80:20 Management Consulting

80:20 Management Consulting
part of the 80:20 Group

Monday, August 15, 2011

The Cost of Quality

There has been a debate on Linkedin and a couple of other forums raging for some time now. The topic being that there is no cost to quality.

The argument for this statement is that if managed properly, any costs associated with quality will be offset by improvements in efficiency, product and profit. The article below has some really good information about measuring the cost of quality.

http://www.platinumregistration.com/kbfiles/qp0906cokins.pdf

In a perfect world I agree with the statement. If you put effective processes in place that allow you to identify and correct issues early, you will save yourself A LOT of time and money. Finding an issue early in the process chain is a lot cheaper to fix than having it discovered by the customer at the end of the process.

The only time quality isn't cost effective is when it isn't managed properly. If your systems are weak and your Quality Manager is lazy you might as well scrap it all together. Having a system in place and not performing regular audits, identifying non-conformances and continually improving the system is a waste of time and although it may help you win a tender, it won't help you keep the business in the long run.

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