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(I) PAFF (Prevention, Appraisal, Internal Failure, External Failure)

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22 views

(I) PAFF (Prevention, Appraisal, Internal Failure, External Failure)

Question 3

Uploaded by

JOSPHAT ETALE B.E AERONAUTICAL ENGINEER
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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(i) PAFF (Prevention, Appraisal, Internal Failure, External Failure)

This is a classic approach to cost-saving. The essential objective is to limit the costs of

risks that have the potential to cause failure and jeopardize the business (Slack, N et al., 2013).

This technique can be used in all business units, divisions, departments, and functions. The

prevention phase involves the costs of any action taken to investigate, prevent, or reduce defects

and failures, quality circles, maintenance of equipment, or training of staff. In the appraisal

phase, it aims to identify and eliminate risks that are unacceptable and unacceptable failures that

may threaten the project (Drury, 2015). Methods used include risk analysis, quality system audits

(e.g., Porter's Five Forces), failed projects reviews, etc. It is the costs of establishing existing

quality such as Inspection of goods inwards, Finished Product testing, Cost of running the

Quality Control system (Drury, 2015).

Internal failure also called Failure within Production refers to faulty products in

production caused by defective material or damaged machinery, among other causes (Slack, N et

al., 2013). This can be due to using inappropriate materials, equipment, or practices, faulty

programming or flawed design; defects in materials or components; poor documentation; a delay

or failure due to resource constraints, Scrapping of defective output, Reworking (and replacing)

defective output and Capacity and resources wasted (Drury, 2015). The external failure phase is

the cost of bad quality recognized after delivery to the customer. This can be caused by inherent

deficiencies in suppliers, vendors, subcontractors, accountants, consultants, Loss of goodwill,

Replacement parts and delivery, and Product Liability costs (Drury, 2015).

Advantages:

a. It extends the life of products

b. It reduces costs of bad quality to customers and the organization


c. It improves profitability by reducing losses resulting from defective or non-conformant

materials and parts.

d. Reduces cost of Bad quality to suppliers, vendors, subcontractors, accountants, consultants,

loss of goodwill, Replacement parts and delivery, and Product Liability costs (Drury, 2015).

Disadvantages:

a. Increases cost of forming quality systems for quality control

b. Hard to implement and maintain (Slack, N et al., 2013).

c. Not applicable in certain industries e.g., manufacturing.

d. It does not apply to companies with poor cash flow management, or where it is difficult to

control costs in that way (Drury, 2015).

(ii) Quality Function Deployment (QFD)

Quality Function Deployment (QFD) is a structured approach to defining customer needs

or requirements and translating them into specific plans to produce products to meet those needs

(Hauser et al., 2010). The “voice of the customer” is the term to describe these stated and

unstated customer needs or requirements. The QFD approach seeks to identify and integrate all

aspects of the product, from key features to the quality of components, packaging, labeling, and

documentation. This can lead to significant cost reduction as to how it is implemented is to

identify any discrete elements or parts within a product that have inherent defects. Therefore, by

identifying these defects or faulty parts they can be eliminated from manufacture and rework

costs eliminated; excessive waste avoided; time to market increased; and customers are happier

with their products (Garibay, Gutiérrez & Figueroa, 2010). The outcome of QFD is a set of plans

which will result in the new product offering being achieved with requirements kept in line with

current or anticipated customer needs and requirements.


Advantages of Quality Function Deployment (QFD):

a. It provides a systematic and structured method for the prioritization and detailed design of a

new product or service (Garibay, Gutiérrez & Figueroa, 2010).

b. QFD is a customer-driven approach to product/service development. It enables organizations

to focus on what their customers want and need, not just what they say they want (Garibay,

Gutiérrez & Figueroa, 2010). This leads to a more effective approach to new product

development by focusing on value (i.e., the satisfaction of the stated customer needs), instead of

cost.

c. QFD has been successfully applied in a wide range of industries including automotive,

aerospace, computer hardware, electronic components, construction equipment design, and more

(Jaiswal, 2012)

d. Because it focuses on customer-based approaches it can be applied in any industry that is

driven by its customers (i.e., not driven by suppliers), and can be used with non-technical groups

in a company (Bolar, Tesfamariam & Sadiq, 2017).

e. It helps to improve the quality and service levels of existing products as well as providing

greater flexibility to meet future requirements (Jaiswal, 2012)

Disadvantages of Quality Function Deployment (QFD):

a. QFD focuses on inherent defects, which may not be a significant part of the overall cost of

goods; hence, they are often ignored in traditional design methods

b. QFD emphasizes that because it focuses on customer-based approaches it can only be used

with non-technical groups in a company (e.g. marketing, sales, finance, operations). Some

organizations believe that QFD should only be conducted with relevant technical groups for

project success
c. Because it is a home-grown system developed in-house by a small number of companies it can

be difficult to get standard definitions of terms and symbols used in QFD

d. QFD requires a lot of time and effort towards the initial design to ensure it is correct – these

are not necessarily ‘one-hit wonders’ in terms of this time requirement; however, once the

quality plans have been set up they will be used repeatedly

Recommendations

For HG-Ai to reduce costs, it should have all the systems in place to control both costs

and quality. In this way, it can ensure that the products meet certain standards and ensure that

they are of good quality. The systems used include Quality Control, inspection, and testing, Total

Quality Management (TQM), ISO 9000 series, which is the International Standard on Quality

Management Systems. In addition to this, HG-Ai should implement a Continuous Improvement

Process and be willing to change and adapt to remain competitive.

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