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The cost of poor quality are Failure cost Appraisal cost Prevention Cost
Hidden Cost
Failure Cost
These Cost are associated with the manufacturing
and usage of products, which fail on Quality Requirements. Failure Cost : Internal failure Cost & External Failure Cost
manufacture of products which fail on quality requirements These comprise losses arising out of
Cost of labour, materials, machines hours etc, lost in scrapped items Cost of rework/ reassembly at subsequent stages Cost of failing to meet contracted schedules
Appraisal Cost
Costs associated with routine quality control and
information systems designed to provide managerial control through measurement, evaluation and auditing of existing level of Quality Cost of Quality data acquisition and analysis consist of: Cost of inwards, in process and final inspection Cost of destructive test losses, if any Cost of preparation of reports and audits Cost of maintenance and calibration of test instrumentations and facilities Cost of administrative machinery and organization for inspection, testing and appraisal Product review cost Process control cost Quality engineering cost Field evaluation cost
Prevention Costs
Hidden Costs
Potential Lost sales Cost of redesign due to quality reasons Cost of software changes due to quality reasons Extra manufacturing costs due to defects Scrap not reported Excess process costs of acceptable products
Joseph M Juran
Identify the customers Determine their needs Translate those needs into our language Develop a product that can respond to those needs Optimise the product features to meet our and
customer needs
Jurans Formula
Build an awareness of the need and give an opportunity for improvement Set goals for improvement Organize to reach the goals ( establish a quality council, identify problems, select projects, appoint teams, designate facilitators) Provide training Carry out projects to solve problems Report progress Give recognition Communicate results Keep score Maintain momentum by making annual improvement part of the regular systems and processes of the company.
Philip B Crosby
He had given FOUR ABSOLUTES OF QUALITY
The System: Prevention not appraisal The Performance standards: Zero Defects
Malcolm Baldridge Award Criteria European Foundation for Quality Management (EFQA) Award Criteria Australian Quality Award Criteria Confederation of Indian Industries (CIl) Award Criteria
Japanese 5 S practice The 5 S practice is a technique used to establish and maintain quality environment in an organization. The 5 S stand for five Japanese words Seiri Seiton Seiso Seiketsu Shitsuke
Typical examples Throw away rubbish 30-second retrieval of a document Cleaning Individual cleaning responsibility Standardization Transparency of storage discipline Do 5 S daily
Shitsuke
Step1 Seiri (Straighten up) Its about separating the things which necessary for the job from those that are Differentiate between the necessary and unnecessary and discard the latter in following areas: Work in Process Unnecessary tools Unused machinery Defective products Paper and documents
Step 2 Seiton (Put things in order) Things must be kept in order so that they are ready for use when needed. It is all about neatness. There are 4 ways to achieve neatness
Analyse the status quo Decide where things belong Decide how things should be put back Obey the put-away rules (Putting things back where they belong)
Step 3 Seiso (Clean up) Keep the workplace clean. Everyone in the organization from the managing director to the cleaner should undertake this job.