What’s This ‘Cost Of Quality’ Thing?
Now that you’re getting ready for Virtual Audits, it’s time to look into the ‘Cost of Quality’ concept. All the ideas apply to Environmental, Health and Safety and all other management systems. How are we making sure our systems are giving us value? What kind of resource allocation should we make to this activity?
To begin with, ‘Cost of Quality’ is more than a concept – it’s a method. You build a framework to measure and monitor a few things:
- What resources allocation are we putting toward preventing problems?
- How are we checking the results of our processes?
- Are we using resources poorly because of internal or external failures?
Once this ‘methodology’ has been implemented, your organization will be able to determine the best use of resources. The most efficient means of getting profit pumping improvements implemented will become evident.
If you’re not spending enough on Prevention, you’ll be spending too much on Correction.
Improvements that enhance customer satisfaction will be well worth the investment – it still costs 7 to 10 times as much to get a new customer as it does to keep an existing one. Your ‘Cost of Quality’ methodology will tell you where to make the best investment.
Join us on September 28th, 2020 at 12:00 noon EDT for a free webinar on the Cost of Quality – details to follow!!