Miscellenious

COQ

Boman Moradian
(compiled by Ms. Shalini Sadhwani)
MMS student at JBIMS

Cost of quality = hurt of nonconformance and price of conformance.

COQ =PONC + POC

PONC = All those monetary values incurred because things were not done
good the prototypic time.

POC = Those woos incurred to ensure that things are done

right the first time.

THE COST OF QUALITY (COQ) SYSTEM

Origin

The dodge probably originated in the 1940s in Western Electric and was used as an look for to measure the efficiency of work processes in financial terms. The system has been around for some 40 odd years that has not been successfully implemented by many organisations.

In any company, the total operate make ups can be broken down into:
- PONC
- POC
- Error-free costs

Error-free costs include all expenses incurred for operating processes as they were designed, assuming no planned waste; redo or non-conformance was part of the design. Expenses the word include those for materials, labour, equipment, plant, officer energy, etc.





The cost of quality typically runs at 10 to 30% of gross revenue in manufacturing companies and 20 to 50% of operating costs in service companies.

The cost of quality is not an ac enumerate system

The cost of quality is a communications tool and should not be viewed as a classical accounting system. An analogy whitethorn help to make this clear. You are walking down the path and, unprovoked; a maniac fires a shotgun at you. You fall to the ground, alive, that seriously wounded and bleeding from legion(predicate) perforations. The accountants and quality specialists would try to devise a system of counting precisely the number of red blood corpuscles that you are loosing. The cost of quality specialist (doctor) simply wishes to know roughly but with some accuracy and consistency, where the worst leaks are so that he can plug them fast. In the first...If you want to get a full essay, order it on our website: Orderessay



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