Quality management cost is always a good investment for the organization. It helps in producing better product at lower cost, which helps you to compete in this competitive environment. Appraisal costs are associated with quality inspection and testing activities to sort out good products from the bad prevention costs are the costs of quality management programmed for example design reviews, failure analysis, quality functions use matrix and quality training prevention costs are typically very low. When quality management is introduced one would expect prevention costs to increase and failure costs and assessment costs to go down.
Quality measurement should start with a system for documenting non conformances. Every time an item fails a test, a purchased item to rejected or sent for rework, a statistically controlled process (SQP) exceeds its limits, and a product is returned from the customer non conformance must be documented. A computerized data base should be used to enter and store this information because the volume of data is too huge for a manual system to be effective. Organization can also have an ERP (Enterprise Resource Planning) system.
The information should be recorded in a way that gives easy reports to analyze the problem and take preventive action. The idea is not to produce loads of paper but to collect data that can be analyzed to provide direction to the quality improvement program. A computer program or software is necessary because one needs to be able to sort failure costs into categories, for example by product type, supplier or type of error. There are many off the shelf network database software that can be used to calculate or analyze. The information should be displayed using graphs, presentations, charts which show trends, bar charts and pie charts that indicate rankings.
I hope in this article you have read some information about quality management cost and its measurement.
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