How to add a priority-cost/benefit function to our quality systems?

S

Steven Sulkin

#1
As quality professionals we are providing a system for improvement to our employers. This system, among other things, needs to give direction to management that says, hey, work on this first, this second, and this third. Oh, by the way, this opportunity will save us 100,000. It probably wouldnt make sense to spend 150,000 to fix it. Setting priorities, and dedicating resources in a manner that benefits the company is a responsibility of all management. We are just trying to put in a system that helps them meet that responsibility.

This is a best-practices question. What is the most efficient way you have found to meet this expectation?
 
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Marc

Hunkered Down for the Duration
Staff member
Admin
#2
I've been watching for someone to reply to this for a while. I guess my question is:

You ask about best practices and I'm confused (which is not unusual) ;)

Are you looking for a specific measurable or a specific set of measureables?

Management Review is supposed to be the 'system' (in ISO and QS) where measureables are presented with respect to the business as a whole in all areas. The expectation is that measureables are presented and, in most cases, predictions made.

Your example of cost vs. savings is typical with consideration to the business as a whole and with consideration of the future in the savings calulations (by prediction).

So - my vote is: A well designed, effective Management Review system.

Remember - Management Review (at least as *required* by QS) feeds into the Business Plan which incorporates all the facits (supposedly!).

Now - have I confused the issue or does this address your posting?
 
D

dhillsburg

#3
We use a management review system called Policy Deployment. It is very effective at prioritizing throughout the organization. We also calculate cost of failure and PPM as determining factors in guiding decisions about what quality issues to apply resources to first.
 
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