|
Cost of Quality
What is it?
The costs incurred to ensure quality. Why is it important?
Typically, the cost to eliminate a failure in the customer phase is five times greater
than it is at the development or manufacturing phase. Effective quality management
decreases production costs because the sooner an error is found and corrected, the less
costly it will be.
When to use it?
Cost of quality comprises of four parts:
- External Failure Cost
- Internal Failure Cost
- Inspection Cost
- Prevention Cost
How to use it?
1. gather some some basic information about the number of failures in the system,
2. apply some basic assumptions to that data in order to quantify the data,
3. chart the data based on the four elements listed above and study it,
4. allocate resources to combat the weak-spots,
5. do this study on a regular basis and evaluate your performance
Available on the web:
|
