In Reply to Parent Post by sowmya
Ours is a medium sized manufacturing unit.We are capturing all type of reworks (both internal and customer end) .Can anybody help me in calculating cost of poor quality. (From basics)
Whatever else people may advise you to do, including using the (almost discredited) conventional "quality cost" catgories of failure, prevention and appraisal, the people who can best help you, calculate the cost of poor quality, work in your accounting department.
If you want to get management attention, buy-in for what you are doing and their comprehension of the cost estimates you and your accounts department should together produce, use the official accounting system and the cost categories and terms with which your management is familiar. That will avoid the need to explain the jargon about failure, prevention etc, which not many managers use anyway, at the upper levels.
If you have the equipment and ability to download cost data into a spreadsheet, that will be of great assistance as you can then prepare your reports with graphical summaries.
Involve yourself with the accountants - as I have counseled many quality managers for 30 years or so, they can be your best allies