Anyone who has studied Total Quality Management has seen the infamous “Cost of Quality Iceberg.” Simply put, it demonstrates that the cost associated with poor quality lies beneath the surface and like the portion of the iceberg that is under the surface of the water, it far exceeds the cost of quality that we can see.
Above the water – what we can see – is what we knowingly pay for when we considering remodeling our homes – an experienced contractor, high quality materials, a well-designed plan, a detailed cost proposal, an efficient schedule and ultimately, a solution for a problem and a great experience. We evaluate these costs and determine our comfort level with that value proposition.
It’s always true that we get what we pay for.
Below the water – what we can’t see – is the cost of poor quality. These are costs associated with taking shortcuts, going with the lowest bidder or not doing our research on the people we are considering for the job.
If low quality materials are chosen, they may not perform as advertised and will have to be torn out and replaced at some later date. Or they may perform but it could mean getting only 5 years of use instead of 10.
If a project is not designed properly and completely, things will be missed when the cost proposal is prepared. And once the project is underway and the missing pieces and parts are discovered, this will add to the cost.
Customers expect a project to proceed in a timely manner. If there are delays because of unforeseen issues or because the contractor can’t provide the resources needed to oversee and execute the job, there will be additional costs, both in money and in time.
Lastly, if the final cost of a project is so low that the contractor can’t make it work financially, shortcuts may be taken that will affect the outcome of every aspect of the project.
The ultimate cost of poor quality is in the aggravation and disappointment we experience if we shop price, not quality when it comes to something as important as our home.
The hidden cost of poor quality? Remember the iceberg.