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Rework labor first run labor measuring the cost quality case study

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Cost of Quality

Hidden Cost of Quality

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• Approximately 15% of

r Quality on
pport Personnel

2% Rework Labor 13%

First Run Labor
85%

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Cost of quality categories

Cost of Quality

Quality Cost Categories

Examples*
• Quality Design Reviews
• Operator Training
• Capability Studies
• Process Control
• Vendor Qualification

Examples*
• Inspection and Test
• Test Equipment and Maintenance• Inspection and Test Reporting• Other Expense Reviews

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Traditional Cost of Quality Categories

7/29/2021

Cost of Quality Categories
What category would each of the following tasks/costs be associated with?

(Click on the letter of your answer – there is a voice clip behind it.)

The quality control department inspects parts which have just completed a rework operation.

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7/29/2021

New model of optimum quality costs.

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Quality Loss Functions Traditional loss function
– Producer’s view
– Based on specification

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