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CoQ – in PRACTICE!

Six Sigma – iSixSigma Forums Old Forums General CoQ – in PRACTICE!

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  • #27798

    Tim
    Member

    Can anybody give me a real-life example of a CoQ calculation – perhaps in your own company?
    I’ve seen many theoretical exmaples of CoQ where the various elements of Prevention, Detection and Appraisal are listed.  But in most examples, they attach provisos stating that there are many hidden costs that you will have great difficulty in identifying/valuing.
    If this is the case, how come many companies (including GE) claim to have reduced their CoQ through a Six Sigma program?
    If we each develop our own method of calculating CoQ, it would be easy to omit key costs that ‘should’ have been included and hence get a mis-leading CoQ figure. 
    Does anyone have any real-world examples of how they have calculated CoQ?  I would like to develop one for my company, but would like to base it on a proven technique.

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    #68534

    Sorour
    Participant

    We have a similar interest, #8 on the Forum is related.
    At my company we built a spreadsheet and heavily used Juran’s Quality Control, 4th edition, chapter 4 to develop a list. We enter values from the general ledger and the program calculates the COQ and charts it.
    I could share a generic copy and you could use it as a start. I just don’t know how to get it to you.
    Perhaps the Forum could provide a place for it that everyone could access? If so, we could share our generic spreadsheets and share ideas about what we look for in the COQ, helping each other get better.? Pie in the sky, maybe; or maybe not? FORUM, what do you say?
     
     

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    #68596

    Tim
    Member

    Thanks Paul, I’d appreciate being able to see the tool you use.  You could send it to my e-mail address: [email protected]
    My current idea, was to base a spreadsheet on a proforma provided in a British Standard on CoQ.  However I’d prefer to see a version that is already successfully in use.
    BTW. Are you seeing the CoQ measure reduce over time as a result of your Six Sigma programme?

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    #68649

    Tim
    Member

    Tim, I was looking foreward to receiving your Generic spreadsheet.  Are you still able to send it to me?  I’d be very grateful.

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    #68660

    Sorour
    Participant

    After the Leadership reviews a generic version, and approves it, I’ll send it along. I’ve had several requests. The Juran institute will get a chance to shoot holes in it as well. We’ll want to network on this for awhile. Have patience.

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    #68674

    Tim
    Member

    Thanks Paul, and sorry for the impatience.  But in place of the ‘impatience’ see ‘eagerness’.
    I’m keen to start developing my own company’s methodology, and have agreed to have a first draft prepared by the end of september.
    I continue to look forward to seing your model.
    Was there any feedback of having somewhere on this site to place such tools?

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Viewing 6 posts - 1 through 6 (of 6 total)

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