The True Cost of Quality

In today’s globalised, hyper-competitive world, business managers are expected to deliver profitable and consistent outcomes while meeting compliance obligations and demanding customer expectations.

All too often, organisations get caught-up in day-to-day activity, trying to meet high revenue budgets and rarely stop to take the time in understanding the true cost of their operations.

According to a recent SAI Global survey, almost 25% of organisations do not have a system or method to track the actual costs of their operations. 59% of all respondents said they track the costs, but do not share the results with the broader organisation.

The cost of quality is a model used to evaluate the efficiency in which a company meets the expectations of its customers – often associated with the utilisation of resources to produce a product or service.

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