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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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.
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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
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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.
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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
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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 operator’s productivity — little by
little.
6. Make manufacturing easier — long-term plan.
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8.  Joseph M. Juran, Frank M. Gryna, et al:
“Juran’s 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: “ Juran’s
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
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