ST Life.augmented

Economic value of quality

GOOD QUALITY IS GOOD BUSINESS

In ST, we have established a strong and measurable link between quality and financial performance in ST.

ST performs a 360 degree assessment of the final impact of quality on company P&L. Our approach is to calculate the contribution of quality activities to the bottom line through an innovative and comprehensive economics approach that goes well beyond the standard cost of quality/cost of non-quality assessments.

The ST model in fact captures both costs and induced savings. This gives our top management a clear means to drive strategy and business execution.

Economic assessment is performed using an algorithm that takes into account all potential impacts of quality on our business performance, enabling us to drill down all the way to variations at the product level.

The economics aspect of quality is deeply interconnected with all activities in our quality strategy and roadmap. We use it as a systematic management tool to focus spending in ways that maximize quality excellence for our customers.

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