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Quality improvement and cost reduction

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Shivani Chaudhari
Shivani Chaudhari

What is quality and quality improvement, what is cost reduction, types of problems (sporadic and chronic), need of quality improvement and cost reduction

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1 AISSMS COLLEGE OF PHARMACY, PUNE-01 Prepared by SHIVANI KAILAS CHAUDHARI M. Pharmacy (Dept. of Quality Assurance)
Quality means those features of products which meet customer needs and thereby provide customer satisfaction. In this sense, the meaning of quality is oriented to income. Quality means freedom from deficiencies freedom from errors that require doing work over again (rework) or that result in field failures, customer dissatisfaction, customer claims, and so on. 2
Product features that meet customer needs Freedom from deficiencies 1. Higher quality enables companies to: Increase customer Satisfaction Make products salable Meet competition Increase market share Provide sales income Secure premium prices 2. The major effect is on sales. 3. Usually, higher quality costs more 1. Higher quality enables companies to: Reduce error rates Reduce rework, waste Reduce field failures, warranty charges Reduce customer dissatisfaction Shorten time to put new products on the market Increase yields, capacity Improve delivery performance 2. Major effect is on costs. 3. Usually, higher quality costs less 3
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SPORADIC PROBLEM CHRONIC PROBLEM Sporadic means now and then chronic means all the time A sporadic problem is a sudden, adverse change in the status quo, which requires remedy by restoring the status quo. A chronic problem is a long-standing adverse situation, which requires remedy by changing the status quo. Sporadic problems are dramatic and must receive immediate attention. Chronic problems are not dramatic because they occur for a long time & are often difficult to solve, and are accepted as inevitable sporadic problems it means taking corrective action on periodic problems For chronic problems, it means achieving better & better levels of performance each year, Sporadic problems are attacked by the control process. Chronic problems use the improvement process. 5
Need for quality improvement and cost reduction Customer Satisfaction Reduction in the cost of poor quality Reduction in the chronic waste Action on late deliveries Reducing variation 6
1. Reduce external failures. 2. Reduce internal failures. 3. Reduce the testing & inspection budget little by little. 4. Increase production equipment efficiency long-term plan. 5. Improve operators productivity little by little. 6. Make manufacturing easier long-term plan. 7
Joseph M. Juran, Frank M. Gryna, et al: Jurans Quality Planning & Analysis for Enterprise Quality, 5th Edition, McGraw-hill Publication, Pg No: 29, 33- 35, 59, 64-65, 67 Joseph M. Juran, A. Blanton Godfrey: Jurans Quality Handbook, 5th Edition, Mcgraw-hill Publication, Pg No: 2.1-2.2, 2.5-2.7, 3.2-3.3, 4.2, 4.5, 5.3, 8.14- 8.16 8

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Quality improvement and cost reduction

  • 1. 1 AISSMS COLLEGE OF PHARMACY, PUNE-01 Prepared by SHIVANI KAILAS CHAUDHARI M. Pharmacy (Dept. of Quality Assurance)
  • 2. Quality means those features of products which meet customer needs and thereby provide customer satisfaction. In this sense, the meaning of quality is oriented to income. Quality means freedom from deficiencies freedom from errors that require doing work over again (rework) or that result in field failures, customer dissatisfaction, customer claims, and so on. 2
  • 3. Product features that meet customer needs Freedom from deficiencies 1. Higher quality enables companies to: Increase customer Satisfaction Make products salable Meet competition Increase market share Provide sales income Secure premium prices 2. The major effect is on sales. 3. Usually, higher quality costs more 1. Higher quality enables companies to: Reduce error rates Reduce rework, waste Reduce field failures, warranty charges Reduce customer dissatisfaction Shorten time to put new products on the market Increase yields, capacity Improve delivery performance 2. Major effect is on costs. 3. Usually, higher quality costs less 3
  • 4. 4
  • 5. SPORADIC PROBLEM CHRONIC PROBLEM Sporadic means now and then chronic means all the time A sporadic problem is a sudden, adverse change in the status quo, which requires remedy by restoring the status quo. A chronic problem is a long-standing adverse situation, which requires remedy by changing the status quo. Sporadic problems are dramatic and must receive immediate attention. Chronic problems are not dramatic because they occur for a long time & are often difficult to solve, and are accepted as inevitable sporadic problems it means taking corrective action on periodic problems For chronic problems, it means achieving better & better levels of performance each year, Sporadic problems are attacked by the control process. Chronic problems use the improvement process. 5
  • 6. Need for quality improvement and cost reduction Customer Satisfaction Reduction in the cost of poor quality Reduction in the chronic waste Action on late deliveries Reducing variation 6
  • 7. 1. Reduce external failures. 2. Reduce internal failures. 3. Reduce the testing & inspection budget little by little. 4. Increase production equipment efficiency long-term plan. 5. Improve operators productivity little by little. 6. Make manufacturing easier long-term plan. 7
  • 8. Joseph M. Juran, Frank M. Gryna, et al: Jurans Quality Planning & Analysis for Enterprise Quality, 5th Edition, McGraw-hill Publication, Pg No: 29, 33- 35, 59, 64-65, 67 Joseph M. Juran, A. Blanton Godfrey: Jurans Quality Handbook, 5th Edition, Mcgraw-hill Publication, Pg No: 2.1-2.2, 2.5-2.7, 3.2-3.3, 4.2, 4.5, 5.3, 8.14- 8.16 8