Quality Index / Rating

Your product’s Quality Index (rating), is the measure of how many units of your product are returned under warranty. If approximately 2% of your sales are returned under warranty then your rating will be approximately 0.50, but if you can reduce it to approximately 0.3% of your sales being returned under warranty then your quality rating will rise to 0.90.

In MikesBikes Introduction the only control you have over your Quality Index is how much money you allocate to your quality improvement budget each year.

In MikesBikes Advanced your product’s Quality Index is primarily determined by Quality System expenditure and Inspection Rate, but is also influenced by HR (Average Salary and Training Hours) and Internal Defects (Preventative Maintenance and Supplier Relations).

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