Posted on 28st February, 2012 by Mark Pilkington
Discussing training and its importance, it is essential to consider: "What is the cost of quality?" As outlined by A.V. Feigenbaum, there are three key areas to focus on when managing the cost of quality: [1]
Failures, the appraisal cost, and the prevention cost. To put it simply, failures stem from faulty products, appraisal costs involve the expenses of inspections, audits, and tests, while prevention costs encompass the measures taken to avoid issues in the initial manufacturing stages.
While there are additional quality factors that warrant discussion, the scope of this blog limits our exploration on this subject. However, I do wish to emphasize the importance of prevention costs, which directly tie into the investment made in training. By enhancing employee training programs and ensuring they obtain relevant certifications, we can effectively mitigate initial errors, thereby reducing field failures and ultimately lowering the overall cost of quality. The stark contrast in costs between detecting a defect during assembly versus discovering it in the field can be as significant as a thousandfold difference.
Find defect at:
Assigning cost numbers, as an example, to the improvement of yields provides the following scenario:
The typical training programs focused on knowledge and skills typically cost less than $2500, including materials. This investment not only benefits the individuals and their professional growth but also directly impacts the company's profits through enhanced quality, increased yields, reduced inventory, and improved inventory turnover.
It is crucial to prioritize the prevention of defects and faulty products from reaching customers. Addressing issues early on in-house, even if it may seem like a small cost, can prevent significant expenses down the line. Customer perception, which is invaluable, is also a key factor to consider in this context.
[1] A.V. Feigenbaum in Total Quality Control, Engineering and Management, Chapter 5 Quality Cost
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