So what really is cost of quality? Most complex issues need to be broken down to properly solve them. Cost of quality is no different. The total cost of quality is really made up of:

  • The cost of good quality
  • The cost of bad quality

To really gain a good understanding of how to move the cost of quality meter in the right direction, we have to focus on reducing the cost of good and bad quality. The good news is that there are tools to help us do this efficiently and effectively. One such tool is quality management software. Quality management software gives organizations a way to automate many of the process that comprise the cost of good quality, while improving the visibility into key performance indicators for the cost of bad quality!

Whew, now we have an easy way to manage cost of quality and get us on the path to best-in-class. The really cool part about affecting cost of quality are the ensuing benefits: shorter lead times, reduced inventories, fewer late shipments, fewer returned materials, fewer compliance related issues, happier customers, and improvements in competitive advantage.