Construction Project Management Portal

Reducing Your Cost of Quality

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How high is your cost of quality? The answer might surprise you. Yes, it includes reviews, the QA infrastructure, and preparing tests, those are your ‘Appraisal Costs’. But how high are your ‘Failure Costs’ the cost of defects?

Your engineers spend time in diagnosis and rework, development schedules slip, support costs climb, and your company’s and products’ reputations sink. These failure costs, which are the more significant cost of quality, are beyond your direct control. But you can gain control over them indirectly, by investing in appraisal costs that minimise failure costs, reducing your total cost of quality and making it more predictable.

Cost of Quality: Appraisal vs. Failure Costs

The cost of quality is a significant cost on any project, so prudent managers look for ways to keep those costs in check. The quality costs we can control are things like performing reviews, preparing tests, and maintaining our QA infrastructure; appraisal costs. But there are also the quality costs we cannot control.

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May 26, 2012 Posted by | Project Management | | Leave a comment