From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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What is your optimum quality?

What is your optimum quality?

From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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What is your optimum quality?

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the cost of quality, and particularly, could we save money by adjusting the level of quality that we provide? So this could be the quality of products that we're making or the quality of service that we're providing to a customer if we're providing a service. So let's just explore the relationship between quality and cost. absolutely nothing wrong with anything that we do. What shape will the graph be? So just for a moment, just think to yourself about what shape you think that graph will be. Now I ask people this on training courses all the time and they never get it right. And that's amazing because you would think that you would know what the relationship is between the cost of providing a service and the quality of it. You'd think people would know that, but amazingly, they don't. So, I will now reveal that there are two components to the cost of quality. So the first one is what's called the prevention cost and the graph for the prevention cost is this shape. So as we improve the…

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