August 2023 Volume 5

MAINTENANCE

MAINTENANCE

Quality Costs Summary, July 2023

Ray Harkins is the Quality and Technical Manager for Ohio Star Forge in Warren, Ohio. He earned his Master of Science from Rochester Institute of Technology and his Master of Business Administration from Youngstown State University. He also teaches quality, manufacturing, and business-related skills through the online learning platform, Udemy. He can be reached via LinkedIn at linkedin.com/in/ ray-harkins or by email at rharkins@ ohiostar.com.

Cost, $

% of Sales

Prevention

Gaging & Calibration CMM Calibration/Repair

0.074 0.022 0.004 0.035 0.057 0.143

4,115 1,255 1,981 3,204 8,008 250

Metallurgical Supplies / Services

Training / Auditing IM&T Labor (50%)

Admin & Engineering (25%)

Sub-Total

18,814

0.337

Appraisal

84.3%

Visual Inspection = IM&T Labor (50%)

1.138 0.057 0.143

63,585

3,204 8,008

Admin & Engineering (25%)

References: Feigenbaum, Armand, “Total Quality Control,” Harvard Business Review, 1956.

Sub-Total

74,797

1.338

Internal

Visual Rejects, Lost Sales Line Rejects, Lost Sales

1.039 0.143 0.205 0.026 0.025 0.002 (0.063)

58,082 7,976 11,465

Scrap Credit

Nondestructive Testing

1,441 1,405

NDT Freight

Outside Rework/Service

120

Supplier Credits Visual Sorting =

(3,505) 13,404

15.7%

0.240 0.143

Admin & Engineering (25%)

8,008

Sub-Total

98,396

1.760

External

Customer Reject Lost Sales Returned Product Freight Defect Investigation Trips

0.070 0.020 0.009 0.025 0.143

3,890 1,100 1,371 8,008 500

Onsite Inspection

Admin & Engineering (25%)

Sub-Total

14,869

0.266

Total

Total Cost of Quality, $ Total Sales, $ COQ, % of Sales

206,876 $5,589,105 3.701%

Figure 1.

FIA MAGAZINE | AUGUST 2023 25