Nor Mahirah 2010205838 Nurliyana Annisa 2010891016 Nadia Abd Latif 2010245606 Siti Wamalaini 2010205838

. It's the cost of NOT creating a quality product or service.Cost of Quality (COQ) The "cost of quality" isn't the price of creating a quality product or service.

‡The rebuilding of a tool. such as the reprocessing of a loan operation or the replacement of a food order in a restaurant. . The reworking of a service. ‡The retesting of an assembly.Cost of Quality (COQ) Every time work is redone. Obvious examples include: ‡The reworking of a manufactured item. the cost of quality increases. ‡The correction of a bank statement. any cost that would not have been expended if quality were perfect contributes to the cost of quality. In short.

Prevention cost Appraisal cost Internal failure External costs . 2. 3. 4.Cost of Quality (COQ) Four major : 1.

Examples are the costs of: ‡New product review ‡Quality planning ‡Supplier capability surveys ‡Process capability evaluations ‡Quality improvement team meetings ‡Quality improvement .Prevention cost The costs of all activities specifically designed to prevent poor quality in products or services.

These include the costs of: ‡Incoming and source inspection/test of purchased material ‡In-process and final inspection/test ‡Product.Appraisal Costs The costs associated with measuring. process or service audits ‡Calibration of measuring and test equipment ‡Associated supplies and materials . evaluating or auditing products or services to assure conformance to quality standards and performance requirements.

Examples are the costs of: ‡Scrap ‡Rework ‡Re-inspection ‡Re-testing ‡Material review ‡Downgrading .Internal Failure Costs Failure costs occurring prior to delivery or shipment of the product. to the customer. or the furnishing of a service.

Examples are the costs of: ‡Processing customer complaints ‡Customer returns ‡Warranty claims ‡Product recalls .External Failure Costs Failure costs occurring after delivery or shipment of the product ³ and during or after furnishing of a service ³ to the customer.

Ethics and quality management For operation managers. safe and quality products and services to customers. High quality products and services are the most profitable. one of the most important jobs is to deliver healthy. .

‡Optimise Quality Control ‡Prove that the process can produce the product under operating conditions with minimal inspection. the process. the product features so as to meet our needs and customer needs. ‡Determine ‡Translate ‡Develop a product that can respond to those needs.Ethics and quality management Joseph M. Juran Quality Trilogy:Quality Planning ‡Identify who are the customers. process to Operations. ‡Optimise Quality Improvement ‡Develop a process which is able to produce the product. ‡Transfer the . the needs of those customers. those needs into our language.

and an ongoing series of audits of their products or service. ‡To become ISO 9000 certified.International quality standards ISO 9000 essentials ISO 9000 family of standards represents an international consensus on good quality management practices. documentation. and financial and economic aspects. training. organizations go through a 9-18 month process that involves documenting quality procedures. . an on-site assessment. It consists of standards and guidelines relating to quality management systems and related supporting standards. ‡The ‡The other standards in the family cover specific aspects such as fundamentals and vocabulary. performance improvements.

International quality standards ISO 14000 essentials ISO 14000 family addresses various aspects of environmental management. ‡The other standards and guidelines in the family address specific environmental aspects. communication and auditing. life cycle analysis. performance evaluation. ‡The . including: labeling.

‡ . ‡Good systematic approach to pollution prevention through the minimization of ecological impact of products and activities.ISO 14000 essentials The new standard could have several advantages : positive public image and reduced exposure to liability. ‡Reduction in need for multiple audits. ‡Compliance with regulatory requirements and opportunities for competitive advantage.

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