“The best way to know the strengths and weaknesses of your organization is to get good insight in your cost of non-quality (CONQ),” he said.
As noted in several previous posts, we certainly agree.
Bill Conway always said, “At least 50% of improvement is working on the right things.”
Thus a “waste and opportunity” search is key. We must identify waste and then act upon the opportunities for improvement that will potentially yield the greatest results – i.e., the “right things.” Once this quantification step has been completed, it is much easier to gain the buy-in of all stakeholders – leadership and colleagues alike – because it is easier for everyone to see what can be gained (or lost!).
“The biggest reason why CONQ is so important is that it is expressed in money – and money is the universal language all managers and company owners understand. If you need to convince management to invest in your team and to invest in quality in general , you need to be able to substantiate the benefits,” Kooijmans said.
We have found that when organizations “identify and quantify the waste,” people are able to more readily recognize the best opportunities for improvement, allocate resources, and then set effective priorities and time-frames.