How to measure the cost of quality in line with ISO 9001 principles


 

 

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ISO 9001 Certification in SriLanka If your organization has a functional Quality Management System, and whether certified against the ISO 9001 standard or not, you may probably have the several KPIs (key performance indicators) that help you to understand how you are performing with respect to the quality. While these may be a specific to your organization or the sector which  you operate in, do your KPIs truly to reflect the financial cost to the organization – when poor quality may cost your company money – even beyond the parameters of the KPIs already measured?

Cost of the quality – Why?

ISO 9001 Consulting Servicesin Sri Lanka The cost of quality can be said to be the definition of the time and expenses that accrued by an business outside of pre-defined process actions, which need to be undertaken to preserve, improve or else to recover the quality of a product or service.  The article How to write good quality objectives that gave us the opportunity to review the quality objectives in more detail.  If you haven’t consider your own company, many objectives within that  your QMS will be very easy to define: a manufacturing company might measure the “first pass yield” to the critical measure, while a call center might measure an response in time or customer satisfaction as one of its staple measures. While these may be valid for your business, they also might not tell the whole story.

ISO 9001 Registration in Sri Lanka Product A might fail twice in 100, giving a first pass yield of 98%, and the rework required to the failing part might take 30 seconds to rework and present for retest. Product B might fail once in 100, giving a first pass yield of 99%, but the reprogramming of an onboard component will might take six minutes before the presenting for retest. Product C might pass manufacturing tests giving by a first pass yield of 100%, but field failures and root cause analysis might cost lots of engineering and quality time to fix, and a bill of $10k. According to our staple quality measures, Product B is performing best, product A second best, and Product C worst – but we can see with further investigation that the times and costs we have seen suggest that things might not be so straightforward.

What to capture for your measurement, and how?

ISO 9001 Consultant in Sri Lanka To measure the true cost of an quality within your business, you need to understand truly about your product’s lifecycle, from the design and development to end-of-life disposal. You will then have to take the time to understand what the budget to produce a product is, and what times and costs are assigned by your business to support these process steps.

·         A product that may fails in the certain field and needs costly rework or engineering time, including the carriage and also the replacement costs.  This cost may fall the outside the existing quality measures, such as that pass first yield or any other in-house product inspections or audits performed.

 

What does the “cost of quality” tell your business?

ISO 9001 Services in Sri Lanka Measuring the “cost of the quality” for any business which may requires some of the very specific knowledge with respect to the processes, people, and products are associated with your business. The ISO 10014 quality management standard will provide guidance here, with respect to both improving quality and controlling associated with the costs.

Our advice, Go for it

ISO 9001 Certification in Sri Lanka helps companies to increase the guarantee to return on investment.  Sri Lanka is one of the developed country which is one of smallest city across the country.

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