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Costs Associated With Bad Quality.

The way things are processed in a company is what defines the quality of production. If an issue rises, it could be due to inadequate methods of the way the organizational processes. Identifying the cause of an issue in quality is essential.

Quality problems in an organization could result in:

  • Internal costs.
    These are the costs that are associated with products that don’t reach the quality standard for customers. These issues are identified before the delivery to customers externally. These costs include:
    -Reworking on the defected products not reaching quality standard.
    -Delays in production with having to rework on the defected products.
    -Redesigning products affected by the defects.
    -Shortage in supply due to supply being used to fix defected products.
    -Analysis failures.
    -Costs of re-inspection and re-testing may arise for re-worked products.
    -Equipment downtime.
    -Lack of adaptability.
    -Lack of flexibility.
  • External costs.
    These are the costs that are associated with the products that don’t reach quality standards. However, in external costs the product defects are identified after the delivery to customers. These costs include:
    -Loss of customers and significant reduction in customer loyalty.
    -The reputation of the company would be damaged through defected products.
    -Repairing customers defected products.
    -Environmental costs.

Managing, maintaining, and monitoring quality in an organization is vital to ensure there is proper organizational efficiency. While conventional methods have been used for a long time, advances in technology have introduced Enterprise Quality Management Software. These Quality Management Systems have been known for their efficiency in automating procedures to ensure company efficiency. These systems allow monitoring and management of procedures, improved document handling, and better productivity of employees through advanced systems.

While these systems are known for being incredibly efficient, the implementation process should relate to the organizational goals using these systems. This should be done while making sure the right system is chosen.

Harrington Group International is an organization that is known for provide only the best software solutions to companies worldwide. HGI systems guarantee there would be a significant improvement in organizational efficiency. Choose HGI for your software solution needs!

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