Quality Cost & Dimension FINAL1

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Decription about Quality cost and 9 Dimension of quality

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Quality Cost & Dimension:

Presented by:- Sadaf Zaidi Anshul Singh Quality Cost & Dimension

Today’s Objectives:

2 Today’s Objectives Definition of Quality

Today’s Objectives:

3 Today’s Objectives Definition of Quality Responsibility for Quality

Today’s Objectives:

4 Today’s Objectives Definition of Quality Responsibility for Quality Cost of Quality

Today’s Objectives:

5 Today’s Objectives Definition of Quality Responsibility for Quality Cost of Quality Dimensions of Quality

Today’s Objectives:

6 Today’s Objectives Definition of Quality Responsibility for Quality Cost of Quality Dimensions of Quality Practice Questions

Definition:

Definition Quality of a product or services is its ability to satisfy the needs and expectations of the customer 7

Definition:

Definition Quality of a product or services is its ability to satisfy the needs and expectations of the customer Quality is excellence that is better than a minimum standard. It is conformance to standards and ‘fitness of purpose’ 8

Quality Perspectives:

9 Quality Perspectives Are the perspectives the same? Should they be? Consumer Producer Quality Product or Service

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Approaches to define Quality:

Approaches to define Quality Transcendent Approach Quality is absolute and universally recognisable. It is common notion used by laymen There is no subjective judgement and is estimated by looking at the product 11

Approaches to define Quality:

Approaches to define Quality Transcendent Approach Quality is absolute and universally recognisable. It is common notion used by laymen There is no subjective judgement and is estimated by looking at the product Product Based Approach Attributes of a particular product in a specific category These attributes are accepted as bench of quality by the industry Others in the same industry try to produce close to this quality 12

Approaches to define Quality:

Approaches to define Quality User Based Approach Defined as “Fitness for use” Viewed from user’s perspective and is dependent on how well does the product meet needs of the consumer. Also known as Customer Oriented Approach 13

Approaches to define Quality:

Approaches to define Quality User Based Approach Defined as “Fitness for use” Viewed from user’s perspective and is dependent on how well does the product meet needs of the consumer. Also known as Customer Oriented Approach Production Based Approach An outcome of engineering or operational excellence and is measured in terms of quality of conformance The producer has specifications and produces the product as per the specifications 14

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Defect? 15

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When a process fails to satisfy as a customer, the failure is considered a defect. 16

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When a process fails to satisfy as a customer, the failure is considered a defect. 17

Responsibility for Quality:

Responsibility for Quality Top management, past vs. current Design teams Procurement departments, standard input Production/operations, processes conform to standards Quality assurance Packaging and shipping, damaged in transit Marketing and sales, customer wishes Customer service, quality feedback 18

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Cost of Quality:

Cost of Quality Prevention Cost Cost associated with time spend in planning the quality system Consists of the following Process control costs Information systems costs Training Costs General Management cost 20

Cost of Quality:

Cost of Quality Appraisal Costs Cost incurred on measurement & analysis of data in order to detect & correct problems Consist of Cost of maintaining, testing & inspection Process control costs 21

Cost of Quality:

Cost of Quality Appraisal Costs Cost incurred on measurement & analysis of data in order to detect & correct problems Consist of Cost of maintaining, testing & inspection Process control costs Internal Failure Cost Incurred due to non-conformance Include Scrap and rework costs Cost of corrective action Downgrading costs 22

Cost of Quality:

Cost of Quality External Failure Cost Occur when poor products reach customer Include Costs of customer complaints and returns Product recall costs Warranty claims costs Product liability costs 23

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Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality 25

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance 26

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance Features 27

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance Features Conformance ----------------------------- 28

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance Features Conformance ----------------------------- Reliability 29

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance Features Conformance ----------------------------- Reliability Durability 30

Dimensions of Quality:

Dimensions of Quality The 9 Dimensions of Quality Performance Features Conformance ----------------------------- Reliability Durability Service ----------------------------- 31

Dimensions of Quality:

Dimensions of Quality Response- of Dealer/ Mfgr . to Customer 32

Dimensions of Quality:

Dimensions of Quality Response- of Dealer/ Mfgr . to Customer Aesthetics – of product 33

Dimensions of Quality:

Dimensions of Quality Response- of Dealer/ Mfgr. to Customer Aesthetics – of product Reputation- of Mfgr./Dealer 34

Dimensions of Quality:

Dimensions of Quality Response- of Dealer/ Mfgr. to Customer Aesthetics – of product Reputation- of Mfgr./Dealer 35

Dimensions of Quality*: Products:

36 Dimensions of Quality*: Products 1. Performance basic operating characteristics of a product; how well a car accelerates, brakes, handles, or its gas mileage 2. Features “extra” items added to basic features, such as leather interior 3. Reliability probability that a product will operate properly within an expected time frame; that is, the car will work without repair for about 100,000 miles *Adapted from: “What does quality really mean?”, Sloan Management Review 26(1;1984)25-43.

Dimensions of Quality: Products (cont.):

37 4. Conformance degree to which a product meets pre–established standards (e.g. gas economy, crash tests, etc.) 5. Durability how long product lasts before replacement 6. Serviceability ease of getting repairs, speed of repairs, courtesy and competence of repair person Dimensions of Quality: Products (cont.)

Dimensions of Quality: Products (cont.):

38 7. Aesthetics how a product looks, feels, sounds, smells, or tastes 8. Safety assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles 9. Perceptions subjective perceptions based on brand name, advertising, and the like Dimensions of Quality: Products (cont.)

Dimensions of Quality: Service:

39 Dimensions of Quality: Service 1. Timeliness How long must a customer wait for service, and is it completed on time?

Dimensions of Quality: Service:

40 Dimensions of Quality: Service 1. Timeliness How long must a customer wait for service, and is it completed on time? 2. Completeness: Is everything customer asked for provided?

Dimensions of Quality: Service (cont.):

41 Dimensions of Quality: Service (cont.) 3. Courtesy: How are customers treated by employees? 4. Consistency Is the same level of service provided to each customer each time?

Dimensions of Quality: Service (cont.):

42 5. Accessibility and convenience How easy is it to obtain service? Does a service representative answer you calls quickly? 6. Accuracy Is the service performed right every time? Is your bank or credit card statement correct every month? 7. Responsiveness How well does the company react to unusual situations? How well is a telephone operator able to respond to a customer’s questions? Dimensions of Quality: Service (cont.)

Another way of thinking about Quality:

43 Another way of thinking about Quality Three categories of satisfaction Basic or expected attributes Performance attributes Surprise and delight attributes

Practice Questions:

Practice Questions 1. Poor quality has a positive effect on productivity because it usually takes longer to produce a good part. 44

Practice Questions:

Practice Questions 1. Poor quality has a positive effect on productivity because it usually takes longer to produce a good part. 2. The primary difference between internal failures and external failures is time and place of discovery of the failure. 45

Practice Questions:

Practice Questions 1. Poor quality has a positive effect on productivity because it usually takes longer to produce a good part. 2. The primary difference between internal failures and external failures is time and place of discovery of the failure. 3. TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process. Tqm answer 46

Practice questions (cont.):

Practice questions (cont.) The standards for ISO 14000 certification are related to: A) management systems B) consumption of natural resources and energy C) environmental systems D) all of the above E) timely filing of OSHA (Occupational Safety and Health Act) reports 47

Practice questions (cont.):

Practice questions (cont.) Which of the following is not a major way in which poor quality affects an organization? A) reputation and image B) liability C) productivity D) costs E) payroll taxes 48

Practice questions (cont.):

Practice questions (cont.) Costs of inspectors, testing, test equipment, and labs are examples of: A) internal failure costs B) external failure costs C) appraisal costs D) prevention costs E) replacement costs 49

Practice questions (cont.):

Practice questions (cont.) The quality control improvement tool which resembles a "fishbone" is: A) brainstorming B) check sheets C) Pareto analysis D) cause-and-effect diagrams E) fail-safe methods 50

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