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The Cost of Poor Quality: Tools for Effective Control & Reduction
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Ajay Deshpande
Partner, India

The Cost of Poor Quality: Tools for Effective Control & Reduction

Which Six Sigma tools are effective to determine and reduce the cost of poor quality (in the manufacturing sector)?
Since there are lot of quality tools used in industries, selecting correct, effective tools would lead to reduce time of problem solving. Hence it is essential to identify appropriate tools.
 

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3
ARAVIND
Project Manager, India
 

Tools Used for Arriving at Cost of Poor Quality (COPQ)

Failure Mode and Effects Analysis (FMEA) can be used to estimate the COPQ. In FMEA, we will arrive at the risk priority number (RPN). Based on this, it is possible to arrive at COPQ.
For further details plese refer the article published by Mr. Pankaj Sharma.

 
2
MARIO ALVARADO
Teacher, Costa Rica
 

Tools to Determine Cost of Poor Quality

(Translated by Editor)
To determine the cost structure, I recommend to initially use the CTQ Tree (Critical to Quality) from which you can derive "non-conformities" that can then be translated into costs of poor quality.
After having determined the structure of quality costs, the accounting department has a key role in measuring these costs. Their reports would form the basis for further analysis.
In reducing these costs I recommend starting with the use of Lean tools from the analysis of the molting process, as well as more advanced statistical tools including correlation analysis among others.

 
2
Ajay Deshpande
Partner, India
 

Cost of Poor Quality

@ARAVIND: Good input. But in real time working, the challenge is correlation of risks to cost. My ex... Sign up

 
2
MARIO ALVARADO
Teacher, Costa Rica
 

CTQ to Determine Cost of Poor Quality

(Translated by Editor) The structure of the costs of poor quality can cover a lot of element... Sign up

 
2
Jim Johnstone
Consultant, United States
 

Cost of Poor Quality versus FMEA

@Ajay Deshpande: if you are using PFMEA (Process FMEA) as a prevention tool, perhaps you can adjust... Sign up

 
2
Yingtao Zhang, China
 

Value Steam Mapping Tool

When you know the quality is poor, I think you had better to investigate where the poor quality is c... Sign up

 
2
Ger de Waard
Management Consultant, Netherlands
 

Tools Used for Arriving at Cost of Poor Quality (COPQ)

COPQ (annualized) = [Sum of (RPNi x ACRi) / Sum of (RPNi)] x Annual Reduction in Events i = item ... Sign up

 

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More on Six Sigma:
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Discussion Topics
topic 3 Additional Six Sigma Levels
topic The Basis of Six Sigma? Statistics and Discipline
topic Implementing Six Sigma: Roles
topic Six Sigma in an R&D context
topic Six Sigma DMAIC and DMADV
topic The 5 x Why Method (The 5 Whys)
topic Focus of Six Sigma: The 6 Rights
topic Statistical Process Control (SPC)
topic Sustaining Momentum of Process Improvement over Time
topic Is Six Sigma Enough? (To Improve the Quality Level of an Organization...)
topic Six Sigma for Marketing
👀The Cost of Poor Quality: Tools for Effective Control & Reduction
topic Tools for Finding Root Cause in 6 Sigma
topic Add Standardization to DMAIC Phases in Six Sigma (DMAICS)
topic Evaluating Six Sigma Projects
topic Preparing Six Sigma: Requirements
topic Differences Between Six Sigma and TQM
topic Hypothesis Testing in DMAIC Projects
topic Six Sigma Effectiveness
topic Six Sigma in Medical Transcription
topic Disadvantages of Lean Six Sigma. Drawbacks
topic Evaluating Six Sigma Project Leaders
topic Best Practices Lean Six Sigma in Social Care
topic Quality Lessons in Dealing with Contractors
topic Six Sigma Manufacturing Example
topic Six Sigma for Retail
topic 6 Sigma Timeframe/Period
topic Six Sigma Black Belt Certification
topic Six Sigma In Inbound Call Center
topic Six Sigma in Passengers Handling
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topic Next Step after Voice Of Processes have been Defined?
topic Good Practitioner Books on Lean - Six Sigma, S&OP?
topic Organizational Development + Six Sigma or Lean
topic Should Six Sigma start after Lean Implementation?
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