Business Core · Manufacturing Operations · Module

Quality management

Ensuring output meets specification, and finding out why when it does not. Detection is the fallback; prevention is the work.

The idea

How it works

Inspection sorts good output from bad; it does not create good output. An organisation whose quality depends on inspection is paying for defects twice — once to make them and once to find them.

The cost of quality is usually understated because failure costs sit in other budgets. Rework, scrap, warranty, expedited shipping and lost customers rarely appear on the quality line, which makes prevention look expensive by comparison.

Working with it

In practice

  1. 01

    Move controls upstream

    A defect prevented at its source costs a fraction of one caught at the end.

  2. 02

    Measure process capability

    Whether the process can meet the specification consistently, not whether today’s output did.

  3. 03

    Find root cause, not the responsible step

    The step where a defect appeared is rarely where it was created.

  4. 04

    Cost quality fully

    Prevention, appraisal, internal failure and external failure. The last is the largest and the least visible.

One level in

The components of quality management

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The specification

    What output must meet, in measurable terms.

    Learn
  2. The capability measure

    Whether the process can hold the specification consistently.

    Learn
  3. The root cause record

    Why defects occurred and what was changed as a result.

    Learn

External failure cost — warranty, returns, lost customers — is the largest quality cost and appears on no quality report.