FMEA & Cost of Quality

(COQ) Analysis ToolTM

This tool is designed to help you map out current failure, prevention
and appraisal costs, and connect your FMEA to the Cost of Quality
(COQ) allowing you to identify the effectiveness of your current budget
allocation and quality management activities, as well as plan for future
Calculate and
improvement. Calculate and
list the total list the total
List all failure effects cost of the cost of the List the root
grouped by the root internal failure external cause of the
cause of the failure. effects. failure effects. failure.

What CAUSED the

Internal Failure External Failure
Failure Effects (Direct from the FMEA) failure? (Direct from the
Effect Cost Effect Cost
FMEA)

Example:
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 Tool wear
diameter and 2) sorting at customer facility

Example:
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 Wrong Tool Hung
diameter and 2) sorting at customer facility

Example: Operator loaded up the

1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 wrong recipe during
diameter and 2) sorting at customer facility startup
Example:
Technician adjusted tip
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00
diameter and 2) sorting at customer facility temperature

Total:
 vention
Quality
ent budget
n for future
Identify and enter Column Column Column automatically
the number of automatically automatically calculates the total
t times the root calculates the total calculates the % of cost of external failure
e cause of the cost of internal overall COQ for effects multiplied by
failure has failure effects which the current the number of
occurred. multiplied by the internal failure occurrences.
number of costs account.
occurrences.
EXAMPLE: Current

# of times the failure Total Internal Failure Total External Failure

Internal Failure % of COQ
CAUSE occurred? Cost (cost X occurrence) Cost (cost X occurrence)

3 $ 16,005.00 46.37% $ 15,000.00

0 $ - 0.00% $ -

1 $ 5,335.00 34.73% $ 5,000.00

2 $ 10,670.00 48.61% $ 10,000.00

$ 32,010.00 43.97% $ 30,000.00

 Copyright © 2019 Plexus International

Column
tically Enter the Calculate and Column
automatically
otal current enter the automatically
calculates the % of
failure prevention current spend calculates the
overall COQ for
d by activity that for the of overall COQ
which the current
addresses the prevention for which
internal failure costs
root cause of activity. current
account.
the failure. prevention
spend
EXAMPLE: Current State accounts.

External Failure % of What is the current Current prevention

Prevention % of COQ
COQ prevention activity? activity spend

Preventative
43.46%
Maintenace checks $
3,120.00 9.04%

0.00% Set-up Checks $ 780.00 80.00%

Automated system
that picks the recipe $
32.55% 4,500.00 29.30%
based on part
number
 In process checks of
45.55% the process $ 958.00 4.36%
parameters in shift

41.21% $ 9,358.00 12.85%

 Column
Enter the Calculate and Column Column
automatically
cally current enter the current automatically automatically
calculates your
the appraisal total cost of calculates the calculates the
organization's
COQ activity for the appraisal % of overall current total
curent total
root cause of activity. COQ for which amount that
control spend on
the failure. current apprisal Poor Quality is
prevention and
n activity costs costing your
appraisal
account. organization.
activities.

What is the current Current Total Cost of Poor Total Cost of Good
Appraisal/detectio Quality (control spend
appraisal/detection appraisal/detection Quality (internal &
n % of COQ on prevention and
activity? activity spend external failures)
appraisal)

First and last piece

checks using go-no-go $ 390.00 1.13% $ 31,005.00 $ 3,510.00
gauges

First piece check $ 195.00 20.00% $ - $ 975.00

Visual check at shift

$ 525.32 3.42% $ 10,335.00 $ 5,025.32
change
End of shift visual
$ 324.00 1.48% $ 20,670.00 $ 1,282.00
checks

$ 1,434.32 1.97% $ 62,010.00 $ 10,792.32

 The External
The Internal failure failure effect cost The failure cause is
Column Column
effect cost is is automatically automatically
ally automatically automatically
automatically populated based populated based on
your calculates the calculates the %
populated based on on the information the information you
on's total current Cost of overall COQ
the information you you entered in the entered in the
al of Quality (COQ). that your
entered in the "Current State" "Current State"
end on organization
"Current State" section of the section of the form.
and spends on Poor
section of the form. form.
Quality.

% Spent on Poor What caused the

Internal failure External failure
Total COQ Quality (failure failure? (Direct from
effect cost effect cost
costs) the FMEA)

$ 34,515.00 89.83% $ 5,335.00 $ 5,000.00 Tool wear

$ 975.00 0.00% $ 5,335.00 $ 7,000.00 Wrong Tool Hung

Operator loaded up
$ 15,360.32 67.28% $ 5,335.00 $ - the wrong recipe
during startup
 Technician adjusted tip
$ 21,952.00 94.16% $ 5,335.00 $ -
temperature

$ 72,802.32 85.18%
 Column
cause is Estimate and enter Column Column Column automatically
lly the target number of automatically automatically automatically calculates the
based on failure cause calculates the calculates the % calculates the target for the
ation you occurences if you target for the of total Cost of change in total Cost of
the were to change your total Cost of Poor Quality for which internal failure Poor Quality
ate" prevention and Quality (internal the target internal cost from the (internal and
he form. appraisal activities. and external failure cost will current to the external failure
failure costs). account. target state. costs).

Total target Total target

internal failure Target internal external failure
# of times the failure Change in Internal
effect cost failure cost % of effect cost (ext.
cause occurred? Failure Cost (+/-)
(internal failure COQ failure cost X
cost X occurance) occurance)

1 $ 5,335.00 35.72% $ (10,670.00) $ 5,000.00

0 $ - 0.00% $ - $ -

0 $ - 0.00% $ (5,335.00) $ -
1 $ 5,335.00 75.57% $ (5,335.00) $ -

$ 10,670.00 37.72% $ (21,340.00) $ 5,000.00

Column Column Enter the target Calculate and Column Column
automatically automatically prevention enter the target automatically automatically
calculates the % calculates the activity to prevention calculates the % calculates the
of total Cost of change in external address the root activity spend. of overall the change in
Quality for which failure cost from the cause of the COQ for which prevention spend
the target current to the target failure. the target from the current
external failure state. prevention spend to the target state.
cost will account. will account.

EXAMPLE: Target State

Target external
Change in External What is the target Target prevention Target prevention
failure cost % of
Failure Cost (+/-) prevention activity? Activity Cost spend % of COQ
COQ

Increase number of
33.48% $ (10,000.00) preventative $ 4,000.00 26.78%
Maintenace checks

Reduce set-up
0.00% $ - $ 400.00 67.23%
checks by 50%

Add in recipe
control to the
0.00% $ (5,000.00) document system $ 5,000.00 87.72%
instead of the
control cards
 Add in locking
feature to the
0.00% $ (10,000.00) $ 1,200.00 17.00%
recipe for key
variables

17.67% $ (25,000.00) $ 10,600.00 37.47%

Column Column Column
automatically automatically automatically
calculates the Enter the target Calculate and calculates the calculates the
change in appraisal activity enter the % of the change in
prevention spend for the failure target total overall COQ appraisal spend
from the current cause. cost of for which the from the current
to the target state. appraisal target to the target
activity. appraisal costs state.
will account.

Change in What is the Target Target Target Change in

Prevention Cost Appraisal/detection Appraisal/detection appraisal/detection Appraisal/detection
(+/-) activity? activity cost spend % of COQ Cost (+/-)

First and last piece

$ 880.00 checks using go-no-go $ 600.00 4.02% $ 210.00
gages on all shirts

$ (380.00) First piece check $ 195.00 32.77% $ -

Add in visual
$ 500.00 detection for first $ 700.00 12.28% $ 174.68
piece per start-up
 Add in continuous
$ 242.00 monitoring for key $ 525.00 7.44% $ 201.00
variables

$ 1,242.00 $ 2,020.00 7.14% $ 585.68

 Column Column Column
Column Column
automatically automatically automatically
automatically automatically
calculates the calculates the % calculates potential
calculates the total calculates the total
total target COQ. of the overall ROI your
target cost your target control spend
COQ that target organization could
organization will your organization
cost your see if the proposed
spend on internal will allocate to
organization will target prevention
and external improved prevention
incur due to and appraisal
failure. and appraisal
internal and activities are
activities.
external failure. implemented.

Total Cost of Good

Total Target Cost of
Quality (control
Poor Quality % Spent on Poor
spend on prevention Total Target COQ Potential ROI ($)
(internal & external Quality
and
failure costs)
appraisal/detection)

$ 10,335.00 $ 4,600.00 $ 14,935.00 69.20% $ 19,580.00

$ - $ 595.00 $ 595.00 0.00% $ 380.00

$ - $ 5,700.00 $ 5,700.00 0.00% $ 9,660.32

$ 5,335.00 $ 1,725.00 $ 7,060.00 75.57% $ 14,892.00

$ 15,670.00 $ 12,620.00 $ 28,290.00 55.39% $ 44,512.32

 ically
es potential
r
ation could
e proposed
revention
raisal
s are
ented.
 Current Target
Internal Failure Cost
$ 32,010.00 $ 10,670.00
$80,000.00
External Failure Cost
$ 30,000.00 $ 5,000.00
$70,000.00
Prevention activity cost
$ 9,358.00 $ 10,600.00
Appraisal/detection $60,000.00
activity cost $ 1,434.32 $ 2,020.00
Total Cost of Poor $50,000.00
Quality (internal +
external failures) $ 62,010.00 $ 15,670.00
$40,000.00
Cost of Good Quality
(Appraisal/detection &
Prevention) $ 10,792.32 $ 12,620.00 $30,000.00
Total Overall COQ $ 72,802.32 $ 28,290.00
$20,000.00

$10,000.00

$-
Internal Failure Cost External Failure Cost Prev

Current COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
 Current Cost of Poor and Good Quality

Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection & Prevention)
 Cost of Quality

External Failure Cost Prevention activity cost Appraisal/detection Total Cost of Poor Cost of Good Quality Total Overall COQ
activity cost Quality (internal + (Appraisal/detection &
external failures) Prevention)

Current Target

Target COQ

rnal Failure Cost Internal Failure Cost

ernal Failure Cost External Failure Cost
vention activity cost Prevention activity cos
praisal/detection activity cost Appraisal/detection a
 Target Cost of Poor and Good Quality

& Prevention) Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection & Prevention)
Total Overall COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
ity

Appraisal/detection & Prevention)

 FMEA & Cost of Quality
(COQ) Analysis ToolTM
This tool is designed to help you map out current failure, prevention and
appraisal costs, and connect your FMEA to the Cost of Quality (COQ)
allowing you to identify the effectiveness of your current budget
allocation and activities, as well as plan for future improvement.

What CAUSED the

Internal Failure External Failure
Failure Effects (Direct from the FMEA) failure mode? (Direct
Effect Cost Effect Cost
from the FMEA)
Total:
 , prevention and
Quality (COQ)
t budget
vement.

Current State

Total Internal Failure Total External Failure

# of times the failure
Cost (int. failure cost X Internal Failure % of COQ Cost (ext. failure cost X
CAUSE occurred?
occurance) occurance)

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$ - #DIV/0! $ -

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Current State

What is the
Current What is the current
External Failure % of current Prevention % of
prevention Appraisal/detection
COQ prevention COQ
activity cost activity?
activity?

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 Total Cost of Good
Current Total Cost of Poor Quality (control
Appraisal/detection
Appraisal/detection Quality (internal & spend on prevention Total COQ
% of COQ
activity cost external failures) and
appraisal/detection)

#DIV/0! $ - $ - $ -

#DIV/0! $ - $ - $ -

#DIV/0! $ - $ - $ -

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#DIV/0! $ - $ - $ -

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 #DIV/0! $ - $ - $ -

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$ - #DIV/0! $ - $ - $ -
% Spent on Poor What caused the
Internal failure External failure
Quality (failure failure? (Direct from
effect cost effect cost
costs) the FMEA)

#DIV/0! $ - $ -

#DIV/0! $ - $ -

#DIV/0! $ - $ -

#DIV/0! $ - $ -

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#DIV/0!
 Total target
Total target internal
Target internal external failure
# of times the failure failure effect cost Change in Internal
failure cost % of effect cost (ext.
cause occurred? (internal failure cost Failure Cost (+/-)
COQ failure cost X
X occurance)
occurance)

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -
$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -
 Target State

Target external
Change in External What is the target Target prevention Target prevention
failure cost % of
Failure Cost (+/-) prevention activity? Activity Cost spend % of COQ
COQ

#DIV/0! $ - #DIV/0!

#DIV/0! $ - #DIV/0!

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#DIV/0! $ - #DIV/0!

#DIV/0! $ - #DIV/0!

#DIV/0! $ - $ - #DIV/0!
 Change in What is the Target Target Target Change in
Prevention Cost Appraisal/detection Appraisal/detection Appraisal/detection Appraisal/detection
(+/-) activity? activity cost spend % of COQ Cost (+/-)

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -
$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - $ - #DIV/0! $ -
Total Target Cost of Total Cost of Good
Poor Quality Quality (control % Spent on Poor
Target Total COQ Potential ROI ($)
(internal & external spend on prevention Quality
failure costs) and appraisal)

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -
$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -
 Current Target
Internal Failure Cost $ - $ -
$1.00
External Failure Cost
$ - $ -
$0.90
Prevention activity cost
$ - $ -
$0.80
Appraisal/detection
activity cost $ - $ -
$0.70
Total Cost of Poor
Quality (internal +
external failures) $0.60
$ - $ -
Cost of Good Quality $0.50
(Appraisal/detection
and Prevention) $ - $ - $0.40
Total Overall COQ $ - $ -
$0.30

$0.20

$0.10

$-
Internal Failure Cost External Failure Cost Preventi

Current COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
 Current Cost of Poor and Good Quality

Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection and Prevention)
 Cost of Quality

ternal Failure Cost Prevention activity cost Appraisal/detection Total Cost of Poor Quality Cost of Good Quality Total Overall COQ
activity cost (internal + external (Appraisal/detection and
failures) Prevention)

Current Target

Target COQ

rnal Failure Cost Internal Failure Cost

rnal Failure Cost External Failure Cost
vention activity cost Prevention activity cos
raisal/detection activity cost Appraisal/detection a
 Target Cost of Poor and Good Quality

nd Prevention) Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection and Prevention)
Total Overall COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
ity

ppraisal/detection and Prevention)

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