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If an organisation has either Quality Management System(QMS) or Key Performance Indicators(KPIs), ISO 9001 Certification in Bangalore it’s easy to figure out the quality cost, let it be any sector of operation.
COST OF QUALITY-WHY?
Cost of quality is the time and expenses accrued by a business which is necessary for the improvement and recovery of the quality of a product or service. If a company is considered, then, it’s QMS would have certain obligations which would be very easy to be stated but may not be given a clear picture of it’s functioning.
WHAT TO CAPTURE FOR THE MEASUREMENT AND HOW?
To measure the true cost of quality within your business, you need to truly understand your product’s life cycle starting from designing to disposal. The next thing is to basically understand what is the budget for the production of a product and what time and cost has actually been assigned by the company for such a product. After all this, it then becomes important to actually find out the costs that could be incurred beyond what has been assigned. The following examples could be referred;
1) There are certain products which fail in the field and require heavy engineering expenses and replacements of few parts as well,
2) Some products require more time for repair or rework, leading to a lot of time spent by your quality team in improving the product,
3) Also there are certain products which tend to fail quite often in their very early stage of usage that too before the expiry of the warranty period provided which could even result in a lot of cost relating to repair or replacement.
Thus, the erosion of profit due to a shorter-than-expected lifecycle can be classified as a true “cost of quality.”
WHAT DOES “COST OF QUALITY” TELL YOUR BUSINESS?
Measuring of cost of quality calls for specific knowledge relating to the process, people and products of the company. The ISO 10014 – ISO 9001 Consultants in Bangalore is Quality Management Standard helps in improving quality as well as to control associated costs.
Establishing “cost of quality” as measurable KPI and driving the improvement accordingly to find the root cause could be very efficient in respect with competitive advantage and also how a business views and takes action against risks.
AN EFFECTIVE WAY OF DRIVING IMPROVEMENT FOR BUSINESS AND CUSTOMERS.
At the end, resolving root causes for increase in “cost of quality” could obviously be very advantageous in respect to proving as a competitive edge in a positive sense for any company.