Sl % Cont. Per AH % Sales % Cont.

Per AH % Sales
COQ Elements Data Source Value Value
No
A) PREVENTIVE COST
1 Quality planning SAP QA BS 6143 1,472,177 0.9% 0.001 0.01% 358,816 2.09% 0.004 0.04%
Design & development of quality SAP QA
2 measurement and test equipment BS 6143 2,499,943 1.5% 0.002 0.02% 340182 1.98% 0.004 0.04%
Engg Total 3,972,120 2.4% 0.003 0.03% 698,998 4.06% 0.008 0.07%
Calibration and maintenance of
quality measurement and test QA
4 equipment
Calibration and maintenance of Manual BS 6143 768,100 0.5% 0.001 0.01% 33,000 0.19% 0.000 0.00%
production equipment used to QA
5 evaluate quality Manual BS 6143 322,800 0.2% 0.000 0.00% 20,000 0.12% 0.000 0.00%
6 Supplier assurance SAP QA BS 6143 420,268 0.3% 0.000 0.00% 84,725 0.49% 0.001 0.01%
7 Quality training Manual QA BS 6143 332,031 0.2% 0.000 0.00% 0.00% - 0.00%

QA
8 Quality auditing Manual BS 6143 115,662 0.1% 0.000 0.00% 0.00% - 0.00%
10 Quality Improvement programs Manual QA BS 6143 1,933,160 1.2% 0.002 0.01% 142,247 0.83% 0.002 0.01%
QA Total 3,892,021 2.3% 0.003 0.03% 279,972 1.6% 0.003 0.03%
Total - Preventive Cost 7,864,140 4.7% 0.007 0.06% 978,970 5.7% 0.012 0.10%
B) APPRAISAL COST
1 Pre-production verification Manual QA BS 6143 751,866 0.5% 0.001 0.01% 64,531 0.375% 0.001 0.01%

Total 751,866 0.5% 0.001 0.01% 64,531 0.375% 0.001 0.01%

2 Receiving inspecition SAP QA BS 6143 1,373,423 0.8% 0.001 0.01% 88,177 0.513% 0.001 0.01%
4 Inspection & Testing SAP QA BS 6143 4,143,211 2.5% 0.004 0.03% 1,618,577 9.408% 0.019 0.17%
5 Inspection and test equipment SAP QA BS 6143 670,724 0.4% 0.001 0.00% 245,009 1.424% 0.003 0.03%
Materials consumed during SAP Costing
6 inspection and testing BS 6143 96,776 0.1% 0.000 0.00% 8,106 0.047% 0.000 0.00%

Total 6,284,135 3.8% 0.005 0.05% 1,959,870 11.4% 0.023 0.21%

TOTAL APPRAISAL COST 7,036,002 4.2% 0.006 0.05% 2,024,401 11.8% 0.024 0.21%
C) INTERNAL FAILURES :

HO Costing BS 6143 67,316,677 40.3% 0.057 0.50% 2,730,478 15.9% 0.032 0.29%
Design Scrap
MV-2 Costing BS 6143 - 0.0% - 0.00% - 0.0% - 0.00%
1
HO Costing BS 6143 48,534,223 29.1% 0.041 0.36% 6,829,128 39.7% 0.080 0.72%
Process Scrap
MV-2 Costing BS 6143 - 0.0% - 0.00% 0.0% - 0.00%
2 Replacement, rework and repair SAP Costing BS 6143 - 0.0% - 0.00% 0.0% - 0.00%
3 Excess material SAP Costing BS 6143 - 0.0% - 0.00% 0.0% - 0.00%
Total 115,850,900 69.4% 0.098 0.85% 9,559,606 55.6% 0.112 1.00%
Cost of trucks halting charges at QA
9 Plant Manual ISBU 562,500 0.3% 0.000 0.00% 111,375 0.6% 0.001 0.01%
Cost for port detention and QA
11 demurrages Manual ISBU - 0.0% - 0.00% 0.0% - 0.00%
Cost of trucks halting charges at QA
12 plant for incoming containers Manual ISBU - 0.0% - 0.00% 0.0% - 0.00%
Total 562,500 0.3% 0.000 0.00% 111,375 0.6% 0.001 0.01%
TOTAL INTERNAL FAILURES : 116,413,400 69.8% 0.099 0.86% 9,670,981 56.2% 0.114 1.01%

D) EXTERNAL FAILURES :

Cost of escort expenses incurred QA

9 to prevent transit damages Manual ISBU - 0.0% - 0.00% - 0.0% - 0.00%
Cost of trucks halting charges at QA
11 Field Manual ISBU 589,900 0.4% 0.000 0.00% 166,250 1.0% 0.002 0.02%
Cost of premium freight paid to QA
12 deliver the goods Manual ISBU - 0.0% - 0.00% 0.0% - 0.00%
Total 589,900 0.4% 0.000 0.00% 166,250 1.0% 0.002 0.02%
1 Complaints SAP QA BS 6143 11,576,745 6.9% 0.010 0.09% 620,630 3.6% 0.007 0.07%

2 Warranty claims SAP QA BS 6143 23,043,711 13.8% 0.020 0.17% 3,716,907 21.6% 0.044 0.39%
3 Products rejected and returned QA BS 6143 352,735 0.2% 0.000 0.00% 25,667 0.1% 0.000 0.00%
Cost of Write -offs (Physical Costing
17 Variance, ) Intrest on Over Due Manual ISBU - 0.0% - 0.00% 0.0% - 0.00%
Total 34,973,192 21.0% 0.030 0.26% 4,363,203 25.4% 0.051 0.46%
TOTAL EXTERNAL FAILURES : 35,563,092 21.3% 0.030 0.26% 4,529,453 26.3% 0.053 0.48%
Grand Total COPQ 166,876,635 100.0% 0.141 1.23% 17,203,805 100.0% 0.202 1.81%
 LVRLA COQ Summary Sheet 2
Confirmation cost
Despatch
Month Preventive cost Appraisal cost
Mah
Rupees % cont Rs/ Ah Rupees % cont Rs/ Ah
April 85.1 978,970 5.69 0.01 2,024,401 11.77 0.024
May 97.6 1,616,495 8.92 0.02 2,550,526 14.08 0.026
June 104.7 1,141,992 6.09 0.011 2,195,142 11.71 0.021
July 131.6 793,934 5.17 0.006 2,355,726 15.34 0.018
August 108.7 1,043,372 6.60 0.010 2,431,983 15.39 0.022
September 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
October 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
November 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
December 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
January 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
February 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
March 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Grand Total 527.6 5574764 6.54 11557778 13.56

COQ
Choose the COQ in Rs/Ah ● COQ in Mn.Rs
Monthly COQ
graphs
250

200
Prediction-Mn Rs 204.56

150
Mn.Rs

100
167.73

50
85.23

17.20 18.11 18.75 15.36 15.80 0.00

0
2015-16 2016-17 YTD April May June July August September
Month
 50
85.23

17.20 18.11 18.75 15.36 15.80 0.00

0
2015-16 2016-17 YTD April May June July August September
Month
5

Month Wise COQ element cos

5.26
4.53 7.77
3.82 4.61
Mn Rs

8.69
9.67
7.65 8.39 7.72

2.55
2.02 2.20 2.36 2.43
0.98 1.62 1.14 0.79 1.04 0.00 0.00
April May June July August September October
Month
External failures Internal failures Appraisal cost
✘ Prevention cost
Preventive cost

25.00
Element wise Pareto Analys

19.83 19.84
20.00

15.21
15.00

10.00
8.31
COQ in Rupees

5.44
5.00

1.59
 15.21
15.00

10.00
8.31

COQ in Rupees
5.44
5.00

1.59

0.00

COQ- Elements
Q Summary Sheet 2016-17
Cost of poor quality
Total COQ
Internal failures External failures
Rupees % cont Rs/ Ah Rupees % cont Rs/ Ah Rupees Rs/ Ah
9,670,981 56.21 0.11 4,529,453 26.33 0.05 17,203,805 0.20
8,687,293 47.96 0.09 5,260,297 29.04 0.05 18,114,612 0.19
7,649,505 40.79 0.07 7,765,225 41.41 0.07 18,751,864 0.18
8,390,011 54.64 0.06 3,815,952 24.85 0.03 15,355,624 0.12
7,722,237 48.86 0.07 4,606,834 29.15 0.04 15,804,426 0.15
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
42120027 49.42 25977762 30.48 85230331 0.16

Monthly COQ

12.58
6 15.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00
August September October November December January February March
Month
 12.58
6 15.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00
August September October November December January February March
Month

COQ element cost in Mn. Rs

0.00 0.00 0.00 0.00 0.00 0.00 0.00

September October November December January February March Choose the
Month graphs
✘ Prevention cost ✘ Appraiser Cost ✘ Internal failure ✘ External failure

se Pareto Analysis - FY 17

5.44

2.68
1.59 1.64 1.69 1.49
 5.44

2.68
1.59 1.64 1.69 1.49

Q- Elements

Target 66.0%
Choose the
graphs