Business excellence

Quality Cost Reduction Strategies (BE-05)

6 Lessons
30 Hrs
Dr. Rham Mahmoud


Two hot buttons for any for profit organization, first is the excessive quality cost and the other is the loss of sales revenue. So, the language of money is essential. For a successful quality effort, the single most important element is leadership by upper management. To gain that leadership, we should first convince management that a problem exists (excessive costs due to poor quality) that requires their attention and action. A robust quality cost system coupled with successful quality improvement projects is a solid way to increase organization profit. COURSE OBJECTIVES Allow businesses to trim their budgets while delivering a satisfactory product or service on time. Learn how to quantify the losses that are affecting your profit and how to reduce and control them so you can optimize your operation cost as much as possible. Learn to apply cost reduction strategies over time to reduce costs throughout an organization, especially in the areas of scrap, rework, defects/errors, field service, long lead time, unplanned stoppages and warranty cost leading to improved operational profits. Cost of poor quality costs companies millions of dollars each year, and its reduction can transform marginally successful companies into profitable ones. Increase team-based output and be prepared to lead and participate in cost reduction initiatives.


Week 1

  • 1. Quality Cost Concepts

    -Historical Development.
    -The Economics of Quality.
    -Goal of A Quality Cost System.
    -Taguchi Quality Loss Function.
    -Accounting Interface.
    -Management of Quality Costs.

Week 2

  • 2. Quality Cost System

    -Quality Cost Categories, Elements and Bases.
    -Hidden Quality Costs.
    -Trend Analysis and The Improvement Process.
    -Budgeting, Standardization and Control.

Week 3

  • 3. Quality Cost Program Implementation

    -Leadership and Managing For Change.
    -Quality Cost Education.
    -Internal Quality Cost Procedure.
    -Quality Cost Data Collection and Loss Analysis.
    -Reporting and Evaluation.

Week 4

  • 4. Quality Cost Reduction And Continuous Improvement

    -Quality Cost Improvement Philosophy.
    -Quality Costs and The Profit.
    -How to Reduce Quality Costs?.
    -Supplier Quality Management.
    -Strategic Planning.

Week 5

  • 5. Two Case Studies (Service and Manufacturing)

Week 6

  • 6. Project Discussion


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