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QUALITY COST
BASIC WORKSHOP

The purpose of this course is to provide practical instruction on the fundamental approach for establishing a Quality Cost system. The instructor guides you step by step through every critical area including:
  • Creating a Quality Cost committee and establishing the ground rules.
  • Defining the Quality Cost categories i.e. appraisal, prevention, internal failures and external failures.
  • How to collect Quality Cost data.
  • How to analyze and present Quality Cost data.
  • The do's and don'ts of Quality Cost.
  • Proactive and reactive corrective actions.
  • And much more!
Workshop problems will be used to practice the developed techniques.
TARGET AUDIENCE   COURSE LENGTH AND COST
Production-level workers, technicians and anyone else who seeks a basic understanding of Quality Cost.

Prerequisites: No prior background is required. Participants should bring a hand calculator for problem solving.
Length: 2 Days
Time: 8:00 a.m. - 4:00 p.m.

Please see our public training schedule for prices, dates and locations.

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WHAT'S COVERED
Course Benefits:
  1. There are two ways to make a profit, decrease cost or increase price. The latter may not be an option in a competitive market place. Students will learn the former and how to implement it.
  2. The course is intended to help the company comply to TS16949, paragraph 5.6.1.1 and may be used by any company.
  3. Cost will be reduced using proactive methods.
  4. All departments will work as a team in reducing costs.
  5. The cost of poor quality is an excellent parameter for measuring quality and can be readily understood by management. The language of management is money!
  6. Reduced cost can result from Cycle Time Reducation (CTR) and shortened Total throughput Time (TTT) and time is money.
Program

Introduction To Quality Cost
  • Quality Cost terminology
  • The cost of poor quality vs. the cost of good quality
  • Examples of Quality Costs projects in the USA and overseas
  • The gold-in-the-mine concept
  • Why Quality Cost is so important to any company
Quality Cost Categories
  • Internal failures
  • External failures
  • Prevention
  • Appraisal
  • The Necessity of Quantifying
  • Why cost is an excellent measurement parameter
  • Involving all departments
  • Unwanted cost prompts management's reaction
How To Quantify Quality Cost
  • Audits
  • Sampling
  • Defect codification
  • Assigning mnemonic charge numbers
Analyzing Quality Cost
  • The Quality Cost curve
  • Plotting appraisal, prevention, internal failure and external failure cost vs. sales income
  • What to do at "the decision point"
  • Monthly charts and cumulative charts
  • Analyzing what the charts tell you and taking appropriate action
Selecting The Pilot Project
  • Establishing "stretch goals"
  • Getting management buy-in
  • Radio station WIIFM (What's In It For Me) concept
  • The dangers of "over-kill"
Student Workshops
  • Solving Quality Costs problems from the handout
  • Determining appraisal, prevention, internal failure and external failure categories within various departments at the student's facility

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