Cost of Quality: Why A Compliance-Focused Model will Ultimately Limit Growth
Process manufacturers commonly consider numerous costs like labor, materials, and manufacturing and impact their bottom line. Often the same companies will overlook or undervalue the cost of quality, assuming that products that fall within specifications also meet quality targets. However, simply relying on conformance without examining the cost of quality can result in a few hidden expenses at best-and at worst, amount to considerable waste, negatively impacting the bottom line and subtracting from brand reputation.
Understanding the overall cost of quality is vital to addressing issues that signal costly or unsustainable variations and the potential for product or process failure. High incidences of failure erode capacity and make it impossible for companies to live up to their full potential.