Quality Costing:

Improved Profits through managing Quality Costs - a LEAN Tool

AIM & OBJECTIVES

Measuring and reporting quality costs is a technique that has been used for over 50 years in the US but much less frequently in Europe.

The main purpose and benefit of quality costs has been to demonstrate that improved quality and lower costs go hand-in-hand. Through collection and analysis of these quality costs, improvement is translated into the language of management - money.

Increasingly, the tool is used to support ISO 9001 implementation as well as six sigma efforts.

The aim of this 1-day Programme is to give participants the tools to:

• Measure quality costs,

• Use the right measurement method and,

• Interpret and respond to the measures in the selection of improvement projects.

Who Should Attend?

Managers, Trainers, Improvement Facilitators and those technical and other staff members involved in Continual Improvement programmes.

The Programme

• History of quality costs

• The cost of quality today

• What are quality costs?

• The Process Model

British Standard BS 6143: Part 1:1992, the process cost model, sets out a method for applying quality costing to process (production or service).

• The P-A-F Model

BS 6143: Part 2 is prevention, appraisal and failure model.

Prevention costs: Prevention costs refer to all activities specifically designed to prevent poor quality in products or services. They are an investment to prevent failure to meet customer requirements or specifications and are associated with designing, installing, maintaining and auditing a quality system and related activities.

Appraisal costs: Appraisal costs are associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements. They are an investment to prevent products or services that are defective in any way from reaching the customer.

Failure costs: Failure costs result from products or services not conforming to requirements or customer needs. They represent a cost penalty incurred by an organisation because it has failed to meet quality standards. There are two types of failure cost:

•     internal failure costs - that occur prior to delivery or shipment

•     external failure costs - that occur after delivery of the product, and during or after the furnishing of a service, to the customer.

• Collecting & analysing cost data

• Reducing Costs Selecting continuous improvement activities consistent with organisational objectives .

The de Grandison Approach

Training with us is different!  We use action learning and emphasise interaction in the group through a highly trained facilitator.  Practical exercises are used throughout. 

Location & Duration