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UNIT-I
INTRODUCTION
PART-A
1. Give the Objectives of TQM?
To develop a conceptual understanding of the basic principles and methods associated
with TQM;
To develop an understanding of how these principles and methods have been put into effect in
a variety of organizations;
To develop an understanding of the relationship between TQM principles and the theories and
models studied in traditional management.
5. Analyze TQM?
Total Made up of the whole.
Quality Degree of excellence of a product or service provides.
Management Act, art or manner of handling, controlling, directing etc.
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Management involvement
Employee involvement
Company wide quality control
Ishikawa - Cause and Effect diagram
Quality circle concept
Crosby - Quality is Free
Conformance to requirement
Taguchi - Loss function concept
Design of Experiments
22. What are quality statements? (or) What is quality statement? [N/D’17]
Quality statements:
Vision statement.
Mission statement.
Quality policy statement.
Vision: desired future state of organization.
Mission: What business we are in.
Policy: Commitment to customer.
28. List the various tools used for collecting customer complaints.
(or)
Name any 4 methods of receiving customer complaints[A/M’18]
The various tools used are:
1. Comment card.
2. Customer questionnaire
3. Focus groups
4. Toll-free telephone numbers
5. Report cards
6. The Internet and computer etc.
31. What are the different ways to create customer oriented culture in an industry?
[N/D’16]
1. Start at the top
2. Hire people who fit
3. Get everyone involved
4. Trust your team
5. Establish good lines of communication
33. Define Quality Costs? [N/D’18] (or) What do you mean by cost of quality?
Quality Costs are defined as those costs associated with the non achievement of product or
service quality as defined by the requirements established by the organization and its contracts
with customers and society.
41. What are the four absolutes of quality defined by Crosby? [A/M’ 17][A/M’19]
The definition of quality is conformance to requirements.
The system of quality is prevention.
The performance standard is zero defects.
The measurement of quality is the price of nonconformance.
PART-B
1. GIVE THE DIFFERENT DEFINITIONS FOR QUALITY. [M/J’14]
The dictionary has many definitions of “quality”. A short definition that has achieved acceptance is :
“Quality is Customer Satisfaction”. Here, customer means anyone who is impacted by the product or
process.
Quality is “a predictable degree of uniformity and dependability, at low cost and suited to the
market”.
Quality is a relative term, generally used with reference to the end-use of a product. Quality should
be aimed at the needs of the consumer, present and future.
According to ISO 8402, quality is “the totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs”.
Broadly quality is:
a) Fitness for use
b) Grade
c) Degree of preference
d) Degree of excellence
e) Conformity to requirements
When the expression ‘quality’ is used, it will be think in terms of an excellent product or service
that fulfils or exceeds our expectations. These expectations are based on the intended use and the
selling price.
Quality can be quantified as follows:
Q = P/E
Where q = quality, P = performance, E = expectations.
If Q is greater than 1.0, then the customer has a good feeling about the product or Service.
2. DISCUSS ABOUT THE DIMENSIONS OF QUALITY. [M/J’11, N/D’13 & 16, M/J’14,17]
Quality has nine dimensions. These are independent, therefore, a product can be excellent;
therefore, a product and average or poor in another. Very few, if any,. Products excel ion all nine
dimensions. For example, Japanese were cited for high-quality cars in 1970’s based only on the
dimensions of reliability, conformance and aesthetes. Quality products can be determined by using
a few of the dimensions of quality. Marketing has the responsibility of identifying the relative
importance of each dimension of quality. These dimensions are then translated into the
requirements for the development of a few new products or the improvement of an existing one.
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Dimension Meaning and Example
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Performance Primary product characteristics, such as the brightness of the picture
Features Secondary characteristics, added features, such as remote control
Conformance Meeting specifications or industry standards, workmanship
Reliability Consistency of performance over time, average time of the unit to fail
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human – to – human interface, such as the courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked first
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Many companies try to create this sense of empathy by employing tactics like addressing each
customer by name. However, true empathy means understanding the special characteristics
and needs of individual customer, and modifying service to them accordingly.
5. Tangibles
Tangibles refers to a service's look or feel.
Tangibles similar to the physical characteristics of quality of products. This refers to the
physical characteristics of facilities, equipments, consumable goods and personnel used in
or associated with the service provided .
However the quality is judged, not by some uniform specifications in terms of physical
characteristics, but by the impact these physical characteristics have on customer
assessment of the service quality.
6. Other Dimensions
The additional dimensions of service quality include:
(i) Time: Time the customer waits for the service.
(ii) Timeliness: Will the service meet time commitments?
(iii) Completeness: Are all commitments met?
(iv) Courtesy: Politeness, consideration, and friendliness of service personnel.
(v) Consistency: Are services delivered in the same manner for every customer, and every
time for the same customer?
(vi) Accessibility and convenience: Is the service easy to obtain?
(vii) Accuracy: Is the service performed right the first time?
(viii) Competence: Possession of skills and knowledge required to perform the service.
(ix) Access: Approachability and ease of contact of service personnel.
(x) Communication: Educating and informing customers in language they can
understand; listening to customers.
(xi) Credibility: Trustworthiness, belief, having customer's best interest at heart.
(xii) Security: Freedom from danger, risk, or doubt.
The notions of total quality management and manufacturing have a deep connection as in the
context of the manufacturing services industry the system of total quality management has
continued to be important. The importance of total quality management lies in the fact that it has
been used in order to iron out the shortcomings in a particular manufacturing process.
Relation of Total Quality Management and Manufacturing
There is a high correlation between the concepts of total quality management and
manufacturing as the system of total quality management is pretty important in the context of the
manufacturing industry. It has been observed in the case of a lot of the manufacturing services
industry that it is extremely important to provide quality assurance by way of employing statistical
means.
Total Quality Management Process in Manufacturing
There is a certain way in which the concept of total quality management functions in case of the
manufacturing industry. The process is usually initiated by trying out a random group of products
of a particular manufacturing company. The samples are collected mainly for the purpose of
checking them. It is seen if they would be able to measure up to the expectations of the consumers.
In this case the various shortcomings of the particular samples are analyzed. After this the
production processes that need to be followed at the secondary level are created.
The statistical distributions of the business measures that are crucial are determined. The main
stress of the application of total quality management in case of the manufacturing services industry
is to make sure that the production process runs smoothly. The emphasis is also on minimizing the
amount of products that are of an inferior quality. It may be opined that total quality management
process is extremely important in case of the manufacturing industry.
Benefits of Quality Assurance in the Manufacturing Industry
Some of the benefits the organization derives from this role are:
Improve Quality
QA professionals are involved in all critical activities of the organizations like design,
manufacturing, material procurement, packaging, logistics etc. Since all the processes are being
tracked and monitored properly, there are fewer chances of bad quality or non-compliance of
products with respect to the requirements. These requirements could be standard requirements,
customer requirements, or even legal requirements.
Low Cost
It reduces the overall costs to the organization. When the product is right the first time, there
are no rework costs, no wastage of material, no wastage of manpower, and no disruptions in the
production process. There are fewer claims for warranties and guaranties. In short, the cost of poor
quality goes down. All this reduces the operating costs of the organizations and hence results in
increased operating profits.
Reputation
Since the organizations are able to manufacture good quality products that are made according
to the requirements of the customers, the market reputation of those organizations improves. This
helps the organizations to retain the existing customers and get more business from them. At the
same time this also helps them in attracting new customers. These in turn increase the revenue
and profit of the organizations.
Reduce Execution Time
The systems implemented to improve quality reduce the cycle time i.e. time taken for the
execution of the orders. If the quality of products is bad then there will be more customer
complaints and more production downtime. This results in huge loss of time and resources. Hence,
if QA systems are implemented properly in the organization, the order execution time
automatically gets reduced.
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Compliance to Standards
It ensures that the organizations meet all the standards and guidelines required for different
quality management systems like ISO and other quality certifications awarded to it.
In short, to meet customer requirements effectively and consistently, it is very important for
every manufacturing industry to have a QA department. This will ensure that the efforts and
processes are moving in right direction so that the end product not only meets but exceeds the
customers’ expectations.
However,
Quality in Services
The importance of quality in services cannot also be underestimated. Service is a "social act
which takes place in direct contact between the customer and representatives of the service
company" (Norman, 1984). Technical Assistance Research Programs, Inc. has conducted studies
that reveal the following:
The average company never hears from 96 percent of its unhappy customers. For every
complaint received, the company has 24 customers with problems, 6 of which are serious. Of the
customers who make a complaint, more than half will do business again with that organization if
their complaint is resolved. If the customer feels that the complaint was resolved quickly, this
figure jumps to 95 percent. The average customer who has had a problem will tell 9 or 10 others
about it. Customers who have had complaints resolved satisfactorily will tell only about 5 others.
(Albrecht & Zemke, 1985)
Dimensions of service quality
The concept of quality includes not only the product and service attributes that meet basic
requirements, but also those that enhance and differentiate them from competing offerings.
However, not every firm needs to compete along the same dimensions of quality. David A. Garvin
(1984) observes that quality consists of eight basic dimensions:
1. Performance: A product's primary operating characteristics.
2. Features: The "bells and whistles" of the product.
3. Reliability: The probability that a product will operate properly over a specified period of
time under stated conditions of use.
4. Conformance: The degree to which physical and performance characteristics of a product
match pre-established standards.
5. Durability: The amount of use one gets from a product before it physically deteriorates or
until replacement is preferable.
6. Serviceability: The speed, courtesy, and competence of repair.
7. Aesthetics: How a product looks, feels, sounds, tastes, or smells.
8. Perceived quality: Subjective assessment resulting from image, advertising, or brand
name. Garvin has further suggested that a company can create a niche in the marketplace by
focusing only on a few of these dimensions that competitors ignore (1987). For example,
Japanese automobiles initially emphasized reliability and conformance ("fit and finish"),
which were not very well achieved by domestic automobiles at the time.
A word of caution. While quality was a significant source of competitive advantage in the 1970s
and 1980s, the recognition of the importance of quality and the rapid rate at which businesses have
improved quality has made it a "given" rather than a distinctive source of competitive advantage.
In particular, dimensions such as conformance, reliability, and durability are taken for granted by
Japanese firms. In one Chrysler television commercial in the late 1980s, Lee Iacocca touted that
"Our cars are every bit as good as the Japanese." Mazda's chairman contends that "any
manufacturer can produce according to statistics." In a defect-free world, the Japanese argue, it is
the fine touches that will impress consumers. (Business Week, October 22, 1990). Companies that
do not pay significant attention to all dimensions of quality will simply not be able to compete.
Total quality management represents a basic business strategy.
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TQM
eliminate acceptance sampling. Mass inspection is managing for failure and defect prevention is
managing for success.
4. Stop Awarding Business Based on Price Alone
The organization must stop awarding business based on the low bid, because price has no
meaning without quality. The goal is to have single suppliers for each item to develop a long.
Term relationship of loyalty and trust, thereby providing improved products and services.
Purchasing agent must be trained in SPC and require it from suppliers. They must follow the
materials throughout the entire lifecycle in order to examine how customer expectations are
affected and provide feedback to the supplier regarding the quality.
5. Improve Constantly and Forever the System
Management must take more responsibility for problems by actively finding and correcting
problems so that quality and productivity are continually and permanently improved and costs
are reduced. The focus is on preventing problems before they happen. Variation is expected,
but there must be a continual striving for its reduction using control charts. Responsibilities are
assigned to team tom remove the causes of problems and continually improve the process.
6. Institute Training
Each employee must be oriented to the organizations philosophy of commitment to never-
ending improvement. Management must allocate resources to train employees to perform their
jobs in the best manner possible. Everyone should be trained in statistical methods, should be
used to monitor the need for further training.
7. Teach and Institute Leadership
Improving supervision is management’s responsibility. They must provide supervision with
training in statistical methods and these 14 points so the new philosophy can be implemented.
Instead of focusing on a negative, fault-finding atmosphere, supervisors should create a
positive, supportive one where pride in workmanship can flourish. All communication must be
clear from top management to supervisors to operators.
8. Drive out Fear, Create Trust and create a climate for innovation
Management must encourage open, effective communication and team work. Fear is caused
by a general feeling of being powerless to control important aspects of one’s life. It is caused by
a lack of job security, possible physical harm, performance appraisals, and ignorance of
organization goals, poor supervision, and not knowing the job. Driving fear out of the
workspace involves managing for success. Management can begin by providing workers with
adequate training, good supervision, and proper tools to do the job, as well as removing
physical dangers. When people are treated with dignity, fear can be eliminated and people will
work for the general good to the organization. In this climate, they will provide ideas for
improvement.
9. Optimize the efforts of teams, groups and staff areas
Management must optimize the efforts of team, workgroups, and staff areas to achieve the
aims and purpose of the organizations. Barriers exist internally among levels of management
among department with in departments and among shifts. Externally they exist between the
organization and its customers and suppliers. These barriers exist because of poor
communications, ignorance of the organization mission, competition, fear and personal grudges
or jealousies. To break down the barriers, management will need a long-term perspective. All
the different areas must work together. Attitudes need to be changes; communication channels
opened; project teams organized; and training in teamwork implemented. Multifunctional
teams, such as used in concurrent engineering, are an excellent method.
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2. CONTROL
Control is used by operating forces to help meet the product, process and service
requirements.
It consists of the following steps:
Determine items to be controlled.
Set goals for the controls.
Measure actual performance.
Compare actual performance to goals.
Act on the difference.
3. IMPROVEMENT
Aims to attain levels of performance that are higher than current levels.
It consists of the following steps:
Establishment of quality council.
Identify the improvement projects.
Establish the project teams with a project leader.
Provide the team with the resources.
11. ELABORATE THE FOURTEEN STEPS INVOLVED IN CROSBY’S TOTAL QUALITY APPROACH.
[M/J’17] (OR) EXPLAIN ABOUT THE CONTRIBUTIONS OF CROSBY FOR TQM.
Crosby's approach to quality was unambiguous. In his view, good, bad, high, and low quality are
meaningless concepts in the abstract; the meaning of quality is "conformance to requirements."
What that means is that a product should conform to the requirements that the company has
itself established based on its customers' needs. He also believed that the prime responsibility for
poor quality lies with management, not with the workers.
Management sets the tone for the quality initiative from the top. Nonconforming products are
ones that management has failed to specify or control. The cost of nonconformance equals the cost
of not doing it right first time, and not rooting out any defects in processes.
"Zero defects" does not mean that people never make mistakes, but that companies should not
begin with "allowances" or substandard targets with mistakes as an inbuilt expectation. Instead,
work should be seen as a series of activities or processes, defined by clear requirements and
carried out to produce identified outcomes.
Systems that allow things to go wrong and that result in those things having to be done again
can cost organizations between 20% and 35% of their revenues, in Crosby's estimation.
His seminal approach to quality was set out in Quality is Free, and is often summarized as the
"Fourteen Steps."
1. Management commitment it: the need for quality improvement must be recognized and
accepted by management, who then draw up a quality improvement program with an emphasis
on the need for defect prevention. Quality improvement equates to profit improvement. A
quality policy is needed which states that "...each individual is expected to perform exactly like
the requirement or cause the requirement to be officially changed to what we and the customer
really need."
2. The quality improvement team: representatives from each department or function should
be brought together to form a quality improvement team. Its members should be people who
have sufficient authority to commit the area they represent to action.
3. Quality measurement: the status of quality should be determined throughout the company.
This means establishing and recording quality measures for each area of activity in order to
show where improvement is possible and where corrective action is necessary. Crosby
advocated delegation of this task to the people who actually do the job, thus setting the stage
for defect prevention on the job, where it really counts.
4. The cost of quality evaluation: the cost of quality is not an absolute performance
measurement, but an indication of where the action necessary to correct a defect will result in
greater profitability.
5. Quality awareness: this involves making employees aware of the cost to the company of
defects, through training and information, and the provision of visible evidence of the results of
a concern for quality improvement. Crosby stresses that this sharing process is a key, or even
the key, step in the progress of an organization toward quality.
6. Corrective action: discussion of problems will result in the finding of solutions and also
bring to light other elements that are in need of improvement. People need to see that problems
are regularly being resolved. Corrective action should then become a habit.
7. Establishing an ad hoc committee for the zero defects program: zero defects is not a
motivation program: its purpose is to communicate and instill the notion that everyone should
do things right first time.
8. Supervisor training: all managers should undergo formal training on the Fourteen Steps
before they are implemented. Managers should understand each of the Fourteen Steps well
enough to be able to explain them to their people.
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9. Zero defects day: it is important that the commitment to zero defects as the performance
standard of the company makes an impact, and that everyone gets the same message in the
same way. Zero defects day, when supervisors explain the program to their people, should
make a lasting impression as a "new attitude" day.
10. Goal setting: all supervisors ask their people to establish specific, measurable goals that
they can strive for. Usually, these comprise 30-, 60-, and 90-day goals.
11. Error cause removal: employees are asked to describe, on a simple, one-page form, any
problems that prevent them from carrying out error-free work. Problems should be
acknowledged and begin to be addressed within 24 hours by the function or unit to which they
begin to grow more confident that their problems will be attended to and dealt with.
12. Recognition: it is important to recognize those who meet their goals or perform
outstanding acts with a prize or award, although this should not be in financial form. The act of
recognition itself is what is important.
13. Quality councils: the quality professionals and team leaders should meet regularly to
discuss improvements and upgrades to the quality program.
14. Doing it over again: during the course of a typical program lasting from 12 to 18 months,
turnover and change will dissipate much of the educational process. It is important to set up a
new team of representatives and begin the program again from the beginning, starting with
zero defects day. This "starting over again" helps quality to become ingrained in the
organization.
CROSBY‘S four absolutes of quality:
1. The definition of quality is conformance to requirements.
2. The system of quality is prevention.
3. The performance standard is zero defects.
4. The measurement of quality is the price of nonconformance.
12. EXPLAIN THE BARRIERS FOR IMPLEMENTING TQM. OR EXPLAIN ABOUT THE OBSTACLES
TO IMPLEMENTATION OF TQM [N/D’13,14,15, A/M-19]
There are many barriers for implementing TQM. These include:
1. Lack of commitment
The top management only provides lip service and no substantial
management commitment is evidenced. The obsessive commitment should not only be
demonstrated by the management but the same should be effectively communicated to all
employees.
2. Inability to change organizational culture
Changing an organization’s culture is very difficult and long drawn process.
Individuals resist change; they become accustomed to doing a particular process and it
becomes the preferred way. Organizations that spend more time planning for the cultural
aspects of implementing a TQM program will improve their chance is success.
3. Improper planning
All constituents of the organization must be involved in the development of
the implementation plan and any modifications that occur as the plan evolves. Emphasis
should be on comprehensive and complete planning covering all factors and including
customer requirements.
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13. EXPLAIN THE ISSUES RELATED TO CUSTOMER'S COMPLAINTS AND RETENTION. (OR)
EXPLAIN THE COMMON CUSTOMER FEEDBACK COLLECTION TOOLS [M/J’15,17]
Customer complaints (Customer feedback):-
Why is Customer feedback or customer complaint necessary?
Customer feedback or customer complaint is required:
To discover customer dissatisfaction,
To identify customer’s needs,
To discover relative priorities of quality,
To compare performance with the competition, and
To determine opportunities, for improvement.
Tools Used for collecting customer complaints are:
1. Comment card: it is a card normally attached to the warranty card, issued with the
product at the time of sale.
2. Customer questionnaire: It includes:
a. Surveys through mail, or
b. Surveys through E-Mail, or
c. Surveys through telephone.
3. Focus group: It includes customer meetings, word associations, discussions,
relaxation techniques, etc…
4. Toll-free telephone numbers,
5. Customer visits:i.e., visits to a customer’s place
6. Report cards,
7. The Internet and computer: It includes newsgroups, electronic bulletin boards,
mailing lists, etc…
8. Employee feedback
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The above flow chart shows the customer complaint and feedback system and is explained as
follows…
1. Complaints can be collected from all sources viz., letters, phone calls, meetings and verbal
inputs.
2. Data should be collected via a Customer Complaint and Feedback from the formal Corrective
Action Request (CAR) form may be used.
3. Complaints must be resolved as quickly as possible and customer must be contracted and
informed.
4. All customers should be given a response within 15 days. The response may be a simple
‘thank you’ or a solution for a complaint.
5. All the local issues should be resolved locally, preferably on the complaint site.
6. Issues beyond the control of the local entity must be resolved at the central coordinator or
analyst level that will further analyze the issue and propose a solution.
7. On a regular basis, data must be analyzed and systematic issues must be identified, resolve
and eliminated.
8. Performance measures should be identified and monitored.
9. There must be a regular promotion and facilitation system for conduct nurturing of
complaints.
Thus the customer complaints and feedback system is must for any organization to be successful.
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CUSTOMER RETENTION:
Customer retention is the process of retaining the existing customers. It is obvious that
customer retention is more powerful and effective than customer satisfaction.
Customer care can be defined as every activity which occurs within an organization that
ensures that a customer is not only satisfied but also retained.
Customer retention represents the activities that produce the necessary customer
satisfaction that creates customer loyalty.
15. EXPLAIN ABOUT CUSTOMER RETENTION (OR) ILLUSTRATE THE VARIOUS STEPS
INVOLVED IN CUSTOMER SATISFACTION PROCESS. [N/D’16]
It means “retaining the customer” to support the business. It is more powerful and effective
than customer satisfaction.
For Customer Retention, we need to have both “Customer satisfaction & Customer loyalty”.
The following steps are important for customer retention.
1. Top management commitment to the customer satisfaction.
2. Identify and understand the customers what they like and dislike about the organization.
3. Develop standards of quality service and performance.
4. Recruit, train and reward good staff.
5. Always stay in touch with customer.
6. Work towards continuous improvement of customer service and customer retention.
7. Reward service accomplishments by the front-line staff.
8. Customer Retention moves customer satisfaction to the next level by determining what is
truly important to the customers.
9. Customer satisfaction is the connection between customer satisfaction and bottom line.
16. WHY TO MEASURE QUALITY COSTS? CLASSIFY THE VARIOUS TYPES OF QUALITY COSTS
AND GIVE EXAMPLES. (OR) WHAT IS QUALITY COST? EXPLAIN THE DIFFERENT CATEGORIES
AND ELEMENTS OF COQ. HOW IT IS USEFUL AS A PERFORMANCE MEASURE?
[N/D’17,A/M’18]
Concept:
Quality-related costs are costs incurred by an organisation to ensure that the
products/services it provides conform to customer requirements. In other words, quality
costs are the sum of money spent on ensuring that customer requirements are met and also
the costs wasted through failing to achieve the desired level of quality. Thus quality cost is
the cost of not meeting the customer's requirement. i.e., the cost of doing things wrong.
Definition:
Quality costs are defined as those costs associated with the non achievement of
product/service quality as defined by the requirements established by the organisation and
its contracts with customers and society.
In simple words, quality cost is the cost of poor products or services.
Measurement of QUALITY COSTS
Through the measurement of quality costs, management can be alerted to the potential
impact of poor quality on the financial performance of the company. Moreover, management can
also determine the types of activities that are more beneficial in reducing quality costs. Dale and
Plunkett (1991) reported that, despite the great quantity of literature discussing quality cost, there
was no uniform view of what quality cost means and how it can be measured. Many researchers
proposed various approaches to measuring and classifying quality costs.
Elements of Quality Costs
The American Society for Quality Control (ASQC) divides quality costs into four categories, .as
shown below.
• Preventive cost category
• Appraisal cost category
•Internal failure cost category
• External failure cost category
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These cost categories allow the use of quality cost data for a variety 0f purposes. Quality costs can
be used for measuring progress, analyzing problems, or budgeting.
By analyzing the relative size of the cost categories, the company can determine if its resources are
properly allocated.
1. Costs of Prevention
Prevention costs are the costs that occur when a company is performing activities
designed to prevent quality problems from arising in products or services.
Prevention costs relate to efforts to prevent failures .
Costs of prevention include:
1. Cost of quality planning: It includes the costs associated with creating an overall
quality plan, the cost of market research and product development, inspection plan,
reliability plan, etc.
2. Cost of documenting: It includes cost of preparation of required documents such
as manuals, procedures, policies, etc.
3. Process control cost: It is the cost associated with implementing the quality plans
and procedures to achieve the stated purpose.
4. Cost of training: It includes the costs of conducting training programmes.
5. Costs associated with preventing recurring defects: It is the engineering,
technical and supervisory costs for preventing the reoccurring defects.
6. Costs of investigation, analysis and correction of causes of defects by quality
control and engineering departments.
7. Cost of quality awareness programme.
2. Costs of Appraisal
Appraisal costs are associated with measuring, evaluating, or auditing products or
services to ensure that they conform to specifications or requirements.
Appraisal costs relate to testing, execution, and examination to assess whether Specified
quality is being maintained.
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