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Companies relying on the traditional spreadsheet to manage their QMS often find it to be overwhelming to manage as the data volume continues to grow. Those using spreadsheets have to contend with issues like how best to collaborate when working within the same sheet or how to maintain data integrity. Accupoint's quality management system can be advantageous for organizations that want to save time and improve productivity when managing compliance data.
Top advantages of a quality management software solution
Companies are utilizing quality management software to answer the need for a better data management and process analytics. Both management and team members alike recognize the value in being able to better manage large volumes of data in order to improve their process information flow.
Benefits of an Integrated System
1. Accupoint’s quality management systems can automate your program updates based on parameters set. This means that you don’t have to worry about changing and overhauling your system because the solution evolves as your business needs do.
2. Accupoint improves data integrity. Redundancy of data, entry protocols, system updates and records maintenance can all be done conveniently from within the software solution. Pulling accurate reporting is easiest when information is consolidated and entered uniformly.
3. Detecting emerging trends across different areas of the organization is simplified with Accupoint’s quality management solution. The information is securely stored within the centralized system, which makes all of the data is available for review in real-time. Accessibility to real-time data enables smart, quick decision-making across the board.
4. While spreadsheets can hold a large amount of data, keeping information secure and reliable as data continues to grow presents its share of challenges. Scalable quality manage systems empower teams to seamlessly expand their solutions to accommodate growing customer and regulatory requirements.
5. Accupoint’s solutions offer flexibility in how data is entered. Individuals can choose to enter data traditionally or through other methods such as scanning or geo-tagging. These options facilitate collaboration and reduce error rates among those handling information.
6. User-friendly methods to track a range of information are an additional advantage to transitioning to Accupoint’s solution family. Tracking training progress, quality standard updates, testing cycles, and auditing results can all be done conveniently through one single user interface.
Cutting costs using accurate real-time data and improved collaboration are the most common reasons for making the switch to an Accupoint quality management software solution. Better reporting, collaboration, data integrity, and analysis become possible with the right system and solution in place.
For more information on Accupoint Software or to schedule a platform demonstration, please visit us at www.accupointsoftware.com.
Top advantages of a quality management software solution
Companies are utilizing quality management software to answer the need for a better data management and process analytics. Both management and team members alike recognize the value in being able to better manage large volumes of data in order to improve their process information flow.
Benefits of an Integrated System
1. Accupoint’s quality management systems can automate your program updates based on parameters set. This means that you don’t have to worry about changing and overhauling your system because the solution evolves as your business needs do.
2. Accupoint improves data integrity. Redundancy of data, entry protocols, system updates and records maintenance can all be done conveniently from within the software solution. Pulling accurate reporting is easiest when information is consolidated and entered uniformly.
3. Detecting emerging trends across different areas of the organization is simplified with Accupoint’s quality management solution. The information is securely stored within the centralized system, which makes all of the data is available for review in real-time. Accessibility to real-time data enables smart, quick decision-making across the board.
4. While spreadsheets can hold a large amount of data, keeping information secure and reliable as data continues to grow presents its share of challenges. Scalable quality manage systems empower teams to seamlessly expand their solutions to accommodate growing customer and regulatory requirements.
5. Accupoint’s solutions offer flexibility in how data is entered. Individuals can choose to enter data traditionally or through other methods such as scanning or geo-tagging. These options facilitate collaboration and reduce error rates among those handling information.
6. User-friendly methods to track a range of information are an additional advantage to transitioning to Accupoint’s solution family. Tracking training progress, quality standard updates, testing cycles, and auditing results can all be done conveniently through one single user interface.
Cutting costs using accurate real-time data and improved collaboration are the most common reasons for making the switch to an Accupoint quality management software solution. Better reporting, collaboration, data integrity, and analysis become possible with the right system and solution in place.
For more information on Accupoint Software or to schedule a platform demonstration, please visit us at www.accupointsoftware.com.
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Over the last decade, worldwide shale production has expanded, producing more than 40 billion cubic feet of dry shale gas per day, according to research from BP. The search for clean alternatives to coal has pushed demand for gas across the globe. Established shale producers may soon need to scale up in order to meet the demands of this growing market.
In order to ensure their place in this growing market, shale providers should consider the following industry problems and solutions:
1. Equipment and technology demands.
By developing advanced drilling technology and techniques small energy companies that wish to take advantage of the healthy shale market and scale up their workflows must pursue similar strategies. Tracking the cost and productivity of old and existing equipment can help companies make informed decisions about what should be upgraded, and when. When it comes to meeting customer expectation, equipment management is paramount, and centralized control of maintenance schedules and downtime tracking ensures that providers will meet production obligations and avoid costly downtime due to equipment failures.
2. Supply chain and vendor management.
Shale industry supply chains differ from those associated with more traditional energy products. Upstream workflow components center on complex infrastructure and require wide degrees of support, including specialized waste management and transportation services. The average shale pad contains more than 20 moving operational parts, all of which must operate together.
Configuring supply chains of this magnitude is no easy task. Constructing processes on an as-needed basis can institutionalize inefficiencies and cause problems down the road. Communications solutions that push for point of contact cooperation with vendors and suppliers go a long way to developing effective processes that foresee future growth, and management resources that build upon vendor feedback capitalize on provider expertise and promote mutually beneficial relationships.
3. Workforce training.
Specialists from a variety of industries must collaborate to get shale extraction sites up and running. From the construction teams to drill operators, these workflows are critical to operations. Companies ramping up their shale operations need to cultivate and expand their talent pools to meet the needs of this industry niche.
In the current employment market, upskilling existing talent maybe the only workable solution. Oil and gas organizations can divert workers from verticals with declining prospects and retrain them for work in shale production teams. This move allows energy firms to boost their shale output without investing immense amounts in hiring and recruitment. Internal solutions that standardize training procedures and ensure constant upkeep of current training demands can weaponize a company’s current employee pool to meet the market and consumer demands.
Together, these strategies can help businesses in the oil and gas industry take advantage of the continued acceleration and intensification of the shale gas revolution. To find out how Accupoint Software can help maximize your company’s growth potential, please contact us today.
In order to ensure their place in this growing market, shale providers should consider the following industry problems and solutions:
1. Equipment and technology demands.
By developing advanced drilling technology and techniques small energy companies that wish to take advantage of the healthy shale market and scale up their workflows must pursue similar strategies. Tracking the cost and productivity of old and existing equipment can help companies make informed decisions about what should be upgraded, and when. When it comes to meeting customer expectation, equipment management is paramount, and centralized control of maintenance schedules and downtime tracking ensures that providers will meet production obligations and avoid costly downtime due to equipment failures.
2. Supply chain and vendor management.
Shale industry supply chains differ from those associated with more traditional energy products. Upstream workflow components center on complex infrastructure and require wide degrees of support, including specialized waste management and transportation services. The average shale pad contains more than 20 moving operational parts, all of which must operate together.
Configuring supply chains of this magnitude is no easy task. Constructing processes on an as-needed basis can institutionalize inefficiencies and cause problems down the road. Communications solutions that push for point of contact cooperation with vendors and suppliers go a long way to developing effective processes that foresee future growth, and management resources that build upon vendor feedback capitalize on provider expertise and promote mutually beneficial relationships.
3. Workforce training.
Specialists from a variety of industries must collaborate to get shale extraction sites up and running. From the construction teams to drill operators, these workflows are critical to operations. Companies ramping up their shale operations need to cultivate and expand their talent pools to meet the needs of this industry niche.
In the current employment market, upskilling existing talent maybe the only workable solution. Oil and gas organizations can divert workers from verticals with declining prospects and retrain them for work in shale production teams. This move allows energy firms to boost their shale output without investing immense amounts in hiring and recruitment. Internal solutions that standardize training procedures and ensure constant upkeep of current training demands can weaponize a company’s current employee pool to meet the market and consumer demands.
Together, these strategies can help businesses in the oil and gas industry take advantage of the continued acceleration and intensification of the shale gas revolution. To find out how Accupoint Software can help maximize your company’s growth potential, please contact us today.
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Accupoint Software is excited to announce the release of our all new SX Platform. The SX platform focuses attention on empowering the user. It features a modern user interface (UX), designed for streamlined navigation and responsiveness, while delivering enhanced mobile performance.
In addition, the SX Platform contains functionality upgrades including:
For more information on the SX platform, or to schedule an overview demonstration please contact our Web Support team today.
In addition, the SX Platform contains functionality upgrades including:
- New Authorization functionality
- Updated Document archive capabilities
- Improved calibration management tracking
- Additional features in the Corrective Action module
- Updated Response Planning module
- Improved Inspection Management capabilities
- Enhanced User Management permissions
- Enriched data security protections
- Expanded premium module offerings; BI Dashboards and Electronic Packet Development.
For more information on the SX platform, or to schedule an overview demonstration please contact our Web Support team today.
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A service validation is a comprehensive examination meant to confirm that an existing, new or changed service performs as intended. However, when we talk about section 8.5.1 of the ISO 9001:2015 the difference between service/design validation and service/design verification can be confusing.
Service/design validation processes, specifically, are quality control processes that demonstrate product/service consistency, quality, and durability. They ensure that the service/design does what it is intended to do.
This aspect of quality management is particularly important in situations “where the resulting output cannot be verified by subsequent monitoring or measurement.” One example of where service/design validation is critical would be a welding process where the strength of each individual weld cannot be tested without damaging the product.
These sort of real-world necessities create quite a bind; how do you test without testing? To resolve this, service providers need to create test environments where they can perform their service process, in spaces that duplicate the workspace and conditions where the service will be performed. Once the service environment is duplicated, the tests perform a full check on each step of the service, or creation of the product: You have to perform the service on a test platform, where each step of the service can be examined, measured, and evaluated.
In order to achieve this kind of testing, providers should consider adopting practices such as:
Service validation and testing ensures that the service or product delivers the expected outcomes for the customer. In addition to controlling quality, service validation testing provides opportunities to identify ways in which services and products can be improved, and efficiencies can be found.
For more information on how Accupoint Software can help your business create and control service/product validation processes, please contact us today.
Service/design validation processes, specifically, are quality control processes that demonstrate product/service consistency, quality, and durability. They ensure that the service/design does what it is intended to do.
This aspect of quality management is particularly important in situations “where the resulting output cannot be verified by subsequent monitoring or measurement.” One example of where service/design validation is critical would be a welding process where the strength of each individual weld cannot be tested without damaging the product.
These sort of real-world necessities create quite a bind; how do you test without testing? To resolve this, service providers need to create test environments where they can perform their service process, in spaces that duplicate the workspace and conditions where the service will be performed. Once the service environment is duplicated, the tests perform a full check on each step of the service, or creation of the product: You have to perform the service on a test platform, where each step of the service can be examined, measured, and evaluated.
In order to achieve this kind of testing, providers should consider adopting practices such as:
- Service validation tests designed and carried out by the people who haven’t been involved in the design and development process.
- The criteria for passing/failing of a test should be documented in an SDP before any testing.
- Each test environment should be restored to its original state before starting a new test.
- A risk-based testing approach should be adopted to reduce the risk to the service or product. This means stress testing until failure, in order to record and report failure thresholds.
- Service validation and testing need to create, catalog and maintain a library of test models, cases, and data which can be re-used. This is important for being able to re-perform service/product validation during the service lifetime.
- The creation of a quality management system that ensures consistency across all platform and personnel, in order to ensure test conditions can be adequately recreated.
Service validation and testing ensures that the service or product delivers the expected outcomes for the customer. In addition to controlling quality, service validation testing provides opportunities to identify ways in which services and products can be improved, and efficiencies can be found.
For more information on how Accupoint Software can help your business create and control service/product validation processes, please contact us today.
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Corrective and preventive actions are important parts of a quality management system (QMS) , but sometimes it can be difficult to tell these two processes apart.
A corrective action deals with a nonconformity that has occurred, and a preventive action addresses the potential for a nonconformity to occur. Section 8.5.2 of the ISO 9000 standard says corrective action eliminates the cause of nonconformities to prevent recurrence, and section 8.5.3 says preventive action determines and eliminates the causes of potential nonconformities to prevent occurrence. In a nutshell, one deals with what has happened and the other attempts to stop something from happening.
Many auditors recommend using separate procedures and forms to document each type of action. The standard doesn’t say this must be done, but there is a heavy implication that it should be done.
One way to understand these processes is to break down what is required for each one:
Corrective Action Process
Preventive Action Process
Both corrective and preventive actions require effective communications. In addition, both require clear documentation of actions taken and lessons learned. Documenting, controlling and communicating corrective and preventive actions ensure appropriate action is taken within a reasonable timeframe and the resulting changes are effective.
For more information on how Accupoint Software can help your organization manage the corrective and preventative action process, please contact us today.
A corrective action deals with a nonconformity that has occurred, and a preventive action addresses the potential for a nonconformity to occur. Section 8.5.2 of the ISO 9000 standard says corrective action eliminates the cause of nonconformities to prevent recurrence, and section 8.5.3 says preventive action determines and eliminates the causes of potential nonconformities to prevent occurrence. In a nutshell, one deals with what has happened and the other attempts to stop something from happening.
Many auditors recommend using separate procedures and forms to document each type of action. The standard doesn’t say this must be done, but there is a heavy implication that it should be done.
One way to understand these processes is to break down what is required for each one:
Corrective Action Process
- Locate and document the root cause of the nonconformity.
- Audit the system to ensure no other nonconformity could occur. (impact analysis)
- Analyze the effect the nonconformity may have had on a product or service before it was discovered.
- Which may require taking action by either recalling the product, notifying the customer, downgrading or scrapping product.
- Establish thorough follow-up to ensure the correction is effective and recurrence has been prevented.
Preventive Action Process
- Take proactive steps to detect a potential nonconformity before it can occur.
- Use system analysis to create built-in safeguards and process changes to prevent nonconformance.
- Example, use of a failure mode and risk analysis to identify potential deficiencies and create priorities for improvement.
Both corrective and preventive actions require effective communications. In addition, both require clear documentation of actions taken and lessons learned. Documenting, controlling and communicating corrective and preventive actions ensure appropriate action is taken within a reasonable timeframe and the resulting changes are effective.
For more information on how Accupoint Software can help your organization manage the corrective and preventative action process, please contact us today.
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When it comes to ensuring the safe handling of potentially dangerous chemicals, communication is critical. Because of this, OSHA's Hazard Communication Standard (HCS) requires that any chemical manufacturer, distributor, or importer provide Safety Data Sheets (SDS) to communicate these hazards (OSHA, 29 CFR 1910.1200(g)).
SDSs are designed to be user-friendly and must communicate the properties of each chemical product, including: the physical, health, and environmental hazards; protective measures; and safety precautions for handling, storing and transporting the chemical.
Employers are required to ensure that SDSs are readily accessible to employees for all hazardous chemicals in their workplace. Furthermore, employees must have immediate access to the information within their work area, as well as access to SDS backups in the case of power outage or emergencies. Meeting these requirements can be cumbersome and time consuming. As a result, many organizations are turning to compliance management solutions to help meet the standards.
For instance, employees can quickly access digital SDS’s using mobile devices at point of operation, while management can use software to universally update all SDSs as information changes. Quick access to safety information makes all the difference in the handling, transportation, storage, and manufacture of the applicable chemical. In addition, inventory management is also important, as chemical quantities are constantly changing, and on-hand quantities can drastically impact hazards and the prevention procedures necessary.
The process of identifying chemicals present in the workplace requires advanced processes to ensure that information is available to stakeholders and is updated in real time. In today’s global operating environment, an SDS management solution is critical to guarantee compliance to multiple regulatory and legal requirements.
For more information on how Accupoint Software can help you manage your Safety Data Sheet program, please contact us today.
SDSs are designed to be user-friendly and must communicate the properties of each chemical product, including: the physical, health, and environmental hazards; protective measures; and safety precautions for handling, storing and transporting the chemical.
Employers are required to ensure that SDSs are readily accessible to employees for all hazardous chemicals in their workplace. Furthermore, employees must have immediate access to the information within their work area, as well as access to SDS backups in the case of power outage or emergencies. Meeting these requirements can be cumbersome and time consuming. As a result, many organizations are turning to compliance management solutions to help meet the standards.
For instance, employees can quickly access digital SDS’s using mobile devices at point of operation, while management can use software to universally update all SDSs as information changes. Quick access to safety information makes all the difference in the handling, transportation, storage, and manufacture of the applicable chemical. In addition, inventory management is also important, as chemical quantities are constantly changing, and on-hand quantities can drastically impact hazards and the prevention procedures necessary.
The process of identifying chemicals present in the workplace requires advanced processes to ensure that information is available to stakeholders and is updated in real time. In today’s global operating environment, an SDS management solution is critical to guarantee compliance to multiple regulatory and legal requirements.
For more information on how Accupoint Software can help you manage your Safety Data Sheet program, please contact us today.
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For consumers, product purchase verification is simple. It means opening a package or trying a product to see that what you paid for is what you get. For businesses, the process is much different. Product purchase verification is actually serious business that requires full-time professionals with engineering degrees. The concept is important to consider both for compliance and professional reasons.
The most important component of purchased product verification is actually certifying that the product was delivered. Even a medium sized company has many good coming and going across different warehouses and locations. It is impossible for one person to physically verify every delivery. For that reason, logging every delivery in an accounting or compliance system is crucial. After the delivery is logged, it can be tracked and utilized for production or distribution. Product purchase verification also sets off the accounts payable timeline.
The next most important factor is that the product delivered meets the quality standard expected. Products that have a chemical composition such as LNG, diesel or heating oil require an engineer or chemist to verify that the product is correct. They then log the information into a software or compliance management solution to confirm the quality information.
Lastly, product purchase verification is crucial for safety. The delivered product should be stored and contained in a package that prevents it from harming workers. Additionally, it should not be placed next to any other material that could produce a strong combustible reaction. Again, professional engineers or compliance professionals must work on this process to assure nobody is injured. They log information into an online system and carefully monitor the placement of all products.
Accupoint Software is a leading provider of compliance management tools for the petroleum industry. For more information on solutions to manage purchased product verification, please contact us today.
The most important component of purchased product verification is actually certifying that the product was delivered. Even a medium sized company has many good coming and going across different warehouses and locations. It is impossible for one person to physically verify every delivery. For that reason, logging every delivery in an accounting or compliance system is crucial. After the delivery is logged, it can be tracked and utilized for production or distribution. Product purchase verification also sets off the accounts payable timeline.
The next most important factor is that the product delivered meets the quality standard expected. Products that have a chemical composition such as LNG, diesel or heating oil require an engineer or chemist to verify that the product is correct. They then log the information into a software or compliance management solution to confirm the quality information.
Lastly, product purchase verification is crucial for safety. The delivered product should be stored and contained in a package that prevents it from harming workers. Additionally, it should not be placed next to any other material that could produce a strong combustible reaction. Again, professional engineers or compliance professionals must work on this process to assure nobody is injured. They log information into an online system and carefully monitor the placement of all products.
Accupoint Software is a leading provider of compliance management tools for the petroleum industry. For more information on solutions to manage purchased product verification, please contact us today.
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How well do you know your supply chain? A supply chain is only strong as its weakest link. When it comes to controlling your suppliers, the better you are at understanding the entire chain and identifying weak links, the better your company will be in the long run.
The recently released API Spec Q1 9th Edition – Addendum 2 focuses on supply chain controls, specifically relating to multi-tier suppliers. As you are aware, Q1 has always required us to manage our supply chain. However, the revised requirements expand the controls to include associated (tier 2 & 3 level) suppliers that are essential for product realization.
To that end, in today’s post we will focus on a couple of tips to improve the effectiveness of your supply chain controls.
An efficient supply chain control program enables your company to reduce costs, minimize risk and satisfy customer expectations. For more information on how Accupoint Software can help your organization to improve your supply chain control program, please contact us today.
The recently released API Spec Q1 9th Edition – Addendum 2 focuses on supply chain controls, specifically relating to multi-tier suppliers. As you are aware, Q1 has always required us to manage our supply chain. However, the revised requirements expand the controls to include associated (tier 2 & 3 level) suppliers that are essential for product realization.
To that end, in today’s post we will focus on a couple of tips to improve the effectiveness of your supply chain controls.
- Understand the big picture. Gather performance data on each supplier in the chain and update it constantly. If your data only includes some vendors or incomplete performance data, the picture of your supply chain is as incomplete as a jigsaw puzzle missing half the pieces. Without concrete data, you may have an idea of potential snags but ultimately you are guessing. As a result, you're not able to make the best decisions on how to resolve issues that could impact operations.
- Use integrated technology to manage your supply chain. Technology enables more efficient and effective data collection and analysis, giving you increased response time to head off potential problems. In addition, by using integrated technology you can improve communications with relevant stakeholders resulting in minimized disruptions to production.
An efficient supply chain control program enables your company to reduce costs, minimize risk and satisfy customer expectations. For more information on how Accupoint Software can help your organization to improve your supply chain control program, please contact us today.
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The benefits of a corrective action program are immeasurable, and in the oil and gas industry, these programs are an integral part of any quality management system. An effective corrective action system works to identify the root cause of an issue, generates action plans to reduce or eliminate the chance of recurrence, and provides for evaluation of solution effectiveness.
That being said, some companies struggle with implementing an effective corrective action management program. Below are some of the key elements of a successful corrective action program.
1. Have the right people leading your corrective action program.
Put together a team to evaluate potential members for the program. Make sure that the people chosen understand the issue in question. Team members must have first-hand knowledge of the process being assessed.
2. Evaluation of Issue
The corrective action team should collect data on similar issues that have occurred in the past. Subsequently this information needs to be analyzed and evaluated to determine applicable root causes.
3. Develop Corrective Action Plan
The corrective action plan should identify the root cause of the issue, containment actions as well as specific action taken long term to reduce or eliminate the chance for a recurrence. Finally, ensure that the corrective and preventive action plan is properly communicated with applicable personnel within the organization.
4. Create Compliance
Once the corrective action has been implemented, utilize the evaluation results to drive your corrective action impact. The impact analysis will create benchmarks and pinpoint opportunities for process improvements.
Effectively managing your corrective action program is critical to your success. To find out how Accupoint can help improve the effectiveness of your corrective action program, please contact us today.
That being said, some companies struggle with implementing an effective corrective action management program. Below are some of the key elements of a successful corrective action program.
1. Have the right people leading your corrective action program.
Put together a team to evaluate potential members for the program. Make sure that the people chosen understand the issue in question. Team members must have first-hand knowledge of the process being assessed.
2. Evaluation of Issue
The corrective action team should collect data on similar issues that have occurred in the past. Subsequently this information needs to be analyzed and evaluated to determine applicable root causes.
3. Develop Corrective Action Plan
The corrective action plan should identify the root cause of the issue, containment actions as well as specific action taken long term to reduce or eliminate the chance for a recurrence. Finally, ensure that the corrective and preventive action plan is properly communicated with applicable personnel within the organization.
4. Create Compliance
Once the corrective action has been implemented, utilize the evaluation results to drive your corrective action impact. The impact analysis will create benchmarks and pinpoint opportunities for process improvements.
Effectively managing your corrective action program is critical to your success. To find out how Accupoint can help improve the effectiveness of your corrective action program, please contact us today.
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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 Formula
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.
Balancing Costs
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.
The Formula
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):
- Cost of Quality (COQ) = Cost of Control + Cost of Failure of Control
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:
- Cost of Control = Prevention Cost + Appraisal Cost
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.
- Cost of Failure of Control = Internal Failure Cost + External Failure Cost
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.
Balancing Costs
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.
