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  ISO 9000:1994
  ISO9000 as a Cost Center

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Author Topic:   ISO9000 as a Cost Center
Marc Smith
Cheech Wizard

Posts: 4119
From:West Chester, OH, USA
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posted 14 January 2000 01:50 AM     Click Here to See the Profile for Marc Smith   Click Here to Email Marc Smith     Edit/Delete Message   Reply w/Quote
From: ISO Standards Discussion
Date: Thu, 13 Jan 2000 08:35:25 -0600
Subject: Re: Consultant as Management Rep /../Taormina/Leben/Kozenko

From: [email protected]

> The thought of ISO9000 as a
> profit center is certainly intriguing and could pump new life, i.e.,
> attention, into our quality system. What shifts need to begin in
> order to advance beyond simple compliance to ownership (and increased
> profitability)?

I'd suggest learning more about the concepts of "Cost of Quality" and you can try that on your next internal audit cycle by "estimating" a cost attributable to a select number on nonconformities. Spread them around so it doesn't look like you're doing anything but trying to elevate the Quality System, and if you can't support the logic behind the cost in terms everyone will understand, don't use it as an example. A typical one that I've seen that "works" is a simple calculation of the cost of a letter responding to a customer complaint, which you might think is cheap until you perform the calc's and discover that it's enough to take the staff to lunch. Once you have some measurable "dollar related" results to show at Management Review, it is hopeful that Management will figure out a way to reward subsequent improvements, which is one way Management can gain "ownership" across the board, top to bottom.

David Kozenko

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