Quality, cost, delivery (QCD)
Quality, cost, delivery (QCD) as used in lean manufacturing measures a businesses activity and develops Key performance indicators. QCD analysis often forms a part of continuous improvement processes.
Although it has roots in the manufacturing sector, QCD can be used in a variety of business environments such as supply chain management and engineering.
Degree to which a set of inherent characteristics (3.5.1) fulfils requirement (3.1.2)
(ISO 9000 – 2000, Clause 3.1.1)
Benefits of QCD
QCD offers a straight forward method of measuring processes while being applicable to both simple and complicated business processes. It also represents a basis for comparing businesses. For example a business measuring supplier delivery performance may easily compare its findings against other businesses performance.
Quality – Cost – Delivery in Toyota
Toyota Production System (TPS) is an essential part of what makes Toyota different and makes Toyota’s products a profitable investment for its customers’ businesses.
• Quality is inherent in Toyota’s products.
Thanks to the company’s constant striving for improvement (kaizen), which has direct benefits for their customers. Toyota’s insistence on maintaining quality throughout the production process is vital to ensuring that their finished products are of the highest quality.
• Cost is always an issue.
By buying Toyota products their customers can be sure of having made a good choice. Kaizen ensures that Toyota products feature the latest effective innovations, maximising productivity. The quality of Toyota’s products allows their customers to enjoy a high return on their investment.
• Delivery is right for each customer’s order.
Toyota’s customer-driven system ensures that production output corresponds with timely delivery. Toyota’s smooth, continuous and optimised workflows, with carefully planned and measured work-cycle times and on-demand movement of goods, allow them to consistently meet their customer’s expectations.
WHAT ARE SOME OF THE COMMON BENEFITS ASSOCIATED WITH AN ISO QUALITY SYSTEM?
- Error reduction resulting from better systematic inspection and testing.
- Error reduction resulting from Increased employee participation, involvement, awareness and systematic employee training.
- Better products resulting from better design control.
- Improved productivity resulting from planning and teamwork.
- Reduction in cost associated with failures.
- Resolution of nonconformance and adoption of corrective and preventive action in a systematic way.
- Improved communications both internally and externally which usually improves quality, efficiency, on time delivery and customer / supplier relations.
- Recognition of compliance by an unbiased organization! (One assessment by an accredited registrar usually satisfies the quality system requirements of many customers.)
Offering the Top quality, reasonable price, and on time delivery?
Quality Management System of ISO9001 means what the organization does to
- ensure that its products or services satisfy the customer’s quality requirements and
- comply with any regulations applicable to those products or services.
- enhance customer satisfaction, and
- achieve continual improvement of its performance.
Hence, the implementation of quality management system by effectively and with good effectiveness should lead an organization to offer the top quality, reasonable price and on time delivery.
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