The benefits of the TQM Model are evident: the comprehensive and structured approach to organisational quality management allows for simplified operations and reduced expenses related to defective products.
Often the cost of quality, but especially of non-quality (non-conformities, complaints, etc.), is difficult to measure and thus also to reduce. In general, COPQ, or cost of non-quality, can also be classified as tangible (easy to see) and intangible (difficult to see). One can think of COPQ as an iceberg. The largest part of the iceberg is underwater, where it cannot be seen.
Through quality cost analysis, it is possible to prioritise and target quality cost reduction activities.
After the control points have been identified, each one is checked for appropriate documented information on the results to be achieved and on the implementation of monitoring and measurement in the appropriate manner, to verify that the criteria for controlling processes or outputs, and the criteria for accepting products and services, are met with quality and efficiency.
The planned actions will concentrate on the one hand on improving current procedures and implementing new ones, as well as on control methods while maintaining a focus on efficiency; on the other hand, on eradicating/reducing the main causes of defects in order to improve the FPY coefficient.
This approach will reduce the costs of non-quality by progressively achieving the “ideal balance” between prevention and failure costs (quality level for minimum quality costs).