Quality Costs - New Concepts and Methods


Dawes, Edgar W.   (1987, ASQC)   Haydon Incorporated, Waterbury, CT

41st Annual Quality Congress, May 1987, Minneapolis, MN    Vol. 41    No. 0
QICID: 3322    May 1987    pp. 376-381
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Article Abstract

Optimized by application and proven over time, new quality cost concepts and methods are adding profits to a variety of American companies. This paper describes some of the concepts which have emerged and some of the methods which have been successful. First, the concepts:1. Planning for Quality - The quality system and quality costs must reflect customer satisfaction issues and marketplace forces. An illustration of quality cost - market share relationships is developed in the paper.2. Improving Quality Control Operations - Effective quality control can exist only by treating suppliers-producers-customers as an entity. The paper compares quality costs for an entity vs. Non-entity approach and details some cost considerations related to process capability and SPC techniques.3. Improving Quality Costs - The primary goal of the quality cost portion of the quality system must be quality cost improvement. This occurs through project by project identification of failures and corrective action. A review of this process is contained in the text.4. Perfection Is Possible - The organization must accept the concept that "Perfection is Possible". This attitude reflects not only a management philosophy, but an organization's style and skill in implementation. It results in a program of continuous improvement which does not necessarily increase costs as quality levels approach perfection.We will discuss the relationship of resource costs (prevention and appraisal) to failure costs and the achievement of improved quality at lower quality costs.

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