MIS
QM THE TOTAL QUALITY MANAGEMENT COST

QM THE TOTAL QUALITY MANAGEMENT COST - 1 THE TOTAL QUALITY...

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THE TOTAL QUALITY MANAGEMENT COST 15-Mar-15 1 1 st Quality Dr. Suleiman Alzayed
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15-Mar-15 2 The costs from the perspective of quality is the total costs that help in the required work, in addition to the costs of the unsatisfactory results that may occur due to the failure to achieve the level of performance required, and include the costs paid by the organization or the client in case of unsatisfactory results, including losses resulting from waste and repetitive work more than once, and there are also losses can not be determined quantitatively, such as loss of reputation of the organization and that efforts are made to avoid such losses. Quality Cost introduction
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Quality Cost Defined 15-Mar-15 3 American Society for Quality Control ASQC defined Quality costs as: those costs related to the completion or non-completion of the commodity or service in required quality. This includes the requirements laid down by the organization to fulfill its contracts with consumers and society
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Financial Perspective 15-Mar-15 4 Deming made the first theoretical link between quality improvement and financial results: Quality Improvement leads to reduction of defects, improved organizational performance, and increased employment. Finance is concerned with the relationship between the risks of investments and their potential return on investment to maximize return for a given level of risk. Quality professionals must translate the quality concerns into the costs of (poor) quality in terms of lost sales, inspection, scrap, and rework.
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Financial Perspective - The Deming Value Chain 15-Mar-15 5 Financial Perspective - The Deming Value Chain Improve Quality Decrease Costs Improve Productivity Capture Market Stay in Business Provide More jobs
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Elements of quality costs 15-Mar-15 6 Most of organizations Bear costs during the production or provide services, some of them are necessary and inevitable, some unnecessary, so when we talk about the costs under the methodology of total quality management, we distinguish between two types: Positive Costs Negative Costs
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Positive Costs 15-Mar-15 7
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  • Spring '16
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