What are the true costs of #Quality when you don't hire for culture, cut corners, or don't make creating a Quality culture at your company a critical element?
McKinsey & Company's report on the cost of quality in Medtech in 2022 sheds light on this crucial aspect. The #Medtech industry is on a steady growth path, with an annual CAGR of 5-6% and an anticipated value surpassing $500 Billion by 2024.
The report categorized the Total cost of Quality into three segments:
- **Direct Costs for Ensuring Good Quality:** These include hiring talent, QMS setup, validation activities, QC, and auditing, amounting to 2-2.5% of total sales, especially higher for complex products.
- **Direct Costs for Poor Quality:** NCMR, External Failures, CAPA, field actions, and warranty-related costs fall within the 3-3.5% range.
- **Indirect Quality Costs:** Recall, fines, lawsuits, and plant shutdowns constitute a significant portion, translating into Billions of dollars.
The importance of hiring talent that aligns with your company culture cannot be overstated. The total cost of Quality relative to sales hovers at 9-10%, signifying that a substantial 3/4 of the cost arises from wasted resources, product failures, fines, lawsuits, plant shutdowns, and rectifying issues stemming from poor quality.
Let's discuss your critical leadership roles and critical needs positions to attract and hire talent that fits the culture utilizing our Top Talent Accelerant program with greater efficiency and less risk.
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Technical Services Manager
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