PQCDSM

PQCDSM
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PRODUCTIVITY QUALITY COST DELIVERY SAFETY MORALE

What is PQCDSM ?
PQCDSM i.e. Productivity, Quality, Cost, Delivery, Safety, Moral are

the parameters of Production in Manufacturing Plant.
By Controlling these parameters an production house can be runs

successful & achieves year by year growth.
All of them have there own importance, if we bypass any of them then
it can harm us from any of the direction.
Objectives of PQCDSM ?
To fulfill our customer as well as our need we have to follow all the parameters,
If we are making a product without quality then there is no use of it, QUALITY
if we are not getting proper profit from our final product then we are not going to stand in market for long, COST
if we are not delivering it in a required time then there will be customer loss, DELIVERY
if we don’t follow safety at our workplace so how can we achieve our other Goals SAFETY
if we are not improving our manufacturing process by which we can increase our production or decrease our cost
then in future how we are going to compete with other manufacturers. PRODUCTIVITY
If we not empower or recognize our team so how can we built up trust with them. MORALE
By following all the parameters of production we can achieve or take care of all these and many more aspects.
Productivity
The term “productivity” refers to the performance metric used to measure the
efficiency of a company’s production process during a given period of time.
Example-1
Let’s take, for example, an organization that produces laptops. In one month, they make
over 200,000 laptops, with 40 employees, working 18 days and 9 hours per day over a
period of 6 months
No. of laptops - 200,000

No. of labor hours per day - 9
Months - 6
No. of days worked in a month - 18
Number of employees - 40
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To work out your total input, do the following calculation:
Input = 40 (# of employees) x 9 (# of hours of work per day) x 6 (# of months) x 18 (# of
PRODUCTIVITY days worked in a month) = 38880
Productivity = 200,000 / 38,880 = 5.14

That means for every hour, 5.14 of output was produced. In other words, the company
produced 5.14 laptops every hour.
Productivity
Example-2
Now, let’s say the organization decided to hire an operations manager that optimizes
processes and the workflow. This leads to a more significant increase in the number of laptops
produced but maintains the same amount of effort. As a result, the data reflects the following
No. of laptops - 270,000

No. of labor hours per day - 9
Months - 6
No. of days worked in a month - 18
Number of employees - 41
To work out your total input, do the following calculation:

Input = 41 (# of employees) x 9 (# of hours of work per day) x 6 (# of months) x 18 (# of days
worked in a month) = 39852
1
Productivity = 270,000 / 39,852 = 6.77
PRODUCTIVITY
That’s a difference of 1.66 in productivity produced just as a result of one hire. You can see
how having the data in front of you and one change or tweak can significantly impact the
overall productivity numbers and total output.
Productivity
Practice Example
According to the accounts department, the company had produced 150,000 units last
quarter, which required 20 labors to work for 22 days a month and 8 hours per day.
Calculate the productivity of the employees in terms of units produced per hour.
PRODUCTIVITY
Quality
Quality is the standardization of something as measured against other things of
similar kind or we can say degree of excellence of something. We can not measure
quality of any product but we can compare it with some another product. When we
are talking about quality we have some elements to control or monitor them.
There are some areas where we can monitor our Quality i.e.
 Customer Rejection PPM
 Internal Rejection PPM
 Straight Pass Ratio

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 Customer Defects
QUALITY  Internal Defects
 Daily Customer Concerns

Cost
COST
Delivery
DELIVERY
Safety
A safe and healthy workplace not only protects workers from injury and illness, it can
also lower injury/illness costs, reduce absenteeism and turnover, increase
productivity and quality, and raise employee morale. In other words, safety is
good for business.
SAFETY
Safety
A safe and healthy workplace not only protects workers from injury and illness, it can
also lower injury/illness costs, reduce absenteeism and turnover, increase
productivity and quality, and raise employee morale. In other words, safety is
good for business.
SAFETY
Morale
Morale is the mental and emotional condition (as

of enthusiasm, confidence, or loyalty) of an
individual or group with regard to the function or
tasks.
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MORALE

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PQCDSM

PRODUCTIVITY QUALITY COST DELIVERY SAFETY MORALE

PQCDSM i.e. Productivity, Quality, Cost, Delivery, Safety, Moral are

By Controlling these parameters an production house can be runs

No. of laptops - 200,000

Productivity = 200,000 / 38,880 = 5.14

No. of laptops - 270,000

To work out your total input, do the following calculation:

 Customer Rejection PPM

 Internal Rejection PPM

 Straight Pass Ratio

 Daily Customer Concerns

Morale is the mental and emotional condition (as

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