Quality and financial performance are intimately related. A fundamental responsibility of POM is to produce a competitive product or service based on a balance between quality and costs of quality.

Cost of Quality Quality and financial performance are intimately related. A fundamental responsibility of POM is to produce a competitive product or service based on a balance between quality and costs of quality. Most companies have the slightest idea on how much firms have spend on COQ, it can be as high as 20 to 40% of sales. Since the numbers are typically much higher than profits in some firms, a reduction on COQ can have a …

…supervision, verification and other special plans required to achieve quality objective *<Tab/>Quality Assurance - creation and maintenance of the overall quality system *<Tab/>Appraisal Equipment - design, development or purchase of equipment *<Tab/>Training - development, preparation and maintenance of quality training programs for operators, supervisors and manafers *<Tab/>Miscellanous - clerical, travel and activites associated with quality