HO3 - L9: Introduction to Quality and L10: Cost of Quality Flashcards
What is Quality?
- Consists of those product features, which meet the needs of the customers = provide product satisfaction.
- Freedom from deficiencies.
What is Product features?
Property possessed by a product, which is intended to meet a
certain customer need.
What is a Customer?
Someone who is impacted by the product.
Can be external/ internal:
E: Not members of organisation that produces the product but buy/ impacted by product in some way.
I: Fact that within companies, departments and persons supply products to eachother.
What is design quality?
- Inherent value of product in marketplace.
- Is it right product?
- Does it have features that customer wants?
- Did we interpret needs of customer?
What is Conformance quality?
Degree to which product design specifications are met.
Is product free from defects?
Does it meet spec?
Has it been built according to design?
What governs overall quality eg?
Low design quality + high conformance quality = low perceived quality.
How have gurus defined quality over the years?
Juran: Fitness for purpose or use
Deming: Quality should be aimed at the needs of the consumer past, present and future
Crosby: Conformance to requirements
Explain Crosby philisophy?
- Quality: conformance to requirements (not goodness or excellence)
- System for achieving quality is Prevention: not appraisal (ie inspection)
- Performance standard must have zero defects: Not that’s close enough
- Measurement of quality: Price of non-conformance: what’s true cost of defective product?
What are the product features and characteristics?
- Technological
- Time orientated
- Psychological
- Contractual
- Ethical
1-2: engineering sector
3-5: Service industry
Explain product feature technological.
Usually easy to quantify, eg: power, hardness, acidity
Explain product feature - Time orientated.
Usually determined by testing, eg: reliability, maintainability
Explain product feature - Psychological.
Hard to quantify, eg: beauty, status, styling
Explain product feature - Contractual.
Can add value and give customer confidence in product, eg: guarantee provision, warranty
Explain product feature - Ethical.
Often includes how your company is viewed by customer, eg: courtesy of sales personnel, honesty of service, reputation.
Apply product features to car industry,
Technological and ethical.
What is COQ?
Cost of Quality.
Can be budgeted, measured and analysed.
What are the four main sources of cost? Explain them and give examples.
- External failure costs - customer finds defect, eg: scrap, repair
- Internal failure costs - find it before customer, eg: scrap, rework
- Appraisal costs - checking things have gone right, eg: verification, audits
- Prevention costs - right first things, eg: quality planning, training
What happens when appraisal costs are increased?
Many of those failures that before had escaped to customer - will be discovered internally = reduce overall cost of quality.
Why do external failures cost more than internal failures?
- Transportation
- Service team sent to site
- Repair/ replacement
- Loss of faith/ reputation
- Contractual concessions
- Paperwork
What to keep in mind with defects?
- Discovering defects internally that were before not discovered until they were external = does nothing to reduce overall number of defects.
Extra inspection does nothing to improve, remove or prevent cause of failure. - Inspection can never catch all of defects (manual).
Inspection at best is only 80% effective = never be final satisfactory answer.
Appraisal now effective as ever could be - overall reduction in total quality cost ceases and plateau is reached. Inspection itself considered expensive cost - prefer to reduce it.
Why is inspection expensive?
- NVA
2. Usually experienced - skilled personnel are promoted to inspection.
Figure 1 - reduction of quality costs: Summarise figure 1.
Explain what happens at 1.
- Cost of quality is about 20% of product value.
* 15% is from external failures alone
Figure 1 - reduction of quality costs: Summarise figure 1.
Explain 1 to 2.
• Inspection is increased.
• This reduces the number of external failures but the number of internal failures
increases because the total number of failures is still the same (although
internal failures are less expensive)
Figure 1 - reduction of quality costs: Summarise figure 1.
Explain 2 to 3.
Inspection is as effective as its every going to be - costs level off
Figure 1 - reduction of quality costs: Summarise figure 1.
Explain 3 to 4.
Prevention system is increased and both internal and external failures reduce.
Appraisal cost can also be scaled back.
Figure 1 - reduction of quality costs: Summarise figure 1.
At 4.
COQ about 8%.
