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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