Economics of Quality Assurance & Management Practices for success

Economics of Quality Assurance
Prevention costs- planning, Training
Appraisal Cost- inspection,test, internal failure cost
External failure cost:Direct failure( warranty, customer return..)
Indirect failure( loss of good will)
Management Practices for success
Satisfy customer
Make quality an intrinsic value
Clearly articulate quality values
Cultivate an open and responsive culture
Empower the workers
encourage continuous systematic improvement
Enlist suppliers in the effort
Manufacturing excellent categories
Management ( leadership drive)
Planning ( future vision)
Continuous improvement ( be better)
Quality ( excellence)
Cost ( affordable)
Delivery ( on time ahead of schedule)
Customer Satisfaction ( delighted customer)
Technology ( superior product)
People and culture ( trained/ motivated employees)
Health and safety ( environmental concerns)
Stakeholders ( return on concerns)
Flexibility ( adaptability)
Operations and systems ( processes /flow defined and documented)
Supplier development and certification (supplier partnership)