1.     Quality Conformance and Improvement

Cost of Quality Consists of Cost of Quality Monitoring, Cost of Conformance and Cost of Non-Conformance, Modern Strategic Management Places emphasis on Effect of Non Conformance of Performance on Brand Value and Value development by way of Users satisfaction rather than manufacturers perception of Quality. This Changes equation of Quality with Production process and brings CRM into same to ensure that post production cost of warranty, repairs, rework, replacement and compensation due to failure to perform are charged in correct way to improve internal process of Production as well as Products Itself. But the deviation from this principle is the limitation of user’s perception or priorities due to Price Points, Physical Limitation of Materials or Technology and other aspects that require inferior or non-perfect products/ services. Considering these aspects the SME Needs to rethink Quality Function right from Product Development Phase which includes following:

1.       Whether QFD is used on Following Levels:

a.       Product Planning Level

b.      Production Level

c.       Operations Level

d.      Delivery Level

2.       Does Value Analysis is done for Quality Standards Selection

3.       Method used for Production Quality Improvement

4.       Method Used for Total Cost of Quality

5.       Method Used for Allocation of Quality Cost to Departments Like PLC, Production and Distribution

6.        Use of Tools and Jigs for Quality Improvement during Production and Material Handling

7.       Statistical Sampling Used while Production and Packaging

8.       Method Used for Adherence to Quality During Purchase Process

9.       Inward Co-ordination with Stores Department for Material Usage and Handling for reduction in Waste and other reasons like Accidents and Errors in Handling

10.   Methods used for Quality Conformance and communication its limitation with CRM Department for Awareness and Appropriate client communication (Promises and Resolution offered)

11.   Measurement of Total Quality Cost and Its Effect on Brand Development and Sale

12.   External Validation Method used for Quality Standards Adherence like ISI or ISO

13.   Internal Control Mechanism used for Quality Delivery of Work

14.   Commitment from BOD for Qualitative work & Incentive Structure for Conformance

15.   Quality Non-Conformance Investigation Technique used by Management

16.   Does Competitive Priorities are reflected through Quality Management Process?

a.       Cost – Lowest in Market

b.      High Performance Design

c.       Time Management

                                                   i.      Fast Delivery Time

                                                 ii.      On Time Delivery

                                                iii.      Process Improvement Time

d.      Lean and Adaptive Operations

                                                   i.      Customization abilities

                                                 ii.      Volume Flexibility

                                                iii.      Delivery to Odd Locations Etc

17.   Fullest Use of Quality Department Assets

18.   Adaptation of Latest and Advance Quality Standards

19.   Adaptation of Latest and Advance Quality Development Technologies

20.   Does Quality Cost Driver Analysis is carried for Each Failure Reported and Appropriate Investigation is Carried out?

 

Being a Cost Audit Firm, the onus is towards Overall Effectiveness of Process than single aspect of Functional Task thus this area needs to be further explored for more accurate control on the function. This shall also translate into Future Product Development control points to help SME into Solution Developers than Vendors or B2B suppliers with no say in development of Industry itself.