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Prevention Cost in Quality Costing   Ita Akyuna Nightisabha S4307076
Abstract <ul><li>Improving quality is considered by many to be the best way to enhance customer satisfaction, reduce manuf...
What’s Quality ? <ul><li>Quality is how the recipient of the product or service views it: before buying, upon delivery, an...
Quality Costing <ul><li>Quality cost is a noun which signifies a cost that is found to be related to quality in some way. ...
Quality Cost are Classified to : <ul><li>1-Internal Failure Costs.  </li></ul><ul><li>These are costs of deficiencies disc...
Prevention Cost <ul><li>Related to the activity of any hindrance in production or process approaches, quality planning, qu...
Prevention Cost Contd.. <ul><li>Prevention is designed to keep errors </li></ul><ul><li>from accuring in the process in th...
Appraisal Cost <ul><li>Evaluating a product/service at sequential stages to determine its acceptability. </li></ul><ul><li...
Appraisal Cost Contd.. <ul><li>Design reviews are part prevention and part appraisal. To the degree that you are looking f...
Failure Costs <ul><li>Internal Failure Costs that arise before your company supplies its product to the customer </li></ul...
Benefits of measuring cost of quality <ul><li>Higher productivity </li></ul><ul><li>Less rework </li></ul><ul><li>Less has...
Final Word <ul><li>Prevention is cheaper than inspection </li></ul><ul><li>Wasted materials, rework costs and potensial lo...
Thank you <ul><li>Terima kasih </li></ul><ul><li>Bedankt </li></ul><ul><li>Matur nuwun </li></ul><ul><li>Danke </li></ul><...
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Akman Jadi

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Akman Jadi

  1. 1. Prevention Cost in Quality Costing Ita Akyuna Nightisabha S4307076
  2. 2. Abstract <ul><li>Improving quality is considered by many to be the best way to enhance customer satisfaction, reduce manufacturing costs and to increase productivity. Because the main language of corporate management was money, and costs were the heart of its life cycle, there emerge the concept of studying of costs that related with quality. The core problem of improving quality is no more defect. A defect is causing some costs which classified as a prevention cost, appraisal cost, internal failure cost and external failure cost. Even though there is a difference on the characteristic and dissemination of quality cost, most experts agreed that management should focus on preventing a defection, because a small investment for the prevention could significantly reduce an appraising and failure cost. </li></ul><ul><li>Keywords : improving quality, cost of quality, prevention cost. </li></ul>
  3. 3. What’s Quality ? <ul><li>Quality is how the recipient of the product or service views it: before buying, upon delivery, and after the delivery-and use the product </li></ul>
  4. 4. Quality Costing <ul><li>Quality cost is a noun which signifies a cost that is found to be related to quality in some way. Quality costing is method of measuring quality cost to simulate quality improvement </li></ul>
  5. 5. Quality Cost are Classified to : <ul><li>1-Internal Failure Costs. </li></ul><ul><li>These are costs of deficiencies discovered before delivery which are associated with the failure (nonconformities) to meet explicit requirements or implicit needs of external or internal customers. </li></ul><ul><li>2-External Failure Costs. </li></ul><ul><li>These are costs that would disappear if no deficiencies existed. These are costs associated with deficiencies that are found after product is received by the customer. Also included are lost opportunities for sales revenue. </li></ul><ul><li>3-Appraisal Costs. </li></ul><ul><li>These are the costs incurred to determine the degree of conformance to quality requirements. </li></ul><ul><li>4-Prevention Costs. </li></ul><ul><li>These are costs incurred to keep failure and appraisal costs to a minimum. </li></ul><ul><li>The Total Cost Of Quality is the sum of the 4 categories above. </li></ul>
  6. 6. Prevention Cost <ul><li>Related to the activity of any hindrance in production or process approaches, quality planning, quality functions deployment and complete quality </li></ul>
  7. 7. Prevention Cost Contd.. <ul><li>Prevention is designed to keep errors </li></ul><ul><li>from accuring in the process in the first </li></ul><ul><li>place. That’s Quality Assurance </li></ul><ul><li>Inspection is designed to keep product </li></ul><ul><li>errors from reaching the customer </li></ul>
  8. 8. Appraisal Cost <ul><li>Evaluating a product/service at sequential stages to determine its acceptability. </li></ul><ul><li>Appraisal cost cannot be avoided unless a full control is achieved. </li></ul><ul><li>It includes all costs incurred in conducting appraisal of a product to determine compliance to the requirement. </li></ul>
  9. 9. Appraisal Cost Contd.. <ul><li>Design reviews are part prevention and part appraisal. To the degree that you are looking for errors in the proposed design itself when you do the review, you’re doing an appraisal. To the degree that you’re looking for ways to strengthen the design, you’re doing prevention </li></ul>
  10. 10. Failure Costs <ul><li>Internal Failure Costs that arise before your company supplies its product to the customer </li></ul><ul><li>External Failure Costs that arise after </li></ul><ul><li>your company supplies its product to the customer </li></ul>
  11. 11. Benefits of measuring cost of quality <ul><li>Higher productivity </li></ul><ul><li>Less rework </li></ul><ul><li>Less hassle </li></ul><ul><li>Less waste </li></ul><ul><li>Greater customer satisfaction </li></ul><ul><li>Improved corporate image </li></ul>
  12. 12. Final Word <ul><li>Prevention is cheaper than inspection </li></ul><ul><li>Wasted materials, rework costs and potensial lost of customer are all avoided </li></ul>
  13. 13. Thank you <ul><li>Terima kasih </li></ul><ul><li>Bedankt </li></ul><ul><li>Matur nuwun </li></ul><ul><li>Danke </li></ul><ul><li>Muito Obrigado </li></ul><ul><li>Gracias </li></ul><ul><li>Dekuji ti </li></ul><ul><li>Merci </li></ul><ul><li>Hatur nuhun </li></ul>

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