Lean six sigma minimizes cost of non-conformance. 

 

It is also called cost of quality. 

 

 

According to experiences tangible costs vary 4-10 % of the revenue where intangible cost of quality is between 20-30 of the revenue. 

 

 

Tangible 

 

•Returns  

•Warranties

•Scrap

•Credit Notes

•Inspection  

 

 

 

intangible cost of nonconformance 

 

•Lost sales and Revenue

•Unsatisfied and Lost customer

•Change or lost orders

•Inefficiency

•Long production Cycle

•Rework

•Long delivery Cycle

•Poor asset utilization

•Excess inventories

•Expediting cost

 

 

 

 

Go on reading  

 

What is Lean Six Sigma? 

 

Organizational Deployment of Six Sigma 

 

DMAIC Methodology 

 

Quality History