The “cost of quality” is the amount of money a business loses because its product or service was not done correctly in the first place.
The “cost of quality” is not the cost of providing a quality product or service. It’s the cost of NOT providing a quality product or service.
Each time work is redone, the cost of quality increases. In other words, any cost that would not have been expended to provide a quality product or service contributes to the cost of quality.
How does a Quality Management System help to reduce costs?
A quality management system provides a means for you to take a more systematic approach to your business, enabling you to review and identify process deficiencies through continual improvement of your business management systems.
The results are improved quality of products and services, cost reductions and the achievement of meeting customer needs and customer satisfaction.
If the cost of quality is important to your organisation contact us to discuss how we can help.