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Figure 1 shows the relative cost of quality as it relates to prevention, appraisal, internal failure, and external failure.

Cost Of Quality

How a Cost of Quality Program Can Maximize Your Company’s Bottom Line

Time is your most precious resource and we don’t waste it. At Delta we focus our training program on three things:

The prevailing opinion in many companies is that quality and business are two different and separate functions.

Rarely do we encounter a company which has truly integrated quality into their Business Management System.

Consequently, these companies are constantly doing two jobs instead of one, and neither is being done as well as it should and could be.

Quality as a Required, Not Admired, Function

If quality is focused only on compliance, often the minimum management thinks is required, these companies “hope for the best” during regulatory and customer inspections.

They miss the hidden opportunity to improve performance and increase the bottom line buried in Corrective and Preventive Actions, Complaint Management, Training, and Internal Audits.

They purchase materials and services based on price only, costing them more money over time.

The time spent putting out quality fires takes away from time that should be dedicated to business.

Their quality team (typically understaffed and often doing double duty) doesn’t have a basic understanding of the financial impact of the actions they propose and champion. And they can’t sell the proposed improvement to management because they don’t know the potential cost savings, resulting in an uninformed decision.

Quality at All Costs

Conversely, there are companies where quality is the top priority. This often translates into quality at all costs. In these companies, business is the second job or extra duty.

These companies have trouble growing because too many quality tasks take focus away from growing the business.

For Small Companies Cost of Quality is a Powerful Competitive Tool

Big companies can thrive even if Quality and Business are separate.

But their lack of integration opens a tremendous opportunity for smaller companies, where a Cost of Quality program can allow small companies to take market share from their larger competitors.

Delta Consulting Alliance can help you implement a Cost of Quality program in your small business.

When Your Company Focuses on Quality and the Bottom Line Simultaneously, You’ll . . .

  • Manage quality as part of the Business Management System,
  • Understand how quality initiatives affect the bottom line,
  • Spend less time putting out “quality fires” and have more time to do business,
  • Have a quality team who understands and speaks in business and financial terms,
  • Have a management team who understands the cost of quality and makes more profitable decisions,
  • Decrease operating costs,
  • Improve teamwork, and
  • Open up the opportunity to take market share away from your larger competitors.

Custom Consultation

We invite you to schedule a custom consultation to discuss your specific FDA compliance issues.

We can help you determine what to do, how much it will cost, and how long it will take to make that 501(k) go away.