Quality, Cost & Profit Relationship

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Quality, Cost & Profit relationship :

Quality, Cost & Profit relationship

Quality, Cost & Profit relationship :

Many people think that quality costs money and adversely effects profits. But these costs are the costs of doing it wrong first time . Quality in the long run results in increased profitability . Quality, Cost & Profit relationship

Quality , Cost and Profit relationship.:

For example if we design the product right first time , build it right first time - we save all the costs of redesign , rework, scrap, resetting, repair, warranty work etc. Quality , Cost and Profit relationship. Cost

Quality and Profit : Traditional thinking:

Quality and Profit : Traditional thinking Cost

Quality and Profit : Paradigm shift:

Quality and Profit : Paradigm shift Cost

PowerPoint Presentation:

Higher production due to improved cycle time and reduced errors and defects Increased use of machine and resources. Improved material use from reduced scrap and rejects Increased use of personnel resources Lower level of asset investments required to support operations. Lower service and support costs for eliminated waste, rework and non value added activities. QUALITY Higher productivity Increased profitability due to : Larger sales Lower production costs Faster turnover

Quality and Profit:

Quality and Profit If the organization does not offer high quality product or service , it will soon go out of business . But just having high quality will not be enough , because your competitors will also have the high quality. To win , the organizations will have to offer high quality at a lower price than their competitors. High Quality Lower price

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