Quality Tale - News on Technology

Saturday, March 17, 2007

Cost of Poor Quality

COPQ - Cost of Poor Quality is the cost incurred for the repairing of the defective goods.

Cost towards any work that must be repeated is to be seen as COPQ.

For example : a company dispatches an incorrect shipment is to be called back and correct shipment should be sent to the customer. Similarly the returned shipment, is to be sent to the correct customer. These involve a lot of corrective actions, repetition of works already done, re-verification and confirmations.

Every activity involves costs and all are COPQ. Similarly certain costs routinely incurred in a company are accepted as inevitable. For example, cost of redesigning a product due to deficiencies in fitness for use, or cost of changing a manufacturing process because of the inability to meet product specifications. These are seen as normal activities of production, planning and control, but they are really part of COPQ.

To understand COPQ better, one should know about QUALITY COST. Quality cost comprises of
(i) Operating Quality Cost and
(ii) External Assurance Quality Cost.

OPERATING QUALITY COSTS are those costs incurred by a company in order to attain and ensure specified quality levels.

EXTERNAL ASSURANCE QUALITY COSTS are those costs relating to the demonstration and proof required by a customer w.r.t. quality provisions (e.g. cost of testing for a specific parameter at an external agency as demanded by the customer).

Related Links :

01. Do You Know About QCFI?
02. QCFI and its Contribution to Quality Circle Movement In INDIA
03. Dr. K. Ishikawa : Founder of Quality Circle
04. History of Early 1950's
05. Services Offered By QCFI
06. Tips to Deal With Interruptions
07. Tips to give Good Feedback
08. Benefits of ISO 9001 : 2000 Quality Management System
09. Debatable Points Related to ISO 9001 : 2000 Quality Management System
10. Re-Defined : Quality
11. Job Titles in Quality Field
12. Four Absolutes of Quality Management
13. Crosby's 14 steps to quality improvement
14. Tips to Create Your Own Luck

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Tips to Create Your Own Luck

01. Be Proactive :

The unluckiest people are those who wait for things to happen (it often doesn't). Lucky people go out to make them happen.

02. Take Time to Congratulate Yourself:
When something goes well, think about what you have achieved and congratulate yourself. Make your reflections personal, permanent (will continue to be true) and universal (a general achievement- e.g. "I am great at selling", not "that client was nice i that meeting".

03. Don't Take it Personally:
When something goes less well look at it as specific, temporary and external, e.g. "that was a tricky meeting but it's over."

04. Ask Questions, Listen and Gather Information:
If you know about what is going on and what other people are thinking you are more like to be "lucky". For example : "How fortunate you mentioned that just now - I was talking to Megan and...."

05. Recognize the Difference Between "Unlucky" and "Probable"
You aren't unlucky each time you miss a parking space - in fact, it would be extraordinary if you didn't every so often.

06. Change the Way You See Yourself:
By seeing yourself as unlucky you create a self - limiting belief, which becomes re-enforcing. Think of yourself as unlucky and it will become true. This also works the other way around (luckily)

07. Re-frame Failure as an Opportunity to Learn:
The only thing that all successful people have in common is that they made mistakes, and usually quite a lot of them.

08. Move On:
Challenge the value of dwelling on previous misfortunes - there is rarely anything to be gained from it.

09. Share Your Good Luck:
Praise others for their contribution - if people think they will gain from your good fortune then they will do more to make it happen.

10. Work For It:
If all else fails, remember Thomas Eddison's adage:"I"m a great believer in luck, and I find that the harder I work more I have of it"

ABOVE 10 POINTS HELPS TO BUILT GOOD QUALITY ?