Professional Documents
Culture Documents
SHOBHIT KUMAR
Quality
Gurus:
W. Edward Deming
Joseph M. Juran
Phil Crosby
W. Edward Deming
Focus on bringing about improvements in product
and service quality by reducing uncertainty and
variability in goods and services design and
associated processes (the beginning of his ideas in
1920s and 1930s).
Higher quality leads to higher productivity and
lower costs.
“14 Points” management philosophy.
Deming Cycle – Plan, Do, Study, and Act.
Joseph M. Juran
Producer’s
Producer’s Perspective
Perspective Consumer’s
Consumer’s Perspective
Perspective
Quality
Quality of
of Conformance
Conformance Quality
Quality of
of Design
Design
Fitness
Fitness for
for
Consumer
Consumer UseUse
Conforms
to design
Design
Ease of Service
use
Cost of Quality
• Cost of Achieving Good Quality
– Prevention costs
• costs incurred during product design
– Appraisal costs
• costs of measuring, testing, and analyzing
• Cost of Poor Quality
– Internal failure costs
• include scrap, rework, process failure, downtime, and price
reductions
– External failure costs
• include complaints, returns, warranty claims, liability, and lost
sales
Prevention Costs
• Quality planning costs • Training costs
– costs of developing and – costs of developing and
implementing quality putting on quality training
management program
programs for employees
• Product-design costs and management
– costs of designing products • Information costs
with quality characteristics
– costs of acquiring and
• Process costs
maintaining data related to
– costs expended to make quality, and development of
sure productive process
conforms to quality reports on quality
specifications performance
Appraisal Costs
• Inspection and testing
– costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
• Test equipment costs
– costs of maintaining equipment used in testing quality
characteristics of products
• Operator costs
– costs of time spent by operators to gar data for testing
product quality, to make equipment adjustments to
maintain quality, and to stop work to assess quality
Internal Failure Costs
• Scrap costs • Process downtime costs
– costs of poor-quality
products that must be – costs of shutting down
discarded, including labor, productive process to fix
material, and indirect costs problem
• Rework costs • Price-downgrading costs
– costs of fixing defective
products to conform to – costs of discounting poor-
quality specifications quality products—that is,
• Process failure costs selling products as
– costs of determining why “seconds”
production process is
producing poor-quality
products
External Failure Costs
• Customer complaint costs • Lost sales costs
– costs of investigating and – costs incurred because
satisfactorily responding to customers are dissatisfied
a customer complaint
resulting from a poor- with poor quality products
quality product and do not make additional
purchases
• Product return costs
– costs of handling and
replacing poor-quality
products returned by
customer
• Warranty claims costs
– costs of complying with
product warranties