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In a business environment the acronym QCD stands for Quality, Cost and Delivery.

This is a very well respected system for measuring performance within a business area or department. The system first suggests the adoption of measures for the Effectiveness of the business area or activity, measured in terms of Quality performance and Delivery performance, each normally represented by a percentage result.

The cost element reflects the Efficiency measures relating to the activity. Each of these Cost elements relate to a different area of Resources that need to maintained in order to continue the business activity. Generally here we cover the ground relating to People, Materials, Workplace (overhead) and Equipment (plant, machinery etc). These areas of performance are normally measured in terms of the volume of output achieved per unit of resource (quantity or spend).

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