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Chapter 7 Performance Measures

Chapter 7 Performance Measures. To assess the effectiveness of the quality system. Measurement Tools. Graphs show changes and/or trends qualitatively Control chart: to show when there are problems in the system Capability index, Cp > 1.33 Loss function Quality cost

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Chapter 7 Performance Measures

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  1. Chapter 7 Performance Measures To assess the effectiveness of the quality system

  2. Measurement Tools • Graphs show changes and/or trends qualitatively • Control chart: to show when there are problems in the system • Capability index, Cp > 1.33 • Loss function • Quality cost • Malcom Baldrige National Quality Award • Others.

  3. Quality Cost • Preventive cost • Appraisal cost • Internal failure cost • External failure cost

  4. Preventive Cost: Any Efforts to Help People “Do it right the first time and all the time.” • Marketing, customer/user interaction • Product/service/design development • Purchasing and vendor partnership • Operations (manufacturing/services) • Quality engineering • Quality administration • Other prevention costs

  5. Appraisal Cost: Testing, inspection and related equipment/supplies • Purchasing appraisal cost: incoming goods or products • Appraisal operations: testing and inspection • External appraisal: field test outside company • Data review • Cost supporting appraisal efforts.

  6. Internal Failure Cost: Defects/problems prior to shipping • Product design failure • Service failure • Purchasing failure: incoming part failure • Defectives/rejects/scraps/downgrading • Repair or rework • Materials review • Corrective actions

  7. External Failure Cost: Problems after Shipping • Complaint investigations • Problem solving • Failure analysis • Returned goods • Retrofit and recall • Warranty claims • Liability costs • Penalties • Others

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