Result of a total quality system - Client satisfaction and sustainable survival.
We must ask ourselves what the benefits (in quantity and quality) will be after implementing a total quality system. To answer this question, we will give you a brief sketch of the positive general effects which as a whole converge in an enhanced client satisfaction and thus, in a sustainable enterprise survival.
Measurable economic benefits.
Peter Linnert identifies as a general guideline that quality costs add a 10% in terms of business numbers (Linnert 1992) and that a total quality system could reduce these costs in a 4%. The system works in every enterprise factor. Due to their great number, Linnert breaks them down in a more generic way as costs of:
• External errors
• Internal errors
• Evaluation
• Prevention
These costs are altered by the introduction of a total quality system as described in the following image:
Savings Potential
As it is plainly obvious, a quality system generates higher prevention costs. However, this increase in costs results in a noticeable reduction in evaluation costs, which must be understood as a later quality control. Overall, costs with external linking points are altered radically. The sum of reductions of internal and external synergy effects elevate in a 4% in business numbers for the enterprise. This percentage is only a measurable result; others opportunity costs, which are not measurable in money, are not considered (Linnert 1992).
