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Optimizing Quality Management System with Performance Measures

Learn how to assess your quality system effectively with measurement tools, control charts, and the Capability index. Explore preventive costs, appraisal costs, internal and external failure costs, and more to enhance your quality processes.

danielmsmith
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Optimizing Quality Management System with Performance Measures

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  1. Chapter 7 Performance Measures To assess the effectiveness of the quality system

  2. Measurement Tools • Graphs show changes and/or trends qualitatively • Control chart: to show when there are problems in the system • Capability index, Cp > 1.33 • Loss function • Quality cost • Malcom Baldrige National Quality Award • Others.

  3. Quality Cost • Preventive cost • Appraisal cost • Internal failure cost • External failure cost

  4. Preventive Cost: Any Efforts to Help People “Do it right the first time and all the time.” • Marketing, customer/user interaction • Product/service/design development • Purchasing and vendor partnership • Operations (manufacturing/services) • Quality engineering • Quality administration • Other prevention costs

  5. Appraisal Cost: Testing, inspection and related equipment/supplies • Purchasing appraisal cost: incoming goods or products • Appraisal operations: testing and inspection • External appraisal: field test outside company • Data review • Cost supporting appraisal efforts.

  6. Internal Failure Cost: Defects/problems prior to shipping • Product design failure • Service failure • Purchasing failure: incoming part failure • Defectives/rejects/scraps/downgrading • Repair or rework • Materials review • Corrective actions

  7. External Failure Cost: Problems after Shipping • Complaint investigations • Problem solving • Failure analysis • Returned goods • Retrofit and recall • Warranty claims • Liability costs • Penalties • Others

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