Quality and Cost Relationship

Like all of us, I got sidetracked while doing some online research earlier today by a discussion on quality. I ran across an interesting tidbit that summarizes Deming’s philosophy as:

Quality = Results of work Efforts / Total Costs

The implications are profoundly simple:
1) A focus on quality will, over time, reduce costs
2) A focus on reducing costs, will over time decrease quality

What I see many organizations focusing on now is both a reduction in Costs with an increased focus on Quality with the expected result that the Result of Work Efforts will increase. Unless there is a huge increase in quality, there will be no change in the Results, as the product of reduced cost will negate the quality improvements.

Bottom line, Quality comes with a price, not always financial and focus on quality will yield far more long term results than a focus on cost reduction



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