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Impact of Quality on Productivity

Impact of Quality on Productivity. By T.A. Khan PEC-Impact of Quality on Productivity. A Common Perception. 4 3 2 1 0 -1 -2 -3 -4. 4 3 2 1 0 -1 -2 -3 -4. Productivity. Quality. Quality. Productivity. Trade off. Quality. Productivity. A False Perception.

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Impact of Quality on Productivity

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  1. Impact of Quality on Productivity By T.A. Khan PEC-Impact of Quality on Productivity CASE-Summer-2007

  2. A Common Perception 4 3 2 1 0 -1 -2 -3 -4 4 3 2 1 0 -1 -2 -3 -4 Productivity Quality Quality Productivity Trade off Quality Productivity A False Perception CASE-Summer-2007

  3. Effect of Quality Management on Productivity The following question arises – Are productivity and quality related? Are the two sides of the same coin? Can you have both? The answer of course is Yes. The quality management can also improve productivity – the number of units produced from available recourses. CASE-Summer-2007

  4. Effect of Quality Management on Productivity • Improving quality by reducing defects will increase good output and reduce inputs. In fact, virtually all aspects of quality improvement have a favourable impact on different measures of productivity – labour productivity and machine productivity. • Improving product design and production processes, improving the quality of material and parts and improving job designs and work activity will increase productivity. CASE-Summer-2007

  5. Effect of Quality Management on Productivity Product Yield It is a measure of output used as an indicator of productivity. It can be computed for the entire production process (or for one stage in the process) as follows: CASE-Summer-2007

  6. Effect of Quality Management on Productivity Yield = (total input) (%age good units) + (total input) (1 - %age good units) (%age reworked) OR Y = (I) (%age G) + (I) (1 - %age G) (%age R) I = planned number of units of product started in the production process G = Good units produced R = Defective units that are successfully reworked CASE-Summer-2007

  7. CASE-Summer-2007

  8. Quality ---- Improvement • Raw Material • Machine Conditions • Process Capabilities • Operators Education • Knowledge • Skills • Attitude CASE-Summer-2007

  9. Raw Materials • Tag Price Vs Total Cost of ownership • Supplier selection • supplier Evaluation • Communication with supplier • supplier development and partnership. • Supplier Performance Measurement and Monitoring • Supplier Relation Managements (SRM) • Quality Management Systems CASE-Summer-2007

  10. Machine Conditions • Cleaning and Lubrication • Maintenance: • Plans • Standard Spare Parts • Condition Monitoring • Reduction in MTTR and Enhancement of MTBF. • Total Productive Maintenance • Reliability Centered Maintenance • 5S--- Programs CASE-Summer-2007

  11. Process Capability Analysis CASE-Summer-2007

  12. Operators Education • Knowledge • Total Quality Management • Statistical Process Control Tools • Product Quality Attributes • Skills • Machine Operations (Settings & Timings) • Attitude • Customer Requirements (Internal & External)Connecting to the “Big Picture” CASE-Summer-2007

  13. Thanks CASE-Summer-2007

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