Quality Management Economic Effectiveness
Trish Borzon
1371 Posts

Presented by: Elinaldo Araujo, Nidec

Area of Focus: Basics and Session Level: Intermediate

Companies are constantly looking to increase their competitiveness in the market. There is no doubt that the quality of products and services is a critical factor for this competitiveness in the market. Therefore, a quality management system is needed. However, is the company getting the best out of its quality management system? How effective and successful is the company with its quality management system? Seeking to answer these questions, we revisited some quality cost concepts and decided to apply them in the evaluation of several business units located around the world. Aiming at comparisons between them, we normalized the results, regardless of the production capacity of the plant and the type of product. This allowed us to identify some performance indicators capable of showing the effectiveness of the business units in terms of quality management. Rather than focusing on reducing personnel costs, we were able to see opportunities to optimize the resources invested in creating and maintaining a quality management system. This case is based on data collected between different business units and sites. Lessons learned about resource allocation that worked best will be shared with the audience.

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