Most companies had failed to look into #prevention cost due to quality problem is seldom a pain point during the development stage as the biggest challenge to launch a new product would be time to market. The development and marketing team would prefer less interaction with other groups to shorten the design cycle, and less work involves to plan in quality in this silo over the wall approach where I design it and you build it. Sad to say this is still practice in some company till today. Typically, the quality problem will only show up during mass production or worst during customer integration. Every organization who are serious about their profitability should understand the cost of correcting a problem at the customer end is more than thousands times more than rectifying problem during design stage. The table below an example of how quality cost grows in the different product life cycle. Therefore, preventive cost should be the primary focus, especially product with the short product life as product development happens almost every quarter. These types of companies should adopt advance quality planning approach to plan quality into every stage of product life. All quality #engineers should show this table to your management if quality planning is not yet the primary focus of the company. This is also the best proactive approach to adopt.
|
Product Life |
Cost of correcting problem |
|
Design phase |
$ 35 |
|
Before buying the parts |
$177 |
|
Before start of mass production |
$368 |
|
During Mass production |
$5900 |
|
After shipped to customers |
$590000 (many parts could have shipped) |
In my next article, I shall share on which cost should be a primary focus where in situation that prevention cost cannot be the primary focus anymore.
