Optimum Quality Costs and Zero Defects: Are They Contradictory Concepts?

Article

Schneiderman, Arthur M.   (1986, ASQC)   Analog Devices

Quality Progress    Vol. 19    No. 11
QICID: 7242    November 1986    pp. 28-31
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Article Abstract

[Abstract from article]

As defect levels drop, failure costs decline while appraisal plus prevention costs increase. This apparent tradeoff suggests that an optimum quality level exists and that attempts to further improve quality above this level will increase total cost and decrease financial performance. Proponents of this view therefore argue that striving for zero defects (ZD) through a program of continuous improvement is not in a company's best economic interest.

Zero defects advocates, on the other hand, endorse continuous improvement, called kaizen: not innovation, which is a costly major event, but small, inexpensive and nearly imperceptible improvements.

Keywords

Juran, Joseph M.,Zero defects,Comparison,Acceptable quality level (AQL),Cost of quality (COQ),Continuous improvement (CI)


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