Quality Systems by Engineer Talon Garikayi

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chinhoyi university of technology

2010

QUALITY SYSTEMS

ANALYSISAPPLICATION FOR STEEL

MANUFACTURERS

ENGINEER TALON GARIKAI

W W W . C U T . A C . Z W


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Question One

Introduction

Most companies in Zimbabwe were established with aim of making profits in a shortest possible

time and to achieve this objective quality management issues are being considered as setbacks

for development by many organizations.Pursuing quality issues is like chasing a shadow; one

will never catch up with it. Several factors which include the following are the main causes of

failure of many quality managers to catch up with quality issues;

Top managements involvement

Financial resources to train the manpower

Changing technologies and techniques in the field of Quality Management

Assessment of standards from Standard Boards

Quality Management Policy

Top Managements Involvement

Most Quality Managers are among the Top Management of most reputable organizations but the

major challenge is the implementation of their ideas and suggestions. It is very difficult to

educate the top management such as the Financial Director, Managing Director or Operations

Director about the need to improve product quality than the Machine Operators due to their

availability and understanding of the technical issues involved. It has been observed that the top

management hardly attends workshops concerning Quality issues. Whenever the top

management views quality issues they conclude that they are all expenses than methods of

improving profit margins by increasing sales. If the Quality issues are addressed by the

management and sales do not improve the management end up resorting to poor quality that willmaintain the same sales with less quality cost.

.1

But ...2

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Hence ....3

Using the equation above we can conclude that production cost is a function of net profit and

also analyzing the second equation we can deduce that quality cost is a function of production

cost. Using the equations above the top management usually argues that quality issues are costly

thus persuing quality issues become more of chasing a shadow than serving the organization for

a purpose.

Availability of Financial Resources

Every organization preaches quality on all its products and service delivery but implementing the

desires of the quality management to the organization usually requires financial resources. Most

Quality Managers are facing challenges on implementing the quality management tools due to

lack of financial support from the top management. Quality management is very expensive when

it is in its premature stages which involve training of manpower so as to educate them on the

path the organization will be following. It is usually rare to design and implement a Quality

Management System without the help of an Expert who will be a consultant; management mostly

regards this as an expense. Since most organization do not include Quality management policies

during formation of the organization or during the initial stages of the product life cycle of a

product, introducing quality issues will be very difficult when the product or organization has

reached its maturity stage. Whenever the management is faced with reduction in sales or service

delivery they concentrate on improving their marketing strategies and underestimate product

quality or quality of service they issue.

Changing Technologies and Techniques in Quality Management Systems

Machines have known capabilities and tolerance figures which are reasonable to explain.

Gyran (2000).With reference to the quote industrialist have shifted from techniques such as

100% inspections to improved and technologically advanced machines for production; making itvery difficult for Quality Managers to keep up with the changing trends.Intelligent Machines are

being implemented in developed countries leaving the Third world countries such as Zimbabwe

to apply old methods of quality management due to availability of cheap labor that will allow

techniques such as 100% inspection. It is now very difficult to achieve the ISO standards with

our Stone Age Technology we have in Zimbabwe, Engineers who are responsible for designing

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and upgrading the Machinery have now been reduced to Maintenance Managers only; posing a

challenge to Quality Managers to keep up with emerging technologies and techniques in Quality

Management resulting in them chasing a shadow.

Assessment of standards from Standard Boards

When the cat is away the mice can play! Gupta (2007).Our Top Management were so happy

when the Quality Manager assisted the organization on achieving the ISO 9000:2000 and even

gave him an increment but as soon as the Certifiers left the management began to promote its

traditional way of production which had nothing to do with what the ISO 9000:2000. The

management believe that the quality standards achieved were only for marketing the product

than to be practiced. This left the Quality Manager and his team chasing the shadows. When the

SAZ requested for an Audit the top management released funds for quality improvement in all

sections of the organization and tasked the Quality Manager to achieve that in the shortest

possible time. This practice by the management clearly highlight that Quality issues are for

certification only and not to improve sales or improve the product quality, from their perspective

they had the desired profits with poor product quality to sustain their company thus the need for

Quality Management was only a tool to be used during exporting the products.

Quality Management Policy

The Quality Management Statement is the governing policy during Quality Control and Quality

Assurance but however most employees among the top management do not understand it. The

Quality Management Statement is poorly defined making it very difficult to manage with

everyone believing that he/she is within the system whenever they conduct company business.

However persuing the quality issues becomes more of chasing a shadow than management.

Conclusion

I believe to a greater extent that for one to pursue quality issues they is need for proper

coordination from the top management and the benefits of the quality issues should be short term

basis so that the monetary benefits can easily be seen. In business the main objective is to

maximize profit and for quality issues to have an impact they should address the benefits with

minimum cost. Third World countries should realize that buying cheap machinery and failure to

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upgrade manufacturing plants using the returns will cause long term profit loss as compared to

application of emerging technologies. Quality Management Statements should be clear and

achievable and Standards are not for marketing alone but improvement in product quality with

long term benefits, failure to do so persuing quality issues becomes more of chasing a shadow

that you will never catch.

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Question Two

Introduction

Problem identification has always been a major problem within quality assurance and quality

control. All the American gurus advocated that quality teams should identify areas of potential

problems hence the problem with most engineering problems is to identify the source from

where the problem is emanating from. Conway claims that wasting time is one of the biggest

waste that can occur in an organization hence in most cases a lot of time is lost when Quality

teams are doing wild guess or wild goose chase.

A quality organizational technique is a term used to describe a tool designed to improve the

effectiveness of quality for an organization. These tools can be used during the implementation

period or initial stages of the Quality Management System (QMS) on problem identification and

solving. These techniques are

Brainstorming sessions

Interviews

Bench marking

Questionnaires

1.0 Brainstorming sessions

Brainstorming is a group creativity technique designed to generate a large number of

solutions for a particular problem. Brainstorming sessions can be used to identify the

problem areas or can be utilized to solve the identified problems within the quality system.

Brainstorming sessions are only effective or advantageous to an organization if the four basic

rules are followed which are

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o Focus on quantity since quantity breeds quality- we are assume that the greater the

ideas generated the greater are the chances of producing a radical and effective

solution.

o Withhold criticism; participants should focus on adding ideas, reserving criticism for

critical later stage. By suspending judgment participants will feel free to generate

unusual ideas.

o Welcome unusual ideas so as to get a long list of ideas.

o Combine and improve ideas, good ideas may be combined to form a single better

idea.

Advantages

It models thinking process to the participants

There are chances of generating a lot of ideas if properly conducted.

It is fun and exciting to an extend that more ideas can be generated.

Information gained can be used for various other stages

Disadvantages

o During brainstorming participants have to listen to others and may spend time

repeating their ideas until they get sufficient attention.

o Going through the protocol, processing and ordering the ideas can become a complex

procedure. This also depends on the number and order of the generated ideas.

o Advising participants to let others speak without making them feel offended or

intimidated can be difficult.o Participants with the ability to express their ideas faster and more effective gain the

general attention of the group. Some form of leadership can be formed in this way

within the group, which might make participants feel intimidated.

o On the one hand, people are not very skilled at controlling their non-verbal reactions

and might influence the creativity of others with their posture, gestures or facial

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expressions. On the other hand, attempting to control their non-verbal behavior might

inhibit their own creativity.

o More discrete or introvert participants might find it difficult to express their crazy or

unorthodox ideas.

2.0 Interviews

The main advantage of face-t-face or direct interviews is that the researcher can adapt the

questions as necessary, clarify doubt and ensure that the responses are properly understood,

by repeating or rephrasing the questions. The researcher can also pick up nonverbal cues

from the respondent. Any discomfort, stress and problems that the respondent experiences

can be detected through frowns, nervous taping and other body language, unconsciously

exhibited by any person.

This would be impossible to detect in a telephone interview. So face-to-face helps the

interviewee to get the desired results and help them the expression of the person to whom

they are interviewing. By reading the facial expression of the respondent the interviewer can

easily understand what the respondent want to tell them about any thing.

The main disadvantages of face-to-face interviews are the geographically limitations they

may impose on the surveys and the vast resources needed if such surveys need to be done

nationally or internationally. The costs of training interviewers to minimize interviewer's

biases for example differences in questioning methods, interpretation of response are also

high. Another drawback is that respondents might feel uneasy about the anonymity of their

responses when they interact face to face interviews.

Advantages

If the respondent lacks reading skills to answer a questionnaire.

Are useful for untangling complex topics.

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The Interviewer can probe deeper into a response given by an interviewee.

Interviews produce a higher response rate.

Disadvantages

The interviewer can affect the data if he/she is not consistent.

It is very time consuming.

It is not used for a large number of people.

The Interviewer may be biased and ask closed questions.

3.0 Bench marking

Benchmarking goes beyond competitive analysis to understanding the competitors output

and process of obtaining the output. The advantages of benchmarking include enabling

organizations to outperform competitors, opening minds to new ideas, and placing

organizations in a continuous improvement mode.

Benchmarking is the systematic process of comparing business processes and performance

metrics to industry best practices in terms of quality, time, and cost dimensions, and making

such comparisons the basis to do things better, faster, and cheaper.

Advantages

Benchmarking help place organizational focus on change and provides the direction for

the change process.

Benchmark heralds change by:

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1. Making explicit the competitors' standards that provide the organization with

minimum standards of excellence.

2. Providing new ideas and better ways of doing things.

Benchmarking opens minds to new ideas, heralding a process of continuous learning that

leads to a learning organization.

Disadvantages

A major limitation of benchmarking is that while it helps organizations in measuring the

efficiency of their operational metrics, it remains inadequate to measure the overall

effectiveness of such metrics. Benchmarking reveals the standards attained by

competitors but does not consider the circumstances under which the competitors attained

such standards. If the competitors goals and visions were flawed or severely restricted

due to some specific factor, an organization by benchmarking such standards runs the risk

of trying to ape such flawed standards or settling for extremely low standards.

A bigger disadvantage of benchmarking is the danger of complacency and arrogance.

Many organizations tend to relax after excelling beyond competitors' standards, allowing

complacency to develop. The realization of having become the industry leader soon leads

to arrogance, when considerable scope for further improvements remains.

Finally, many organizations make the mistake of undertaking benchmarking as a stand-alone

activity.

4.0 Questionnaires

A questionnaire is simply a tool for collecting and recording information about a particular

issue of interest. It is mainly made up of a list of questions, but should also include clear

instructions and space for answers or administrative details. Questionnaires should always

have a definite purpose that is related to the objectives of the research, and it needs to be

clear from the outset how the findings will be used.

Advantages

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Easy to reach people who are spread across a wide geographical area or who live in

remote locations (postal and phone)

Respondents are able to complete postal questionnaires in their own time and

telephone call-backs can be arranged for a more convenient time

Telephone questionnaires can make it easier to consult some disabled people

F2F questionnaires can make it easier to identify the appropriate person to complete the

questionnaire

F2F questionnaires can be longer than postal and phone questionnaires, collect

more information and allow the use of visual aids

Can contact a relatively large number of people at low cost.(postal and telephone)

Disadvantages

Response rates can be low (postal) and refusal rates high (telephone)

There is little control over who completes a postal questionnaire, which can lead to bias.

Postal questionnaires are inappropriate for people with reading difficulties or

visual impairments and those who do not read English

Postal and phone questionnaires must be kept relatively short

F2F and phone questionnaires require the use of trained interviewers

F2F questionnaires are time consuming for respondents, more costly and more labour

intensive than other methods.

Conclusion

I believe it is very difficult to use one method for quality organization because our organization

is too big and constitute almost four rolling plants, two smelting plants, two mines and one

processing plant with departments such as procurement division, marketing, accounts, auditing,

safety, production, mechanical, electrical and instruments. However I prefer the use of

questionnaires because the majority of the employees can read and write. In order to gather

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useful and relevant information it is essential that careful consideration is given to the design of

the questionnaire.

I would not chose bench marking because it is the same method that made us fail to crack the

international market after the management became arrogant after realizing that we were now the

local market leaders in 2007 forgetting that we were benchmarking ourselves to an organization

(ZISCO) which was gradually losing market share way before we came into existence due to

political and economic hardships. We were occupying 70% of the market share when ZISCO

was operating at 15% hence this means if all goes well and it start to operate at 60% it will be

able to have close to 92% of the market share. Benchmarking is only a means to an end, and it is

worthless if not accompanied by a plan to change.

Interviews are fairly good only if the organization is small (considering number of employees),

for our organization there are already organizational politics and conducting interviews will be

very difficult. Also the knowledge gap between the Plant Operators, Technicians, Electricians

and Artisans with the Middle and Top Management will cause much of communication

problems. Also our organizations Top Management has no African and is made up of Indians

only with us being on the middle management with little to no contribution to managerial issues

thus interviews will be very difficult to conduct but questioners will prove to be helpful.

Question Three

Introduction

There are several methodologies which were suggested by Quality Experts on how total quality

can be achieved. The American gurus are among the leading Experts who suggested several

methodologies; these include Phil Crosby, Bill Conway, Joe Juran and Edward Deming. Each

one has his views which varied from definitions to methodologies but all had the common goal

of achieving Total Quality. We are going to analyze the different definitions and methodologies

correlate them and highlight the difference where applicable.

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Definition of Quality

The ISO8402-986 defined quality as The totality of features and the characteristics of a

product or service that bear on its ability to satisfy state or implied need. However the

American gurus in Quality had different definitions to quality, Phil Crosby defined quality as

conformance to requirements while Juran believed quality was fitness for use hence Conway did

not have a specific definition but incorporated into a broad definition which was development,

manufacture , administration and distribution of consistent low cost. The divergence on the

definitions though they had a common goal was mainly due to different concepts and

methodologies they believed should be used to achieve total quality.

Concepts

Methodologies used for achieving total quality were as a result of different concepts on total

quality management and how one can measure whether or not total quality had been achieved.

Phil Crosby believed in the concept ofzero defects, he advocated that as long as the product

confirm to the requirements then there will be no defects and product quality will be high. His

concept was centralized more on preventative measurements which resulted in the quality

vaccine which companies adopted to prevent nonconformance and comprises of determination,

education and implementation. In contrary Conway believed in the concept of constant

improvement on all areas of operations. Crosby believed if the vaccine is injected at the

beginning it will involve continuous process improvement and gradually reduces the process

range so as to achieve the desired quality standards as compared to the constant improvement

concept which was advocated by Conway as shown on the diagrams below.

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Jurans concept was focused on that most companies did not know how to manage in order to

achieve quality as he identified the problems such as organization, communication and

coordination of functions. His concept varies from Conway in that Juran focuses on management

and training though Edward Deming argues that his concept focuses on changes that must be

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taken so as to achieve quality. Deming over emphasized on Quality Assurance than quality

inspection.

Methodologies

Bill Conway advocated strongly on the use of Statistical methods. Conways methodology on

achieving total quality management was centralized on Statistical Process Control so as to help

and reduce process variations. Although Conway agrees with other gurus on need for quality

improvement he focused also on reducing time wastage as he emphasized that it is one of the

biggest waste that can occur in an organization howeverPhil Crosby advocated forZero defects.

Crosby believed that quality improvement is a continuous process not a programme with all

parties or departments within an organization involved hence the management should be highly

committed to quality. All the quality gurus agreed that quality teams should be formed and these

teams should determine where the current and potential problems lie.

Juran was quite unique on his approach as compare to Conway, Crosby and Deming in that he

advocated for companies to improve theirmanagement techniques in order to achieve quality.

Juran believed that Quality comes with a price and for any company to engage on quality

management it should be prepared to carter for the expenses however Edward Deming advocated

for quality assurance than quality inspection. Deming believed on long term commitment to the

established objectives of quality improvement. He believed that there should be zero tolerance on

defects from on process stage to another.

Crosby and Juran claimed that quality awareness campaigns were mandatory and cost of quality

in monetary terms should be highlighted to the top management. A commitment to zero defects

program must be introduced hence individuals should be encouraged to establish improvement

goals for themselves and their teams. In a nutshell Crosbys methodology emphasize that

quality improvement never ends.

Conways techniques for quality improvement involve improving human relations skills,

statistical surveys, simple statistical techniques (clear charts), industrial engineering and

SPC. Above all the foundation for his methodology was Imagineering which he believes was

a useful tool on problem solving. Imagineering was the most distinguish feature on Conway

as compared to other gurus, which was based on images of the desired future being used to

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shape the future and guide the thoughts. It has the ability to generate creativity and energy

and extends the problem-solving framework; it can be used to create a flow chart of what the

ideal process looks like. However Juran claimed that less than 20% of the problems are due

to workers and the remainder is due to Management. This highlighted that poor organization

within a company can be a setback to quality improvement. Juran also in his view claimed

that communication and coordination of functions within a company plays a pivotal role in

quality improvement. To counter for the managerial problems he stated that there is need for

massive training programs at all levels, build awareness and set goals for achievement.

Deming supported Conway on Statistical Methods in favor of inspections. He agreed with

other gurus that there is a great need for providing training to the manpower. Demings

methodology for achieving quality improvement was based on that Quality is better than

Quantityas he claimed that setting of targets particularly in numerical terms which do not

include quality criteria should be discouraged. Juran like all the other gurus believed that

there is need to carryout projects to solve the identified problems, give recognition, keep a

score on achieved goals, feedback on progress and maintaining momentum.

Conclusion

To a greater extent these American Quality gurus were on agreement that there are no shortcuts

to quality, no quick fixes and that improvement requires commitment and support from the top.

They all agreed that there is need for training of the workers and management for proper quality

improvement. Deming and Conway supported Statistical Methods as a tool for quality

improvement with Deming emphasizing on quality assurance than inspections. Juran strongly

believed that quality is not for free. Crosby emphasized on continuous improvement as Conway

believed in constant improvement. This clearly shows that total quality is achievable.

Question Four

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Introduction

Quality is not for free.[1] Most organizations have failed to maintain a Quality Management

System due to failure of showing how the quality cost is going to be deduced, Campanella

(1999). The top management always understand issues in monetary terms and it is usually the

duty of the Quality Manager to convince the management to fund the QMS when need arises.

Many organizations summarize the cost of associated with quality in four categories, which are

as follows;

Prevention cost

Appraisal cost

Failure cost

o Internal cost

o External cost

Opportunity cost

The cost of poor quality includes the internal and external cost failure categories, while the

appraisal and prevention categories are viewed as investments to achieve quality objectives,

Atkinson, Hambug and Ittner (1994).

1.0 Prevention Costs

These are costs that we incure when we try to keep failure and appraisal costs to a minimum. At

Steelmakers Pvt Ltd we practice Computerized Maintenance and this involves Preventative

Maintenance hence most of the tasks are due to methods which we be implementing so as to

maintain the QMS thus they are later termed Prevention costs. Other areas which contribute to

prevention costs are;

Quality Planning- this cost is associated to the cost of time which is going to be used by

the people who will plan for the overall quality management system and also include cost

for communicating to the intended personnel.

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New Product review- reliability maintenance and operational excellence activities related

to launching a new product

Process Planning and Control- this mainly include the cost for Control engineering and

automation so as to improve product quality. For Steelmakers Pvt Ltd this cost is mainly

due to the projects which are usually carried out by the Instruments Department on

process improvement.

Quality Audits-these are costs associated with activities in the overall quality plan.

Training all plant operators and control room operators usually determine the degree of

quality within a product thus intensive training programs on quality awareness are a

mandatory for such people hence the cost of holding seminars and hiring of quality

experts in the field of Steel manufacturing to train our manpower is usually termed cost

of training.

4.0 Appraisal Cost

Phil Crosby defined quality as conformance to requirements; hence the appraisal cost is the

degree of conformance to quality requirements. The cost associated with appraisal costs are;

Final inspection and test- this is the cost of evaluation of conformance to requirements

for product acceptance. At Steelmakers this is done in the laboratory hence the cost of

reagents and electrical power to run the grinders and lab furnaces is calculated on

monthly basis.

Maintaining accuracy of test equipment- this exercise is done by the Instruments

Department and bills the Quality Control laboratory basing on time and workshop fee.

The calibration of these equipment is done monthly or upon request by the users.

In-process inspection and testing- this exercise is done by the Quality Control team

and sometimes the exercise is carried out by the Process Department hence the main

thrust is to check the conformance to requirements of all plant machinery settings and

efficiency.

5.0 Failure cost

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These failure cost are usually said to be failure to meet customer requirements and needs

hence they grouped into two subcategories which are;

a) Internal failure cost dubbed the cost ofinefficient processes

b) External failure cost

a) Internal Failure costs

These are the costs of deficiencies discovered before delivery due to inspections that are

associated with the failure to meet explicit requirements or implicit needs of the

customer. Process losses and inefficiencies that occur even when requirements needs are

met are also within this category. The cost will disappear if no deficiencies exist. It

consist of two categories the cost of failure to meet customer requirements and the cost of

inefficient processes. The subcategories of internal failure cost are;

o Process changes- there are several process within steel manufacturing and some

include recycling of water to cool the rotary cooler within the sponge iron

division. When the process of cooling becomes inefficient the product quality is

reduced by 35% and later requires blending. The process of changing the cooling

system within the cooling towers is costly. This falls under cost of inefficient

processes.

o Scrap- when the steel product is tested and does not satisfy the customer needs it

is considered to be scrap, in the case of Steelmakers Pvt Ltd this is usually due to

excess sulpher or magnesium that will reduce the desired physical strength of the

metal during theBrinell Testin Physical Laboratory of the Quality Control

Department.

o Rework- this is usually due to some suppliers failure to satisfy our specifications

on billets resulting in rework of the billets. The time and labour associated with

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this cost can not be recovered since we do not have Return Outwards resulting in

reworkorincreased scrap.

o 100% Sorting Inspection- Steelmakers believe we have enough cheap labour to

carryout 100% inspection and do favour statistical methods as advocated by Bill

Conway. The cost associated with this exercise is said to be a quality cost.

b) External Failure Costs

These costs are associated with deficiencies that are found after the customer receives the

product also included is lost opportunities for sales revenue. These costs also disappear

when there are no deficiencies. Subcategories for external failures are as follows;

Penalties due to poor quality- most of the suppliers to Steelmakers Pvt Ltd offer

reasonable discount provided the balance is settled within the agreed window

period, however our Accounts Department provide late payment resulting in loss

of revenue due to loss of negotiated discounts on invoices.

Returned material- of late we received back a lot of steel products which were

dispatched for construction of stadiums in South Africa due to the lack of strength

within our steel product resulting in increased value of Return Inwards within the

Trading and Profit Loss Account. An action plan had already been drafted to

address the problem.

Warranty Charges- the cost we incurred on smelting the returned material which

was still the warranty period was calculated and termed the warranty charges.

Since our warranty period is clearly stated on all our products as requested by

SAZ volume ofreturned materialhad gradually increased thus increasing qualitycost though we are retuning our customer base.

Complaint Adjustments- when we received our returned material from from our

South African customer we incurred cost of investigating which included

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involving a third parts laboratory and later incurred cost on adjusting the justified

complaints attributed to defective product.

6.0Opportunity Costs

Steelmakers Pvt Ltd emerged as the only steel manufacturing company after ZISCO closed.

In 2007 it was rated to be among the giant steel manufacturing company within the southern

Africa region as a result it gained a great deal of market share in South Africa during the

construction of the Stadiums for the World Cup finals. However the organization had its

tender which it acquired to supply construction steel for the expansion of the new SADC

office in Botswana due to the returned materialfrom South Africa.[] after analysis we can

conclude that Steelmakers lost business and the loss of business can be calculated as the

tender value , however the loss of goodwill from other potential customers was difficult to

measure. Up to date Steelmakers failed to break into international market due to quality

issues though its ISO9001; 2000 certified.

Annual Quality Cost Form for Steelmakers Pvt Ltd.

Cost of Quality Failures

Cost of ;

Defective stock

Repairs to products

Scrap

Adjustments-customer

Downgrading products

Customer policy adjustment

Penalties

Return inwards

Warranty charges

Cost Percentage

contribution

$ 1200.00 6.12 %

$ 800.00 4.07 %

$ 400.00 2.04 %

$ 120.00 0.61 %

$ 4600.00 23.42 %

$ 80.00 0.41 %

$ 620.00 3.16 %

$ 6000.00 30.54 %

$ 200.00 1.02 %

Sub-Total $ 14 020.00 $14 020.00 71.38 %

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Appraisal Costs;

Cost of;

Initial inspection

Final inspection and test

Incoming inspection

Maintaining Accuracy of test equipment

$ 220.00 1.12 %

$ 400.00 2.04 %

$ 600.00 3.05 %

$ 320.00 1.63 %

Sub-Total $1540.00 $ 1540.00 7.84 %

Prevention Cost

Cost of;

Control Engineering Projects

Process Planning

Product review

Training

Quality Audits

$ 1200.00 6.11 %

$ 400.00 2.04 %

$ 80.00 0.40 %

$ 600.00 3.05 %

$ 1800.00 9.16 %

Sub-Total $ 4080 $ 4 080.00 20.78 %

100 %Overall Total Quality Cost $19 640.00

Conclusion

For the top management to understand the importance of QMS one need to quantify the sizethe quality problem in the language of money. When Quality Costing had been completed

major opportunities for cost reduction can be identified, in the case of Steelmakers the

management has resolved to predictive maintenance than preventative maintenance so as to

reduce the Preventative cost on quality. The process Engineer who heads the Instruments

Department had been tasked to change his approach to less expensive process improvements

since the cost of his projects contributed much to Preventative cost. If carried out properly

Quality Costing can help to reduce customer dissatisfaction and associated threats to product

salability can be identified. Thus Opportunity cost is reduced and loss of goodwill is

minimized hence increasing market share thus increase in sales which will result in improved

profit margins.

References

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Quality Planning and Analysis, 3rd Edition J.M Juran and Frank M. Gryna 2000

Quality Planning and Analysis for Enterprise Quality, 5th Edition R.C.H Chua and J.A Defeo

Wood, Brad. 7 Steps to Better Benchmarking. Retrieved from http://bpmmag.net/mag/7-steps-

better-benchmarking-0507/index1.html

Boxwell, Robert, J., Jr. (1994). Benchmarking for Competitive Advantage. New York: McGraw-

Hill. ISBN 0-07-006899-2.

Praxiom Research Group Limited [email protected]

Kirakowski, J (1997) Questionnaires in Usability Engineering

Oppenheim, AN (1992) Questionnaire design, interviewing and attitude measurement. Pinter,London.

http://www.iso.org/iso/home.htm

www.tc176.org

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Quality Systems by Engineer Talon Garikayi