Copq benefits of correct measurement (for slideshare)
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The document outlines the concept of the Cost of Poor Quality (COPQ), emphasizing its definition, benefits, and the necessary steps for measurement and improvement. It highlights that poor quality costs significantly impact industries, particularly in construction, where billions are wasted on rework. The way forward involves senior management support, accurate measurement, root cause analysis, and corrective actions to enhance quality on a project basis.
Copq benefits of correct measurement (for slideshare)
- 1. Cost of Poor Quality
- 2. Outline Define Cost of Poor Quality Where we stand? Benefits Way Forward
- 3. Define • Joseph Juran - first discussed the cost of quality analysis in 1951
- 5. Define Focus on Cost of Poor Quality
- 6. Benefits of COPQ Direct contribution in profit Identify quality improvement candidates; • Identify all failures costs • Detect root causes and eliminate them Promotes the effective use of resources – Hidden factory concept Measure of the success of projects Provides incentives for doing the job right first time.
- 8. • In 2007, U.S. construction industry expenditures were $1.246 trillion and out of these, $62 billion (5%) were wasted on the direct cost of rework alone. (Bureau of Economic Analysis, 2009) • Annual turnover of the Australian construction industry was estimated at $A32 billion per annum whereas the cost of rework was approximated at $A4 billion (12.5%) per annum. (Construction Expert Group, 1993) • An average contractor is estimated to spend between 5-10 percent of the project cost on rework. (Construction Industry Development Board (CIBD)) Benefits of COPQ
- 9. Initiate accurate measurement of Cost of Poor Quality Way Forward But how??
- 10. Senior Management support is critical for implementing COPQ programSenior Management support is critical for implementing COPQ programSenior Management support is critical for implementing COPQ programSenior Management support is critical for implementing COPQ program Way Forward All quality improvement occurs on a project-by-project basisAll quality improvement occurs on a project-by-project basis - Juran- Juran All quality improvement occurs on a project-by-project basisAll quality improvement occurs on a project-by-project basis - Juran- Juran
- 11. Determine level of detail for COPQ measurementDetermine level of detail for COPQ measurementDetermine level of detail for COPQ measurementDetermine level of detail for COPQ measurement Start with Internal and External Failure costs onlyStart with Internal and External Failure costs onlyStart with Internal and External Failure costs onlyStart with Internal and External Failure costs only Select any pilot project for measurement of COPQSelect any pilot project for measurement of COPQSelect any pilot project for measurement of COPQSelect any pilot project for measurement of COPQ Selection of projectSelection of projectSelection of projectSelection of project Formation of COPQ teamFormation of COPQ team (preferably QA&QC + Planning)(preferably QA&QC + Planning)Formation of COPQ teamFormation of COPQ team (preferably QA&QC + Planning)(preferably QA&QC + Planning) Mandate is given to COPQ teamMandate is given to COPQ team (for accurate measurement)(for accurate measurement)Mandate is given to COPQ teamMandate is given to COPQ team (for accurate measurement)(for accurate measurement) Monthly reporting from COPQ teamMonthly reporting from COPQ team (Areas of improvement)(Areas of improvement)Monthly reporting from COPQ teamMonthly reporting from COPQ team (Areas of improvement)(Areas of improvement) Way Forward Select any specific activity or activitiesSelect any specific activity or activitiesSelect any specific activity or activitiesSelect any specific activity or activities
- 12. • Only measuring COPQ will not resolve the problems of a company • Shall identify activities that need to be done in order to improve the quality level of the company Way Forward Once COPQ team identify improvement area;Once COPQ team identify improvement area;Once COPQ team identify improvement area;Once COPQ team identify improvement area; Perform root cause analysisPerform root cause analysisPerform root cause analysisPerform root cause analysis Suggest corrective actionSuggest corrective actionSuggest corrective actionSuggest corrective action
- 13. Results will not be over-nightResults will not be over-nightResults will not be over-nightResults will not be over-night Way Forward Corrective action can be investment in;Corrective action can be investment in;Corrective action can be investment in;Corrective action can be investment in; Prevention CostPrevention CostPrevention CostPrevention Cost Appraisal CostAppraisal CostAppraisal CostAppraisal Cost Management should not react if COPQ value is highManagement should not react if COPQ value is highManagement should not react if COPQ value is highManagement should not react if COPQ value is high
- 14. Fix the Leak Way Forward q Q
- 15. (in US $) (H&S Motor Company, USA) Way Forward COPQ team identified improvement area;COPQ team identified improvement area;COPQ team identified improvement area;COPQ team identified improvement area;
- 16. !! Overcome Psychological Inertia, to save all initiatives !! Way Forward
- 17. Conclusion Use COPQ as a tool to identify improvement areas (Prevention or Appraisal) in order to eliminate internal and external failures.
- 18. Failures Eccentric Rebars Right First Time
- 19. Taking the revision cloud too seriously Red-bull reinforced concrete Failures