The document discusses various quality management techniques used in organizations, including cost of quality, zero defects, continuous improvement, benchmarking, and poka-yokes. It explains that cost of quality includes failure costs from defective products as well as appraisal and prevention costs. Zero defects programs aim to improve quality by reducing errors, while continuous improvement focuses on ongoing process improvements through employee involvement. Benchmarking involves comparing performance to best practices of other organizations. Poka-yokes are mistake-proofing mechanisms used in manufacturing to prevent human errors.

1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated Institution of G.G.S.IP.U, Delhi
BBA(G)
Production &Operations
Management
Paper Code- BBA305
Paper ID- 17305

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Cost Of Quality
A product or service that satisfies the customer’s
needs must be produced in a cost effective
manner . The Traditional approach has been
that production makes a product and quality
control inspects it, segregating those units
which do not meet the quality standards. This
is often a wasteful approach . Units which are
not made right or not made of the right
quality ,have to be either scrapped or
reworked resulting in additional costs.

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Cost of Quality
The new philosophy is to ensure that the
product is made right , the first time,
everytime; so that the additional cost can be
avoided. The aim is to prevent defectives
rather than repairing or replacing them.
However prevention too comes with a cost.

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Cost of Quality
The cost associated with quality can be broken
down as:
1. Failure costs- These are the costs of
producing an item which is below quality
standards.
(a) Internal failure cost
(i) Cost of scrapping (iii) cost of re inspecting
(ii) cost of reworking (iv) wastage cost

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Cost of Quality
(b) External failure cost- loss of goodwill, cost of
repairing & servicing , cost of liability
2. Appraisal costs- cost associated with
inspection and evaluation
(a) Verification cost
(b) Quality audits
3. Prevention costs- cost associated with the
design implementation and maintainance of
quality system of an organisation

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Zero Defects
Zero Defects programms attempt to improve
quality by changing the workers attitudes,
were particularly popular in the 1960s and
1970s.
Their theme, “Do It Right the first time”. Stress
Error free performance. But Today situation has
Changed. Error-free performance is
economically and practically infeasible.

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Zero Defects
Errors or Defects are caused by two factors
(i) Lack of knowledge
(ii) lack of attention

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Principles of Zero Defects
• Quality is conformance to
requirements
• Defect prevention is preferable to
quality inspection and correction
• Quality is measured in monetary
terms( Quality is value for money)

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Continuous Improvement
Continuous improvement ,based on a japanese
concept called kaizen,is the philosophy of
continually seeking ways to improve processes.
Continuous Improvement also focus on problems
with customers or suppliers.
It is an undertaking which requires total employee
involvement -participation of every employee at
every level. For example Marco’s industries, a
leading FMGC company of India

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Steps for Improvement
• Train Employees in the methods of statistical
process control (SPC) and other tools for
improving quality
• Build work teams and employees involvement
• Utilize problem solving tools within the work
teams
• Develop a sense a operator ownership in the
process

11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Benchmarking
According to Watson –Benchmarking is a
continuous search for, and application of,
significantly better practices that lead to
superior competitive performance
Benchmarking is a valuable Total Quality
Management tool which accomplishes
objectives of customer satisfaction and
continuous improvement.

12. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Basis of Bench marking
• Measurement through comparison
• Continuous Improvement
• Systematic procedure

13. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Advantages of Benchmarking
1. Benchmarking ensures better understanding
of existing performance and position of our
own organization.
2. It helps in learning lessons from others
3. It helps in achieving and maintaining
competitive advantage
4. It identifies “best practice” to be followed in
production

14. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of Benchmarking
• Strategic Benchmarking
• Performance or competitive Benchmarking
• Internal Benchmarking
• International Benchmarking

15. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
POKA YOKES
Poka –Yoke is a Japanese term that means
“ Mistake proofing”. A Poka Yoke is any
mechanism in a manufacturing process that
helps an equipment operator in avoiding
mistakes. It is based on prediction and
detection.
Its purpose is to eliminate product defects by
preventing, correcting or drawing attention to
human error as they occur.

16. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of Poka -Yoke
There are three types of Poka-Yoke for detecting
and preventing errors in a mass production
system
1. Contact Method -It is based on some type of
sensing device which detects abnormalities
in the product’s shape, dimension, colour or
other physical attributes.

17. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Poka Yoke
2. Fixed Value Method- Fixed value methods are
used in processes where the same activity is
repeated several times. This method
frequently involves very simple techniques,
such as methods that allow operator to easily
track how often this activity has been
performed.

18. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Poka- Yoke
3. Motion Step Method-The motion Step
method is useful for processes requiring
several different activities performed in a
sequence by a single operator.

19. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75