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Co 4

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25 views2 pages

Co 4

Uploaded by

jjeevananthankolanji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Customer Dissatisfaction: Poor quality can lead to dissatisfaction among customers, resulting in negative reviews,

complaints, and loss of trust in the brand.

Increased Returns and Warranties: Low-quality products often result in higher return rates and warranty claims, which can
be costly for companies.

Reduced Market Share: If a company consistently delivers low-quality products, it may lose market share to competitors that
offer higher quality alternatives.

Financial Losses: Poor quality can lead to increased costs due to rework, scrap, and additional quality control measures.
These financial losses can impact profitability and overall business sustainability.

Damage to Reputation: A company's reputation can suffer greatly from a lack of quality, affecting customer loyalty and
making it harder to attract new customers.

Legal Consequences: In some cases, poor quality can lead to legal issues, such as lawsuits for product liability or breaches of
contract.

Employee Morale and Productivity: A focus on low-quality production can lead to frustration among employees, impacting
morale and reducing productivity.

Inefficiency: Lack of quality can lead to inefficient processes and systems, increasing cycle times and reducing overall
operational effectiveness.

Compliance Issues: In regulated industries, failing to meet quality standards can result in non-compliance with laws and
regulations, leading to fines and penalties.

Long-Term Viability: Ultimately, a persistent lack of quality can threaten the long-term viability of a business, leading to
bankruptcy or closure if not addressed.

Prevention Costs: These are incurred to prevent defects in products or services before they occur. This includes investments
in quality planning, training, and process control measures.

Appraisal Costs: These costs are associated with measuring and monitoring activities to ensure quality standards are met.
This includes costs related to inspections, testing, and evaluations of products and processes.

Internal Failure Costs: These arise when defects are identified before the product or service is delivered to the customer.
They include costs associated with rework, scrap, and downtime due to quality issues.

External Failure Costs: These occur when defects are found after delivery to the customer. They encompass costs related to
returns, warranty claims, and loss of reputation. External failure costs can be the most damaging, affecting customer
satisfaction and brand loyalty.

Variation in Process

Definition and Importance: Variation refers to the natural fluctuations that occur in processes and products. Understanding
and controlling variation is crucial for maintaining quality in manufacturing and service delivery. Variation can affect the
performance of a product, leading to inconsistency in quality and customer dissatisfaction.

Types of Variation:
Common Cause Variation: This type of variation is inherent in the process and is due to factors that are consistent and
predictable. Examples include minor fluctuations in material properties or variations in machine performance. Common
cause variation is typically stable and can be represented using control charts, highlighting the need for long-term
monitoring.
Special Cause Variation: Special cause variation arises from specific, identifiable factors that can lead to unusual
fluctuations in the process. Examples include machine breakdowns, changes in suppliers, or environmental conditions.
This type of variation is often unpredictable and can be addressed through investigation and corrective actions.

Causes of Variation
Common Causes: These are factors that contribute to common cause variation and typically include:
Material Variability: Differences in raw material properties can lead to variations in product quality.
Environmental Conditions: Changes in temperature, humidity, or other environmental factors can affect process
stability.
Machine Performance: Variations in machine calibration, wear and tear, and operational settings can introduce
inconsistency.
Special Causes: Factors contributing to special cause variation include:
Operator Influence: Variations may arise from differences in operator skills, techniques, or adherence to procedures.
Equipment Malfunction: Unexpected breakdowns or incorrect settings can lead to abnormal process behavior.
Process Changes: Modifications in the process, whether planned or unplanned, can introduce new sources of
variation.

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