How does Crosby suggest measuring the price of nonconformance?

The measurement of the price of nonconformance, according to Philip Crosby, focuses on understanding the financial implications of failing to meet quality requirements. By measuring the impact on financial results, organizations can quantify the losses incurred due to defects, rework, scrap, and customer complaints associated with nonconformance.

Crosby emphasized the idea that the true cost of nonquality is not just the expenses directly related to correcting defects, but also the broader impacts on customer satisfaction, repeat business, and overall company reputation. When these factors are tied back to financial outcomes, it becomes clearer for management to understand the significance of investing in quality improvement initiatives.

While assessing employee morale, quality inspection costs, and total production time may provide some insights into the quality process or operational efficiency, they do not directly capture the financial ramifications of failing to meet quality standards to the extent that evaluating financial results does.