Cost of Poor Quality in Energy Sector

Abstract

Companies need to produce their product and services with lower cost in order to survive in the competitive global market. That is why; firstly they need to define the visible and invisible cost of poor quality factors and then need to eliminate these Poor Quality Costs by utilizing the various improvement methodologies. In order to define the poor quality, firstly the project team members need to be assigned between the cross functional departments. Then, the current status needs to be defined step by step by utilizing the various methodologies such as Pareto Analyze etc. As a second step, Root Cause Analyze is performed, and lastly the actions and action plan are defined. All these steps are systematized with some methodologies such as PDAC, Practical Problem Solving (PPS), Six sigma DMAIC & 8D. In this study, it is aimed to decrease the Warranty Cost which is a factor of the Cost of Poor Quality in a factory in the Energy Sector. At the same time, it is aimed to decrease the customer complaints as well as to increase the customer satisfaction. The factors that cause the Warranty Cost have been defined in the Current Status Analyze. Pareto Analyze, Brainstorming, Fish Bone Analyze, Process Mapping, 5 Why Analyze etc. methodologies have been utilized in this study.