Cost of Quality - Scrap reduction Presentation



I am preparing a presentation for our Engineers working on Continuous Improvement. I need to have their attention on Scrap reduction and what it means to Cost of Quality. I would really appreciate if some of you could share with me your experiences/case studies/presentation matter, etc. The presentation time alloted is 15 minutes. Once I put this together, I will upload it on this forum so that it can be of use to others.
By the way, my company is into Plastic moulding for automotive Industry. I have the presentation on 28th Jan ,03 so would appreciate a quick respoonse.

Hullo rak,

First of all, I think you are on the right track: You are bringing the money (The one and only universal language) into the discussion. As for motivation I often use something something similar to the following thought chain: Why do we need to reduce scrap? Because:
  • It will improve our margins and/or enable us to lower prices
  • That makes the owners/customers happy
  • That enables the company to live on
  • The company will be able to pay your salary
  • Thus, you'll be happy...
Always bring up what's in it for the individual... Then you ask them how it could be done... and help them to think "out of the box". Keep the note pad ready.

I also suggest that you have a look at this thread: Cost of Quality




Thanks for your information. My task has become more challenging since I am now given only 10 minutes fo presentation time and I HAVE TO GET THE POINT ACROSS!

Hopefully, I will.



Collect siome data on your present cost of poor quality. It can be estimated but must be in dollars. Three areas to look at; customer returns, rework, billing errors. Com-pare the results with your company' after tax profit and explain COPQ comes directly out of the bottom line.
The standard after tax profit for most businesses should be in the 15% range. Anything less can be attributed to the cost of poor quality.
The master of this methodology is Phil Crosby. Spend some time reading some ofhis books.
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