A Realistic Approach is Cost Conscious

Abstract

The practice of identifying quality costs is not new although it is only very large organisations that collect and analyse this highly significant proportion of their turnover. Attempts to set budget levels for the various elements of quality costs are even rarer as is the planning of activities for achieving them. This is unfortunate since the contribution of any activity to a business is measured ultimately in financial terms and the activities of quality, reliability and maintainability can claim no exception. If the costs of failure and repair were more fully reported and compared with the costs of achieving improvements then greater strides would be made in improving the position of this branch of engineering management. Greater recognition leads to the allocation of more resources. The pursuit of quality and reliability for their own sake is no justification for the investment of labour, plant and materials. Value Engineering, Work Study, Computer Planning, and other functions are quick to demonstrate that the savings generated by their activities more than offset the expenses involved.