Controlling Quality costs
Incentives for Quality Improvement
1. Non monetary Incentives
- Participation helps employees internalize quality improvement goals as their own
- Error cause Identification is a program in which employees describe problems that interfere with their ability to do the job right the first time
2. Monetary Incentives Gain sharing
- Provides cash incentives for a company's entire workforce that are keyed to quality to quality or productivity gains
- Gain sharing provides an inventive by offering a bonus to the employees equal to a percentage of the cost savings