Hardware Podcasts

028 - "How Much Does Poor Quality Cost?" with H. James Harrington

Let's Combinate · 13 Apr 2022 · 1h 10m

What this episode covers

Dr. H. James Harrington, CEO of Harrington Management Systems, explains his book Poor Quality Costs (PQC), arguing that the term 'cost of quality' has a negative connotation and that companies should instead focus on quantifying the financial impact of errors. He details how IBM implemented a PQC system to distinguish between controllable costs (prevention and appraisal) and resultant costs (internal and external errors), demonstrating that ignoring customer impact leads to massive hidden losses. Harrington also discusses 'white collar' poor quality costs in business processes, executive error rates, and the importance of empowering employees to resolve customer issues to retain loyalty.

Most relevant to

established companies

Topics

Mentioned

Companies
Harrington Management Systems, IBM, General Electric, Costco, IKEA, Motorola
Also
Poor Quality Costs, ASQ, ISO 9000, Six Sigma

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