Costs of poor quality

A man does not wander far from where his corn is roasting (Nigeria) Management must be careful how they are managing the costs of poor quality, because in many companies has caused problems. To this one must be fully identified with what these costs involve, as they should be taken into account, especially in those companies, SMEs are not very used to them. Please note that the costs of quality are an integral part of the cost of production, being present in the results that are reflected in the income statement of an organization, but not quantified separately, which prevents adequate control and analysis, making the implementation of possible corrective action and decision-making process. Cost Systems called "traditional" do not have procedures to provide management information relating to quality control. Addressed this issue, Cost Accounting traditionally has dealt with the rework to be performed on those products that are moving away from design quality to approach her, developing techniques for the treatment of waste and defective production of the call. The management should not neglect what is said, is now known that to achieve quality, not to comply with extensive rules set out in the design, but also that this will be the result of a proper market research, promotion system, distribution and retail management, providing a set of auxiliary services after sales, satisfying the customer.

These other costs and are not due to poor quality but costs necessary to generate the same. And therefore always be quality costs. Although the chances of idyllic defects disappear, the latter would remain

However, there are within the cost of those designated as non-quality costs where Ernesto Iturralde, reminds us that refer to businesses that did not do. Given a service or deliver a product that produces dissatisfaction in the client, this does not return to buy or the costs resulting from returns, either by non-compliance in terms of negotiation, such as delivery times, false promises by marketers, higher closing costs, among other reasons. Customer service actually generates income, not expenses. A bad service produces non-quality costs and affects the recovery of the portfolio that affects the area of ​​collections and financial area to recover amounts owed by not timely aspectop many companies have neglected is indicated that the "non-quality costs ? can mean about 20 to 25% of the total invoiced value. Definitely these costs vary in each organization, but efforts should be directed to commence proceedings to avoid them as identification to be presented to management committees amazed by their numbers and projections and this alarm will be the driving force to change processes in a new orientation towards customer service.

Yturralde reminds us that there are three factors to determine the Cost of Non-Quality:

Cost Performance .- Costs related to doing the right things, ie error-free costs. Reprocessing costs .- Costs related to doing things again, restore, repair or correct faults. Prevention and Detection Costs .- Costs related to quality control, ie identifying potential errors before "these give the face to the customer? And detection of errors itself once the product or service has been delivered the customer. It gives us the organization Yturralde U.S. Office of Consumer Affairs established a base for the Calculation of Non-Quality and the effect is necessary to know three areas: annual revenue of your organization number of customers in your organization Amounts required to capture them and mantenerlosLos annual revenue of your organization relate to the turnover in a year the company achieved, the number of clients your organization will be represented by the sum of these within the same period and the amounts required to attract and maintain, including costs marketing, advertising and sales. (Promotions and discounts) There are 3 factors to determine the Cost of Non-Quality: Cost Performance .- Costs associated with doing the right things, ie error-free costs.

Reprocessing costs .- Costs related to doing things again, restore, repair or correct faults. Prevention and Detection Costs .- Costs related to quality control, ie identifying potential errors before "these give the face to the customer? And detection of errors itself once the product or service has been delivered the cliente.Definitivamente, the cost of quality is not erroneous assessment of losses caused no measurable negative or could cause quality failures. * FTE: yturralde.com