Prof. Arvind Jayant
V. Sahni
Ms. Nisha Garg
Abstract
International competition growing more intense and business operating costs rising, organizations are finding it increasingly difficult to compete on price alone. To survive in global business arena, we will have to satisfy customers with quality products and services at a price that represents the best value in the market The key tool to help organizations achieve this goal is Cost Of Quality (COQ). A good COQ system provides a method of measuring the return on quality or the benefits/outcomes ofquality-related activities. Implementing a COQ system would enable organizations to link their continual improvement efforts to cost reduction. In this paper we have described a solution with validation to the quality problemfaced by a compressor manufacturing company thatcosting the companyseven lakhsofrupees annually in cut-open compressors. It is calculated on the basis of Quality Cost Evaluation System, which has been developed for the company.We have used 4S/6 methodology (Pareto chart to determine the most common form of the problem, an Ishikawa cause-and-effect diagram to determine the parameters to be examined and experimental designs to determine the best way to reduce the reductions). The study resulted in achievement ofproduction process with targeted PPM, an improved quality reputation and higher worker morale.
Keywords- Quality Cost, Continuous improvement, six-sigma, Part Per Million