Cost of Quality as a Driver for Continuous Improvement - Case Study – Company X
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Date
2013
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Abstract
In the manufacturing, metal casting industry is one of
the oldest basic principal and most important industries. The
casting process is hindered by the occurrence of various defects.
High casting reject levels and customer returns have a
considerable adverse effect on productivity, delivery performance,
customer satisfaction and employee morale. In addition excessive
rejection reduces yield, wastes valuable raw materials and
involves management time in problem solving. All foundry
processes generate a certain level of rejection that is closely
related to the type of casting, the processes used and the
equipment available. This paper seeks to establish the extent to
which cost of quality can impact on continuous improvement of
the products and the relationship with the customers of the
organization. To determine the cost of quality (COQ) at casting
company X, the researchers used existing company records,
publications and historical evidence of the company. The
researchers utilized techniques such as, bar charts and tables in
presenting and interpreting data. The above techniques have the
ability to provide methods for collecting, presenting, and analysis
and meaningfully interpret data. The research findings estimated
the COQ to be 6.6% of sales revenue.
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Citation
Zimwara, D., Mugwagwa, L., Maringa, D., Mnkandla, A., Mugwagwa, L. and Ngwarati, T.T., 2013. Cost of Quality as a Driver for Continuous Improvement-Case Study–Company X.