Quality

Quality and Profitability.

Quality is never an Accident.
It is always the result of
High Intention, Sincere Effort, Intelligent Direction,&Skilful Execution.

Very often organisations overlook this aspect and get into cost control initiatives in raw materials used and end up making a product which suffers badly in the market because of inferior quality.

There is always scope for Value engineering and cost control efforts in reducing costs of a product.

The cost control exercise should be done with great caution as the Raw materials used in making a product would definitely impact the quality of the finished product.

There are several instances where the vendors ask for higher price for their products and organisations do not yield to such demands from vendors.This results in cost saving initiatives on the part of the vendors for their products manufactured by them to sustain their business, this in turn affects the Product quality of the Finished product of the organisations buying such raw material.

Finding alternative vendors is another way of cost reduction.
Vendor Developement is a very difficult and tough job.
One cant just introduce the product of a new vendor with minimum trials as the item purchased from such cheap vendors would cause havoc in Quality, the item purchased would not be adding even 10 percent to the value of the product but the damage done would be so severe that the Finished Product would lose not only the loyal customers, but the 90% of value added would go waste.

Hence it is always a dilema what is to be done to sustain profitability?
Waste reduction could be an easier option rather than cost cutting on Raw materials used in a Finished product.