When Faith Becomes Sight
This past week I read an article in PIA Magazine titled, "The Profit Gauge" by Gordon Rivera, about the writings of Phillip Crosby, a quality consultant who has defined quality as "being in conformance to our customer's requirements, which is accomplished by doing things right the first time." EXACTLY! I thought.
As I was trying to decide what to write in this week's blog, Rivera's philosophy gave me much food for thought. That, and the added inspiration of a line from an old 19th century hymn I was reminded of: "When faith becomes sight."
Stay with me...
Rivera wrote, "There is a price to pay when things have to be done over again," and "According to Phillip Crosby, quality is measured by PONC (the Price of Non-Conformance)." Rivera's article went on to say that, since quality is FREE (because you are getting paid for the product or service), then doing something OVER again is what eats into your profits, and is, therefore, the COST of quality.
His formula? If X equals all the cost of doing things right, and Y equals all the costs of having to REDO things...then X plus Y divided by X equals CTR (Complete Transaction Rating). This simple formula measures the cost of making a product or delivering a service.
So, what does this have to do with faith becoming sight? Let me explain...
Many times when I'm talking to business owners and managers about lost profits due to jobs having to be reworked, and the thousands of other non-conformances that happen daily in most businesses, I'm no longer surprised to hear them say, "I don't think we have too much rework!" OR, they take a guess at the amount.
When I ask them if they measure their non-conformances, most say they don't measure; but, say they are pretty sure their guess is accurate.
Philip Beyer, founder/president of Ebiz Products LLC and founder of Beyer Printing Inc. in Nashville Tenn., is a chronic entrepreneur, business systems analyst and consultant. Author of "System Busters: How to Stop Them in Your Business" and recipient of an InterTech Technology Award for the design and development of System100 business process management software. Beyer speaks to business owners across the country on how to bring lean, sustainable order to their businesses. Contact him at (615) 425-2652.