Price vs. Cost - Critical Characteristics

[mseiedi]

In ISO 9000:2000 there is a defenition for quality characteristic as follow:
quality characteristic

inherent characteristic (3.5.1) of a product (3.4.2), process (3.4.1) or system (3.2.1) related to a requirement

(3.1.2)

NOTE 1 Inherent means existing in something, especially as a permanent characteristic.

NOTE 2 A characteristic assigned to a product, process or system (e.g. the price of a product, the owner of a product) is not a

quality characteristic of that product, process or system.



I accept that price is a contractual char. and is not inherent so it can not be a quality characteristic. BUT what for COST? I think that Cost is inherent characteristic while one can add to this cost in order to establish a PRICE. On the other hand we use some Quality Engineering Techniques such as Value Engineering as a tool to improve a product(Is it a Quality Improvement or not? It is a Question too.).

The same problem rise for DELIVERY DATE and MAKE SPAN. As delivery date of a Product/Service is determined by contract so it is not inherent Char. and is not Quality Characteristic. BUT make span depends on our manufacturing process, way of service preparation and so, that can be viewd as inherent characteristic. MOTOROLLA has reduced make span of pagers about 70 minutes in 1986 for six-sigma, As you know, and improved its efficiency.

So I wish to have your opinion about COST & MAKE SPAN. Are they Quality Characteristics or a seprate Characteristics which shall not be mixed with Quality Characteristic.

 

[Marc]

I don't think you can categorize Cost as a quality factor. An old saying is you cannot always equate cost with the quality of a product. That is, the most expensive one is not always the 'better' one (equating 'better' with 'quality').

On the other hand, one could probably provide an arguement for inclusion. I can't.

As far as Make Span - I'm interpreting Make Span as Time to Manufacture. I don't see that as a 'quality' characteristic, either.

-> As delivery date of a Product/Service is determined by
-> contract so it is not inherent Char. and is not Quality
-> Characteristic.

I could make an arguement where Delivery Date could be a 'quality' characteristic of some service industries. An example would be where you advertise a service within a certain time frame. I know some repair shops which advertise that they will respond within 4 hours. Part of the problem here is what is your definition of quality. There are hundreds of definitions. Most often you will see a difference based upon exactly what it is we're talking about. In addition, reconciling what the customer percieves as 'quality' characteristics with what the supplier percieves as 'quality' characteristics is not always as easy as it sounds.

 

[E Wall]

If you identify Cost as a list of what is included but not $ amount, I believe it would apply (i.e. components, services, scrap, processing activities, rework, etc...)
wouldn't it?

Hey, I finally made it past 'Lurker'!


[This message has been edited by E Wall (edited 12 June 2001).]