McKinsey & Company released the Report ‘Quality Matters’ at the 23rd Edition of the CII National Quality Summit 2015 held on 5th & 6th November 2015 in Hotel The Taj West End, Bengaluru. This Report draws on proprietary POBOS benchmarking database for insights. It also analysis how quality lapses can have far reaching negative consequences but how outstanding quality can be profitable for organizations. The report emphasizes the role of a leader in building outstanding quality, setting aspirations and clearly defining the actions needed to embed a winning culture of quality.
Highlights of the Report:
- Compliance crisis have caused permanent market share losses of up to 10 per cent and remediation can lead to 20 per cent or more long term increases in unit costs.
- Commitment to outstanding quality could be the route to profitability. McKinsey POBOS benchmarking database shows that companies with a top- quartile quality performance had an average yield loss four times lower than the median. Deviations also reduced seven – to eight –fold.