheet Allowance 2. Excess material drawn 3. a) Rework b) Reinspection

0.00 0.00 0.00 0.00

IGI cost, Lab. Tests, materials consumed for tests Inspection cost for various stage Inspection Final product inspection and testing cost Efforts for packing and shipping inspection cost Environmental tests on products as routine test for acceptance Depreciation cost on inspection and test equipments

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cost of all such items which are scrapped

Cost of excess material Cost of man-hours for reworking the defective/cards/system Cost of man-hours for reinspection of reworked items

0.00 0.00 0.00

Apr-06 May-06 ##### Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Total Coverage Cost of man-hours for trouble 0.00 shooting, repair and retest (for 0.00 functional faults) 0.00 Idle Hours and Down Time 0.00 (men and machines) 6. Liquidated damages (LD) LD paid in the Month 0.00 7. Interest on Sundry debtors Interest beyond 45 days on bills (bill receivable) receivable 0.00 8. Interest on Inventory (Material, Interest beyond 45 days WIP, and Finished goods) on inventory 0.00 9. Materials written off Value of materials with interest 0.00 0.00 Sub Total D. External Failure Cost 1. Repair / replacement of Cost of replaced items, defective products returned by man power for trouble customer (within warranty) shooting, repair and retest 0.00 2. Repair of defective products Cost of replaced items, man at site (within warranty) power spent at site(inc. journey) 0.00 TA/DA claims & other expences 3. Customer support w.r.t. Expend. on customer support external failure group providing customer 0.00 support services within warranty 0.00 Sub Total E. Total Quality Cost (A+B+C+D) 0.00 0.00 F. Production Value #DIV/0! G. Quality Cost (%) : (Ex100/F) Quality Cost 4. a) Trouble shooting b) Repair c) Retest 5. Idle Hours / Down Time