Reducing the Cost of Poor Quality and Improving Efficiency with Quality Management

Optimizing Laboratory Operations
Oral Presentation

Prepared by E. Turner
Eurofins Environment Testing, 1712 Addison Grace Lane, Wylie, TX, 75098, United States


Contact Information: [email protected]; 945-248-7271


ABSTRACT

The Cost of Poor Quality (COPQ) is the total sum of the associated costs due to failure. This includes all waste and variation, overheads to fix the issue, rework costs, as well as lost opportunities due to disgruntled customers or damaged reputation. Laboratories often overlook the costs associated with poor performance of services and processes or consider them a routine cost of doing business. In the environmental field, quality control and quality assurance are often viewed as cost centers. By understanding and utilizing quality principles combined with Lean Six Sigma, the laboratory can improve efficiencies and reduce costs associated with poor quality. Proper quality management can improve profitability, however defined, through cost reductions and improved efficiencies.

The presentation will define the Cost of Poor Quality and discuss the principles of quality management and Lean Six Sigma. Examples of tool utilizations will be reviewed.