The notion that high quality implies more or less higher costs is not based on fact; and we should somehow look at this issue from different angles.
Frequently, the more important factor is that a lack of quality costs money.
Recent studies have suggested that up to 35 per cent of the operating costs may be due to a lack of quality, having to repeat tasks, correct errors and so forth. Inevitably, this follows from the fact that service quality becomes a complicated phenomenon and that it is more difficult to monitor and assure quality in service than in actual manufacturing.
Again in most circumstances, the pursuit of high standard quality does not come at the expense of financial excellence. Surely, financial results are another way of measuring the effectiveness of the system.
Nowadays, an immediate market response lies with the model which is known as the customer satisfaction with the understanding that profits tend to improve as quality improves.
The systematic process of continuous improvement in all company areas brings about less waste and greater productivity, thus resulting in lower costs, which in turn improve margins, asset utilisation and competitive position in the market place.
Giorgio Gastaldello
Sales & Marketing Manager