Training on Quality Cost
Course Duration: Two Days
Lead Faculty :
Dr. R. R. LAKHE, Director, SQMS
Ph.D. (Industrial Engineering) NITIE, B.E. (Mech), M.Tech.(Prod)., MBA, Dip. Trg. & Dev., M.A. (Socio) (Pub.Admt.), Qualified ISO 9001QMS, ISO 14001 EMS, ISO-50001 EnMS& OHSAS18001 Lead Assessor, Master Black Belt Six Sigma
INTRODUCTION
A Brief Overview of Quality Costs
By Jim Hartman, GMP Institute consultant
“Understanding and effectively managing Quality Costs is such a difficult issue that we don’t even try. We just do what is right for the customer.”
So, what is “right for the customer?” Over-specified raw materials or finished product that adds no consumer benefit or noticeability? Expensive sampling and test systems that are designed to catch and sift out non-conforming product? Major product recalls that result from system failure? Or none of the above?
If you checked the last item, you are right on target. What is “right for the customer” is that we analyze and manage all aspects of quality cost. So much has been written on this that a few hundred words cannot come close to doing any justice to the subject.
For a basic understanding, however, let me offer a few definitions and suggestions. First of all it is generally accepted that we can divide the universe of quality costs into these areas:
1. Preventive – costs involved in programs that are designed to reduce appraisal and failure costs. (Example: training programs, pre-product quality assurance, work with suppliers, etc.)
2. Appraisal – costs resulting from our need to measure quality. (Example: laboratory facilities, equipment, calibration programs, salaries and benefits for inspectors and managers, data and record systems, etc.)
3. Failure – costs that become evident when things go wrong. (Example: scrap, rework, inventory expenses for unshipable product, advertising to buy back customer loyalty, product liability suits, etc.)
The last of these is the most difficult to measure and because of this it is often used as the excuse for not doing anything at all in establishing control of quality costs.
The costs of these elements is the Total Cost of Quality and has been estimated to run as high as 20% of the value of product sold. The tragedy is that many companies invests far too little in the Preventive area and lose the opportunity for dramatic savings in the total figure.
OBJECTIVES
The objective purpose of this training is to provide an overview of the concepts related to quality costs, show how quality cost data is used, and present steps to implement an overall quality cost system through,
Quality of Design and Conformance
Types of Quality Costs
Economics of Quality Costs
COURSE CONTENT
- WHAT IS QUALITY COST?
- QUALITY COSTS CATEGORIES
- MEASUREMENT OF QUALITY COSTS
- COLLECTION OF QUALITY COSTS
- IMPLEMENTATION OF QUALITY COST MODEL
- CASE STUDIES & EXERCISES
CERTIFICATE
Participants qualifying written examination shall be awarded certificate of successful completion of the course.
WHO SHOULD ATTEND
- Technical Managers
- Quality Engineering Team
- Quality Managers
- Laboratory Personnel
- Production Managers
- Quality Management Consultant
- Engineers
- Quality Control Executives
- Metrology/Standard room personnel
- S.Q.C/ SPC Team
- Students from Engineering, Management, and Science Streams.