The Cost of Quality

Too often businesses, look to easy options for rationalising their operating costs by sacrificing quality.

In many cases it's not even a conscious act. The justification for sacrificing quality is seen to be 'borne out of financial necessity' in other words - it costs less. However the long term consequences of saving a few dollars usually negates the short term financial benefit. 

Quality is remembered long after cost is forgotten

Notable Engineer and Statistician Genichi Taguchi highlighted this in a far reaching philosophy that was influential in the development of post war Japan. Taguchi developed a methodology for applying statistics to improve the quality of manufactured goods.

One of the key elements of his philosophy was the Taguchi loss function, used to measure financial loss to society resulting from poor quality.  His statement "Cost is more important than quality but quality was the best way to reduce cost." remains as relevant today as it was in the 50's.

To reduce cost you need to improve quality not the other way around. I believe, in todays world cost is becoming less relevant (other than in the eyes of rationalists and over zealous procurement officers).

We are living in an era where sustainability and cost can only be achieved through quality. By opting for the cheap option, you are in fact opting for the expensive one unwittingly.

Recently, I re-presented the strategies behind our rebranding process for one of our clients to their sales team and staff. The presentation related the core brand strategies to their staff and conveyed the intelligence behind it. A quality day for their business - in more ways that one...

Prior to our presentation there was a speech on Quality Control by another business. The presentation included a video, that is well worth a look...

(Story Updated June 2018)