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COST OF POOR QUALITY Calculating the cost of poor quality allows an organization to determine the extent to which organizational resources are used for.

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Presentation on theme: "COST OF POOR QUALITY Calculating the cost of poor quality allows an organization to determine the extent to which organizational resources are used for."— Presentation transcript:

1 COST OF POOR QUALITY Calculating the cost of poor quality allows an organization to determine the extent to which organizational resources are used for activities that exist only as the result of deficiencies that occur in its processes.

2 Is your organization spending too much money on rework? Is your organization losing customers? Has your organization losing market share? If any of these things are true, your organization is spending money on failure. The way that you think about the various cost of quality can help you improve this failure focus. Cost of Poor Quality(COPQ) is an excellent continuous improvement management tool. COPQ can be used effectively to identify, prioritize and then track continuous improvement projects by breaking down quality costs into four standard categories of internal failure, external failure, appraisal and prevention. INTRODUCTION

3 OBJECTIVES Understand what is COPQ. The elements and definitions of COPQ. Used tools and strategies to reduce the cost of non- conformance. The benefits of thinking about COPQ. At the end of the workshop, participants will be able to: COURSE DURATION This is a 2 days highly interactive, entertaining and useful course running from 9.00 am to 5.00 pm

4 Power point presentation Participative and active discussion including short exercise and case studies METHODOLOGY WHO SHOULD ATTEND ? Managers, Engineers, Supervisors, Leaders, and staff involved with COPQ.

5 COURSE OUTLINE 1. Internal failures cost. 2.Scrap. 3.Rework. 4.Material review. 5.Down time. MODULE 1: MODULE 2: 1.How to define COPQ? 2.Opportunity to reduce real costs. 3.Understand quality cost. 4.Categories of quality cost. MODULE 3 1.External failures cost. 2.Warranty charges. 3.Product liability. 4.Freight cost. 5.Product recall. 1.Appraisal cost. 2.Receiving inspection. 3.Source inspection. 4.Final inspection. 5.Product testing. MODULE 4

6 COURSE OUTLINE MODULE 5 MODULE 6 1.Prevention cost. 2.Quality planning. 3.Process control. 4.Training. 5.Preventive maintenance. 1.White collar COPQ. 2.Controller COPQ. 3.Software COPQ. 4.Plant administration COPQ. 5.Purchasing COPQ. 6.Marketing COPQ. 7.Personnel COPQ. 8.Industrial engineering COPQ. MODULE 7 1.Controller COPQ. 2.Billing errors. 3.Incorrect accounting entries. 4.Payroll errors.

7 COURSE OUTLINE 1.Plant administration COPQ. 2.Facilities redesign. 3.Overstaffing. 4.Equipment downtime/idle MODULE 8: MODULE 9 1.Software COPQ. 2.Crashes. 3.Deadlocks. 4.Incorrect input. MODULE 10 1.Purchasing COPQ. 2.Line down cost. 3.Excessive inventory. 4.Premium freight cost. 1.Marketing COPQ. 2.Overstock. 3.Loss of market share. 4.Incorrect order entry. MODULE 11

8 COURSE OUTLINE 1.Industrial engineering COPQ. 2.OSHA fine. 3.Shipping damage. 4.Relay out. 5.Paying contractors for poor quality. MODULE 12: 1.Personnel COPQ 2.Absenteeism. 3.Turnover. 4.Grievances. MODULE 14 1.COPQ calculations. 2.COPQ workshop. MODULE 13

9 TRAINER PROFILE MR. IRMAN KANG Mr. Irman Kang has a Master in Business Administration from Southern Pacific University, U.S.A. He is also a certified lead auditor for ISO9001:2000 and also a certified ISO/TS 16949:2002 Organization/Supplier Auditor. Mr. Irman Kang also has a Certificate in Factory Management from Sanno Institute of Management, Japan. He also has a Certificate in Competent Toastmaster (CTM) from Toastmaster International, U.S.A. He also has a Certificate in Training (Train The Trainer) from PSMB.

10 TRAINERS ACCOMPLISHMENT Mr. Irman Kang has 28 years of working experience in Quality Management Systems, Quality Assurance and Operations. Also covering a wide range of industries from semiconductors, plastics, wire harness, assembly of connectors and light emitting diodes (LEDs). Mr. Irman Kang is very experience in conducting APQP, PPAP, FMEA, MSA and SPC trainings. He is also very experience in conducting Internal Quality Audit trainings and also participated in a lot of IQA audits as well as suppliers audits. He has also conducted numerous trainings on 5S, 7QC Tools, Lean Manufacturing, Effective Supervision, Effective Communication, Effective Presentation, Project Transfer Management, Train The Trainer and Stress Management.


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