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Quality Management software with cost tracking

Discussion in 'Coffee Break and Community Discussion Forum' started by Elliot A. Goode, Aug 28, 2017.

  1. Elliot A. Goode

    Elliot A. Goode New Member

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    Hi,
    I am working at a company where quality management is really important. We spend a lot of money on this since customer satisfaction is of prime importance for us. We don't want any customer to say bad things about products. Since the money spent on this is really huge the higher individuals are always urged us to keep track of everything spent on quality management. This is a real night mare for us and we are always looking for a solution. Recently I stumbled upon a quality management software which easily tracks the cost of quality management.
    I am planning to present such an option in front of my bosses but I will need similar options to show. So please help me out.
     
  2. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Welcome. Since "Quality Management" is actually the way you run your company, it should already be very easy to track your costs through your budgeting process. Using more software to capture something you're probably already aware of - through your accounting practices - is adding complication and extra work. I'd be presenting to MY management on avoiding a sales pitch from a Software provider and using the accounting methods we use to determine where quality is costing. You avoid customers saying bad things about you by providing products and services they want, when they want them (or at least some agree-to requirements). I think you might want to have your management rethink their understanding of "Quality Management"...
     
  3. Ben Johnson

    Ben Johnson Member

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    Hello, not sure if it would help your situation or not, but I use a method called PAF for quality costing. It measures Preventative, Appraisal and Failure costs. With a bit of time put in initially to set up, it can be implemented using spreadsheets and doesn't need extravagant software.

    Put briefly, failure costs are split into internal and external and are relatively straight forward (warranties, waste, non-conformance's, complaints etc. labour and material costs). Appraisal costs are basically inspection costs, depending on your company this will vary, but for example my appraisal costs include goods-inwards inspection, calibration of test equipment, batch final inspections and so on.

    The Preventative costs are the costs I guess your bosses might be interested in and most people miss. These are the costs relating to actually running a quality department, such as labour involved in running quality circles, meetings, cost of new or modified equipment, etc.

    PAF can be as in depth as you want it to be so long as it is consistent and repeatable of course.

    Good luck presenting to your superiors!
     

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