SHAIL JOSHI SHUBHAM PARIHAR UMESH JHAWAR

2019043 2019109 2019119

YOGIRAJ KADAM UTKARSH BANSAL

GROUP 2 2019243

JAIWANT AUDI AVANI KHANDELWAL KRIPAL LAKHMANI

2019209
 TOTAL QUALITY COST

COST OF
PREVENTION APPRAISAL
Contents GOOD Contents

QUALITY

COST OF EXTERNAL FAILURE

INTERNAL FAILURE
BAD COST
COST Contents
QUALITY
Contents
PREVENTION COSTS:
o The costs of activities specifically designed to prevent poor quality in products or services
o Applicant screening, capability studies, design reviews, employee education, equipment maintenance and repair, field
testing, market analysis, prototype test, quality design, safety reviews
APPRAISAL COSTS:
o The costs associated with measuring, evaluating, or auditing products or Services to assure conformance to quality
standards and performance requirements.
o Audits, document checking, equipment calibration, final inspection, in-process inspection, lab testing, prototype
inspection
INTERNAL FAILURE COSTS:
o Failure costs which occur prior to delivery or shipment of the product, or service to customer
o Accounting error correction, design changes, employee turnover, equipment down time, redesign, repair, rework,
scrap sorting
EXTERNAL FAILURE COSTS:
o Failure costs which occur after shipment of the product, or service, to customer.
o Bad debts, customer complaints visits, customer dissatisfaction,liability suit, loss of market share, penalties, Recalls,
redesign, returns, warranty expenses
 COST CLASSIFICATION
PREVENTION COST APPRAISAL COST INTERNAL FAILURE COST EXTERNAL FAILURE COST
Process equipment Reprocessing selling at
Quality planning 70 Vendor qualification 7150 370 5300
design for quality reduced cost
Quality task teams for Acceptance inspection and Production engineers on Partial credit issued-
1940 100 70 760
quality problems test planning quality customers kept product
Quality statistics-collection Quality profiling-determining
420 1000 Process testing-operators 13300 Bulk returns 2750
of data and analysis quality specifications
Turnaround planning-
Process control engineering-
equipment for scheduled 330 27050 Off grade burned 3300 Packaged returns 3500
QA dept
mtce
Turnaround planning-
Process control engineering-
instruments for scheduled 650 12500 Off grade blending-labour 210 Returns to other locations 420
Engg dept
mtce
Planning quality Off grade storage with
170 System conformance audit 70 3200
motivational programs interest
Design development of QA in lot analysis,
Quality training 1050 calibration equipment-Engg 740 instrument calibration 61313
dept and agent check
Design development of
Raw material acceptance
3345 calibration equipment-QA 900
testing
dept
Review production analysis
530
data
Environmental testing as it
70
relates to product quality

TOTAL COST 7975 50110 81763 12730

 Quality cost elements $/month
1 Quality planning 70
2 Vendor qualification
3 Acceptance inspection and test planning
4 Process equipment design for quality
5 Quality task teams for quality problems
7150
100
370
1940
CALCULATIONS
6 Turnaround planning-equipment for scheduled mtce 330
7 Turnaround planning-instruments for scheduled mtce 650
8 Quality profiling-determining quality specifications 1000   ACTUAL COST % of Total Cost
9 Quality statistics-collection of data and analysis 420 PREVENTION 7975 5%
10 Planning quality motivational programs 170 APPRAISAL 50110 33%
11 Production engineers on quality 70 INTERNAL FAILURE 81763 54%
12 Process control engineering- QA dept 27050
EXTERNAL FAILURE 12730 8%
13 Process control engineering-Engg dept 12500
14 System conformance audit 70 Total cost 152578  
15 Design development of calibration equipment-Engg dept 740
16 Design development of calibration equipment-QA dept 900
17 Quality training 1050
18 Raw material acceptance testing 3345 Quyality Cost
19 Process testing-operators 13300 Category Target %   Target cost Decrease % Derease
20 Review production analysis data 530
21 Environmental testing as it relates to product quality 70
Prevention -> 0 -5% 5 0.050 7,628.90 346.10 0.04
22 QA in lot analysis, instrument calibration and agent check 61313
23 Off grade burned 3300
24 Off grade blending-labour 210 Appraisal -> 10 -50% 25 0.250 38,144.50 11,965.50 0.24
25 Off grade storage with interest 3200
26 Reprocessing selling at reduced cost 5300 Internal Failure -> 20
-40% 40 0.400 61,031.20 20,731.80 0.25
27 Partial credit issued-customers kept product 760
28 Bulk returns 2750 External Failure -> 20
29 Packaged returns 3500 -40 % 8 0.080 12,206.24 523.76 0.04
30 Returns to other locations 420

TOTAL COST 78 0.780 1,19,010.84    

TOTAL COST 152578