Cost of Poor Quality

  • Delivery Option: On-Site Only
  • Subject Category: Core Tools
  • Number of Days: 1

Course Summary

This problem solving training introduces unique, effective approaches to problem solving and decision making. These approaches have been employed successfully in establishing improvements in processes, performance, and productivity.

Target Audience

Quality, Accounting, and Management practitioners who understand that the real value of a quality program is determined by its ability to contribute to customer satisfaction and to profits.

Course Objectives

Significant aspects of quality costs are normally overlooked or unrecognized simply because most accounting systems are not designed to identify them. Examining the Costs of Waste (the hidden CoW in your company) and how to measure and use them to direct problem solving and continuous improvement in your organization will be featured in this class. Use these metrics to help drive “Lean” initiatives!

Benefits

What are some of the wasted steps or unneeded processes or errors that contribute to excessive and unnecessary expenses, or costs? Analysis of these costs is essential in identifying the financial benefits gained from your improvement efforts. This analysis also helps to prioritize just where you need to exert your effort to get the most return for your investment û of time or resources.

Agenda

The following topics will be covered in this one-day workshop:
  • Theory of Quality Costs
  • Customer Value
  • Prevention Costs
  • Failure Costs – Internal and External
  • Appraisal Costs (inspection)
  • Value Added
  • Cost of Waste and Defects
  • Cost of Lost Opportunity
  • Travel Time and Waiting
  • Overproduction and Inventory
  • Lean Thinking
  • Reducing CoPQ and Continuous Improvement
  • Actual Case Studies
We examine wasted steps and unneeded processes and errors that contribute to excessive and unnecessary costs. Analysis of these costs is essential in identifying the financial benefits gained from your improvement efforts. This analysis also helps to prioritize just where you need to exert your efforts in order to get the most return for your investment – of time or resources. Customer-focused case studies will be included in this course to further the understanding of COPQ and ways to reduce those costs.