Quality doesn’t always costs more ..

The two sense of Quality as they relate to goods and services.

Why do you prefer Netflix over Amazon Prime? Why would one prefer an iPhone over Samsung ? Why do you love Royal Enfield ? I am sure if you ask any member or advocate of these brands, most often than not, it would be unanimously one thing. Quality……

But can they define Quality ?

You might get philosophical or even confused definitions.

The definition of Quality in a user-based scenario, is subjective and spring on the individual perspective as the customer. In a simple way the degree of customer satisfaction determines the cost of Quality. Mostly every organisation work to improve their Quality, based on this Definition.
But it doesn’t have to be this always.

The two Sides of the coin

Money, as it relates to a product or service, has two faces.
One is Revenue and one is Cost of Production.

And when we talk about quality as it relates to revenue, it is the quality of the features of a service or good that meet customer needs and provide them with satisfaction. Higher quality costs more.

So if you look into why it costs more,
You are simply above the degree of satisfaction among the consumers, your product is more saleable, and it is exceeding your competitions,
So you get to secure a premium price for the service.

But that particular perspective changes when you talk about Quality as in production.

Quality comes not from inspection, but from the Improvement of the production process — W.Edwards Deming

Here, Quality is defined as objective and is in stark contrast with the first narrative.

Quality as it relates to freedom from failures, is a technical approach, also termed as manufacturing-based quality, is concerned with how a product conforms to the technical standards.

Quality related to costs can be high as 25 % of the sales. Meaning one fourth of your labour force is employed to re-do, re-inspect and re-re-do.

Freedom from failures enables the organisations to reduce error rates, So there will be less reworks and waste. No failures lets you out of warranty charges and customers dissatisfaction.

Since the production is free from failures, the need of inspection, audits and testing is also less,

shortening the time to develop new products, means increased yields.

Here in total your cost of production is reducing down like a slope. So you can sell your products at a cheaper rate.

well so far the concept of Quality as in freedom from failures is still on papers. to achieve the same in reality, there comes a lot of research and investments.

For a long time companies have been ignoring the role of Quality and Quality management in the Production houses. But these days most of them are willing to invest on Quality departments in the house.

We measure the maturity of the organisation via the management understanding and attitude towards Quality, and there are 5 stages of maturity.

Stage 1 Uncertainity

“ We don’t know why we have problems with Quality ”

Stage 1 organisations blame the Quality department for Quality issues. There are no organised activities or any understanding of the same. quality inspection; probably not part of the organisation.

Stage 2 Awakening

“ Is it absolutely necessary to always have problems with quality? ”

Stage 2 organisations has recognised Quality management may be of value, but still not ready to invest money or time to make it happen. Trying motivational efforts.

Stage 3 Enlightenment

“ Through management commitment and quality improvement we are identifying and resolving our problems. ”

Stage 3 organisations are the new buddha. Quality departments are told to report to higher management. 14 day programmes or similar ones are held at the base level.

Stage 4 Wisdom

“ Defect prevention is a routine part of our operation. ”

Quality manager is an officer at the organisation, Involved with consumer affairs and special assignments. Management recognises their role in continuing emphasis.

Stage 5 Certainty

“ We know why we do not have problems with quality ”

Quality manager on board of directors. Prevention is a main concern. Quality has become a thought leader. Quality improvement is a normal and continued activity.

to conclude,

Quality is free, It’s not a gift, but it’s free. The ‘unquality’ things are what cost money — Phil Crosby

Quality is the result of a well planned environment. and it should be part of your organisation. You are tempted to jump to the last stage, which is customer satisfaction. If you could achieve Quality in the production phases, which is the fundamental fabric of your organisation. everything else becomes part of that fabric.

#salud