The guide is divided in two parts :
The methodology and the proposed tools are based on the experience gained by the experts with the implementation of Cost of Poor Quality reduction programmes in EC / EFTA countries, the USA, Japan and Australasia. These instruments are well tested and recommended for all companies and organisations.
The fundamental concept when developing the tools is to give to each company's executive up to date techniques, that can be adapted to the actual situation of their priority business sectors.
Stage 1 explains how to reinforce management's decision to achieve cost savings; how to identify a management board member or a senior executive who will support the Cost of Poor Quality (COPQ) reduction programme; how to select a consultant knowledgeable in the COPQ studies; how to inform employees at all levels of the company to achieve their acceptance of the study and how to improve their motivation. A good start is essential to succeed in this type of project.
Stage 2 sets the objectives and scope for the COPQ reduction project. It explains how to analyse current situation and conduct a management review. It then shows how to determine where you wish to conduct the COPQ study
Stage 3 covers the organization development of an action plan. It explains how to work in projects; how to prepare a plan for the COPQ project; how to organize the project and how to train the people on the project.
Stage 4 details the four main steps necessary to conduct a COPQ study : Identify the activities resulting from poor quality; decide how to estimate the costs for each activity; collect the data and estimate the costs; analyse the results and decide on next steps. The result of this stage is a collection of reliable data about COPQ presented in an easily accessible format.
Stage 5 explains how to identify the most important opportunities for improvement, categorise the opportunities, and select the recommendations to be made to the Board of Directors. At this stage it is important to share information with the personnel on the results of the COPQ study. It is also indispensable to know how to present the recommendations to the Board of Directors. The conclusion of this stage is the decision by the Board of Directors to go forward with specified cost saving projects.
Stage 6 covers the implementation of the recommendations that have been accepted by the Board of Directors and which will necessitate allocation of resources, execution of improvement projects and monitoring the results. Some actions may be implemented immediately while others will require further analysis and planning. During this phase of the programme the ability of management to monitor results and to share information will be critical to foster the motivation of employees.
After experiencing the first results, management will identify other areas for further improvement.
For further details of the guide, or a copy, please contact BEL, who would be most please to carry out a demonstration of the guide and explain the potential benefits at your company with no obligation go to contacts section.