Cost of Quality
Belal Rtaimat
Data & Digital Transformation | Business Analysis | Software Architecture | IT Advisory | Procurement Tech | Visualization & Insights
The cost of quality isn't just about ensuring products or services meet standards; it's about understanding the financial impact of doing things right vs. fixing them when they go wrong.
Cost of Conformance: These are the expenses incurred to ensure quality, including prevention (training, process control) and appraisal costs (inspections, testing). Investing here helps avoid defects and maintain standards.
Cost of Non-Conformance: These are the costs associated with poor quality, such as rework, scrap, warranty claims, and customer complaints. They represent the price paid for not getting it right the first time.
In essence, spending on conformance is an investment to prevent losses, while non-conformance costs represent the avoidable expenses that result from quality failures. Prioritizing conformance saves time, money, and reputation in the long run.
#QualityManagement #CostOfQuality #ContinuousImprovement
Consultant, Program Manager, Digital Transformation
5 个月Perfect