COST OF QUALITY (CoQ)

Cost of Quality is refer to the sum of costs incurred to prevent

• Conformance

• Cost of poor quality

• Cost of good quality

• Cost of prevention

Define the cost of poor quality

• the cost of doing things right

• Quality is found in the components & attributes of a product

• costs incurred when conformance in products, systems or services occurs

• the costs associated with providing poor quality product or services

Name TWO components in the cost of quality according to Philips B. Crosby

• The cost of investing in the prevention of non-conformance to requirements

• The cost of apprasing a product for conformance to requirements.

• The cost of good quality

• The cost of poor quality

The answer below represent the cost of quality classification in manufacturing, EXCEPT

• Prevention cost

• delivery cost

• Inspection cost

• Internal failure cost

Summarize the cost of quality relationship according to figure below

• If conformance is 100%, total CoQ is equal to cost of prevention &appraisal

• If conformance 100%, total CoQ equal to total cost of prevention

• If conformance 100%, CoQ equal to cost of internal & external failure cost

• No relationship at all

The answers below show the internal failure costs caused by the products are not conforming to the requirements, EXCEPT

• Rework

• Customer complaints

• Scrap

• Downgrading

State an example of the external failure cost.

• Scrap

• Re-designing

• Warranties

• Rework

State an example of the prevention cost.

• Internal audit

• Calibration

• Incoming material inspection

• Quality education and training

State an example of the appraisal cost.

• New product review

• Incoming material inspection

• Quality improvement project

• Quality education and training

State the benefits of applying the cost of quality.

• Identify major opportunities for cost reductions

• Increase the customers and employee satisfaction

• Measures the results of quality improvement activities

• All above answers are correct