Process Maturity and Cost

SEA PMM_COST POSTER

There is a relationship between process maturity and cost. The cost of quality as a percentage of sales cost can often reach 30% or more. This is not just the cost of poor quality but the cost of inspection, expediting, management, and more.

Increasing process maturity reduces cost of quality and many six sigma companies have reported cost of quality under 5%. This is a 20% journey for most companies – what would change about your company if 20% moved to the bottom line? Would you invest more in new machines? Would you expand your capacity and market that expanded capacity at a lower rate?

Companies who have been pursuing process maturity report $200 to $500K revenue per employee. What would you do if your company produced that?

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