Page 107 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes In such a process it will be possible to determine the cost of none conformance in terms of
wasted materials and wasted time.

!

Caution Any process that is to be designed to take in zero defect concept must be clear on
its customer expectations and desires.
The best is to aim for a process and finished article that conforms to customer requirements and
does not fall short of or go beyond these requirements. For example, in recent years many
financial organisations have made claims regarding how rapidly they can process a home loan
application. But what they may have failed to understand is that in spending a great deal of time
and money reducing processing time they are over and above customer requirements (even if
they consider that they know them). In these cases they have exceeded the cost of conformance
when it was not essential to do so.
Advantages

 Cost reduction caused by a reduce in waste. This waste could be both wasted materials and
wasted time due to unnecessary rework.
 Cost reduction due to the fact that time is now being spent on solitary producing goods or
services that are produced according to the requirements of consumers.
 Building and delivering a finished article that matches to consumer requirements at all
times will result in increased customer satisfaction, improved customer retention and
augmented profitability.
 Possible to calculate the cost of quality.

Disadvantages

 A process can be over engineered by an organisation in its efforts to build zero defects.
Whilst endeavouring to make a situation of zero defects increasing time and expense may
be spent in an attempt to construct the perfect process that delivers the perfect finished
product, which in actuality may not be possible.

Example: A consumer requirement may be a wish to buy a motor car that is 100%
reliable, never rusts and maximises fuel consumption. Though, in this instance, in practice, if an
organisation doesn’t have some kind of built in obsolescence it will have a more restricted life.

Task Give an example from an organisation about the role played by human behaviour
in managing quality.

Self Assessment

Fill in the blanks:
10. The objective of ……………… inspection is to prevent machine breakdown and production
loss.
11. The final aim of Zero Defects will be to reduce the level of defects to ……………… .

102 LOVELY PROFESSIONAL UNIVERSITY