Cost of Quality Assessment
Estimating the Cost of 2nd Time Quality
Builders typically estimate the cost of 2nd time quality to be 2 to 4 percent of sales revenue. If you also consider 2nd time quality costs embedded in your subcontractors, the figure grows to 8 to 12 percent of sales.
Reducing your quality costs are worth pursuing, especially when removing half of the costs is a reasonable short-term expectation that makes a concentrated effort worthwhile.
Quality-based Cost Reduction
The goal of quality-based cost reduction is to improve quality to recover quality costs and return them to the bottom line. It intensely pursues improving quality in ways that maximize profits, and in doing so also maximizes customer satisfaction. Quality-based cost management translates quality objectives into terms that everyone can understand and act on--dollars.
If you are ready to get started assessing what percentage of time your operations personnel spend on quality problems, provide your contact information below and we will send you your FREE Cost of Quality Self-Assessment.