Please register (it's free!) or login to view the remaining preview.

If you are logged in, your referral link [?] is automatically included below.

EMBED CODE (Copy and Paste)

BENEFITS OF DOCUMENT

Provides a framework for reducing costs based on the COQ approach to quality improvement.
Provides guidelines on how to identify, measure and analyze items related to the Cost of Non-Conformance (CONC) and the Cost of Conformance (COC).
Provides a cost management system to support your continuous improvement or Lean Six Sigma program.

DOCUMENT DESCRIPTION

As a key factor of competitiveness, you must manage cost all the time, not only in times of economic downturn. Reducing the Cost Of Quality (COQ) program helps achieve this. This training fits well into any cost reduction or process improvement initiative, including Lean management and TQM. The COQ methodology instills a practical approach to quantifying the financial impact of the Cost Of Non-Conformance (CONC) and the Cost Of Conformance (COC). The COQ calculation methods are also used in quantifying the impact of Lean Six Sigma programs.

This presentation covers four essential steps for setting up a measurement system to track COQ. These steps are identification, collection, reporting and analysis, and reduction of quality costs.

By teaching this presentation, you can improve the company culture and improve the bottom line. This presentation changes employees problem solving focus from quick fix solutions to preventing issues before they occur. This course teaches the skills to prioritize quality improvement opportunities based on the expected financial return.

CONTENTS:

1. Introduction & Basic Concepts of COQ
• Business case for quality
• Impact of quality improvement program
• Link between quality costing and profits
• Why are quality costs important?
• Why measure COQ?
• What is COQ?
• COQ iceberg model
• COQ versus Lean & Six Sigma
• Goal of COQ system
• Preparation
• Four phases of a COQ system

2. Step 1: Identifying COQ Items
• PAF model
• Prevention costs
• Appraisal costs
• Failure costs
• Internal failure costs
• External failure costs
• Eight types of waste
• CONC checklists
• Guidelines for identifying COQ items

3. Step 2: Collecting COQ Data
• Matching accounts with CONC items
• Quality costing
• COQ Data source
• Example calculations of Failure cost, Appraisal cost and Prevention cost
• COQ scorecard and indices
• Process flow for COQ reporting
• Collecting and reporting COQ data
• Role of Finance
• Role of line managers/supervisors
• Practical guidelines

4. Step 3: Analyzing COQ Data
• Selecting quality cost bases
• Trends analysis
• Pareto analysis
• Variance analysis
• SMART criteria
• Set targets for improvement
• Case study

5. Step 4: Reducing COQ & Improving Quality
• Reduce COQ through quality improvement programs
• Tools and techniques
• System for quality is prevention
• Some results from industries
• Sustaining COQ

Got a question about the product? Email us at [email protected] or ask the author directly by using the form to the right. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Reducing the Cost of Quality PowerPoint document

Top Flevy Author [?]

Reducing the Cost of Quality

Sold by Operational Excellence Consulting (this author has 173 documents)

$79.00

ALL FEES INCLUDED

Add to Cart

This business document is categorized under the function(s):

Operations Organization, Change, & HR

It applies to All Industries

File Type: PowerPoint (pptx)

File Size: 7 MB

Number of Slides: 131 (includes cover, transition slides)

Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.

Terms of usage (for all documents from Operational Excellence Consulting)

Initial upload date (first version): Feb 23, 2013
Most recent version published: Apr 17, 2021

Ask the Author a Question

Must be logged in Click here to log in

This document is available as part of the following discounted bundle(s):

TQM Consultant Toolkit

$179.00

This bundle contains 2 additional documents.

View Full Details

Total Quality Management (TQM)

181-slide PowerPoint deck

$79.00

Author:

PDCA Problem Solving Technique & Tools

198-slide PowerPoint deck

$79.00

Author:

CUSTOMER TESTIMONIALS

"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success."

– Bill Branson, Founder at Strategic Business Architects

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy usually has just what I need to make my point.

It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients."

– Ed Kemmerling, Senior Lean Transformation Expert at PMG

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.

I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings. "

– Nishi Singh, Strategist and MD at NSP Consultants

"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.

I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.

Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.

Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world."

– Roberto Pelliccia, Senior Executive in International Hospitality

SELECT CUSTOMERS

Since 2012, we have provided best practices to over 5,000 businesses and organizations of all sizes across the world—in over 130 countries. Below is just a very small sample of our customer base.

Did you know?

The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

CUSTOMERS ALSO BOUGHT THESE DOCUMENTS

Cost Reduction Opportunities (across Value Chain) 24-slide PowerPoint deck $39.00 Author: LearnPPT Cost Reduction Assessment Value Chain Analysis	ISO 9001:2015 (QMS) Awareness Training 83-slide PowerPoint deck and supporting ZIP $69.00 Author: Operational Excellence Consulting Quality Management & Assurance ISO 9001	Cost Reduction Methodologies 33-slide PowerPoint deck $25.00 Author: marcus Cost Reduction Assessment Strategic Sourcing	Strategic Cost Reduction Training 97-slide PowerPoint deck $79.99 Author: Documents & Files Cost Reduction Assessment
Total Quality Management (TQM) 181-slide PowerPoint deck $79.00 Author: Operational Excellence Consulting Total Quality Management Continuous Improvement Quality Management & Assurance	Overview of Baldrige Excellence Framework 85-slide PowerPoint deck and supporting Word $49.00 Author: Operational Excellence Consulting Performance Management Quality Management & Assurance Malcolm Baldrige	Enterprise Cost Reduction Approach 36-slide PowerPoint deck $49.99 Author: Documents & Files Cost Reduction Assessment	Project Quality Management v1 121-slide PowerPoint deck $180.00 Author: Adaptive US Inc. Quality Management & Assurance
Total Quality Process (TQP) 100-slide PowerPoint deck $69.00 Author: Operational Excellence Consulting Total Quality Management Quality Management & Assurance	Capital Optimization Guide 123-slide PowerPoint deck and supporting Excel workbook $49.00 Author: Corporate Finance 101 Cost Reduction Assessment	Advanced Product Quality Planning (APQP) 66-slide PowerPoint deck and supporting Excel workbook $69.00 Author: Operational Excellence Consulting Product Strategy Quality Management & Assurance APQP	Quality Management System - Implementation Toolkit Excel workbook and supporting ZIP $149.00 Author: Gerard Blokdijk Quality Management & Assurance