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  • Two Examples of TQM: - Texas Telecom

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    The document discusses the costs associated with quality management including prevention costs, appraisal costs, internal failure costs, and external failure costs. It provides examples of prevention costs such as marketing/customer prevention costs and design/purchasing/operations related prevention costs. Appraisal costs include inspection of materials and audits. Internal failure costs are pre-delivery failures from design or production issues. External failure costs occur post-delivery from customer complaints, lost sales, and warranty claims. Total quality management (TQM) is defined as involving all employees in continual quality improvement and customer satisfaction. Elements of TQM include continual improvement, benchmarking, empowerment, and quality at the source. TQM requires cultural change from traditional approaches focused on inspection to

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    Cost of Quality

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    Cost of Quality

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    The document discusses the costs associated with quality management including prevention costs, appraisal costs, internal failure costs, and external failure costs. It provides examples of prevention costs such as marketing/customer prevention costs and design/purchasing/operations related prevention costs. Appraisal costs include inspection of materials and audits. Internal failure costs are pre-delivery failures from design or production issues. External failure costs occur post-delivery from customer complaints, lost sales, and warranty claims. Total quality management (TQM) is defined as involving all employees in continual quality improvement and customer satisfaction. Elements of TQM include continual improvement, benchmarking, empowerment, and quality at the source. TQM requires cultural change from traditional approaches focused on inspection to

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    93 views11 pages

    Two Examples of TQM: - Texas Telecom

    Uploaded by

    shru_87
    The document discusses the costs associated with quality management including prevention costs, appraisal costs, internal failure costs, and external failure costs. It provides examples of prevention costs such as marketing/customer prevention costs and design/purchasing/operations related prevention costs. Appraisal costs include inspection of materials and audits. Internal failure costs are pre-delivery failures from design or production issues. External failure costs occur post-delivery from customer complaints, lost sales, and warranty claims. Total quality management (TQM) is defined as involving all employees in continual quality improvement and customer satisfaction. Elements of TQM include continual improvement, benchmarking, empowerment, and quality at the source. TQM requires cultural change from traditional approaches focused on inspection to

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 11

    Two examples of TQM

    Texas Telecom

    KFC - Quality service and cleanliness - Operational facility review program

    COST OF QUALITY
    Cost of quality - has of late become the most important issue in quality management .This is because of the increasing investments of company in quality philosophies and models .

    Costs of Quality
    Appraisal Costs

    External Failure Costs

    Costs of Quality

    Prevention Costs

    Internal Failure Costs

    Prevention cost
    The cost associated with all activites that help in prevention of defects The various types of prevention costs are 1) Marketing/customer related prevention cost Eg : QFD ,market research 2) Design related prevention cost Eg :prototype designing and testing . 3) Purchasing related prevention cost Eg : supplier capability review , PO review 4) Operations related prevention cost Eg : SPC , capability reviews ,calibration 5) Administrative costs related to prevention Eg : Salary of quality personnel, miscellaneous expenses in quality dept .

    Appraisal cost
    If a quality problem cannot be prevented, the next best is detection .Cost associated with this is appraisal cost . Various types of appraisal cost : Appraisal cost relating to purchasing inspection of raw materials , cost of instruments /gauges used . Operations related appraisal cost cost of inspection/quality, audits on work process ,cost of carrying out SPC, testing etc Appraisal cost related to field trials-field trails of complex products on installation sites ,cost related to environmental and reliability testing . Inspection data review cost before dispatching items to customers support department quality evaluations- warehouse, packaging , shipping etc

    Internal Failure costs


    Relate to failure of product to meet customer specification prior to its dispatch to customer Types Design related internal failure costs cost related to correction of product design after being released to production .

    Material purchasing related internal failure costs cost of disposing, handling and transporting incoming inspection rejects. It includes cost of replacement of inspection rejects .The cost of undertaking corrective action and so on . Operations related internal failure cost These include cost related to product review, corrective action and disposition of non conforming products .

    External Failure costs


    Costs incurred by the company after the product has been delivered to the company /customer and fails at customer end. Types : cost of responding and resolving customer complaints. Sales opportunities lost . Loss of goodwill on part of customers Costing pertaining to warranty claims Cost of recall and repair. Penalties due to breaching governments rules/contracts with customers

    Total Quality Management


    A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
    T Q M

    Elements of TQM
    Continual improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts Knowledge of tools Supplier quality Quality at the source

    QuEST CCD

    TQM & organizational Cultural Change


    Traditional Approach Lack of communication TQM

    Open communications
    Empowerment Prevention

    Control of staff
    Inspection & fire fighting Internal focus on rule

    External focus on customer


    Continuous improvement Co-operative relations

    Stability seeking
    Adversarial relations Allocating blame

    Solving problems at their roots

    Twelve characteristics of Quality leaders

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