Achieving lasting excellence requires a strategic approach to quality management. This tool offers a clear road map for organizations ready to transform their operations by implementing total quality management (TQM) key performance indicators (KPIs). With detailed guidance on identifying and categorizing both conformance and non-conformance costs, this tool empowers you to make informed decisions that reduce inefficiencies and enhance customer satisfaction along with business performance.

Inside, you’ll find practical methods for capturing and analyzing the full spectrum of quality-related costs, from production rework and warranty claims to missed opportunities and lost customers. Supported by real-world examples and expert commentary, this resource shows how KPI-driven quality management can shift quality initiatives from routine compliance toward being a powerful driver of growth and profitability. Best practices include:

• Identify the activities that need to be grouped into the cost-of-quality report and build them into the information system whenever possible.
• When used properly, costs-of-quality can be used to prevent costs from increasing and highlight areas with high potential for cost reductions.
• Based on frequent surveys of key customers, measures reveal how customers feel about the company versus its competitors.