quality (q), cost (c), delivery (d)---q-c-d
TRANSCRIPT
Quality (Q) Cost (C) Delivery (D)
Rahul Laxman IyerASQ Certified Quality EngineerMesa AZ2 November 2015
Introduction
Q-C-D is a management approach originally developed to help companies within the automobile sector
Utilized to access different components of the production process
Used to provide accurate feedback in the form of facts and figures that help senior managers make logical and beneficial decisions
Aids in prioritization of tasks required
Focus of Lean Manufacturing
Benefits of Q-C-D
Straight forward method of measuring processes
Applicable to both simple and complicated business processes
Basis for comparing businesses & processes (Benchmarking)
Basis of Quality (Q)
Performance: ability to meet primary operating characteristics
Conformance: the degree to which a certain product meets the customers expectations
Special Features: additional features of a product or service
Aesthetics: the products looks, sound, feel, smell, or taste
Basis of Quality (Q)--continued
Durability: how long the product lasts before it has to be replaced
Reliability: the time until a product breaks down and has to be repaired, but not replaced
Serviceability: speed, courtesy, competence and ease of repair
Perceived quality: affected by the high price or the good aesthetics of a product
Basis of Quality (Q)--continued
Product components
The quality of a product depends almost entirely on the quality of the supplied materials
One cannot produce a high-quality end product from low-quality components
Consequences of poor quality
Business loss
Reduced Productivity
Increased Costs
Basis of Cost (C)
Four Types Of Manufacturing Costs
Raw materials
Direct Labor
Variable Overhead
Fixed Overhead
Cost Reduction
Reducing material costs
Adopting lean manufacturing
Upgrading machine technology
Implementing robot-based automation
Basis of Delivery (D)
Being On Time When Promised Per Contract
Not Being Late
Not Being Early
Increasing profitability with QCD
Seven measures used to increase profitability ( "QCD: measuring manufacturing performance" (PDF). http://nationalarchives.gov.uk
Not right first time (NRFT): Wasted resources, effort and time Cost of Poor Quality (COQ, COPQ)
Delivery schedule achievement (DSA): analyzes how well a supplier delivers what the customer wants and when they want it
People productivity (PP): The time it takes (in staff hours) to produce a good quality product
Overall equipment effectiveness (OEE): Measure of how well a company uses its equipment and staff (Availability, Performance, Quality)
Value added per person (VAPP): Measure of how well people are used to turn raw materials into finished goods (Output Value, Input Value, Number of Employees)
Floor space utilisation (FSU): Measures the sales revenue generated by a square meter of factory floor space
Increasing profitability with QCD: Calculations Illustrated
Increasing profitability with QCD: Calculations Illustrated - Continued
Quality (Q) Cost (C) Delivery (D)
Q-C-D is a management methodology that can be used for lean manufacturing and process improvement
Originated in automotive industry, but can be applied to virtually almost any industry
Emphasizes making decisions based upon data
A tool to improve business profitability