Article
Case Study
- April 2006Abstract: CRC Industries uses cost of quality as a key measure for improving business results. Since centering improvement efforts on cost of quality, the company has reduced failure dollars as a percentage of sales and saved hundreds of thousands of dollars. Cost of quality can also be linked to other improvements at CRC Industries, including shipping error reductions, customer service order entry error reductions, productivity increases, hazardous waste reduction, and profitability.
Keywords: Case study - Cost of quality - Failure dollars - Business results - Measurement - Quality tools - Root cause analysis
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This is an excellent article. Any department without such measurement should adapt it. Especially for those departments spend lot money to show good job, but not related to VOC and COQ.
--James, 02-21-2011
This article provides a comprehensive idea for using a cost of quality
--Mohamed Kumati, 02-16-2011
That is a great article that shows the improvement on cost of quality. But when we use this, will it get balanced for the future?
--Ganesh, 10-29-2010
This is a good example in easy to understand terms how a COQ program can improve business results over time. Note that CRC has a working quality system actively backed by executive management. This is key to success.
--Mark Swibes, 05-12-2010
Well done. Most interesting to me was the confirmation that the journey had to start with the Finance Dept. and the standardization of terms. I agree and was my same approach; BUT, extremely difficult to accomplish unless you have strong mgmt support, especially with finance group who I found very reluctunt to participate without CEO involvement. I empathize with the difficulty of agreeing on terms, i.e., what is a "return." Sounds basic, but is one of the most difficult hurdles.
--S Uitzetter, 01-06-2010
The article is well presented and provides a comprehensive description about utilizing cost of quality
--M. Nassereddin, 06-30-2009
--amel abdeen, 11-11-2008
Very interesting article. It shows that improvement that time, it's not a quick fix. Also, it's interesting to read that results substain over the years.
--Jocelyn Bouchard, 09-30-2008
Very nice article. This is well documented & really helpful to improve our COPQ graphs.
--pramod kumar, 03-31-2012