Cost of quality: what getting it wrong actually costs
Cost of quality adds up prevention, appraisal and failure. Why the invisible categories dominate, how to estimate them, and what the ratio tells you.
A planogram sets the position and facings of every product in a bay. How to build one, why compliance decides whether it works, and what to measure afterwards.
A planogram is a diagram of a shelf bay showing which product sits where, how many facings it gets and at what height. It exists because shelf position changes sales independently of everything else — the same item moves differently at eye level than at ankle level — and because without one, each store arranges its stock according to whoever filled the shelf last.
Start from sales per product and the physical dimensions of the pack, because those two numbers drive most of the layout. Give the fastest sellers more facings rather than better positions first — facings reduce the chance of running out between replenishments, which matters more than placement for anything people come in specifically to buy. Reserve the best positions for items people buy on impulse or choose between at the shelf, since those are the decisions position can actually change. A spreadsheet with a row per product and columns for shelf, sequence, facings and capacity is enough to run this in a small chain.
Leave the bottom shelf for bulk and heavy items and the top for low-turnover stock, and then check the result from a customer's height rather than your own. A layout designed standing at a desk routinely puts the main line somewhere a shorter customer cannot comfortably reach.
Ettex Sheets holds the layout as a table — product, shelf, sequence, facings, capacity — which is enough to issue, compare and audit without specialist software. The sales data behind the decisions comes from whatever records the tills produce, and the two belong beside each other because the layout is only as good as the numbers that shaped it.
A diagram of a shelf bay specifying the position, facings and shelf height of each product, plus capacity and adjacencies.
After any range change, and reviewed seasonally. Compliance should be audited far more often than the layout itself changes.
Facings matter more for planned purchases, because they prevent gaps between replenishments. Position matters most for impulse items and for choices made at the shelf.
Cost of quality adds up prevention, appraisal and failure. Why the invisible categories dominate, how to estimate them, and what the ratio tells you.
Payback period measures how quickly an investment returns its cost. How to calculate it, what it deliberately ignores, and when it is the right test.
First pass yield measures what got through without rework. Why it is harsher than scrap rate, how to calculate it across steps, and what a high figure can conceal.