Counting the Cost of Quality: The Cost of Inaction 

Every Decision has a cost.

Continuing the series Counting the Cost of Quality,  we turn from the Cost of Action in Part One to the Cost of Inaction.

So what happens when you do not act? Maintain the status quo.  I acknowledge that there are some times in a company’s history when a short term “pause” is needed. Due to uncertain economics or other external conditions. This is different from big picture inaction. In the case of quality, there is no time that a company should pause from improving quality, quality systems or understanding the changing dynamics of quality processes.

… there is no time that a company should pause from improving quality, quality systems or understanding the changing dynamics of quality processes.

In the end all decisions to act or not rest with management. And the implications of the decision (or non decision). Here are a few possible considerations and implications of not acting.

First, not taking the step of understanding the changes in quality processes and the standards that industries are using to validate and monitor quality. This can be as damaging as knowing and not acting.

Some industries are leaders in quality. And what they adopt often become best practices which other industries adopt in whole or in part. They were created for a reason. Not investigating new practices and reviewing the potential use in your organization can be a lost opportunity to become a leader in your industry. For example the Automobile Industry are widely using cross section analysis to validate, monitor and improve quality of connector crimping. With the cost of these systems coming down, it makes sense for non-automotive companies to start adopting cross section analysis.

Not investigating new practices and reviewing the potential use in your organization can be a lost opportunity to become a leader in your industry.

What if your competitor seized the opportunity to implement new quality processes? And their quality improved when they used these new tools. And they broadly publish their new capability to the world. Prompting companies (including your customers) to take notice. You are at a strategic disadvantage when your competitor gets a jump on your company.

You are at a strategic disadvantage when your competitor gets a jump on your company.

Inaction due to the cost of processing tools, systems and training ignores the long term benefit from reduced cost of processing. Scrap and rework costs can eat into profitability. A focus on quality improvement can also help to improve production efficiency.

Employees are watching. Engaging personnel in the process of quality improvement can be positive and beneficial. But when personnel see management not acting, they soon follow and productivity declines. Personnel on the factory floor are looking for individual benefit in the case of working conditions and some level of assurance the company is going all out in their efforts to maintain and grow the business.

Customers are also watching. With domestic and international competitors on your customer’s doorstep, can you afford to not consider new quality systems? And implement them into the company’s culture.

With domestic and international competitors on your customer’s doorstep, can you afford not to consider new quality systems?

Looking at the negative side of this topic is something companies do not enjoy doing. Simply put, ignoring the world changing around you or knowing and not acting is not a good business strategy. And can be damaging or fatal to a company in the long term.

The good news there is always an opportunity to turn the ship around, no matter how big the ship. Today would be a good day to seize the opportunity and start acting!

 

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