Have you come across COPQ before? It stands for the Cost of Poor Quality and is something every business should take very seriously. This formula explains very clearly how any decline in quality will cost your organisation money.
You may think that all is required is a quick fix, but you’d be wrong. Quality costs fall into four distinct categories: Prevention, Appraisal, Internal failure and External failure.
Quality Management System Training
External failure occurs when you have already produced and distributed a faulty or poor-qualityitem. This is the cost that covers refunds and replacements, warranty claims, product recalls and even legal costs. Internal failure is slightly better, because the fault is found before the item is distributed. However, the product has already been manufactured so costs have been incurred.
The two most important areas to consider and prevention and appraisal – and that’s where quality management system training and implementation comes in. You could even say that appraisal and prevention costs represent money well spent.
Standard Consulting Training Center
When you implement a quality management system such as ISO 9001, it automatically appraises your policies and procedures to see what could be done better, and to identify and manage risk. It then prevents those risks and mistakes from occurring.
Queensland businesses that want to improve how they do business – and save time and money – tend to work with the Standard Consulting Training Center in Brisbane. This is the most efficient and cost-effective way of implementing the system and organising quality management system training.
Those businesses have already discovered that this is the best way to reduce or even eliminate the Cost of Poor Quality and that the ROI is impressive. Rather than making the same mistakes over and over again – increasing the COPQ – they have invested in a system that works.
It’s a simple solution to an age-old business problem.
