Reducing the Cost of Quality

Reducing the Cost of Quality

What is the Cost of Quality?

Total COQ is the sum of the Total Cost of Good Quality (COGQ) and Total Cost of Poor Quality (COPQ).

The Cost of Quality includes all costs associated with the quality of a product from preventive costs intended to reduce or eliminate failures, cost of process controls to maintain quality levels and the costs related to failures both internal and external.

You can see this by combining the green and grey on the left of the graph. As you invest in quality through prevention and appraisal moving right (cost of good quality—light blue and yellow costs), you can see that your overall cost of quality decreases.

Shift the thinking of their quality department from a being cost center.

Organizations need to shift the thinking of their quality department from a being cost center, to a function that provides cost savings, cost avoidance and risk reduction in addition to improvement in efficiency, quality and customer satisfaction.

PRODEMY