Q-C-D is a management approach originally developed to help manufacturing companies. It is a methodology that is still used today. Lean Manufacturing, Six Sigma, Kaizen, and Toyota Production Systems (TPS) are all based upon the original Q-C-D methodology. All require data to make decisions.

1. Quality (Q) – Cost (C) –
Delivery (D)
Rahul Laxman Iyer
ASQ Certified Quality Engineer
Mesa AZ
2 November 2015

2. Introduction
● Q-C-D is a management approach originally
developed to help companies within the
automobile sector
● Utilized to access different components of the
production process
● Used to provide accurate feedback in the form
of facts and figures that help senior managers
make logical and beneficial decisions
● Aids in prioritization of tasks required
● Focus of Lean Manufacturing

3. Benefits of Q-C-D
● Straight forward method of measuring processes
● Applicable to both simple and complicated business
processes
● Basis for comparing businesses & processes
(Benchmarking)

4. Basis of Quality (Q)
● Performance: ability to meet primary operating
characteristics
● Conformance: the degree to which a certain
product meets the customer’s expectations
● Special Features: additional features of a product
or service
● Aesthetics: the product’s looks, sound, feel, smell,
or taste

5. Basis of Quality (Q)--continued
● Durability: how long the product lasts before it has
to be replaced
● Reliability: the time until a product breaks down
and has to be repaired, but not replaced
● Serviceability: speed, courtesy, competence and
ease of repair
● Perceived quality: affected by the high price or the
good aesthetics of a product

6. Basis of Quality (Q)--continued
● Product components
– The quality of a product depends almost entirely on
the quality of the supplied materials
– One cannot produce a high-quality end product from
low-quality components
● Consequences of poor quality
– Business loss
– Reduced Productivity
– Increased Costs

7. Basis of Cost (C)
● Four Types Of Manufacturing Costs
– Raw materials
– Direct Labor
– Variable Overhead
– Fixed Overhead
● Cost Reduction
– Reducing material costs
– Adopting lean manufacturing
– Upgrading machine technology
– Implementing robot-based automation

8. Basis of Delivery (D)
● Being On Time When Promised Per Contract
– Not Being Late
– Not Being Early

9. Increasing profitability with
QCD
● Seven measures used to increase profitability ( "QCD:
measuring manufacturing performance" (PDF). http://nationalarchives.gov.uk
– Not right first time (NRFT): Wasted resources, effort and time –Cost of
Poor Quality (COQ, COPQ)
– Delivery schedule achievement (DSA): analyzes how well a supplier
delivers what the customer wants and when they want it
– People productivity (PP): The time it takes (in staff hours) to produce a
good quality product
– Overall equipment effectiveness (OEE): Measure of how well a
company uses its equipment and staff (Availability, Performance,
Quality)
– Value added per person (VAPP): Measure of how well people are used
to turn raw materials into finished goods (Output Value, Input Value,
Number of Employees)
– Floor space utilisation (FSU): Measures the sales revenue generated by
a square meter of factory floor space

10. Increasing profitability with
QCD: Calculations Illustrated
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11. Increasing profitability with
QCD: Calculations Illustrated -
Continued
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12. Quality (Q) – Cost (C) –
Delivery (D)
● Q-C-D is a management methodology that can be
used for lean manufacturing and process
improvement
● Originated in automotive industry, but can be
applied to virtually almost any industry
● Emphasizes making decisions based upon data
● A tool to improve business profitability