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Reducing the Cost of Quality by Deploying AI in the Manufacturing Process

Updated: Nov 15, 2023

The cost of quality in manufacturing is rising. Even high-skilled manual inspections can be slow, ineffective, costly and potentially dangerous. More than half of the checks require a visual confirmation by someone. Even when manufacturers use cameras, they are only capturing a fraction of the potential data.

New technology can play an important role in optimizing quality. Artificial Intelligence can help to check products based on a library of known defects. They can detect changes in images or vibrations that may indicate a problem. This means a significant reduction of quality related costs.

Let's first understand the Cost of Quality before we dive deeper.

Many definitions and models define Cost of Quality. Briefly, the Cost of Quality is the additional cost spent to prevent failure. This all matters because the total cost of poor quality can be 15% – 20% of total operations. 60 – 70% of that cost is from internal and external failures.

So, why is it important to measure the COQ?

Because you want to be able to measure how your investments in quality impact your overall business performance. Also, it can help that your resources are being expended most efficiently while providing the best possible solution.

Cost of Quality enables manufacturers to align quality metrics to corporate metrics and allows senior executives to realize the impact of poor quality products or processes on the company's bottom line. Companies take it a step further by taking a systematic approach to quality that focuses on AI-based solutions with lean manufacturing and continuous improvement. This allows them to release compliant products at much lower costs than their peers.

Improve Efficiency and Reduce Cost of Quality

Artificial Intelligence is among the most popular topics nowadays. The existing AI technology can increase the productivity of the business by 40%.

Artificial Intelligence in the form of machine learning offers new tools that can deploy throughout the quality process. By inverting the common Cost of Quality breakdown, AI can be deployed at the preventive and appraisal stages. Through the use of AI at these early stages, companies can drastically reduce the total cost while increasing overall quality.

With the help of machine learning, Netflix3 managed to save USD 1 billion in 2017. When a company uses AI, 34% of customers spend more money on their products and services. Apart from this, 49% are thinking about buying something from the company more often in case it uses AI.

Errors can not only postpone the release date of your product, they can also cost your company a lot. However, you can use AI to minimize the number of errors and improve the efficiency of your company. Companies can drastically reduce the total cost by using AI at these early stages while increasing overall quality.

These facts should be enough to assure you that Artificial Intelligence can be beneficial. With the power of AI, you can reduce the Cost of Quality, improve efficiency and make your business more successful.

Leverage AI While Reducing Cost of Quality With Khenda

Don’t be afraid to invest in AI-powered solutions; it brings numerous benefits and gives a high ROI (Return on Investment). Moreover, implementing AI technology is virtually a must in the modern world. In case you don’t do this, it may be difficult for your business to survive in a highly competitive market. Sell more and spend less with the help of AI.

Use our AI solutions to transform processes and improve your bottom line with an excellent understanding of product quality and demand. With Khenda, you can innovate your industry even further and we can assist you with mastering it.



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