Wednesday, August 27, 2008
CRC Cost of Quality Article
Making the Case for Quality By Susanne Donovan
In 1997 CRC Industries first started tracking cost of quality. Since then we have come to consider it a
key measure for improving business results and the foundation of our continuous improvement efforts.
As Figure 1 shows, we have reduced failure dollars—the money we spend because of products and
services that do not meet our customers’ requirements—from 0.70% of sales to 0.21% of sales, saving
hundreds of thousands of dollars.
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