Quality expenditures can be summarized as the cost of implementing a quality program and the cost of rectifying defects. Organizations must balance the two. Going light on prevention will result in higher rectification costs later, but overspending on a quality program impacts margin. What’s an organization to do? And are there ways costs can be trimmed without sacrificing quality?
At the heart of most quality programs is testing. Famed quality guru W. Edwards Deming says, “You cannot inspect quality into the product.” Very true, but testing does have an important role verifying the effectiveness of an implemented quality program. It’s the feedback that any good closed-loop system needs. And the amount of testing performed by fresh produce organizations is increasing.
A recent study conducted by Delta Technology of 10 representative, U.S. fresh produce companies shows the amount of microbiology tests conducted has grown in excess of 500 percent over the last five years. Additionally, the Food Safety Enhancement Act of 2009 may compel organizations to increase testing as a means for monitoring required preventive controls. But what is the state of testing programs today, and can they be sustained or even expanded without impacting costs?
The challenge facing many fresh produce organizations is a fragmented sampling program. Programs are typically procedure-based and managed on paper. There is a lack of consistency in the entire supply chain, and even more commonly a gap between the data collected and tools used to decode it. Specifications can be difficult to manage and new regulations will only aggravate the situation. The result is often only partial coverage, leading to a higher risk of rectifying defects after the product has reached the customer.
Wasteful quality costs can be managed in five simple steps:
- Reduce Variability—standardize a sampling program. Variability is the mother of inefficiency.
- Make the Data Work for the Company—results naturally feed continuous improvement efforts—analyze a way to lower costs.
- Eliminate Paper—the average organization spends $20 in labor to file each paper document. This results in U.S. organizations spending $360 billion annually, turning data from paper documents into something they can use to run their businesses.
- Monitor Expenditures—Delta has learned from the energy sector that actively monitoring usage lowers energy costs 10 to 30 percent. The same is true for quality—monitor spending in real-time.
- Focus on the Company’s Core—On-premises quality applications can burden IT resources, and involve substantial implementation and maintenance costs.
Fortunately, one company has found a solution that addresses each of these areas. Delta Technology’s alert™ is the industry’s preeminent testing management solution. alert, an on-demand software solution, allows companies to enforce standardized processes. alert is equipped with a powerful Analysis Engine and Spend Management module. The alert Software as a Service (SaaS) model allows organizations to focus on core operations, while Delta takes care of managing the servers and software.
Delta Technology invites you to learn more about Cost Savings and to see the alert solution live. Visit Delta Technology or call 919-379-3420.
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