Friday 17 July 2020

Appraisal or Prevention! What's better?

In-process inspection inside a company is typically a 'cost of appraisal' for the company. 

Is the same true for a supplier, for her 'visit to customer for in-process inspection while installing the supplies' at customer's end as a part of the supplier's process!?

It's True, the said installation being a part of the process of the supplier company. 

It's, however, a 'cost of external failure' for the supplier if installation is customer's responsibility and she finds a defect/error in supplies while doing so. Otherwise, it's the 'cost of prevention' for the customer. 

In either of the cases, be it appraisal or prevention, it is a COGQ (cost of good quality) anyway as a part of the COQ (cost of quality)!

One may have to strike a balance though, while deciding upon spending on the latter, meaning on the visit to customer as a part of the process itself, especially in case of high-impact high-value industrial products. 

In any case, the COGQ in general and the other 'costs of prevention' in-house, in particular, may prove to be most beneficial and highly profitable at that.

Why not try validating this statement by calculating the components of Cost of  Quality, for a failed item that reached your customers in past!

Calculating the Cost of Quality (both the COPQ & COGQ), classifying the corresponding components as Tangible (Visible) Costs & Hidden Costs, and comparing them might help.


Also read a few relevant blogposts hereunder:

Do You Force Customers To Quit
In-a-problem ? No-problem! Dwell-a-while!
Customer or Custo-Mer ?  
Experienced A Delightful Payment ! 
An Experience of Heart-and-Soul 
Do you keep curing your brand ?  
customer gets what s/he deserves: Shoddy Quality!  
Listen to iceberg of VOC to acquire customers 
Less With More And More Gets Sore 
Should one care for value ?  
Can-changing-thoughts-change-a-nation
Ridiculous Poison-culture versus Maverick Kaizen-culture 
Tolerate Once, Twice, Thrice?  
The Business Of Businesses 
That's how some business partnerships work 
Taken-For-Granted ? You Deserve It !! 
Strategise To Achieve Targets Daily 
Does recognition really matter 
That's How Morons Work
Simplicity Of Theory Of Relativity

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