Since the 1980s, companies have taken a larger interest in quality and it´s economic impact within the company. Having the knowledge that it´s not quality that costs money, but it´s rather the lack of quality. The work immerses itself in the field of cost of poor quality and the development of key performance indicators. The thesis is performed at Bufab Holding in Värnamo. Bufab Holding is a trading company which mainly buys and sells C-parts. C-parts include fasteners, other small metal-, rubber- or plastic parts such as wires, springs and electronic fasteners. The aim of this thesis was to make a survey of the cost of poor quality and to find key performance indicators (KPI) for cost of poor quality that can be continuously monitored. This work can serve as a basis for other companies within the Bufab group if the company believes that the content of the report can be used. With this aim two issues was created. What is the cost of poor quality that are linked to Bufabs complaints today, and where do they occur? Which key performance indicators can be created, which continuously can be monitored? The work began with a literature study to gain a deeper understanding of the cost of poor quality and the creation of KPI´s. The literature led the writers of this thesis into the methods that were used. Through the data collection, document gathering and given interviews an understanding of the company´s current economic situation. On this basis the company´s claims and processes where analysed with the help of "Seven quality tools". With the help of the piece cost model cost barriers was prepared and the cost of poor quality was calculated. Furthermore KPI´s was created through Lars Sörqvists description of ratio. The cost carriers differed depending on whether it was Bufab who caused the error, if it was a wrong product quality claim or if it was the supplier who caused the error. The cost of poor quality totaled of 4,7 Mkr. The pareto chart shows that the cause wrong product quality caused the highest costs. The costs of poor quality that where calculated mostly consisted of different labor costs. One of the KPI´s was based on labor cost and the other was based on total costs. Furthermore KPI´s where made of the number of complaints with the base of total number of order lines that have been sent. The company can then use this result to show how good quality the company have when new contracts are negotiated. If the methodology and results are promising, this thesis can be a working model for more companies within the Bufab group. Not all visible costs of poor quality was calculated in this thesis due a lack of time. The thesis also lacks entirely an assessment of the hidden costs of poor quality.

<p>For a company to be competitive today, one way is to create a natural feedback loop from the production department to the design department with information regarding the production systems ability to deliver a finished component. The purpose with this feedback loop is to create respect for tolerances and to more design for manufacturing and assembly. The studied company in this thesis work developed a quality program to reach a spiral of continuous improvements to reduce cost of poor quality (CoPQ) and to reach an improved quality level (PPM). The object of this work was to test and improve the quality program called The Zero Tolerance Program. Delimitations were made when the work was started and ongoing which led to that the impact on PPM could not be studied. The connection to CoPQ was difficult to obtain and could only be proved theoretically, not practically, due to the short timetable.</p><p>During the short amount of time the right root cause could not be found. The thesis work findings came to a number of identified Measurable Success Criteria and requirements which must be in place for the further progress of The Zero Tolerance Program.</p> / PREPARE

For a company to be competitive today, one way is to create a natural feedback loop from the production department to the design department with information regarding the production systems ability to deliver a finished component. The purpose with this feedback loop is to create respect for tolerances and to more design for manufacturing and assembly. The studied company in this thesis work developed a quality program to reach a spiral of continuous improvements to reduce cost of poor quality (CoPQ) and to reach an improved quality level (PPM). The object of this work was to test and improve the quality program called The Zero Tolerance Program. Delimitations were made when the work was started and ongoing which led to that the impact on PPM could not be studied. The connection to CoPQ was difficult to obtain and could only be proved theoretically, not practically, due to the short timetable. During the short amount of time the right root cause could not be found. The thesis work findings came to a number of identified Measurable Success Criteria and requirements which must be in place for the further progress of The Zero Tolerance Program. / PREPARE

The purpose of the study and following thesis is to investigate how employees in a R&amp;D department perceive the product development process. Review of present process documentation aims at identifying potential discrepancies between the process as it is designed and the way it´s used. The company is operating in a regulatory environment and have recently merged with another company. The company is aligning different processes and work teams. The result indicates that the organization will benefit from working with processes with an inclusive approach, i.e. involve employees working in the process. The process studied is a global process i.e. the process is used at multiple sites. This presents challenges for local adaptations. By actively involving employees a common understanding of the challenges can be achieved which will increase engagement and commitment. The organization will also benefit by looking at the organization from a process perspective. Aligning process goals with departmental goals can be achieved by developing processand department strategies based on overall organizational objectives and the organizational context. The underlying principles for the study are the foundations of TQM. Relevant tools, such as the improvement wheel (PDCA) and GAP-analysis, that can be used for business improvements are presented.

Dagens hårda konkurrens för tillverkande företag ställer höga krav på effektivisering, lönsamhet samt att ständigt utveckla sina processer. Att arbeta med förbättringar är en väsentlig del för företagens överlevnad. För att lyckas med förbättringsarbeten krävs en förståelse för vilken process som ej är fullkomlig. Detta kan uppnås genom att identifiera och analysera de slöserier som finns inom företaget, för att sedan eliminera dem. I detta arbete lägger vi grunden för kommande förbättringsarbeten genom att identifiera de platser och orsaker till spill, och sedan beräkna dess kostnad. En fallstudie som ska analysera en delprocess som ej skapar värde för kunden utförs för att ytterligare belysa potentiella förbättringsområden. Genom intervjuer, observationer och analys av befintlig data har en ny modell för registrering av kassationer och omarbete skapats och en intern prislista för produkter i arbete har uppdaterats. En fallstudie har utförts där två partier kött från olika leverantörer har bearbetats till slutkund. Syftet med fallstudien var att undersöka om skillnad i leverantörskvalitet kunde speglas i slutpriset av produkten. Parametrar som tid i lager, nedlagda resurser och förlorad vikt iakttogs. Inför framtida förbättringsarbeten kan modellen i kombination med prislistan användas som grund för beslut. Fallstudie påvisar de konsekvenser som kan uppstå vid ett funktionsorienterat arbetssätt. / The harsh competition the producing organizations face these days, sets high expectations concerning effectivity, profitability and process development. To improve the organization is an essential part for survival. In order to successfully improve your organization you should first identify what process that’s in dire need. This can be achieved by identifying, analyzing and eliminating the wastes inside the company. This report sets the foundation for future improvements by identifying the locations, reasons and economic consequences of waste. A case study whose purpose was to analyze an activity which didn’t add value for the customer was performed to reveal additional areas of improvement. Through interviews, observations and studies of documented data, a new model for the registration system was created. These methods were also used to create an updated version of their internal price list. A case study were performed where two batches of meat, from different suppliers, were followed through processing. The purpose were to examine whether there is a link between supplier quality and increment of cost. Parameter such as time spent in stock, resource consumption and loss of weight where observed. The model combined with the price list can be used as a basis for future decisions regarding improvements. The case study demonstrates the consequences associated with a functional oriented business approach.

Knowledge management (KM) implementation strategies on construction projects can reap benefits such as improved performance and continuous improvement yet many projects are characterised by inefficiencies, repetition of mistakes and lack of lessons learnt. Poor skills, design changes, errors and omissions contribute to the internal failure cost element of the Cost of Poor Quality (COPQ) while the resultant effect of client dissatisfaction contributes to the external failure cost. COPQ is prevalent regardless of project type and has been found to be over 10% of total project cost in certain cases. While the need to reduce COPQ is definite, it is uncertain what impact KM has in its reduction. The aims of the research therefore are twofold (i) to investigate the impact of KM in reducing COPQ on construction projects (ii) to develop a KM framework for reducing COPQ on construction projects. A mixed method approach was adopted for the research with an exploratory sequential research design utilising both qualitative and quantitative inquiries to address the research aims. Semi-structured interviews and questionnaire survey were selected as the method for qualitative and quantitative data collection respectively. The interviews were conducted with 25 industry experts involved in KM strategies for large construction organisations across UK to obtain data, based on their experiences and expertise on projects, which were then analysed using content analysis. The output from the analysis yielded variables and working hypotheses which were tested through the questionnaire survey. Further data were obtained from 114 survey respondents who have iii been mostly involved in KM initiatives for large construction organisations across UK. The data was analysed using descriptive statistics. From the interpretation of the entire qualitative and quantitative data, it was found that KM can be complex and difficult to manage within organisations and on projects. Although KM was perceived to have positive impact in reducing COPQ, organisations did not, and could not quantify COPQ neither could they measure the extent of the impact of KM on COPQ. Causal links were found between COPQ elements i.e. errors and omissions, design changes and poor skills, contrary to the theoretical suggestion of being mutually exclusive. It was found that KM currently has not been optimised to reduce COPQ due to a number of barriers. Optimising KM to reduce COPQ therefore involves overcoming the barriers as follows: develop performance metrics to assess the impact of KM on COPQ on projects; appoint knowledge champions to facilitate KM activities to reduce COPQ; adopt a positive organisational culture towards KM; allocate adequate time and budget for KM activities on projects; select procurement strategies that support and facilitate KM. A KM framework for reducing COPQ on construction projects was developed as an output of the research and evaluated by industry practitioners. It can be concluded that the optimisation of KM can significantly reduce COPQ. A key recommendation for industry practitioners therefore is to adopt a holistic approach to quantifying COPQ and assessing the impact of KM in reducing COPQ such as the one presented in this research. The research contributes to the body of knowledge in the area of cost reduction, quality improvements and knowledge management on projects.

Cost of poor quality describes what the lack of quality costs an organization. By understanding what the concept is and how it can be translated into a specific organization, it creates the conditions for eliminating them, and it can generate a saving of up to 30% of the organization's turnover. The study has been carried out at ABB Industrial Automation Control Technologies in Västerås within the group ABB AB. This work has focused on visualizing the problem and how it could be attacked. The purpose of the thesis is, "… to generate evidence about the management of drawings, as well as to propose measures that can improve this process. The aim is also to help ensure that there is a process where suppliers always produce based on the right and most recent edition. " The processes of drawing management have been visualized based on information from interviews, observations and secondary data that have been based on information from routines together with governing documents. Thereafter, deficiencies in this drawing management process have been identified and also the causes. The result from the thesis is a process mapping with identified shortcomings and the causes of these. A specification has been prepared for guidelines on how ABB Industrial Automation Control Technologies will work with improvements on this process. / Kvalitetsbristkostnader beskriver vad avsaknaden av kvalitet kostar en organisation. Genom att förstå vad begreppet är och hur det kan översättas till en specifik organisation skapas förutsättningarna för att eliminera dessa samt på så sätt spara upp till 30 % av organisationens omsättning. Studien har genomförts på ABB Industrial Automation Control Technologies i Västerås inom koncernen ABB AB. ABB Industrial Automation Control Technologies har en förståelse om vad kvalitetsbristkostnader är och därmed har ett problemområde presenterats. Detta arbete har inriktats på att visualisera problemet samt hur det skulle kunna angripas. Examensarbetets syfte är, ”Avsikten med detta arbete är att generera underlag kring hantering av ritningar samt att även föreslå åtgärder som kan förbättra denna hantering. Syftet är även att bidra till säkerställandet av att ha en process där leverantörer alltid producerar efter rätt och senaste upplaga av ritningar.” Processen ritningshantering har visualiserats baserat på information från intervjuer, observationer samt baserat på sekundärdata som information om befintliga rutiner och styrande dokument. Därefter har brister inom denna ritningshanteringsprocess identifierats samt medföljande orsaker åskådliggjorts. Studiens resultat är en processkartläggning med identifierade brister och orsakerna till bristerna. En kravspecifikation har tagits fram som skapar grunden till förbättringsarbetet som ABB Industrial Automation Control Technologies står inför.

Byggindustrin har problem med stora kvalitetsbristkostnader, förutom att organisationer jobbar på ett reaktivt sätt gällande kvalitet identifieras sällan rotorsaken till uppkomna kvalitetsbristkostnader. Tillverkningsindustrin har under många år jobbat med att komma till bukt med kvalitetsbrister och har utvecklat metoder för att förebygga uppkomsten av kvalitetsbrister. Förbättringsmetoder som DMAIC och PDCA anses vara generella metoder som är lämpade för alla organisationer och industrier. Trots att dessa metoder påvisats ha positiv verkan för organisationers kvalitetsarbete finns det enligt akademiska skrifter brist på systematiska arbeten mot bättre kvalitet inom byggindustrin. För att undersöka och testa systematiskt förbättringsarbete inom byggindustrin utfördes en fallstudie på ett företag inom industriellt byggande. Fallföretaget för studien producerade prefabricerade betongelement. Genom att utföra ett DMAIC-projekt på Fallföretaget undersökte studien möjligheten att applicera metodiken och dess verktyg. Studien utgick från en kategorisering av Fallföretagets kvalitetsbristkostnader för att finna områden för förbättring. Syftet med studien var således att undersöka möjligheten att använda kategorisering av kvalitetsbristkostnader som avstamp för systematiskt förbättringsarbete inom industriellt byggande. Genom kategoriseringen av kvalitetsbristkostnader kunde studien använda paretodiagram för att finna de största kostnaderna för företaget. Utifrån de mest kostsamma kvalitetsbristerna undersöktes dess härkomst genom produktionsmätningar. Från produktionsmätningarna upprättades styrdiagram och en duglighetsanalys utfördes. Genom produktionsmätningarna konstaterades att de kvalitetsbristkostnader som kategoriserats hade delvis inte sin uppkomst i produktionen. Därav misstänktes bristfälliga processer innan produktion som eventuell orsak till kvalitetsbristkostnaderna. Utifrån studien presenterades olika rekommendationer som delades upp i produktionsförbättringar och organisationsförbättringar. Organisationsförbättringarna berörde de kringliggande processerna som inte är en del av produktionen. Förslagen var att investera i teknik för kvalitetssäkring av produkterna i produktion. Studien rekommenderade även förslag på förbättringar som inte krävde investering. Så som referensmätningar och formjusteringar samt visuell styrning och planering. På organisationsförbättringar rekommenderades att utveckla och strukturera projektledningsprocessen och konstruktionsprocessen, vilket var de processer som identifierats som potentiella källor till kvalitetsbristkostnaderna. Studien kunde genom insamlade data i form av intervjuer och observationer tillsammans med en litteraturstudie konstatera att byggindustrin idag arbetar på ett reaktivt sätt med kvalitet. Därav förespråkar studien att byggindustrin arbetar med ett mer förbyggande arbetssätt för att nå kvalitet. Studien kunde även konstatera att ett DMAIC-projekt med utgångspunkt att kategorisera kvalitetsbristkostnader bidrar till att finna förbättringsområden för en organisation inom industriellt byggande. Arbetet i sin helhet bidrar även till att skapa en bättre förståelse för hur kvalitetsarbete kan appliceras inom industriellt byggande.