The economics of quality is a methodology designed to have organizations enhance the customer satisfaction while cutting the costs at the same time. The methodology is supported by the ISO/TR 10014 international standard: Quality management guideline. It guides the management to achieve their entrepreneurial intent while they continously increase the productivity.
The economics-of-quality methodology is focused on finding the most adequate way to control the costs while working on the fulfillment of the company´s entrepreneurial intent. It lays great stress on :
- satisfaction - loyalty of the customer
- trust in the company
- reputation of the product
- company image
It extends the basic quality management system with the economic objectives. It follows the short-term objectives and the long-terms ones, while continuously evaluating how they are being fulfilled.
The methodology components include:
- performance of the costs analysis
- costs of compliance and non-compliance
- defining benefits to the customer
- factors leading to satisfaction, pleasure
- critical financial impacts
- opportunites identified
- management review
- strong orientation towards performance
- costs monitoring
- an so on.
