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Quality Costs in a Garment Industry A proper understanding of the cost of quality (COQ) is vital for a garment industry to develop

quality conformance as a useful strategic business tool to improve quality. Quality costs are the costs associated with preventing, finding, and correcting defective work. Research shows that the costs of poor quality can range from 15%-40% of business costs. Many of these costs can be significantly reduced or completely avoided. There are four types of quality costs: prevention costs, appraisal costs, internal failure costs, and external failure costs. 1. Internal Failure Costs: Costs from product defects prior to shipment to customer. These include scrap, rework, retest, downtime, etc. 2. External failure costs: Costs associated with defects found after shipment to customer. They include complaint adjustment, returned material, warranty charges, allowances, etc. 3. Appraisal Costs: Costs associated with discovering the condition of products and raw materials. They include incoming material inspection, inspection and test, maintain accuracy of test equipment, materials and services consumed, evaluating of stocks etc. 4. Prevention Costs: The costs of all activities to prevent poor quality of products. These include quality planning, new products review, training, process control, quality data acquisition and analysis, quality reporting, improvement projects etc. The figure below depicts the percentage of quality cost elements in a typical Indian garment factory.

Total Cost of Quality Total Cost of Quality is the sum of four types of costs i.e. Prevention Cost + Appraisal Cost + Internal Failure Cost + External Failure Cost.

In today's business environment reduction of total cost of quality increases the competitiveness and facilitates survival and further growth of a garment industry The figure below shows depicts the obstacles to improve quality in garment companies

A. The system of the organization (like policy, rules and procedures) B. The internal working environment C. Lack of consistency in the action being taken D. Fear and resistance of the management E. Lack of the required knowledge and skill
The figure below shows depicts the cause of poor quality products in Indian garment industries

A. Poor quality of raw materials delivered from suppliers B. Inadequate training of workers in the company C. Lack of top management commitment to quality D. Low quality awareness of workers in the company E. Unavailability of proper technology
Self Assessment

The model of the European Quality Award is divided into two parts: enablers and results. The enablers are leadership, people management, policy and strategy, resources and processes. These five aspects steer the business and facilitate the transformation of inputs to outputs. The results are people satisfaction, customer satisfaction, impact on society and business results which are the measure of the level of output attained by the organization. The model consists of nine primary elements which are further divided into a number of secondary elements as shown in the figure below