The cost of quality

What a great phrase to start a debate around the board table, often heated, as most still see the two as a trade-off, the better the quality, the higher the cost.

How much better to beat the bean counters at their own game by quantifying it:

Quality cost = the number produced outside specification X the total cost of rework & disposal.

Simple. The cost of quality calculated, and how often will you find any added short term cost during production will be dwarfed by the costs of managing the out of spec production. 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
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