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Topics: Change Management, Quality, Strategy
Quality Management in Manufacturing
Network:49



Through the few years I've been on the job market, all companies I've seen had a Quality System in place with a philosophy to track Quality in order to monitor their improvements in production and maintain the quality requirements that their products require.

An "old" view of Production about Quality is certainly that it's preventing the full capability of Production to pump out products for sales. Quality should be simply determined by the production operators themselves and define in some ways their performance at the end of the year, which is plenty to tag a product acceptable for delivery.
Little importance is given to the documentation aspect and monitoring of Quality.

As I strongly believe this is a System that should be embraced, can anyone help me with defining the "Returns on Investment" of implementing a Quality Assurance and Control Department, partly or completely independent of Production?

Aside from potential claims from customers which could be expensive, which other more practical gain can there be? How can they be defined monetarily?
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Network:337



To help clarify your question, are you referring to QA and QC in the processes/activities that lead up to (and hopefully still occur during) the production of a product, as opposed to the production of the product itself?
Network:1898



Just to use a word that is a "new fashion word" today. Agile. Basement, foundation of Agile is quality. You can not implement Agile to gain into agility without quality because the definition of Agile is "way of behavor and thinking with focus on client, value and quality". So, first thing to do when some organization like to implement Agile (is could be in a particular business defined into the organization) is to define the key terms (could be consider as primitives) "client" to define "value" and "quality". If you like to know more about it due to you ask about production you can search for the results of the USA DoD/NSF Agility Forum in 1990 which was the place where Agile and agility were formaly definied inside the University of Leihigh. The forum is still active and it sponsor is Lea Cocca foundation. Today the deliverables are not public but the forum focus is "Agile Manufacturing" where manufacturing is used as a boarder term. In 1990 and today the models created in that forum are integral models that lot of companies have implemented with success.
Network:1624



Bogdan -

Cost of Quality is the sum of the costs of conformance and non-conformance. Usually a little more spent on prevention can reduce the costs of inspection, internal rework and external rework, reputational and financial damage.

Justifying quality expenditures could be done by using a decision tree which would evaluate the expected monetary value of having or not having a department established based on the reduction in non-conformance and rework related costs.

Kiron
...
1 reply by Bogdan Opris
Sep 18, 2019 8:11 AM
Bogdan Opris
...
Thank you Kiron.
This is the idea I was looking for to figure out how to present this.

Great Help!
Network:49



Sep 18, 2019 7:30 AM
Replying to Kiron Bondale
...
Bogdan -

Cost of Quality is the sum of the costs of conformance and non-conformance. Usually a little more spent on prevention can reduce the costs of inspection, internal rework and external rework, reputational and financial damage.

Justifying quality expenditures could be done by using a decision tree which would evaluate the expected monetary value of having or not having a department established based on the reduction in non-conformance and rework related costs.

Kiron
Thank you Kiron.
This is the idea I was looking for to figure out how to present this.

Great Help!
Network:95



Yes, you certainly can if you wish. Quality can be quantified and measured against almost any business process outside of the "production" environment from financial, HR, engineering, sales, project management, etc. Create the necessary framework (policies, processes, procedures) and metrics and KPI's to measure the "quality" of work completed. For example, sales orders completed within specified timeframe, completeness of said sales order, etc. The question is what is the expected value added when is all said and done?
Network:104039



You should talk to your finance department to get the current situation. As Kiron suggested, you need to know how much you are spending on non-conformance activities.

Once you have that total, you could potentially pitch a proof of concept. The idea for the PoC is to give you some insight into the potential savings that quality management will bring.

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