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What Is the Cost of Quality?

Cost of quality (coq) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services, and that result from internal and external failures.

What Is the Cost of Quality?

There are many factors to consider when trying to determine the cost of quality. First, you must consider what quality means to you and your organization.

Is it meeting customer expectations? Is it conformance to requirements? Is it achieving desired levels of performance?

Once you have a clear understanding of what quality means to you, you can begin to quantify the cost of achieving and maintaining it. There are four main types of cost associated with quality:

prevention, appraisal, internal failure, and external failure. Prevention costs are incurred to keep defects from occurring in the first place. Appraisal costs are incurred to detect defects that have already occurred.

Internal failure costs are incurred when defects are found before the product or service is delivered to the customer. External failure costs are incurred when defects are found after the product or service has been delivered to the customer.

The cost of quality can be significant, but it is important to remember that the cost of not achieving quality can be even higher. Poor quality can lead to customer dissatisfaction, loss of business, and damage to reputation.

It can also result in increased costs due to rework, scrap, and warranty claims. Achieving quality is an important investment that can pay off in the long run. By understanding the

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