SUNConferences, 27th Annual Conference of the SA Institute for Industrial Engineering

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UNDERSTANDING THE REAL COST OF POOR QUALITY: CASE STUDY AT BOSCH SOUTH AFRICA (AUTOMOTIVE INDUSTRY)
Tshepo Mpshe

Last modified: 2016-10-10

Abstract


No company wants to lose money on what could have been prevented and there is no better place to highlight this than in the cost of poor quality. The automotive industry continues to see an increase in the cost of poor quality, costs it cannot justify nor sustain. This paper seeks to investigate the real costs of poor quality by using a case study at Bosch in South Africa, limiting it to one particular incident in November 2015 affecting numerous customers. It further seeks to highlight the importance of balancing productivity against quality in an industry that has a huge growth potential that is threatened by financial losses.

 

All spheres of management and all employees within organizations are affected by the cost of poor quality, but the worst inconvenienced are the customers who in turn choose to publish such inconveniences to the general public, thus reducing sales. A reduction in sales and loss of customers is perhaps the biggest nightmare the executives have to battle with as they attempt to bring escalating costs down to acceptable levels.


Keywords


Quality Management Systems, Productivity, Quality Costs