What Is The Cost Of Poor Quality?
Summary
When talking to management, you need to make a business case for quality based on the costs you think you can reduce versus the investment needed and phrase it in their language of Return On Investment (ROI). Internal failure costs occur before product is shipped or the service is completed, to the customer. It just flows… Therefore, inventory, the forklifts, and your material handlers all contribute to your cost of poor quality. You are only a strong as your weakest link… The next time you review your enterprise strategy for growing sales, make sure you take a look at your Cost of Quality metrics, which will tell you everything about how capable your business is to respond to your customers, competitors, and employee demands. The result, you have now discovered how to make the business case for quality to your management.
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