Maintaining quality certainly involves costs, but the lack of quality or more specifically, implementing procedures to eliminate complications and non-conformities, has a much higher cost.
Furthermore, non-conformities harm manufacturers because they cause a loss of customers, in the long run.
Therefore, we can say that compliance costs depend on how much has been spent to “do things well”, while those associated with non-conformities are the costs related to how much more has been spent for “not having done things well”.
So how much does quality really cost?
To clearly evaluate quality costs and to have a clear idea of one’s situation, it is essential to define and apply a quality measurement system.
The cost of quality can be placed into four categories:
- Prevention Costs
- Appraisal Costs
- Internal Failure Costs
- External Failure Costs
1. Prevention Costs:
Prevention costs are the costs of all activities that are designed to prevent poor quality/non-conformities from arising in products or services.
Here are only some examples of prevention costs:
- Training for workers involved in the service or delivery of the product
- Definition of measurement methods with related procedures and checklists
- Equipment inspection and the purchasing of the necessary measuring and control instruments
- Tests on samples
- Periodic reviews of projects
- Selection of suppliers based on service standards and specifications for materials and services purchased externally
- Quality system audits
2. Appraisal Costs:
Appraisal costs are costs that are incurred to ensure the conformity to quality standards and performance requirements.
The examples of appraisal costs include:
- Supplier acceptance sampling
- Product Audits
- Test and inspection (receiving, in-process and final)
3. Internal Failure Costs:
Internal Failure Costs are the costs that are associated with defects found before the customer receives the product or service.
The examples of internal failure costs include:
- In-process scrap and rework
- Troubleshooting and repairing
- Design changes
- Inventory required to support poor process yields and rejected lots
- Re-inspection / retest of reworked items
- Failure to carry out on-site (online) calibration which can lead to system malfunctions
4. External Failure Costs:
External Failure Costs are the costs that are associated with defects found after the customer receives the product or service.
The examples of external failure costs include:
- Sales returns due to defective products and their subsequent replacement
- Service level agreement penalties
- Complaint handling
- Field service labour and parts costs incurred due to warranty obligations
- Product recalls / Legal claims
- Time lost due to resolution issues
- Company reputation issues
- Lost customers
Since 1994, S.A.M.A. Italia has been active in supporting companies and freelancers throughout the various stages associated with quality control.
Our know-how, which is built on our vast experience gained through precision mechanical workshops and by working with companies in various production sectors has allowed us to produce our SAMA Tools name-brand measuring instruments and to provide calibration service on all brands of instruments.
What sets us apart is the combination of our highly technical skills and the manner in which we attentively listen to our customers’ needs within the company.
By doing so, we can provide them with the right equipment to help better their production, while avoiding the problems described in point 4, regarding external failure costs.
After providing the most suitable measuring instruments, we take care of our customers by supporting them in the periodic calibration of their instruments.
But what if customers own other non-SAMA instrument brands and need to calibrate them?
Those in possession of instruments of other brands can contact us without hesitation and ask for a calibration quote. We offer both calibration reports referable to primary samples (RDT), and also ACCREDIA certificates.
This is an extremely important service that all companies that work with measuring instruments need!
It often happens that the same company needs to request an RDT for some instruments and an ACCREDIA certificate for others.
By contacting us, they can count on a single supplier, a very important aspect in terms of saving time, shipping and calibration costs, etc.
In fact, we at S.A.M.A. Italia personally carry out and issue the RDT laboratory test reports while carefully appointing the best accredited laboratories for the ACCREDIA certificates.
Each laboratory is accredited for specific instruments so as a result, we are constantly evaluating the various accredited laboratories in order to always be sure who to send a particular instrument to.
Furthermore, based on the experience we have gained over the years, we believe that some laboratories are more thorough than others and are able to professionally and promptly respond to any post-calibration clarifications. This aspect should not be underestimated; on the contrary, it is extremely important!
This is why our customers’ instruments will only be sent to accredited laboratories that have passed our strict evaluations.
Just recently, a customer wrote to us, specifying that he absolutely did not want his instruments to be calibrated by certain laboratories, which coincidentally are not among those with which we work.
The true cost of Non-Compliance in Quality: Conclusion
Today, we have seen that being a quality-conscious company has its costs. However, these costs will never be as high as those that arise due to poor quality.
Quality control of the goods during the receiving, in-process/production and post-production phases, before placing the product on the market, is absolutely necessary.
To ensure that you purchase the right tools, our S.A.M.A. Italia technicians are available, even on-site, to evaluate your every need and offer you the best solutions for your measuring instruments.
The proper management of calibration intervals aims at safe and efficient production processes, which lead to quality products.
Although many companies consider calibration only as a means of obtaining a certification of legal value, calibration actually affects the overall effectiveness of the measuring instrument. This is, therefore, a very subtle point that can lead to non-compliant products and consequently serious problems and subsequent costs.
Making sure that the measuring instruments are functioning correctly, helps to prevent system failures.
It is important that companies understand what they need to do to reduce overall quality costs. This will help them improve business processes, which will ultimately lead to higher profits.
The worst type of costs to incur among these four categories are the ones related to external failures, whereby companies should do their best to try to reduce these types of costs.
For years, our company has been working hard to drastically reduce external failure costs. We do so by checking each and every instrument, before it is packed and shipped out to our customers.
A careful inspection of everything we deliver obviously requires significant economic resources, but this is also what our customers have come to expect when turning to S.A.M.A. Italia for their instrument needs.
An almost 0% non-compliance average, translates into time saved and customers who in turn will receive no complaints from third parties.
It is therefore evident that spending more on prevention and appraisal costs usually leads to a reduction of internal and external failure costs.
S.A.M.A. Italia is a company that specializes in:
✔️ the production of SAMA Tools name-brand measuring instruments for your quality control needs
✔️ the calibration of instruments pertaining to all brands
▶ Why choose us?
Because our technical staff will not only supply you with the right measuring instruments but will help you with your specific needs thanks to our many years of experience. Being a “S.A.M.A. Tools” customer means always having a consultant who will be able to provide you with that added value that will make the difference for your business.
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Schedule a free video call with one of our experts. You can choose a day and time of your convenience and a member of our staff will be happy to assist you in answering all of your questions and/or inquiries.
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