Script

Which quality cost should be the primary focus of your company? Part 1



A few weeks ago I had run a poll in linkedin group 360 Proactive Quality Engineering  to find out which quality cost get the least attention from quality engineering practitioner.   (please refer to embedded link on quality cost to learn more on quality cost)  79% had  selected prevention cost follow by appraisal and internal cost  which reflects the actual situation in the industry.  

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.


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