Profit by Quality／品質でもうけなさいin English

drawn & written by Isao Hirasawa Omoshirogari HOME

2.5 Grasp quality with cost.

Profit by Quality《Contents》

Prologue

�T．Way of thinking quality and cost

As you know, as for the cost, in accounting, cost is classified into three, personnel expenses, material expenses and overhead expenses. Quality cost is the cost of the part about quality in these personnel expenses, material expenses and overhead expenses. There are various ways of thinking, but the classification is as generally shown below.

1. Company without problem cannot profit 2. Good or bad quality is known at cost

2.1 Let’s think over the meaning of quality 2.2 Is quality "goodness"? 2.3 If quality is good, productivity is also high. 2.4 Quality is not visible by the number of cases. 2.5 Grasp quality with cost. 2.6 Level of quality control

3. What is quality assurance?

�U．Way of solution quality problem

4. Make problem solving efficient. 5. Shares a problem by visualization 6. Dig into, and get clue of solution 7. Don't take unprofitable measure

�V．Consultation example of quality problem

8. Consultation example of quality problem 9. Necessary way of thinking to raise level 　Epilogue

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The part to be thought that it's difficult to grasp is F cost (failure cost). It is because prevention and appraisal cost are the cost that can incorporate into a plan, but F cost is the loss that is not known in advance when and where it generates. However, is it so difficult to catch loss cost?

Please think carefully.

There are only three ingredients of cost, personnel expenses, material expenses and other cost. We should be able to grasp F cost if we catch only these.

Therefore let's consider what kind of loss generate in the process that a thing is made and consumed.

Various waste and troubles occur, while the time starts in an order received and progresses through a design, production and sale, and finally products discarded. (Please put a pointer on the following figure)

Generally the loss which we cannot ignore will be such a thing. If structure of production control or sales management is put on a firm footing, these are all we cannot say difficult to grasp.

These losses can be converted easily into cost as follows.

Loss information is collectable as follows, for example.

There’s no need to be in a hurry, and even if it’ll be a sloppy accounting, don’t mind anyway. Let’s catch quality with cost first of all. If we make the precision of quality cost improve advancing improvement, the influence that an improvement has on management will be visible obviously someday, and we will be able to develop an improvement activity for corporate strategy.

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