Wednesday, December 16, 2009

Crosby : TQM

Philip B Crosby was born in Wheeling Virginia, 18th June Crosby began his career as a quality professional in 1952 after serving in World War II.
Crosby was the corporate Vice president for the international Telephone Telegraph, world-wide responsibilities for quality .
Crosby observed that poor quality in most companies costs around 20% or more of all revenue, most of which could be avoided by adopting good quality practices for achievement of which Crosby prescribed 4 absolutes for quality

Quality is free ( as the money spent on making quality is recovered by the increase in profit and decrease in wastage)

A company spends money on Quality and presume that Quality is not free, but the fact is, that it is free, if you think that every penny you don’t spend on doing things wrong, over, or instead of, becomes half a penny right on the bottom line. And in the uncertain world of business there aren’t many ways to make a profit improvement. If you concentrate on making quality certain, you can probably increase your profit by an amount equal to 5% to 10% of you sales. That’s a lot of money for free

1.Quality is defined as conformance to requirements, not as ‘elegance’ or ‘goodness’
According to Crosby quality should be made a necessary prerequisite of production , quality is necessity and nothing as an element of fancy, all activities should be in accordance of building right quality in product.

2.There is no such thing as a “quality problem or The system of achieving quality is prevention and not appraisal/ inspection

Crosby stated that companies should emphasize on activities to prevent any non conformance towards quality and appraisal of products ( which include actions like inspection, testing and other quality control means ) should be avoided,as appraisal involves greater costs and require more time.

Non conformance in quality increases the cost of appraisal which is termed as cost of quality, he emphasized that if the quality can be controlled at every step then there will hardly by any requirement of appraisal.

3 Measurement of quality is the price of non conformance:

According to Crosby quality should be in terms of costs of non conformance and not as indices of quality, such data alone can provide the clear proof of need for improvement, which is the aim any quality management system.
4 The only performance standard is zero defects:

Zero defect means, do it right the first time, crosby stated that system should aim at zero defect, according to it all the efforts should be implemented and directed towards prevention of occurence of defects, rather than trying to inspect, rework and retrieve the products. Crosby wanted to change the mindset of people that error is inevitable and advised that whatever may be the situation, people must continually bring down the errors by aiming at zero defect target.Zero defect is not a standard but a target.


Cost of Quality :

¬ Prevention costs:- The cost company has to incur to prevent defects/ defectives in a product or service is termed as Prevention cost, it includes following

  • Design reviews
  • Product qualification
  • Drawing checking
  • Engineering quality orientation
  • Supplier evaluations
  • Supplier quality seminars
  • Specification review
  • Process capability studies
  • Tool control
  • Operation training
  • Quality orientation
  • Acceptance planning
  • Zero defects programme
  • Quality Audits
  • Preventative maintenance

¬Inspection or Appraisal costs

  • Prototype inspection and test
  • Production specification conformance analysis
  • Supplier surveillance
  • Receiving inspection and test
  • Product acceptance
  • Process control acceptance
  • Packaging inspection
  • Status measurement and reporting

¬ Wastage or Failure costs
  • Consumer affairs
  • Redesign
  • Engineering change order
  • Purchasing change order
  • Corrective action costs
  • Rework
  • Scrap
  • Warranty
  • Service after service
  • Product liability

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