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

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Ajay Deshpande, Partner, India
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. (...) Read more? Sign up for free

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  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.

  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.

  Ajay Deshpande, Partner, India

Cost of Poor Quality

@: Good input. But in real time working, the chall (...)

  MARIO ALVARADO, Teacher, Costa Rica

CTQ to Determine Cost of Poor Quality

(Translated by Editor) The structure of th (...)

  Jim Johnstone, Consultant, United States

Cost of Poor Quality versus FMEA

@: if you are using PFMEA (Process FMEA) as a pre (...)

  Yingtao Zhang

Value Steam Mapping Tool

When you know the quality is poor, I think you had (...)

  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 (...)

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