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Why is quality function important?
1. It is a must and not a choice
2. A distinctive competency
3. Better quality leads to lower cost
4. Cost of poor quality (COPQ):
- Internal failures –Rework, scrap, inventory, inspections, down time, retest, process losses.
- External failures –Warranty costs, recalls, returns, loss of goodwill, loss of market share.
- Appraisal costs – Thecost of setting up additional inspections, process audit, inspection equipmentsuch as visual inspection machines etc.
- Prevention costs –Cost of preventing the quality issues. Procedures or additional investment thatneed to put in place to prevent quality issues.
- Personal costs – Lossof opportunity, frustration, anger, depression and other feelings.
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