{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chp5 - Cost of Quality Quality is free Cost of Quality Cost...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost of Quality Cost of Quality FScN 4131 Food Quality September 18, 2000 Cost of Quality Cost of Quality “Quality is free” • Crosby “Defects are not free. Somebody makes them and gets paid for making them” • Deming Cost of Quality Cost of Quality “In the U.S.A., about a third of what we do consist of redoing work previously ‘done’” • Juran Cost of Quality Cost of Quality According to the ISO 8402: Quality costs are: “The expenditure incurred in defect prevention and appraisal activities, plus the losses due to internal and external failure” Quality Costs = Quality Costs = Cost of Conformance + Cost of Conformance + Cost of non-conformance Cost of non-conformance QC = COC + CONC Quality Costs: Benefits of Quantifying Quality Costs: Benefits of Quantifying Analysis and Reduction
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Quality Costs: Benefits of Quantifying Quality Costs: Benefits of Quantifying 1. Contribute to business’ decision-making 2. Identification of quality improvement areas 3. Comparison of departmental performance 4. Comparison of company’s performance 5. Improved quality in budgeting 6. Focus on quality improvement management Quality Costs Categories Quality Costs Categories Failure costs: related to failing to meet requirements Appraisal costs: incurred by assessing the level of quality Prevention costs: generated by any measure aimed to prevent failures Quality Costs Categories Quality Costs Categories Opportunity costs: loss of business due to defects Exceeding requirements costs: unnecessary costs Quality Costs Lost of Opportunity Prevention and Exceeding Requirements Appraisal
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '09
  • Prof.HamiAlpas
  • quality costs, Development Public Relations Information Systems Health and Safety Operations Marketing Sales Purchasing Production Storage and distribution Quality Assurance Engineering Maintenance Customer Service

{[ snackBarMessage ]}