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Got a Cost Problem? Fix Quality! |
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Caterpillar is competing from a U.S. base in a high velocity world wide marketplace. This presentation focuses on the business impact of quality. Also, the importance of having a balanced portfolio of Quality Costs will be discussed.
A balanced portfolio of quality assurance programs that address quality costs work together to optimize the whole. Data indicates that these costs can approach 30% of the cost of operations. An improperly balanced portfolio of quality investments may drive too much cost in one area, and insufficient investment in another - suboptimizing overall results.
The key to ensuring a comprehensive balanced approach to quality is the existence and leverage of a Quality Management System. The QMS at Catepillar requires a suite of inter related quality focused programs covering all aspects of the business - product design, manufacturing and product support.
The Quality cost portfolio at Caterpillar is well over $5B – the opportunity is to balance the investment in quality, and then work to optimize it where it makes sense.
Change is tough – and tough times require change. We at Caterpillar are fiercely dedicated to drive change, improve our products, margins, and ultimately the satisfaction of our customers and stockholders.
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