The cost of poor Quality
The ” Cost of poor Quality” method for an organization con also be applied by an indevidual in order to achieve self-actualization.
Every indevidual strives for self – actualization,however ,due to the indevidual’s limited resource , the person must esteblish priorities for thier use.
The ” cost of poor Quality ” indicator for the individual , we will consider the numerator “I”,representing the individual’s financial incom.the denominator will be “W” (symbolizing resources spent on financial activities that do not contribute to attaining self- actualization.In other words ,any financial outlay which,according to the subjective opinion of the individual ,is considered wasted money.)
This indicator should be reviwed over a period of time ,as the equation approches 0,the amount self -actualization is improve.
An indevidual spends money in two manners:
Internal: when an individual spends money as a result of errors for which he/she is responsible.Even though the individual has no one else to blame ,this expenditure detracts from his/her ability to achieve self – actualization for two reasons:
- The failure or error lead to frustration and disppointment.
- The money expended is no longer available in order to facilitate the actualizion of what the person truly wanted to have actualized.
External :When an individual is required eo expend money due to pressure or an obligation which has forced upon him/her by an external element, for example: increased taxation ,property damage (including uninsured assets) as a result of acts of nature,etc.
It is also possible to depict te individual by a three-dimensional system, as was used to describe the organization.The ideal situation for the individual is when the internal Waste and the External Waste tend to 0,and the self-actualization is perfect.