HOW TO CALCULATE THE COPQ in construction.pptx

COPQ in construction

1. Facilitator : Kumar Kanti Bhattacharya HOW TO CALCULATE THE COST OF POOR QUALITY 28.10.2022 TUAMAN ENGINEERING LIMITED

2. PREVENTION COST The costs of prevention are the expenses that are related to any activity meant to stop an error or defect from occurrence Example : Quality planning Quality training Quality Auditing Product designing Purchasing Quality administration

3. ISO 9001:2015 AUDIT AT RAILWAY WAGON REPAIRING SHOP VADLAPUDI,VIZAG

4. APPRAISAL COST The cost associated with activities specially designed to measure, inspect, evaluate or audit products to assure conformance to quality requirements Example: Product design qualification test Supplier product inspection and test In process and final inspection and test Maintenance and Calibration.

5. MECHANICAL TESTING

6. INTERNAL FAILURE COST The cost incurred when a product fails to confirm to a quality specification before shipment to a customer. Example: Design failure cost Supplier product reject Failure analysis cost Material; review and corrective action Rework Scrap

7. STRESS CORROSION CRACKING

8. EXTERNAL FAILURE COST The cost incurred when a product fails to confirm to a quality specification after shipment to a customer. Example: Complains Investigation Return goods/ Fields services Liability of cost Penalties Warranty Claims Development of new vendor Delay in supply, possibility of increase in price

9. ICEBURG OF COST OF POOR QUALITY COPQ =Payment made to the people making the defect + Payment made to the people correcting the defect Loss of customer loyalty. Loss of time. Loss morale. Loss of employee if morale remains low for extended period. Conflicts associated with scheduling and rescheduling Higher risk of compliance issues Higher administrative cost U npredictable revenue, sales or production.

10. Format No: TEL/F/COPQ/002 REV-0 Cost of Poor Quality Name of the Project site: Report for the Month: Item Details: Drawing no. / Identification details: Rev.No: IRN No & Date: Name of the Vendor / Contractor : Name of the TPIA: Rejected Quantity with Date: Non -comformity raised by : Date of complaint : Nature of Non-conformity at site ( Visual/Dimensional/RT/UT/MPT/LPT/Hydro-test/Spark test/Welder's test/Any other): (Please attach separate page for details) Root Cause Analysis : Impact for Process Delay : Date of complaint resolution : Cost of warranty Repairs : Process Details Cost of material Cost of Consumable Cost of Labour Cost of Inspection and Testing ( Cost of repair bourne by TEL/Contractor) Working hours Hourly Rate Task Task-1 Task-2 Task -3 Task-4 Total cost for Conformance / Non-conformance: Preventive action taken : Cumulative cost specifying month: Remarks: QA/QC. RCM Name: Signature: Date:

11. TEL/F/QPDS/001, Rev. 00 Quality Progress & Document Status Name of the Project: Job No: Name of the PMC: Date: Name of The Owner: Format No.: A. DOCUMENTS SL. No. Description Required Quantity as per Spec. Prepared Quantity Approved Quantity Pending Quantity Pending Cause Remarks 1 QAP 2 ITP 3 WPS, PQR 4 Job Procedure 5 WPQ B. NDT STATUS SL. No. Description Required As On Job Done ( ID/No of Joint) Taken as on Date (ID/No of Joint) Balance As On Job Done (ID/No of Joint) Acceptance Repair Reason of Repair Remarks 1 RT 2 UT 3 MPT/DPT 4 CUBE TESTING 5 COMPACTION TESTING C. MATERIAL TESTING REPORT SL. No. Description Material Received (MT) MTC Received (MT) Lab test Report Received (MT) Lab test Report Balance (MT) Total Quantity Remarks 1 TMT BAR 2 Structure Material 3 Plate 4 Pipe D. RESOURCES SL No. WELDING PROCEDURE Total No of Welder Remarks NOTE: (a) No of IBR Welder. (b) Cause of non availability of welder Tested Qualified Present 1 GTAW 2 SMAW 3 GTAW + SMAW 4 MIG Total Welding ID ( For Piping): 5 SAW Total Welding Tonage (for Structure): E. Daily Progress Report Sign Status: Yes or No, If yes Mentioned Quantity with cause. IMIR Sign Balance NDT Report Sign Balance Welding Report Sign Balance Welder test report Sign Balance QA/QC Engineer Project Incharge Project RCM Name : Signature: Date:

12. WHY WHY ANALYSIS Why Ram got injured-he had a fall Why did he fall-the floor was wet Why the floor was wet-leaky valve Why was the valve is leaking seal got cut Why the seal got cut-cheaper Purchase person are measured on cost savings achieved

13. MUD A MUDA

14. Muda is a non-value added task within a process. Some types of Muda are easier to identify than others. By understanding the process at all levels, teams are more likely to identify various forms of Muda. There are seven muda or resources that are commonly misused and mismanaged . Overproduction ---It means a product, part or services was produced too fast, at the wrong time or too much quantity for the process. The key to eliminating overproduction is planning .

15. Correction --------It is also known as Muda of rework, this form of waste often plagues organizations that are keen on traditional quality programme. To eliminate defects from the end product, organizations institute in–process quality checks that route work with defects back to correction. When rework occurs, it increases overall process time and uses additional labour and material to create a smaller amount of products or outputs.

16. Inventory --------Muda of inventory is similar to muda of overproduction; in fact overproduction can cause a waste of inventory. Muda of inventory occurs when materials or inputs stack up before a step in the process, this phenomena is called bottleneck. It is especially common in processes that operate in batches. Reducing batch size lowers lead times—the time takes to deliver the end product and also reduces the amount of inventory that occurs before each step of the process .

17. Motion- -----This type of waste is often relevant to people-powered processes in manufacturing, ware housing, shipping, delivery or industrial fields but waste of motion can even crop up in process that are computerized. Streamlining company processes eliminates mude motion. A common tool used in manufacturing and similar environment to track movement is known as Spaghetti diagram.

18. Conveyance ------Muda of conveyance is similar to muda of movement except conveyance involves the movement of outputs, products or resources. Conveyance can relate to physical movement of data or workflow. A spaghetti diagram, process map or value stream map can help identify areas where muda of conveyance might exist .

19. Over-processing ------It occurs when an employee or process inputs more resources into a product or service that is valued by the customer. It could occur because of ignorance, a desire for perfection, or even excitement. A value stream map is a good tool for identifying any point of over processing.

20. Waiting ----------It is the any idle time in process, whether that idle time is for machinery or people. Waiting occurs when steps in the process are not properly co-ordinated, when process are un-reliable, when work is batched too large, during rework, and during long changeovers between staff or machines. Waste of waiting is common in construction industry. Roadway of bridge cannot be built until pillars are placed and steady. It can be eliminated by balancing machinery, people, production and scheduling.  

21. 8D PROBLEM SOLVING 8D stands for the eight disciplines of team-oriented problem solving process .   D0-Plan The plan includes report to the problem, with the initial evaluation of its scope. The plan forms the basis for defining a team, identifying needed resources and establish a schedule for resolution . D1-Put together a Team The team should be multidisciplinary and include expertise in the product, process or equipment being investigated .

22. D2—Define the problem The problem needs to be defined using quantifiable terms. Defining the the problem may require establishing test methods and collecting data, interviewing customer or talking with the workers who are involved with making the product. “ Gemba ” is an important principle to apply when defining the problem . D3—Implement a temporary fix Temporary containment minimizes the impact of the problem while you develop permanent solutions and especially important where product quality or safety is at the risk.

23. D4—Identify the root cause With the problem temporarily contained, you can now turn to analysing the root cause of the nonconformities. Methods Widely used methods include: 5W + 2H ( Who, What, Where, When, Why, How, How many ) D5—Analyse and select corrective actions Brainstorming sessions can help organize ideas based on their relationships and determine the most effective course of action.

24. D6—Implement and validate corrective actions Management needs to be an active participant in verifying implementation of corrective actions .   D7- --Implement Preventive actions Real change only happens when you apply lessons learned to other areas to prevent future problems . D8—Recognize your team   After all that work, don’t forget to recognize the team. Whether it is a financial bonus, special event or simply mentioning the team in a meeting or newsletter. This step is critical to building a culture of quality.