Price of Conformance

Topics: Management, Thought, Human Pages: 1 (288 words) Published: March 17, 2013
In this tutorial session, we practiced on classifying quality costs. What we were going to do was that classify fourteen different costs in to three quality costs which were price of conformance(POCs), price of non-conformance(PONCs) and normal business(NBs).

When we looked at PONCs, we should be careful of some key words like “loss of use” in question 5, “re-work” in question 6, “error” in question 11 etc which means failure. Since situation of non-conformance occurred, the company had a must to spend money or operate remediation to solve the quality problem. When we saw a condition that the company did something that he must do, probably we considered this should be PONCs. Also, when we looked at NBs, we should pay attention on human being like “engineers” in question 2, “sales manager” in question 4,“sales administration executive” in question 9 etc. When we found human in the questions and non-conformance occurred, we needed to think about who should be responsible for the failure, human or quality. In this situation, we would take it into either PONCs or NBs. Moreover, when we looked at POCs, we would consider whether the actions in the question were indispensable. In most cases, POCs were not that important for the whole project compared to PONCs. Meanwhile, the costs of POCs and NBs were much lower than PONCs. Last but not the least, when we classify quality costs, we should focus on the purpose of the action, for instance, “a marketing survey” in question 8. This survey could be done for any of the costs at different stages of the project. In this case, we should consider it into either POCs or PONCs or NBs.
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