Title: Chapter 13 Introduction
Course: Canvas Practice Course > Section: Week 3, 06 April to 09 April

KEY CONCEPTS

In this chapter we discussed the cost of quality which is the (1) cost of creating and maintaining a preventive quality system, and (2) the cost of poor quality, usually represented by wasted raw materials, rework and lost customers. Every business depends on what people work on and how they work. Organizations should work only those things that add value to the external customer--the person who buys the product or service.

Many companies don't now have a handle on their quality and the cost of their quality. They don't know how much of their effort is dedicated to making salable product and how much to reworking or repairing nonconforming product. One of the principal enemies of any process seeking to maximize profits and gain market share is waste. Waste is anything that need not or should not have happened. In many companies waste and errors are everywhere and that waste and error is expensive. People make errors, equipment malfunctions, and appliances break down the day after the warranty expires. Waste must be removed from processes through continuous improvement using quality tools.