Study On The Method Of Reducing Cost Of Poor Quality In X Company

Quality is the life of an enterprise; a company cannot survive without quality. Effectively reduce the cost of poor quality will not only enhance the competitiveness of a company and the profitability and market shares but also promote company image.This thesis expatiates the current cost of poor quality status in'X'company, with setting up various quality information data system. Various factors which affect cost of poor quality are effectively analyzed and identified and key points are found according to 80/20 principle to identify the critical few. Using Brainstorm and fish bone diagram, 5 Whys method etc. to exert team intelligence to find out the root cause and take quick respond, improve product design and process and flows to the major problems so that improve product quality and reduce cost of poor quality. Meanwhile before the implementation of each improvement activity, the contamination actions shall also be taken to control or reduce and avoid the defect parts flow to the next operation or flow out of plant, and to maximally reduce the cost of poor quality and control the cost loss to the minimum level.Hierachical audits, including process audit and product audit methods are used to identify problems, set up quick-respond team and quality improvement or corrective action teams so as to quickly resolve and reduce loss.Regarding those metrics which affect the cost of poor quality and the implementation of the improvement projects and the performance management, scientific and reasonable and practical quality measurements and performance management method shall be instituted. They are important means to improve quality and reduce the cost of poor quality. The quality measurement and implementation of the improvement projects shall be timely traced on and verified and audited to ensure consistent process and result. Implementing the vote on quality is an important way to make the employees improve their awareness of thinking highly on quality rather thanvolume.Adopting lean production method, implementing TPM and strengthening the supplier chain management are also effective way to reduce the cost of poor quality.This thesis is based on a large amount of advanced quality management experience and quality control methods. It sets up series quality management systems, quality control and quality improvement methods and procedures which are suitable for a company. With various procedures and the application and implementation of each method to realize the purpose of improving product quality, reduce variation, reduce cost of poor quality and improve the economic effectiveness. Through analyzing specific improvement projects, identifying the effectiveness of new procedures, thinking and control methods, good results are achieved in terms of quality improvement and cost of poor quality reduction.