NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Total Quality Management

Internal Assignment Applicable for December 2020 Examination

1. Gokuul Industries is known for its innovative products. In recent times some of its
products failed to meet its customers’ expectations resulting in an increase in the new
product development time. Suggest a quality management technique that Gokuul

Industries can use to understand its customer’s needs, translate them into product
features and quality plan for the products while keeping the competitors’ performance
in view. (10 Marks)

2. You have joined Reddy Sons as VP operations. The organization has been confronting
several issues like rising in costs, a decline in sales volumes and customer dissatisfaction
for the last two years. Reddy Sons works in a conventional method and all performance
measures are in traditional financial terms only, like revenue increase, high profit or
liquidation etc. You realize that these conventional performance estimates do not help the
organization in their quality initiatives. How are you going to change the performance
measurement system at Reddy Sons to bring it in line with the TQM philosophy?
(10 Marks)

3. Consistent product quality is the most proven predictor of any manufacturer’s success.
Competitors may imitate each other’s marketing, but superior quality stands alone as the
truest statement of company’s values. That is why forward-thinking manufacturers are
making quality cost management part of their DNA.
Engraining the fundamentals of quality cost management across every plant and
production line creates guardrails that keep quality improvement on track. Moreover, it
leads to improved product quality and increased yield rates, fostering customer goodwill.
That is why manufacturers who have embraced quality cost management are driving
higher customer demand and loyalty—and greater profits—than competitors spending
millions of dollars to market mediocre quality products.
Knowing the cost of quality (COQ) is essential to earning and keeping a reputation for
excellence, nurturing customer trust, and growing over time. Since it represents all the
costs associated with stabilizing and continually improving product quality, from

suppliers to customers, COQ is the single best metric for tracking how well
manufacturing is delivering on the commitment to exceptional quality. It’s common to
see cost of quality account for 15% to 20% of a manufacturer’s sales, and between four
to six times the size of net profits a given year.
Columbus, L. (2020, August 28). Getting Started With Quality Cost Management.

Retrieved August 30, 2020, from https://www.qualitymag.com/articles/96194-getting-
started-with-quality-cost-management

a. Using an industry example, explain the stepsto calculate and report cost of quality (COQ)?
Compare the calculated COQ with the COQs of some world class companies.
(5 Marks)

b. Explain how the company can reduce its COQ?