Cost of Poor Quality - Lean Conference 2016
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QUALITY Prepared By: Apu Sen
Transcript of Cost of Poor Quality - Lean Conference 2016
QUALITYPrepared By: Apu Sen
“Quality means conformance to requirements”.- Philip Crosby. 'Quality Is Free’
Quality is the ability of your product to be able to
satisfy your users
What is Quality ?
Quality Assurance is the process that demonstrates your product is able to
satisfy your users
What is Quality Assurance ?
When good Quality Assurance is implemented, there should be improvement in
usability and performance and reducing rates of
defects
What is the Aim of Quality Assurance ?When good
Quality Assurance is implemented, there should be improvement in
usability and performance and reducing rates of
defects
Quality policy
Cost of Poor Quality
Categories of Quality Cost
Cost of Poor Quality
PREVENTION COSTThe cost of any action taken to investigate, prevent or reduce the risk of a non - conformity.
Internal Failure COSTCost incurred when products and
services do not conform tospecifications.
APPRAISAL COSTThe costs associated withmeasuring, checking, or
evaluating products or services to assure conformance to quality
requirements.
External Failure COSTThe costs arising after delivery of
product or service to the customer due to non-
conformities or defects.
Cost of Conformance Cost of non-Conformance
Cost of Poor QualityCost of Conformance Cost of non-Conformance
Cost of Poor Quality Examples
The world's largest manufacturer of personal computers, Dell, is to recall 4.1
million of its notebook computer batteries because of a fire risk.
Mattel recalls 18m more toys 2007
US toymaker Mattel has recalled more than 18 million toys worldwide, the second such
recall in two weeks because their paint contains lead.
Cost of Poor Quality Examples
• Largest environment disaster in US.• Reason is weak cement use around the
well.• Process approach Brocken.• 10 billion dollar loss
Space Shuttle Disaster 1986
The American space shuttle, Challenger, has exploded killing all seven astronauts on
board due to O-ring seal breakdown.1 billion dollar loss
Cost effectiveness along the processThe later in the Value Stream we find a problem, the higher the cost
Financial costsLost customer loyaltyDamage business reputationNeed for greater control & checksCompetitive take advantage
How Poor Quality Effect Us
focusing on process rather than outcome is a
much better strategy.
