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    1) The document discusses quality control, assurance and reliability in manufacturing. It covers dimensions of quality and evolution of quality control. 2) It defines quality as the reduction of waste, where variability causes wasted money, time and effort in repairs. Quality improvement is reducing this waste. 3) There are four types of costs associated with quality - prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention and appraisal costs aim to improve quality, while internal and external failure costs are the costs of poor quality.

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    QCAR

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    L2 QCAR

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    1) The document discusses quality control, assurance and reliability in manufacturing. It covers dimensions of quality and evolution of quality control. 2) It defines quality as the reduction of waste, where variability causes wasted money, time and effort in repairs. Quality improvement is reducing this waste. 3) There are four types of costs associated with quality - prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention and appraisal costs aim to improve quality, while internal and external failure costs are the costs of poor quality.

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    © All Rights Reserved
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    13 views10 pages

    L2 Qcar

    Uploaded by

    Darsh Menon
    1) The document discusses quality control, assurance and reliability in manufacturing. It covers dimensions of quality and evolution of quality control. 2) It defines quality as the reduction of waste, where variability causes wasted money, time and effort in repairs. Quality improvement is reducing this waste. 3) There are four types of costs associated with quality - prevention costs, appraisal costs, internal failure costs, and external failure costs. Prevention and appraisal costs aim to improve quality, while internal and external failure costs are the costs of poor quality.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    ME C 443 Quality Control,

    Assurance and Reliability


    L-2
    BITS Pilani Dr. Sachin Waigaonkar
    K K Birla Goa Campus
    Review of Last Class

    • Introduction to Quality
    • Course Objectives
    • Dimensions of Quality
    • Evolution of Quality Control.

    BITS Pilani, K K Birla Goa Campus


    Quality = Reduction of Waste

    Difference in warranty cost revealed that for one supplier with excessive variability, the
    warranty cost was high.
    So, variability is the cause of the wasted money, time, and effort that is associated with the
    repairs.
    An alternate and frequently very useful definition is that quality improvement is the
    reduction of waste.
    BITS Pilani, K K Birla Goa Campus
    Cost of Quality

    BITS Pilani, K K Birla Goa Campus


    Prevention Costs

    • Quality planning
    • Education and training
    • Conducting design reviews
    • Supplier reviews and selection
    • Quality system audits
    • Process planning and control
    • Product modifications
    • Equipment upgrades

    BITS Pilani, K K Birla Goa Campus


    Appraisal Costs

    • Test and inspection (receiving, in-process and final)


    • Supplier acceptance sampling
    • Product Audits
    • Calibration

    BITS Pilani, K K Birla Goa Campus


    Internal Failure Costs

    • In-process scrap and rework


    • Troubleshooting and repairing
    • Design changes
    • Inventory required to support poor process yields and
    rejected lots
    • Re-inspection / retest of reworked items

    BITS Pilani, K K Birla Goa Campus


    External Failure Costs

    • Sales returns and allowances


    • Replacing defective products
    • Service level agreement penalties
    • Complaint handling
    • Field service labor and parts costs incurred due to
    warranty obligations
    • Product recalls / Legal claims
    • Lost customers and opportunities
    • Downgrading
    • Processing of customer complaints

    BITS Pilani, K K Birla Goa Campus


    Determining COQ

    • A business that generates INR1,000,000 in sales.


    • It incurs 50,000 in Quality checks and inspections.
    • It pays 30,000 for appraising the purchased raw
    materials.
    • Additionally, it pays 50,000 for repairs on finished items.
    It maintains a provision of 20,000 for warranty costs and
    product returns.
    • Help the management determine the cost of quality as a
    percentage of sales.

    BITS Pilani, K K Birla Goa Campus


    Costs Vs Quality

    BITS Pilani, K K Birla Goa Campus

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