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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„Before I set out on a long journey of business or take up a new position at work, I should know who I am, what I can do and what I like.“ more >>

Jiří Střelec Jiří Střelec

Considering oneself a master of a trade is easy. Especially from the desk, you may think what you like. The reality, however, tends to be different. The second stage of our younger life (say, from high school up to our 30th birthday) is an exploratory one for us. We should try out more jobs, positions, situations, etc. It will help us learn how we feel in different situations, what we are good at, what makes us feel good. In doing so, we learn about OURSELVES and can take responsibility for our lives and, eventually, for our children or a team of our workmates. Try new things, learn about yourselves before you start investing into a business, a new partnership, job positions. You will, thus, prevent needless tears and stress. 

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