1. GOOD AFTERNOON

2. PRESENTATION ON COST REDUCTION BY QUALITY ASSURENCE

3. TARGET FOR YEAR 2009-10 20 % OF TOTAL COST

4. MAIN FACTORS INSPECTION COST GAUGE CONSUMPTION COST CALIBRATION COST REWORK COST OF POOR QUALITY SUPPLIER MATERIAL SEGGRIGATION COST

5. INSPECTION COST TARGET : 15 % OF 81,00000/Year (Total Saving 12,15,000) PRESENT STATUS : COST – 675000 / Month Managers– 3 Asst.Manager- 1 Sr.Engineers 4 Engineers 13 Inspectors - 2 Casuals inspectors at Final insp.– 62 Action Plan : Final Inspectors required – 37 Man Power Saving – 25 x 4000 x 12 = 12,00000 / Year

6. GAUGE CONSUMPTION COST Thread Gauges : 1,12500 Snap Gauges & Standard Gauges : 60,000 Air plug gauges + receiving Gauges :1,40,365 TOTAL PRESENT COST : Rs. 3,12,865 TARGET COST SAVING 20 % = Rs. 62,573 Action Plan : Minimize the 100 % inspection by 4M Analysis.

7. CALIBRATION COST PRESENT STATUS : 246485 TARGET 20 % = 49297 Action Plan : 1.Calibration frequency will be reviewed based on usage. 2.In-house calibration frequency will be developed instead of out side calibration

8. REWORK COST PRESENT STATUS : 3X4000X12=1,44,000/Year TARGET: 30 % (43,200) ACTION PLAN: 1.On job training started to operators and painters 2.More focus on paint shop Quality. 3.Man power fixing in painting booth 4.On line sending will be started 5.Straight pass ratio will be monitored on regullar basis

9. COST OF POOR QUALITY PRESENT STATUS: Rs.22,19,400/Month TARGET: 15 % (3,32,910) ACTION PLAN: 1.Man-Machine fixing to be done. 2.Rejection analysis to be monitored on regular basis. 3.Corrective and preventive action to be taken on daily basis. 4.More focus on process parameters. 5.Any change in process will be informed to QA.

10. SUPPLIER MATERIAL SEGRIGATION COST PRESENT STATUS:5X4000X12= 2,40,000/Year TARGET:20% (48,000) ACTION PLAN: 1.Regullar supplier audit will be started. 2.Material Segregation cost will be debited to supplier 3.Supplier training will be started. 4.Vendor meet will be started. 5.Supplier rating system will start.

11. TOTAL COST SAVING INSPECTION COST= 12,00000 GAUGE CONSUMPTION COST= 62,573 CALIBRATION COST= 14,297 REWORK COST= 43,200 COST OF POOR QUALITY= 3,32,910 SUPPLIER MAT.SEGG. COST = 48,000 TOTAL COST SAVING = 17,00,980 TOTAL COST =1,10,62,385 % COST SAVING = 15.37 %

12. THANKS & HAVE A NICE DAY