Many companies struggle with the best way to think about and incorporate the cost of quality into operations. In this post we’ll examine some recent research highlighting how many companies fail to use reductions in the cost of quality as a driver for competitive advantage and revenue growth.

Quality and operational excellence

In building an operational excellence model, industrial and manufacturing companies typically create a set of objectives or goals to work toward. Often, these goals are operational or financial in nature. With quality management becoming a focal point for many organizations, we at LNS Research believe that executives should also include quality in these models of operational excellence.

Quality management objectives can include ensuring compliance, improving design for quality, improving the performance of suppliers, preserving brand equity, or reducing the cost of quality. It’s important to note that although we may categorize these objectives differently in relation to financial and operational objectives, they’re all closely related and interconnected.

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