Rework labor first run labor measuring the cost quality case study

Cost of Quality

Hidden Cost of Quality

• Approximately 15% of

r Quality on
pport Personnel

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

Traditional Cost of Quality Categories

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.)

New model of optimum quality costs.

18

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