by
Rajesh Bheda
Presents
Doorsamvad
Garment Manufacturing Technology Department National Institute of Fashion Technology
Quality
Why this theme? What is Quality? How to measure Quality ? Can Quality be achieved at low cost? What is Cost of Quality? Quality Maturity Grid. Inter-relationship of Quality Costs.
Why Profitability?
That is the main reason we in business Because we are not in the business of Charity Profitability is an illusive word for todays apparel industry
Why Profitability?
Because we feel that it could increase only by increased selling price or by reducing costs by Cutting Corners
Quality : Definition
Conformance to Requirements
Crosby
Quality : Definition
The ASQC Quality Cost Committee (5) recommends breaking down quality costs into the following four areas 1. Prevention Cost The cost associated with personnel engaged in designing, implementing and maintaining the quality system. Maintaining the quality system includes auditing the system. 2. Appraisal Costs The costs associated with the measuring, evaluating or auditing of products, components and purchased materials to assure conformance with quality standards and performance requirements.
Cont...
The ASQC Quality Cost Committee (5) recommends breaking down quality costs into the following four areas 3. Internal Failure Cost The costs associated with defective products, components and materials that fail to meet quality requirements and result in manufacturing losses. 4. External Failure Costs The costs generated when defective products are shipped to customers.
Conclude
Failure Costs
External
Failure Costs
Internal
Appraisal Costs
Prevention Costs
Setting Standards Quality Planning Quality Assurance Inspection Equipment Training Miscellaneous
CAUSE
16
52%
Design*Fault Poor Planning Others 12 14 Cause 36
66%
Appraisal
Prevention
Quality is hidden in manufacturing or engineering department. Inspection probably not part of organisation. Emphasis on appraisal and sorting
Recognizing that quality management may be of value but not willing to provide money or time to make it all happen. Co.s Quality Posture It is absolutely necessary to always have problems with quality?
StageStage-III ENLIGHTENMENT
Quality Imp. Actions Implementation of the 14-step program with thorough understanding and establishment of each seep.
Quality department reports to top management, all appraisal is incorporated and manager has role in management of company. Co.s Quality Posture Through management commitment and quality improvement we are identifying and resolving our problems.
Source: Quality is Free by Philip B. Crosby
StageStage-IV WISDOM
Management Attitude Participating. Understand absolutes of quality management. Recognize their personal role in continuing emphasis. Cost Of Quality% Reported 6.5% Actual 8%
StageStage-V CERTAINTY
Quality Org. Status Quality manager on board of directors. Prevention is main concern. Quality is a thought leader.
Co.s Quality Posture We know why we do not have problems with quality. Source: Quality is Free by Philip B. Crosby
INCREASED PROFITS
Why Quality?
Quality related costs can be as high as 25% of sales. One forth of the people employed do not produce but re-do and re-inspect & re-re-do. Quality costs are greater than gross profit. In world class companies these costs can be brought down to 2.5%.
How can profitability go up by up to 20-25% 20 Assume a current profitability of 20% i.e. Total costs 80% Profit 20% Cost of Quality could be 25% of the 80% If through a quality assurance program you could reduce Cost of Quality to 15% Then the profitability will go up by 40% to 28% level
How can profitability go up by up to 20-25% 20 Even if you pass on 5% as discount to your buyer, the net profitability in the new situation remains 24.21%. This is greater than 20% gain. How does it sound? Just Do It
Thank You
& Samvad