The Cost of Quality, sometimes referred to as COQ, is a measurement that sums up the costs related to the prevention and subsequent detection of defects, and the costs associated with these defects. The COQ defines the total costs of quality activities. This is money spent beyond the basic production costs to ensure that the customer receives a quality product. Let's take a look at how COQ is calculated.
The COQ includes the money spent on prevention, appraisal, and correction in a production environment. COQ can be expressed as the effort in terms of time, but it is probably best served as a calculation involving money.
The calculation itself is not complicated, and it is the addition of two compound values (which makes this the most straightforward approach to COQ):
The Cost of Control and Cost of Failure of Control each require a calculation based on their components.
Cost of Control
The Cost of Control can be defined as follows:
The Prevention Cost is the amount of money spent to prevent defects incurred during the manufacturing process. All Quality Assurance programs and efforts are included in this number, including any preventive measures taken.
The Appraisal Cost is the cost associated with all efforts focused on the detection of defects. The cost associated with Quality Control efforts are included here, including final testing and other forms of quality control.
Cost of Failure of Control
The Cost of Failure of Control is sometimes known as the Cost of Non-Conformance. This is the total cost of failure within the manufacturing process. It is broken up into Internal Failures and External Failures.
Internal Failure Cost is the direct cost associated with internally recognized defects and the costs associated with correcting them. For example, this would be the expense of fixing the discovered defects and retesting them, also known as Cost of Rework.
External Failure Cost is the cost associated with defects discovered by the customer and their correction. This Cost of Rework for external failures can include such items as product service, liability issues, and recalls.
Getting the COQ to a minimum requires careful balancing between the Cost of Control and the Cost of Failure of Control. The prevailing thought is that an increased Cost of Control will keep the Cost of Failure of Control to a minimum.
However, in most practical applications an increased Cost of Control can rapidly approach a diminishing return on investment when it is raised beyond a certain degree of effectiveness. The key is to keep the costs balanced as needed.
Quality has a price that can be calculated and studied. But the importance of maintaining the business image has many returns in repeat business and word of mouth.
For more information on how Accupoint can help your organization monitor and reduce your COQ, please contact us today.
Building situational awareness in oil and gas operations has always been vitally important. Without a strong foundation of situational awareness, there can be severe consequences. In fact, 88% of human error can be traced to a lack with situational awareness. Not just that, situational awareness can negatively affect oilfield operations and the ability to project future events.
Many offshore installations have the capacity to be hazardous and despite numerous rules and regulations in place to ensure that the risk of accident is kept to a minimum; accidents still occur. Having good situational awareness contributes towards the reduction of accidents. Situational awareness, or SA for short, is vital for when work being carried out is hazardous, or has the potential to be hazardous, as the workers must constantly monitor and evaluate conditions in an attempt to reduce accidents.
In a nut-shell, situation awareness can support decision making and aid performance. In fact, situation awareness is key to good decision making and safe, efficient performance.
Although situation awareness seems relatively easy to comprehend, some people struggle with it. Specifically, 78% of people don’t get the information that is needed. 17% of people do not correctly understand the information they receive and 5% of people don’t project what will happen in future.
Situation awareness is important for many factors and is the responsibility of the entire crew. Between us, we can reduce the risk of accidents and ensure a safe working environment for everyone in the gas and oil industry.
For more information on how Accupoint Software can help improve your situational awareness, please contact us today.
Quality management for service supply organizations in the petroleum industry is ever-changing due to increasing demands from customers to adopt new standards and avoid future catastrophes. The API Spec Q2 standard outlines a risk-based quality management system as compared to a processed-based management system. API Spec Q2 is now fully implemented and accepting applications for certification from organizations around the world. This certification is rapidly becoming a requirement for many service supply organizations and will expand to become a global mandate in the near future.
Applicants must have procedures in place to address dozens of key QMS elements. These pertain to risk assessment, contingency planning, management of change, service-related product, process design, supply chain controls, and service quality planning. Other requirements involve preventive maintenance, inspection and test and the competency of personnel. According to John Modine, API’s vice president of Global Industry Services, “Any drilling service provider who is in compliance with the requirements can now receive API Spec Q2 certification.”
SAM API Q2 Solution
Accupoint’s web-based solution is an easy-to-use API Spec Q2 management system designed to ensure that compliance requirements are managed and monitored consistently. Using the latest technology and industry best practices, SAM™ streamlines the process and ensures an easy integration into this new standard. In addition, the solution is accessible from any web enabled device and connects multiple locations with real-time communications and up-to-date records and information.
The SAM™ platform simplifies management of the requirements of API Spec Q2 standard, allowing for easy integration and compliance. It addresses all the key required components including;
Obtaining API Q2 certification is just the first step. Ensuring your quality management system stays compliant is the next. With 43 integrated modules and 85 built-in reports, administration and surveillance of the API Spec Q2 requirements is ensured. Contact us for any additional questions you may have on how to implement and maintain an API Spec Q2 quality Management program.
Regardless of the industry you work in, calibration is one of those things you simply cannot overlook. Inspection equipment needs to function reliably and accurately. Calibration ensures consistency and is a requirement of quality management standards across the globe. In this week’s blog will examine four key steps to ensure that your organization is ready for your next audit.
The Calibration process does not have to be time consuming. With the right systems in place, you will be prepared for any audit, as well as have the peace of mind that comes with protecting yourself from liability. For more information on how Accupoint Software can help simplify the calibration process, contact us today.
1. the quality of being honest and having strong moral principles; moral uprightness.