FREE online courses on Quality Improvement - Quality Losses

 

Quality loss is defined as the loss caused by not realizing the potential resources in processes and activities. These include loss of customer satisfaction, loss of opportunity to add more value to customer, organization and society or waste of resources and materials, etc.

 

Opportunities to reduce quality losses or cost of poor quality help in quality improvement efforts.  Quality losses should be linked with the processes causing them.  It is important, at least, to estimate even those subjective quality losses, which are difficult to measure, such as, the loss of customer goodwill and failure to utilize human potential to the full extent.  Organizations should target to reduce quality losses by using every opportunity to improve quality.