Evaluating Quality Costs and ROI
on Quality Improvement Initiatives

Seminar Content

This seminar teaches the basic language of money in quantifying the need for—and the success of—quality improvement projects. Participants will learn how to collect data to quantify quality-related costs, including hidden costs associated with poor customer satisfaction or loss of productivity. The successful Six Sigma phenomenon has shown that when successes from quality improvement projects, internal audits, or supplier improvement programs are presented in terms of “return on investment,” management’s total commitment is not far behind.

Objectives of this seminar are to:

• Learn the basics of quality cost programs in order to develop a process that works for the organization;
• Provide tools and techniques that will assist in developing such programs;
• Learn how to use quality cost programs to calculate the return on investment for any quality management system or quality improvement initiative.

The scope, length, and specific content of the class are always customized to meet the individual needs of the attendees and the organization. The standard agenda addresses:

• Introduction
• Fundamental Financial Concepts
• Quality Cost Categories (Quality Costing) and How Each Is Used
• Appraisal costs
• Prevention costs
• Internal failure costs
• External failure costs
• Hidden costs
• Quality Cost Methods
• Traditional method
• Defect documentation collection method
• Labor/resource claiming
• Process-cost method
• The Process for Implementing and Managing the Cost of Quality Process
• Getting started
• Process flow
• Data collection
• Data analysis
• Improvement process
• Root cause analysis
• Calculating Return on Investment for Specific Quality Initiatives
• ISO 9001
• Internal audits
• Supplier improvement projects
• Quality/process improvement projects
• Communicating Successes in Quality Management
• Case Studies

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