The Importance of the Cost of Good Quality in Cannabis Production
In the last two articles the focus has been on the Cost of Quality, emphasizing how even a few mistakes can lead to substantial costs for a business. Understanding the Costs of Quality and their impact on operations is crucial for maintaining profitability and sustainability in the cannabis industry. Today, the discussion shifts to the Cost of Good Quality, exploring what can be done to reinvest in the business to enhance quality and reduce the Costs of Poor Quality.
What is the Cost of Good Quality?
The American Society for Quality (ASQ) defines the Costs of Good Quality as the costs incurred to determine the degree of conformance to quality requirements and to minimize failure and appraisal costs. Similarly, LNS Research describes these as the costs companies incur to ensure they are producing quality products. It's important to note that the Cost of Good Quality does not have a direct 1:1 relationship with the Cost of Poor Quality. Investing $1 in Good Quality does not necessarily reduce the Costs of Poor Quality by $1, but it does play a critical role in improving overall product quality and reducing the likelihood of costly errors.
Appraisal Costs
Appraisal Costs are associated with the oversight of work activities related to quality. These include internal quality audits, external vendor quality audits, verification of incoming inputs, equipment calibration, and inspections. These costs are crucial in preventing failures on the manufacturing floor, avoiding material shortages during production runs, and ensuring that the product from vendor partners meets quality standards. By investing in these appraisal activities, businesses can consistently release products that meet or exceed their quality commitments, thereby safeguarding their reputation and customer trust.
For example, implementing Cannabis SOP guidelines through comprehensive auditing and equipment calibration helps maintain high standards, reducing the risk of issues like nutrient burn or other quality failures. Regular quality audits and inspections are essential components of Good Production Practices (GPP), ensuring that every aspect of the production process is aligned with regulatory requirements and industry standards.
Preventative Costs
Preventative Costs are aimed at mitigating or preventing quality failures from occurring in the first place. These costs include education and training programs, onboarding costs, equipment and facility maintenance programs, health and safety protocols, and fostering a strong employee culture. Consistently producing a quality product efficiently and at speed requires the collective efforts of everyone involved. Establishing a Culture of Quality is akin to having an inspector in every process, with each employee committed to maintaining the highest standards of quality.
For instance, cultivation SOP templates integrated with ongoing training ensure that all staff are up-to-date on the latest procedures and best practices. This proactive approach not only prevents quality failures but also empowers employees to take ownership of the quality process, holding each other accountable to the standards the company has set. As the saying goes, “An ounce of prevention is worth a pound of cure.”
The Role of Evora’s Seed-to-Sale Cannabis Software
Investing in comprehensive seed-to-sale cannabis software like Evora is a wise decision for any cannabis producer committed to quality. Evora’s platform includes integrated tools that cover every aspect of quality management, from audits and testing to investigations and recalls. By providing start-to-finish traceability of cannabis products, Evora ensures that businesses can confidently navigate even the worst-case scenarios, such as product recalls.
With Evora, companies can manage training records directly within the system, ensuring that all staff members are fully trained and compliant with the latest Cannabis SOP and cultivation SOP templates. The software also includes robust document management features, allowing for the authoring, management, and review of documents in a digital format. This streamlines compliance efforts and reduces the administrative burden, enabling businesses to focus on maintaining and improving product quality.
Moreover, Evora’s ability to integrate with real-time data collection and analysis tools supports ongoing improvement efforts. By capturing and analyzing data related to the cost of good quality, businesses can make informed investment decisions, optimizing their processes and reducing the likelihood of costly failures.
Conclusion
The Cost of Good Quality is an essential consideration for any cannabis producer aiming to maintain high standards and reduce the Costs of Poor Quality. By investing in appraisal and preventative measures, companies can enhance their product quality, reduce risks, and ultimately improve their bottom line. Evora’s comprehensive seed-to-sale cannabis software provides the tools needed to manage every aspect of quality, making it an invaluable asset for businesses in the cannabis industry. As we continue this series, the next article will delve into strategies for maximizing these investments and further improving product quality.
