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Cost vs Quality – The perpetual conundrum

The literature of Quality Management is full of principle of ‘Cost of Quality’. However, few organizations have been able to put in place a cost-effective mechanism to measure and control the cost of quality (both cost of poor quality and cost of good quality). In the absence of hard numbers, leaders and managers are left with only an intuitive understanding about the cost-quality equation. Some are convinced that ‘quality is free’ or that investment in quality more than just pays for itself. Such leaders commit their organizations to invest in quality and reap the rewards. Some others lack a deep-seated belief about the positive effect of quality on cost and end up paying only lip service to the cause of quality.

If only managers and leaders had hard accounting numbers connecting the cost of prevention, appraisals and failures, the behaviour of leaders could be easily moulded in favour of preventive Quality Management. Juran, one of the foremost proponents of Quality Management believed it was important to directly link quality issues with costs. Linking quality, conformance and defects to dollars and profits was the only way to drive true change, thus unifying workers and senior management.

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Shashikant Zarekar 03.04.2023 0 125
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