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Quality MIS

Purpose of Quality MIS

The purpose of quality information system is to help management meet


quality goals by providing -
 Reports showing progress towards goals and giving alarm signals in the
event of adverse developments.
 Opportunity signals that identify opportunities for improvement.
Purpose of Quality MIS

The quality information should be built up as a network of departmental


information & summarized information to the top management team. The
summarized information should enable -
 Exercise control over the vital few control subjects
 Detect major trends
 Evaluate organizational performance
 Identify threats & opportunities
The example of summarized quality MIS is given in the following slides.
Quality MIS

1. Market quality
 Feedback on quality trends in the markets
 Facts on competitors products and pricing
 Benchmarking results
 Short and long-term product performance
 Facts on customer satisfaction:-
- Market share
- Repeat business as a % of total business
- Customer complaints
- Number of claims
- Warranty costs as a % of sales
Quality MIS

2. Supplier Quality
 Quality problems
 Cost competitiveness
 Delivery schedules
Quality MIS

3. Quality in operations
I. Sales
- Facts about deliveries
- Delivery safety for different products
- Spare parts availability
- Sales claim
Quality in operations...
Quality MIS

II. R&D
- New products introduced in the past 2 years
- New products in pipeline
- Progress of R&D projects
- Design changes
Quality in operations...
Quality MIS

III. Production
- Capacity utilization
- Process capability
- Scrap and rework costs and causes
- Product performance at final test
- Quality of parts - by part and process

IV. Quality services


- Reviews & audit findings
- Corrective actions taken
- Quality improvements
Quality MIS

4. Costs
 Internal failure costs
- Value of products scraped
- Rework costs to make defective items conformed to standards
- Reduced value of products sold as seconds
 External failure costs
- Replacement of defectives
- Salaries of customer service people handling complaints
- Product litigation
- Estimated loss of future orders due to defectives received by
customers
 Costs for special activities
- To improve quality
- Training & Development
Quality MIS

5. Quality improvement projects


 Report on progress and results of ongoing improvements projects

6. Potential problems in the future


 An estimate of what problems could be foreseen for the next 6 or 12 months

7. Quality status and improvement needs


 Conclusions about status and indication of needs for improvements and other
actions

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