Question

How the company can overcome the internal failure cost?

Answer 1

How company can overcome the internal failure costs

Introduction : There are different types of internal failure costs are in reality and these are (a) scrap, (b) scrap disposal , (c) rework cost , (d) rework inspection cost, (e) Additional materials procurement cost, (f) variability in product quality, (g) cost attributed to suppliers defects etc.

Way out :

(1) Cut down on scrap and rework by quality control solutions: Scrap can't be reused, and rework incurred more expenditure for the company. By proper quality control system, such internal failure costs can be minimized .

(2) Reduce customers compliants by improvement of quality : Automated documentation must be insisted in this case along with use of proper quality control software before transferring the products in to the hand of final consumers .

(3) Improving suppliers quality by streamlined suppliers quality program : By streamlined suppliers quality program , the quality of raw materials can be improved a lot for further production process.

(4) Periodic internal quality audit : It makes purchase and production departments staffs responsible about the quality of inputs and process of manufacturing .

(5) Systematic preventive maintenance procedures : Preventive maintenance is necessary for maintaining good quality standards , dodging technical glitches and minimization of waste as scrap.

(6) Training to the employees and suppliers : It provides updated know how and situational requirements to the employees and suppliers. Which ultimately benefits the organization by reducing customers complaints indirectly .

(7) Introduction of automated statistical process control : It ensures on time quality control in processing , which is advantageous for the company to sell defects free products in the market .

(8) Close look on nonconformance and corrective action programs with strict budget : To rectify nonconformance, corrective action programs are initiated but which involves high expenditure . So, to settlement of complaints due to nonconformance , corrective programs are to be done within strict budgetary control .