The cost of quality defects – hidden nuggets of gold within the company
The costs for quality defects amount to between 10 and 40% of total sales turnover for most companies. Many companies do not know where quality defects originate, nor how to identify them. Systematically focusing on identifying and eliminating visible as well as hidden costs for quality defects can give big results for relative little effort.
Costs for deficient product and information quality
It is difficult to increase sales turnover in tough economic times and thus inject more money into the company. Another way of increasing the company's profit, is to try to reduce the company's unnecessary costs for deficient product and information quality.
Method to identify quality defects
The cost of quality defects can be divided into the visible and hidden. Many companies only work on eliminating the visible costs and miss the hidden ones. The hidden costs of quality defects are often hidden as an overhead cost which is smoothed over or thrown together with other costs, which means that the cost of the quality defect is difficult to identify.
Swerea have jdeveloped a process, QFA (Quality Flow Analysis), which helps companies to identify and eliminate the visible and hidden costs of quality defects. We help companies link the costs for quality defects to the basic cause.
Contact and more information
per-johan.wahlborg [at] swerea.se