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Standards can help remove cost element

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HONG KONG Quality Assurance Agency (HKQAA) director Lionel Wood says companies should consider applying for ISO 9000 for economic reasons.

He said an analysis of each area of the costs associated with design could result in quantification of costs, either after the event or on a projection basis using iteration.

Such an analysis involved the choice of methods used for manufacturing of the product and the allocation of resources, including human resources.

This applied especially in relation to mundane factors such as location, the quantity of available raw materials and the identification of potential difficulties from other sources such as labour problems.

Mr Wood said the design of products was the most important factor when quality costs were taken into account.

'Inadequate design can lead to redesign and reworking, which can be expensive,' he said. 'A caisson half a metre out of position can cost $2 million.

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