QUALITY COST
Quality Cost are those categories of costs that area associated the producing, identifying, avoiding or repairing products that do not requirements.
below mention four types of quality cost.
below mention four types of quality cost.
- Presentation costs.
- Appraisal costs.
- Internal failure costs.
- External failure cost.
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| Quality Management |
1. Presentation Cost- Quality planning and engineering New product/process design training.
2. Appraisal Costs- here production incoming raw material and product inspection consumed cost
3. Internal Failure Costs- Scarp, Rework, Retest, Failure analysis, Downtime, Down Grading.
4. External Failure Costs- Complaint adjustment returned product/material warranty charges liability costs.
1.Presentation Cost-
Quality planning and engineering New product/process design training.
2. Appraisal Costs
Components and material purchase are measured, evaluated and audited to make sure that it conforms to standards that have been set.
3. Internal Failure Costs
Internal failure costs are those costs incurred due to the failure of a product/component or service before the product is delivered to the customers.
4. External Failure Costs
External Failure costs are those costs incurred due to the failure of a product/service after being supplied to the customer.
OPTIMUM QUALITY COSTS
1. Failure costs
- First thing considered internal and external failure cost.
- Failure costs-0 when the product is 100% good.
- Failure cost = infinitive when the product is 100% defective.
2. Prevention costs
- prevention cost =) when the product is 100% defective.
- prevention cost approch methods.
Total Quality Costs
- Total quality cost =Failure cost + Prevention cost.
- Total quality cost per good unit of product. it has been divided into three zones,
A) Zone of improvement
B) Zone of indifference
C) Zone of perfectionism
A) Zone of improvement B) Zone of indifference C) Zone of perfectionism
Failure cost = 70% Failure cost = 50% Failure cost = 40%
Prevention cost. = 10% Prevention cost. = 50% Prevention cost. = 50%
100% Defective Quality of Conformance 100% Good
Total Quality Management(TQM)
Total implies-complete 100% all areas, activities employees and time always.
Quality implies-product and service that totally satisfy the customer needs and exploitations in every respect continuously.
Mgt implies how to planned and managed, therefore need a systematic approach. Continuous improvement is making small improvements that ultimately result in a large improvement.
PRINCIPLES OF TQM
- Delight the customer the team “Delight” means to bring the best of what really matters to the customers.
- Management by the fact this means that decisions will not be taken on Adhoc basis. All decisions will be based on facts to ensure that the decisions are meaningful.
- People-based management everybody must be involved. When people working in an organisation have a feeling of involvement, they will naturally put in committed efforts to achieve customer satisfaction.
- Continuous improvement. it should be understood that quality is not static.
- TQM ends and begins with education and training.
- stong leadership. TQM must be lead by senior managers, the leader needs to establish credibility with their personal qualities.
- TQM is supported by quality systems measure and record.
- Quality corporate culture.
- Teamwork, team accountability, correct problems and speed.
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