Cost of Poor Quality



Reporting on the Cost of Poor Quality

Introduction

It is based on the daily quality of accounting data collection, processing, compilation made to reflect the cost of quality management activities of the process and results of a summary document. Quality cost report may be submitted to the time, objects, and different forms for different categories. Submitted by the time the cost is divided into regular and irregular quality report; submitted by the object and the responsibility is divided into units of plant-level cost of quality reports; form of a report into the report by type, style and statements charts three. To be disclosed on its content and quality to meet the demands of cost control, quality cost reporting companies generally are: quality, cost tables, mass loss table, the quality of income, profit and loss of quality, quality, cost and profit and loss, cost of quality financial situation and so on. The importance of the cost report is to follow the principles of quality, by year, quarter, month preparation, so that managers and workers can move to achieve "zero defects" the ideal of constant pressure (Mandel, B.J. 1972). Cost of quality reports to disclose the contents in general are: the cost of the project and compare the actual amount of the standard, the ratio between the cost of the project, prior periods of data quality, cost, quality, cost and sales, cost of sales (manufacturing costs), direct labor working hours, the ratio between fixed assets, quality income, quality loss, and a comparison with the industry or competitor information, analysis of major projects or special instructions, and other such.

Discussion

Quality cost (Cost of Poor Quality; COPQ) make up less than one million defective rates. The concept is the cost of different products, different quality losses; the same defect, in the supply chain in different locations, resulting in the loss are not the same (for example, replacement, maintenance, warranty, shutdown, loss of reputation, loss of future business, etc.). For example, a customer at the bad, the greatest impact, assuming that weight is 100; bad in the company's production line, the impact is quite large, assuming a weight of 10; bad in the supplier 's production plant, with minimal impact, assuming a weight of 1 (Mandel, B.J. 1972).

American quality experts Crosby said that quality itself is not a problem, only the product design, materials, labor and manufacturing problems will lead to poor quality.

Six Sigma Project

Six Sigma project is a main element in the reporting of cost of poor quality. It aimed at two objectives, first, improve customer satisfaction, to capture the market by improving customer satisfaction. Develop new markets, thereby enhancing the organization's effectiveness. The second is to reduce resource costs. Resources by reducing costs particularly cost of poor quality losses (COPQ).

"Motorola" superseded from the market with cheap but high quality products of Japanese firms, gathered in their research centers in a group of prominent mathematicians statisticians, experts in the field of designing, as well as quality assurance specialists who have developed a coherent ...