BEL provided the European Union expert for the Cost Of Poor Quality project with the objective of adapting existing Western European quality tools and techniques for use by the Central European businesses.
The development of this Cost of Poor Quality Guide was instigated by the European Commission and the European Free Trade Association.
The GUIDE TO COST SAVINGS has been designed to provide company executives with the practical methodology and tools that will allow them to fulfil their financial and commercial objectives.
During the development of the guide we have constantly kept in our minds, the objective of making the introduction and use of the different tools and techniques simple and practical since they are targeted for the direct benefit of the industrial, commercial and professional managers in your business.
Certain studies in Western Europe have established that between 20 to 30% of national revenue could be saved through good management techniques and reduction of poor quality and wastes. Individual businesses may have up to 40% of their operating costs lost by poor quality. Naturally it is very much in a country's or business’s interests to reduce, or even eliminate, these costs.
Companies and industrial organisations which will survive and develop within the next ten years will be those which can address successfully the quality issue now and start to realise the benefits of cost saving.
The guide to cost savings is based on the principle of reducing COPQ. Having identified the opportunities for improvement, COPQ reduction programmes can eliminate the sources of waste on a project by project basis.
The current economic climate, however, is proving a difficult period for everyone because of rapid changes in society, new technology, global competitiveness, so it is necessary to improve the chances of survival of each company and increase commercial and industrial prospects.
One method of achieving this objective is to focus attention on increasing the level of product and service quality and on the reduction of poor quality and their associated costs within companies or organisations throughout the whole of industrial society.
In order to help understand and appreciate some of the improvement processes available, the present "Guide to Cost Savings" is based, after much reflection, on common ideas and initiatives of a number of experienced European management specialists. The content of this Guide is a result of many discussions and of the practical knowledge which has been gained through general business management and the implementation of many quality related and cost savings programmes.
The techniques adopted within the Guide are intended to provide a step by step approach to cost savings. This approach commences with the identification of problems and the Cost of Poor Quality (COPQ) associated with them. By reducing or eliminating these costs the outcome will be an enhancement in social, financial, industrial conditions and improved competitiveness.
As a result, companies will increase their market competitiveness and thus enhance their social, financial and industrial conditions. All of which will ensure survival and future development with all the attendant benefits.