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Quality Group Salaries as Percent of Sales (as part of the Cost of Quality)

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GoKats78

#1
We track (as part of the Cost of Quality) the salaries of our Quality department in actual dollars and as a percent of sales. I have been asked to find an "industry standard" for this number.

Ok...not knowing where to start...I came here.

Across the board (in automotive) what type of number is there for quality department salaries as a percent of sales? Any ideas?
 

Stijloor

Staff member
Super Moderator
#2
Re: Quality Group Salaries as Percent of Sales

We track (as part of the Cost of Quality) the salaries of our Quality department in actual dollars and as a percent of sales. I have been asked to find an "industry standard" for this number.

Ok...not knowing where to start...I came here.

Across the board (in automotive) what type of number is there for quality department salaries as a percent of sales? Any ideas?

What would be the meaning and use of "percentage of sales" if sales numbers constantly vary?
Just curious.

Stijloor.
 

GStough

Staff member
Super Moderator
#3
Re: Quality Group Salaries as Percent of Sales

We track (as part of the Cost of Quality) the salaries of our Quality department in actual dollars and as a percent of sales. I have been asked to find an "industry standard" for this number.

Ok...not knowing where to start...I came here.

Across the board (in automotive) what type of number is there for quality department salaries as a percent of sales? Any ideas?
Have you checked the December 2007 issue of Quality Progress magazine? They always publish a salary review in the annual December issue, and you can find the data assimilated according to education, geographic location, position/title, etc.

If you are a member of ASQ, you can access this information through their web site at asq.org.

Hope this helps. :bigwave:
 
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B

Bob_M

#4
Re: Quality Group Salaries as Percent of Sales

Sounds like management is trying to justify paying you...

What do sales dollars have to do with your salary? (Other than normal budgetary reviews within a business).

Bosses not seem to understand WHY you have a Quality Management System.

:2cents:
 
G

GoKats78

#5
Re: Quality Group Salaries as Percent of Sales

Who really knows why anyone would want this data....but the boss does...


I've learned, sometimes, it is better just to "put the guarantee on the box"....
 
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A

achorste

#6
Re: Quality Group Salaries as Percent of Sales

Do you count inspectors, enviromental management, H&S etc as part of the quality dept? Some companies do, some don't - wouldn't this skew the figures somewhat?
 
G

GoKats78

#7
That would definitely skew the numbers...

But since our numbers don't include those groups it might make our % look small....


...we could use it to help boost our group! (or our salaries!):tg:
 
D

D.Scott

#8
As a general guide Feigenbaum, in his "Total Quality Control", suggests the cost of quality and safety is an amount from 7 to 10 percent (and even more) of total sales billed.

This percentage includes all costs of quality including prevention, appraisal, internal failure and external failure. The actual allocation for salary expense would be specific to your company and would presumably be commensurate with the associated corporate emphasis in a CoQ area.

To me the benefit of this calculation is to set goals and objectives within the quality department. In that sense it is very useful.

Dave
 
G

GoKats78

#9
We do not include Safety in our formula....

And you are right in that the the benefits are only good within our department...but, having said that...what kind of number should that be? any educated guesses...or any clue as to where I can find that number...

What percentage of that 7 to 10% should be comprised of salaries?
 
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