Cost of Quality - (COQ)
Why Measure Cost of Quality (COQ)? Normally 20 – 40% of the Operating Budget
• Initially only 5-10% is known
• 15 – 25% is HIDDEN!
• 1992 Enterprise Foods – 20% of Sales!
• 1995 Gauteng study (service) – around 40% of Operating Budget!
The Significance of Quality Cost
• It is not a rah-rah "Do Better" Program!
It establishes a measurable status to achieve and embodies a strategic problem-solving method to increase
client satisfaction and dramatically enhance efficiency and effectiveness.
• COQ is a management philosophy focused on eliminating mistakes, rework and waste.
• The real power of COQ is simple because it combines "People Power" with "Process Power".
For the first time Cost of Quality is expressed in financial terms, that everybody can understand.
Fact!
• COQ-focused organisations have learned that quality saves money, because there are fewer throw-outs, fewer mistakes, fewer claims, fewer refunds - and doing all that, in turn, increases efficiency and effectiveness!
• COQ marks the first time that Finance and Service Delivery are on the same TEAM, working together, not against each other.
Now senior management sees that process quality helps the service delivery bottom line, so they believe it can!
Give us a call to learn more about BAS and the COQ Training offerings.
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