| Back to Basics – Cost of Poor Quality |
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| Keeping quality costs to the minimum has always been a concern for organizations. And now with the current crisis, it has become an alarming necessity. |
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| Dr J M Juran has defined Quality Cost or Cost of Poor Quality (COPQ) as “the sum of all costs that would disappear if there were no quality problems”. |
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| So what is COPQ? |
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| When it comes to COPQ, most organizations have a tendency to focus on the initial or visible 5-10% of total cost (waste, rework, inspection costs, etc). What is not evident, but crucial is that the rest 15-25% of the hidden cost (excessive overtime, excess inventory, excessive employee turnover, etc) is not visible. |
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Let us start with a basic analysis of the COPQ in your organization. Click here. |
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| Intelligent Cost Reduction |
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| Wouldn’t it be ace if you had a tool in hand that helped you to: |
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Thoroughly comprehend your current resources |
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Have clear direction as to how can they be allotted to get more from less |
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| BestPrax Club in association with The Indian Merchants' Chamber presents a one-day workshop on Intelligent Cost Reduction. |
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| Date: 4 December 2008 |
| Venue: Indian Merchants’ Chamber |
Time: 8:30 a.m to 5:30 p.m |
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It has become a struggle for businesses to survive in this crisis. Creativity tools during the workshop aide out-of-the-box thinking for innovative problem solving. |
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| COPQ Projects: Achievements |
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| Benchmarking and Innovation are vital managerial inputs for creating a sustainable organization, in a dynamic business environment. |
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Organization |
Project |
Gains: INR crore/annum |
| Abhishek Yarns |
Increasing OEE of Ring Frame Section |
3.7 |
| Bharat Petroleum |
Reduction of Bitumen Lorry Turn Around Time to 2 Hours |
23.26 |
| Jindal Stainless |
Increasing the Life of Refactory Lining |
21 |
| Sterlite Industries |
Improvement in the Recovery at Phosphoric Acid Plant |
5 |
| Hindalco Industries |
Venting of 5.6 MW Turbine GSC Gland Steam |
0.81 |
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| For more on these projects, or for more projects, please write to us at info@bestpraxclub.com |
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| More on COPQ |
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| COPQ a Winning Tool |
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| In the mid 1980s, Milliken, a leading textile manufacturer located in South Carolina dealt with recession by addressing its mounting costs of poor quality (COPQ). It subsequently won the Malcolm Baldrige National Quality Award of the USA. |
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| At the turn of the 21st century, Pt Elegant Textile Industry in Indonesia dealt with inflationary trends and a tumbling currency by addressing its costs of poor quality. It went on to win the Qimpro Benchmark for Corporate Excellence. |
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| With the textile industry in India experiencing rebirth, we need to learn a few lessons from Milliken and Elegant to ensure mortality. |
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| This article, authored by Suresh Lulla, goes on to talk about: |
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Milliken Case Study |
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P T Elegant Case Study |
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Cost of Poor Quality Matrix |
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Recommendation |
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| Measuring the Cost of Poor Quality in Healthcare |
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| Few services affect the lives of people so directly and personally as those offered by health care professionals. Quality determines how successfully we prevent and treat physical and mental illness - key concerns affecting the lives and well-being of our patients and their families. |
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| In today’s competitive environment, quality has a direct impact on organizational success. In his study of hundreds of thriving organizations, Dr J M Juran, the quality guru, has identified the practices most characteristic of a quality environment. Dr Juran found that the same organizational practices that attract and retain customers contribute to more empowered employees, higher revenue, and lower costs. These practices are ongoing processes, generally referred to as Total Quality Management (TQM). |
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| This article, authored by Suresh Lulla, goes on to talk about: |
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What is Quality |
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Product Features |
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Freedom from Deficiencies |
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Recommendation |
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Who are the Customers |
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Total Quality |
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Reducing Costs |
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Three Categories of Costs Associated with Poor Quality |
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Appraisal / Inspection Costs |
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Internal Failure Costs |
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External Failure Costs |
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Quality Results |
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Good News for Healthcare Organizations |
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No Accident |
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| Qimpro Convention 2009 |
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| Do you have an improvement project or an innovation project that has not received its due recognition? Qimpro Convention is a recognition platform for middle managers to showcase their achievements in the improvement or innovation categories. |
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| The papers received will be assessed by our examiners who will short list the top 5 projects under Improvement and Innovation each. These short listed papers will present at the finals – Qimpro Convention 2009 – on 7 August 2009. |
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| The last date for submission of papers is 1 May 2009. The registration fee for each paper submission is INR 25,000 + tax. |
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| Early bird registration for paper submission is available upto 31 January 2009 at INR 20,000 + tax. However, the paper document can be submitted by 1 May 2009. |
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| BestPrax Membership |
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| BestPrax Club offers two standard memberships: Blue and Green; and three customized memberships: Silver, Gold, Platinum |
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