Cost of Poor Quality in Banking

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Industrial research report COST OF POOR QUALITY SUBMITED TO: MR. AZHAR NISAR LETTER OF TRANSMITTAL Mr. At Gulistan-e-Johur Karachi. RESEARCH VISIT BY STUDENTS Dear Sir, Assalam o alikum Bahria University is federally accredited University based at Islamabad with its campus at Karachi. University is educating is students in the fields the of management science, computer, Engineering, Medical and Dental Surgery. Management science students are guided to carry out subject based research in various business and corporate organizations. This enhances their abilities to think independently and resolve the management problems logically. Some students of BBA-7 have selected your bank to carry out research with reference…show more content…
Particular attention should be given to the cost of poor quality and to customers' views about the relative importance of the attributes of service. If the cost of quality is high, looking through the Six Sigma, the cost of poor quality is still higher. Companies bear a huge cost of about 9-16 percent of their revenues on problem solving. COPQ can take in the following forms: • cost generated from producing defective material • cost involved in fulfilling the gap between the desired and actual product or service quality • cost of lost opportunity due to the loss of resources used in fixing the defect, including all the labor cost, rework cost, disposition costs and material costs that have been added to the unit up to the point of rejection • appraisal cost if there is an inspection point Banks are fined for failing to provide accurate transaction reports to the FSA and for serious weaknesses in systems and controls in relation to transaction reporting. One there is the reputational damage that comes from being fined and then there is the cost of correcting errors and fixing the defective processes. It is seen that companies ignore the cost quality analysis, overlooking its potential significance and end up paying failure cost. 1… how does employee involvement support in TQM. If u r required develop program. What elements would u include? 2… think of a team u have been on recently. It could be a
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