What is it?
The cost of poor
quality is a technique that has been developed to identify the need
and opportunities for quality improvements in a language we all understand
When to use it
The cost of poor quality indicates 'how it is today' and in particular it
can be used:
- To size problems and
focus attention for need for improvement
- As a useful tool in
Step 1 of the Problem Solving Process
- As an output from
step 4 of Department Purpose Analysis
- As a source of improvement/project
What does it achieve?
The immediate benefits
of conducting a cost of poor quality exercise will be:
- A greater degree of
awareness of quality problems
- The association of
day to day failure with costs and in consequence a desire to improve
- The identification
of improvement opportunities
- To give manages a
new set of 'mental tools' and perspective to get underneath the realities
of their operations
- is as it suggests, the essential/unavoidable activities required to do a
job of work.
- is any activity aimed at preventing getting things wrong ... eg. training,
planning and analysis data for improvement purposes.
- is checking that the requirements have been met, for example, such as verification,
inspection and audit..
- is any activity created as a result of not meeting the requirements
first time ... eg. scrap, correcting, customer complaints, lost opportunities
and exceeding requirements
The cost of poor quality
= appraisal costs + failure costs