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Tuesday, June 21, 2016

Cost of Quality

What is COQ “The Cost of Quality”?

Every time work is redone, the cost of quality increases

The "cost of quality" is not the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service.It does not include costs associated with maintenance and quality training.
Examples include:
The reworking of a manufactured item.
•The retesting of an assembly.
•The rebuilding of a tool.
•The correction of a bank statement.
•The reworking of a service, such as the reprocessing of a loan operation or thereplacement of a food order in a restaurant.
In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality.
The Total Quality Costs are the total of the cost incurred by:
•Investing in the prevention of nonconformance to requirements.
•Appraising a product or service for conformance to requirements.

•Failing to meet requirements.

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