CA Final Costing Revision: Cost of Quality, TQM & Six Sigma 📘

CA Final Costing | Cost of Quality, Total Quality Management & Six Sigma(Revision)-English Language
In this Class, we will discuss the COST OF QUALITY i.e developing Product and Services that satisfy/ delight the customer.
COST OF QUALITY consists of 2 things-
1. Cost of Good Quality- Prevention Costs and Appraisal Costs
2. Cost of Poor Quality- Internal Failure Cost and External Failure Cost.
6 C's of TQM- Control, Commitment, Culture, Continuous Improvement, Cooperation, Customer Focus.
Deming's Philosophy- 14 points methodology discussed in detail in video-
- Create constancy of purpose towards improvement;
- Adopt the new philosophy;
- Cease Dependence on Inspection;
- Move towards a single supplier for any 1 item.;
- Continuous Improvement;
- Institute Training on the job;
-Institute Leadership;
- Drive out Fear;
- Break down barriers between departments;
- Eliminate Slogans;
- Eliminate management by Objectives;
- Remove barriers to pride of workmanship;
- Institute Education & self improvement;
- Transformation is everyone's job.
To implement TQM, we need to understand PDCA i.e Plan, Do, Check, Act, and this process has to be continuous for the improvement.
Lastly, we discussed 6 sigma- These are the set of techniques and tools for process improvement.
There are 2 methodologies for the same-
DMAIC(Define, Measure, Analyse, Improve, Control)
DMADV(Define, Measure, Analyse, Design, Verify)

Did you like our video? Give it a Thumbs-up!
Subscribe to our channel and Share this Video if you like it!