Economics of quality/grade

publication date 23.04.2012

Tree diagram showing enhanced economics of quality as per ISO 10014

The economics of quality is a methodology designed to have organizations enhance the customer satisfaction while cutting the costs at the same time. The methodology is supported by the ISO/TR 10014 international standard: Quality management guideline. It guides the management to achieve their entrepreneurial intent while they continously increase the productivity. 

The economics-of-quality methodology is focused on finding the most adequate way to control the costs while working on the fulfillment of the company´s entrepreneurial intent. It lays great stress on :  

  • satisfaction - loyalty of the customer
  • trust in the company
  • reputation of the product 
  • company image

It extends the basic quality management system with the economic objectives. It follows the short-term objectives and the long-terms ones, while continuously evaluating how they are being fulfilled.  

The methodology components include:  

  • performance of the costs analysis
  • costs of compliance and non-compliance
  • defining benefits to the customer  
  • factors leading to satisfaction, pleasure
  • critical financial impacts
  • opportunites identified 
  • management review
  • strong orientation towards performance 
  • costs monitoring
  • an so on.

 

 

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„The operational activities causes falling asleep of managers and whole company.“ more >>

Jiří Střelec Jiří Střelec

Every day is increasing long list of tasks and challenges to be solved. In some companies, you would not have to go home and all the time you could work. It still have not finished the tasks. If managers begin to "drown" in such operative, they easy to forget the long-term development of the company. Strategically managers are starting to fall asleep and  company too with them. They do not notice that the surrounding environment is changing day by day and the competitors has brought new technologies and products. Easy then the time will come when no longer need to work. Please, take some time each week to develop yourself, your team, company. Give regular time regular to working of strategy and vision of the company.