Understanding Quality Costing (Part 3)

By nazaire

Generally speaking, the cost of poor quality is the combined actual and implied loss of revenue that a company endures when products and services do not conform to customer requirements or satisfy their perceived needs. These costs include product/service abandonment, customer dissatisfaction, loss of reputation, sales returns and allowances, complaint handling, and the list goes…

Understanding Quality Costing (Part 2)

By nazaire

Failing to recognize the importance of quantifying a quality problem and measuring it in terms of monetary values will only waste a considerable portion of a company’s operating budget. While there will always be some elements that can affect quality to some degree, identifying methods to improve quality is still important. Ways to Move From…

Understanding Quality Costing

By nazaire

The cost of quality plays a huge importance for manufacturers. But, what’s funny here is that many fail to grasp the real understanding of quality costing. In this blog, I’d like to discuss the costs of quality, for I truly believe that quality should be given more importance than any other element. Quality Costs If…