Tuesday, October 11, 2016

Sorry for samsung

A sunk cost of USD 17 billion with the recall of Samsung note7. Luckily I did not buy one, so no direct impact on me. Definitely this is a classic example of price of non conformance. Cost of quality  (COQ) = price of conformance (POC) + price of non conformance (PONC). All those actions we take to prevent problems from happening falls under price of conformance. Everything we do to fix problems post occurance , falls under price of non conformance. In this case the price of non conformance alone is a whopping USD 17 billion. Next time we discuss this , please do not label it as theory. This can happen to anyone. I am sure that many heads will be rolling within Samsung. If the project fails, the project manager is accountable for it. It makes perfect business sense to invest in POC than PONC.

Reference link


Reference books

Quality without  tears,  quality is free both by Philip Crosby

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