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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