Essay About Effectiveness Of Quality-Improvement Program And Following Case Study

H&s Company: Overall Satisfaction
Case StudyThis section of the report will measure the effectiveness of quality-improvement program implemented by H&S Company over four years period. A quality-improvement program will help a company to achieve zero defects while minimizing costs. There must be trade-offs between four cost categories in order to reduce the total costs of quality over time. These four cost categories are prevention, appraisal, internal failure and external failure costs. The following case study will show how the H&S Company has been successful in implementing an effective quality-improvement program and thus reducing the total quality cost over the time. H&S Company manufactures small motors for use in lawnmowers and garden equipment. The company has implemented a quality-improvement program in 1996 and recorded the following quality cost data and accounting measures for four years.       Year  1996199719981999Quality Costs    Prevention           27,000          41,000          74,600       112,300 Appraisal          155,000       122,500       113,400       107,000 Internal Failure          386,400       469,200       347,800       219,100 External Failure         242,000       196,000       103,500       106,000 Total         810,400       828,700       639,300       544,400 Accounting Measures Sales     4,360,000    4,450,000    5,050,000    5,190,000 Manufacturing costs     1,760,000    1,810,000    1,880,000    1,890,000