Using Cost of Quality to Improve Business Results

Abstract: CRC Industries uses cost of quality as a key measure for improving business results. Since centering improvement efforts on cost of quality, the company has reduced failure dollars as a percentage of sales and saved hundreds of thousands of dollars. Cost of quality can also be linked to other improvements at CRC Industries, including shipping error reductions, customer service order entry error reductions, productivity increases, hazardous waste reduction, and profitability.
Keywords: Case study - Cost of quality - Failure dollars - Business results - Measurement - Quality tools - Root cause analysis