Chapter 7 Performance Measures

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Presentation transcript:

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

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.

Quality Cost Preventive cost Appraisal cost Internal failure cost External failure cost

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

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.

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

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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