Sigma And The Cost Of Quality

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“Six Sigma” and the “Cost of Quality” to a manufacturing company is a systematic approach that increases profits and improves customer satisfaction rates by eliminating the root cause for defects or errors in all processes, by creating new and more effective processes. To the health care company, “The Cost of Quality” may look and feel slightly different, yet in many ways both are the same. Both companies may operate and produce different products, and operate in two different market segments, both are concerned with delivering customer driven quality products or services in the most cost effective manner. Therefore, if we use a comparative analysis and the Six Sigma standard problem solving methodologies and apply it to the “Costs of Quality”, “Six Sigma Project Selection” and the role of “The Green Belt” we know that each looks to eliminate the root cause of defects and poor customer satisfaction scores. We will discuss these similarities and the differences in manufacturing and in health care and the importance of determining who the “Voice of the Customer” (VOC) is, to responding quickly to any sudden market change or in customer driven demand changes and for each current customer, lost customer, or any future customers.
Similarities in “The Cost of Quality”
The cost of quality in a manufacturing company versus a health care company is identifying the areas of similarities and differences in their use of a cumulative cost of a quality measurement system.
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