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“And welcome to this manufacturing systems ntechnology part 2 course module two we were talking talking about costs of quality in the nlast module and let us look at why so as we already know that one important naspect of product development is really to translate the need of the customer into the nproduct specifications ok so the customer requirement you can say into the product specifications nso. The manufactured products which do not meet. The specifications have to be necessarily nrepaired before giving to the customer. So that they can start meeting.
The needs and naspirations of the customer itself. So the prime quality costs for supplying the satisfactory nproducts to the customers include producing identifying avoiding or repairing avoiding nor repairing products that do not meet the customer requirements. So obviously if you nintroduce you know quality at the process itself process stage itself by designing nthe process in way that it produces high quality. Then there may not be many deviations ok and nthis quality costs would come down.
So there is some kind of penalty matrix that nyou are associating with every non conformance stage. Which is happening through the process. Ncontrol or even at the product design stage. Ok so and this costs has to be over all nminimized.
Which are also known as quality costs or costs in order to ensure nthat. Whatever is the output of the process is meeting the customer need and this can nhappen. Only if you do process. Improvements and process balancing at every stage.
So that nyou have zero defects. Produced from the profit from the process and zero. Non conformance nof. You know any kind of standards or quality frame.
Work. Which has been laid out ok so nthe goal should be really continuously to shift the endeavor towards value where these ncosts come down to minimal numbers let us look at some of the costs. Which can nbe categorized into many different categories. So there are prevention costs.
And i am going nto. Give brief introduction about these different costs may be do some calculations at certain ntime to figure out how this cost can be attributed you know and how quality loses can be sort nof minimized by doing process design etcetera. There are appraisal costs ok. There are internal nfailure costs and external failure costs associated with product.
So let us look at some of these different ncategories. And what they really mean so. The prevention cost includes all efforts that ngo into designing and manufacturing a product that meets customer requirements by preventing nnon conformance ok so you introduce checks and balance everywhere for example in the nwhile. The product is being designed or the process is being designed we have to have nenough scope in the design for quality planning and quality engineering.
Ok so this may at nthe outside seem to be non value added activity. But it is important because you know when nyou are laying out process with certain specification. The conformance to that specification is absolutely nimportant aspect for you know repeating the process again and again to produce many products nok so there are various elements of prevention costs. You nknow which includes activities involving let say quality planning and engineering in nall organizations.
There is you know quality system department or quality engineering department nwhich actually thus process added. Which thus product added. All though different things nto ensure at every level. That there is some kind of non conformance.
So this has to be in the part of the design nof. The organization you have to put these components. Which are additional costs. Which nyou are trying to impose which will rather prevent the you know non conformance to standards nof specifications.
Ok. So this is sort of futuristic you know activity that is being nplanned at the design stage itself of the organization. So that you ensure that there nis repeatability. Although it may not seem to have initiate return when the process lay nout has been done etc ok.
But the deviation happens because it is a dynamic machinery nor dynamic part or dynamic system and these deviations have to be kept within control nok. So you can even also have prevention costs nby. Let say new product reviews for example. You know what is the perception or the need nmapping of the customer or even aspirations of customer behind certain product.
You know ncustomer thinks x. Y z. Different things about a certain line of cars for example certain nline of auto motors for example. So the reviews would be able to sort of get incorporated nand.
The design stage itself so that there is enough quality. And that need can be somehow nmapped ok. So that is also a prevention cost prevention cost of things in business to be nmeeting whatever the customer wants and the ability of the business to change itself completely ndynamically. So that that mapping can happen at every level is prevention cost product nok process designed is very very important issue.
Nat. Every stage. You will have to have process. Control.
You will have to have training you nwill have to have quality data. Acquisition analysis. So these are additional costs. Which nare imposed on the system.
Although there may not be with any direct value added to the nproduct. But just to ensure that there is no non conformance. This prevention of you nknow quality. Non conformance or prevention of inappropriate quality to happen.
So these nare indirect costs. Which are burst on to the systems. So that is what prevention costs. Nprevent non conformance and the cost associated with preventing that non conformance.
Obviously there would be appraisal. Which nis needed at every stage. Which includes measurements all quality parameters are somehow subjected nto you know a thorough check in terms of some measurements for example the ndiameter of shaft may be 1 inch. 003 inches.
So this is a dimension and tolerance given nin the design itself when the process should be able to meet this guidelines as it produces nand. So how do you know that the process is meeting the guidelines obviously is by measuring nthe output diameter of the shafts which is coming out of let say cnc lathe ok or some nkind of process which produces this turning so all those costs which are involved in nmeasuring. Evaluating or auditing. And this appraisal cost come into picture.
Because of nthe prevention in the design. Itself. Ok. So.
You have a scope for quality aspects or quality nyou. Know auditing or quality data acquisition at the system level itself. Which imposes nthese costs ok so these come. Because you know you can actually ntry to validate the components.
Which are coming out raw materials in your system. The purchase nmaterial you know to ensure the conformance with these standards and the specifications nbefore feeding it on to the systems so these are additional appraisal costs where you are nappraising you are trying to measure you are trying to evaluate the standard. You know ncompliance of the particular part that is going through in the flow. In flow out system nok of the process.
So these most specifically. The appraisal costs would include costs of nactivities related to inspection test of incoming material. There is for example parts ninspection cell. Which is always there and we are talking about vendor development or nsupplies chain management systems.
So the parts inspection goal here is to sort of see nthat. If you are having you know two sources from which same part is coming or both the nsources complying to the standards laid out. And if there is some kind of deviation when nthe pi of the parts inspection has a responsibility added responsibility to go and do process naudit at the vendor end. And seeing what is the reason for the non compliance and trying nto remove that so that comes realistically into the system and the system get does not nget altered much so you have product inspection and tests materials in services.
Consumed and nmaintaining accuracy of the test equipments so these are all part of the appraisal costs. There is internal failure costs. Which means nthat. This is related to when the product is in the production stage itself.
And it is not nyet gone to the customer. So it is not yet gone from the per view of the your production nunit to the let say the dealer or the customer. And this is a huge amount of you know saving nif. You have a little slightly more internal failure costs obviously.
It has to come down nthat is going to the basic philosophy. Then the external failure costs. So you have to nin any event. Ensure that the internal failure costs may be sort of higher.
So that the external nfailure costs does not come at all you know because that actually is related to the perception nof. The customer about the company and that perception is something that you cannot lose nyou can effort to lose that so internal failure occurs when products nfail to meet customer quality requirements before being shift to the customer examples nmay be something like you know failure analysis scrap repair retest downtime yield losses. Ndowngrading of usual specifications sometimes which happen. Because of some constraints and nsome meeting of the lead time production lead times issues.
There is lot of pressure to create nparts or you know creates systems. Which are non complying to for all standards sometimes nand then later on not leave them out of the purview of the production and when the right ntuning is there you can probably replace some of the components. There so that you know you nmay be get them back on track in the quality standard. Which has been laid down.
So for example. Let say in production line nin cars. You may have a concept of you know because of the unavailability of a certain nmaterial. Which is of critical importance let say for example.
There is a tyre automotive ntyre and there is unavailable on the line. So you can mount different tyre. Which is navailable or different grade of tyre. Which may otherwise not meet this specification nand try to ensure that the production is smoothly done and before dispatching into the customer ntry to do the changes and the quality inspection.
Therein at that stage. So that some rework nis. Done. So.
That the there is compliance you know over all compliance of the guidelines nof. The specifications laid out so these are also a part of internal failure costs nsometimes. The management does need to take the decisions where because of the you know nsome kind of unavoidable consequences related to certain aspect of the process. The overall nprocess should not get gametize so there is conscious decision making.
Which is involved nin that case. But then again. It is an internal failure and that costs get accrued on to the noverall product costs. Obviously.
It is much better than getting nan external failure costs. Which is when the product do not function. Satisfactorily. After nbeing supplied to the customer.
Ok and this is something you cannot afford these days. Nthe companies really are help and done i would say arresting the warranty issues which come nfrom the market and each and every warranty complaint is treated very severely at the nlevel of the quality engineering or the quality systems management group of particular company. Nbecause that is something that one cannot afford because this really creates pressure non the customers mind to change. This decision about buying that particular product.
And this nis. Something that is essentially amounting to losing business. Ok so therefore external failure costs by and nlarge should be avoided. Although.
There are certain issues. Which would happen with time nfor example. When there is dynamic machinery and it is trying to you know be used or it nis being used for very long time for many cycles. There is bound to be some deviation nin.
The you know particular machinery and this deviation is something which eventually nwill result in some kind of failure. So therefore people really look at maintenance plans and nforced maintenance plans. Sometimes the manufacturer provides force maintenance plans just for nthis. Reason that you are compliance to the standard.
Even if when the product is performing nwith. The customer should never go out and the customer should have a good perception nof. The product. All through the product life time ok.
So that is what mostly these companies nare intending these days that once it is sold to the customer. The liability of the failure. Nalso partly owned by the company and though these are major costs. Which are incurred nfor activities such as compliant adjustment and dealing with returned products other ncosts like warranty charges liability costs etcetera by and large should be avoided and nshould be limited to the internal failure costs level.
So this is what is the cost nstructure for ensuring that there is quality system in place or deployment. The other issue is over all you know there nhas to be frame work where you have this quality improvement at every stage of particular business. Nand. The quality has to have its presence in all the different phases of the product life ncycle as such you know that the life cycle starts with the product design stage then nwith the production process design stage.
The actual production stage and then the maintenance nand product service stage. So these all four formulate. A part of the product nlife cycle. So there has to be a presence of quality in all these four stages related nto.
The product life cycle. And you have to build frame work so that there is possibility nof improvement quality wise at every stage of this product life cycle. So that you can nbuild the right qual. You know at the design stage.
So some of the cost of quality control. Nand production stage can considerable reduced because of the quality. By design. And also the preferable approach to improving nthe product quality is to build quality into the products.
So the product designs stage nso that again you know the overall costs of maintaining the product compliance is reduced nok. So typically these two stages designed and of the product and the design of the production nprocess are very very critical because this would allow you flexibility to change the noverall guidelines. The envisioning system plan which would ensure that you know everything nis complained. Ok.
So the flexibility can be utilized at the design of the product of nthe design of the process stage itself. So this brings us to the end of the module two nof. This manufacturing systems technology part 2. We will talk in the future modules nabout.
How to design the products and the process to ensure full compliance of the quality nso that will do in the subsequent module. ” ..
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