Cost of Quality

Prevention Costs
Costs for all activities are as specifically designed to prevent the bad quality of service or product.

• Re-study of New Product
  
• Quality Planning
  
• Survey Ability of Supplier
  
• Evaluation Ability of Process
  
• Meeting of Quality Improvement Team
  
• Quality Improvement Projects
  
• Training and Education of Quality
  

Appraisal Costs
Costs related to measurement, evaluation or make an audit of to product or service to ascertain as according to clauses of standard quality of and performance. Including among are:

• Inspection/ examination of material
  
• Examination during process
  
• Final Audit service, process and product
  
• Calibrate from equipment of examination and measurement
  

Failure Costs
The costs yielded from product or the service disagrees with clauses of customer. Failure cost divided by 2 that is external and internal category.

Internal Failure Costs
Failure costs emerging before delivery of product to customer. The example is costs:

• Scrap
  
• Rework
  
• Re-inspection
  
• Re-testing
  
• Material review
  
• Downgrading
  

External Failure Costs
The costs emerging after delivery of product to customer. The example is expense- expense:

• Processing customer complaints
  
• Customer returns
  
• Warranty claims
  
• Product recalls

A GOOD HOUSEKEEPING IN FIVE STEPS

INTRODUCTION OF THE 5 S
Kaizen values so much the process as the result. In order that the people become jumbled in the continuation of their effort they kaizen the management must glide, organize and execute with well-taken care of the project. Often, the managers wish to see the result too much and ignore a vital process. The 5S “are not a fashion” nor the “program” of the month, but a conduct of the daily life. Therefore, all project kaizen needs to include pursuit passages.
Since they have been kaizen for against the resistance of the people to the change, the first step consists of mentally preparing the 5 employees so that they accept S before beginning to the campaign. Like a preliminary aspect to the effort of the 5S, must assign a time to analyze the implicit philosophy of the 5 S and its benefits:

• Creating ambient of it worked clean, hygienic, pleasant and safe.
  
• Revitalizing to gemba and improving substantially the mood, the moral and the motivation of the employees.
  
• Eliminating the diverse classes of dumb diminishing, the necessity to physically look for tools, doing easier the work of the operators, reducing the exhausting work and releasing space.
  

The management also must include/understand the many the 5 benefits that S in gemba for the totality of the company; between these we mentioned:
Seiso, in particular, increases the trustworthiness of the machines, leaving of this one form more free time to the maintenance engineers to work in machines that are prone to sudden failures. Like result, the engineers can concentrate themselves in primary aspects that greater importance, like the preventive maintenance, the predictive maintenance and the creation of equipment frees of maintenance, in collaboration with the design departments.

A GOOD HOUSEKEEPING IN FIVE STEPS
The five passages of housekeeping, with their Japanese names, are the following:

1. Seiri: to differentiate between elements necessary and unnecessary in genba and to unload these last ones.
2. Seiton: to arrange in form ordinate all the elements after seiri.
3. Seiso: to maintain cleanings the machines and the atmospheres of work.
4. Seiketsu: to extend towards the one same concept of cleaning and to practice the three previous steps continuously.
5. Shitsuke: to construct self-discipline and to form the habit to commit itself in the 5S by means of the establishment of standards.
   

In the introduction of housekeeping, frequently the western companies prefer to use equivalents in English of the 5 S Japanese, like in a “Campaign of the 5 S” or one “Campaign of the 5 Cs”.

SEIRI (TO SEPARATE)
The first passage of housekeeping, seiri, includes the classification of the items of Genba in two categories - necessary and the unnecessary thing and to eliminate or to eradicate of Genba this last one. A top must settle down on the number of necessary items. In Genba all class of objects can be. A meticulous glance reveals that in the daily work it is only needed I number small of these; many other objects would never be used or only they will be needed in the future distant. Genba is full of defective machines without use, sieves, dies and tools, products, work in process, raw materials, provisions and parts, shelves, containers, writing-desks, banks of work, document archives, carts, shelves, platforms and other items. A practical and easy method consists of retiring any thing that is not going away to use in next the 30 days.

Frequently, seiri begins with a campaign of red labels. It selects an area of Genba like the place for seiri. The 5 members of designated S go Genba with handfuls of red labels they place and them on the elements that consider like unnecessary. At the most great they are the labels and greater it is its number, better. When it is not clear if a certain item is needed or not, a red label must be placed on this. At the end of the campaign, it is possible that the area is covered with hundreds of red labels, which takes to compare it with woods of maples in autumn.

SEITON (TO ORDER)
Once seiri has been carried out, all the unnecessary items have retired of Genba, only leaving necessary the number minimum. But these items that are needed, such as tools, can be elements that do not have use if they store too much far from the workstation or place where they cannot be. Take us stage to the following of the 5S, Seiton.
rmalidad and to undertake therefore the corresponding remedial action.

SEISO (TO CLEAN)
Seiso means to clean the work surroundings, including the machines and tools, just like floors, walls and other areas of the work place. Also there is an axiom that says: Seiso means to verify. An operator who cleans a machine can discover many defect of operation. When the machine is covered of oil, soot and dust, is difficult to identify any problem that can be forming. Nevertheless, while one cleans the loose machine we can detect with facility an oil flight, a crack that is forming in the cover, or nuts and screws. Once recognized these problems, because in being solved with facility.

One says that most of the failures in the machines begin with vibrations (due to loose nuts and screws), with the strange particle introduction as dust (as a result of cracks in the ceiling, for example), or with a lubrication or it lubricates inadequate. Therefore, seiso constitutes a great experience of learning for the operators, since they can make many discoveries useful while they clean the machines.

SEIKETSU (TO SYSTEMATIZE)
Seiketsu means to maintain the cleaning of the person by means of use of suitable clothes of work, lenses, gloves and shoes of security, as well as to maintain surroundings of healthful and clean work. Another interpretation of seiketsu is to continue working in seiri, seiton and seiso in continuous form and every day.

For example, it is easy to execute the process of seiri once and to realise some improvements, but without a effort to continue such activities, in a moment the situation will return to which was originally. It is easy to do only once kaizen in Genba. But to realise they kaizen continuously, day after day, is a completely different subject. The management must design systems and procedures that assure the continuity seiri, seiton and seiso. The commitment, endorsement and involvement of the management in the 5S become something essential. For example, the managers must determine whereupon frequency is due to carry out seiri, seiton and seiso, and what people must be involved. This must be part of the annual program of planning.

SHITSUKE (TO STANDARDIZE)
Shitsuke means self-discipline. The people who continuously practice seiri, seiton, seiso and seiketsu - people who have acquired the habit to do of these activities of their daily work acquire self-discipline.

Objectives to reach the Toyota Production System

The Toyota Production System establishes several points to cause that the objectives of the four previous concepts are reached and that they are the base of the Toyota Production System.

1. KANBAN System is an information system that controls the production of necessary articles in the necessary amounts, the necessary time, each process of the company and also of the companies’ suppliers. It establishes a production system in which the products are hauled by the following station; the products cannot be pushed by the first station. The products are hauled to the rate those are needed (called PULL System). The last station is the one that marks the rate of production.
2. Constant production, that means that the line of production no longer this jeopardizes to manufacture a single type of product in great lots. However, the line produces a great variety of products every day in response to the variation of the demand of the client. The production is obtained adapting the changes of the demand daily and monthly.
3. Reduction of the Set-up time (S.M.E.D.). The Set-up time is the amount of necessary time in changing a device of an equipment and preparing that equipment to produce a different model, but to produce it with the quality required by the client and without incurring costs it company and to obtain with this, to reduce the time of production in all the process. The product that arrives first the market enjoys a high percentage of gains associated with the initial introduction of the product.
4. Standardization of operations: One is to diminish the number of workers, balancing the operations in the line. Assuring that each operation requires of the same time to produce a unit. The worker has a routine of standard operation and maintains an inventory in constant in process.
5. Multifunctional distribution of machines and workers, who allow to have a force of very flexible work, which must of or being trained and to have a great versatility that is obtained continuously through the rotation of the work and they evaluate and they review the standards and routines of operation, and the machines could be placed in distributions in the form of “or” where the responsibility of each worker will be increased or diminished following the work to realize in each product.
6. Improvement of activities, which are focused to reduce costs, to improve productivity, to reduce the work force, to improve the moral of the employees and this improvement carries out through work parties and system of suggestions.
7. Visual control systems that monitor the state of the line and the flow of the production, with very simple systems, for example, some lights of different colors that indicate some abnormalities in the line of production. Some other visual controls like leaves of operations, digital cards of KANBAN, displays, etc.
8. Quality control in all the company, that promotes improvements in all the departments, by means of the action of a department and reinforced by other departments of the same company. Having special attention in the meeting of directors to provide that the communications and cooperation in all the company.

14 Principles of Toyota Way

The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation that includes the Toyota Production System. The main ideas are to base management decisions on a "philosophical sense of purpose", to think long term, to have a process for solving problems, to add value to the organization by developing its people, and to recognize that continuously solving root problems drives organizational learning.

14 Principles of Toyota Way.

• Principle 1: Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals
• Principle 2: Create a continuous process flow to bring problems to the surface.
• Principle 3: Use "pull" systems to avoid overproduction.
• Principle 4: Level out the workload (heijunka). Work like the tortoise, not the hare.
• Principle 5: Build a culture of stopping to fix problems, to get quality right the first time
• Principle 6: Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
• Principle 7: Use visual control so no problems are hidden.
• Principle 8: Use only reliable, thoroughly tested technology that serves your people and processes.
• Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
• Principle 10: Develop exceptional people and teams who follow your company's philosophy.
• Principle 11: Respect your extended network of partners and suppliers by challenging them and helping them improve.
• Principle 12: Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).
• Principle 13: Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).
• Principle 14: Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).