Poor quality can waste a considerable portion of an organization’s operating budget. Alarmingly, some manufacturers even have the cost of poor quality factored into their budget, meaning these companies are willing to allow it to persist in plain sight and hinder their overall performance.
While there will always be some factors that affect quality to a certain degree, identifying and addressing the factors contributing to poor quality is critical. This ensures competitiveness, supports ongoing improvement efforts, and minimizes waste. Here’s a closer look at the unexpected costs related to poor quality, as well as how to measure and address them with a cost of quality analysis.