Quality Costs
Theory defines four quality category costs:
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prevention costs
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assessment costs,
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internal flow costs
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external flow costs.
Prevention and assessment costs can be considered as investments for preventing and verifying the non-conformity; they are also generally defines as quality costs.
Non-conformity costs (internal and external flaws) are classified as losses and are globally indicated as non-quality costs. Total-quality and non-quality costs represent the overall quality cost born for reaching a certain level of conformity for the products and services to be manufactured or delivered.
The implementation of a program for identifying and managing a Company’s quality costs is due to the management’s commitment and to the involvement of the most directly interested functions (management and quality control).
The development stages of a program are:
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identification of costs elements,
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gathering and analysis of data,
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reporting to the management, which has to define the objectives and strategies for improvement and to assess the results.
The first goal is creating a tool for monitoring and assessing an organization’s overall efficiency, placing typical aspects of quality in the global operational context of management control.
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