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    Cost of Quality

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    MuhammadZubair
    Cost of Quality (CoQ) refers to the total costs associated with maintaining quality and preventing defects. It includes the Cost of Good Quality (COGQ), such as prevention and appraisal costs, and the Cost of Poor Quality (COPQ), including internal and external failure costs. CoQ is the difference between the actual costs and hypothetical lower costs if no defects occurred. Reducing CoQ requires building quality into processes from the start to minimize defects and costs.

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    Cost of Quality

    Uploaded by

    MuhammadZubair
    173 views9 pages
    Cost of Quality (CoQ) refers to the total costs associated with maintaining quality and preventing defects. It includes the Cost of Good Quality (COGQ), such as prevention and appraisal costs, and the Cost of Poor Quality (COPQ), including internal and external failure costs. CoQ is the difference between the actual costs and hypothetical lower costs if no defects occurred. Reducing CoQ requires building quality into processes from the start to minimize defects and costs.

    Original Description:

    Cost of quality Internal AND External

    Original Title

    Cost of quality

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    Cost of Quality (CoQ) refers to the total costs associated with maintaining quality and preventing defects. It includes the Cost of Good Quality (COGQ), such as prevention and appraisal costs, and the Cost of Poor Quality (COPQ), including internal and external failure costs. CoQ is the difference between the actual costs and hypothetical lower costs if no defects occurred. Reducing CoQ requires building quality into processes from the start to minimize defects and costs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    173 views9 pages

    Cost of Quality

    Uploaded by

    MuhammadZubair
    Cost of Quality (CoQ) refers to the total costs associated with maintaining quality and preventing defects. It includes the Cost of Good Quality (COGQ), such as prevention and appraisal costs, and the Cost of Poor Quality (COPQ), including internal and external failure costs. CoQ is the difference between the actual costs and hypothetical lower costs if no defects occurred. Reducing CoQ requires building quality into processes from the start to minimize defects and costs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Cost of Quality

    (CoQ)
    Introduction
    What is CoQ?
    Total Cost Of Quality
    How do we use it?
    Conclusion
    What is CoQ?
     Cost of Quality can be defined as the cost which
    is allied with the quality of a product. It is the sum
    total of costs which is incurred while maintaining
    quality up to standard levels plus the cost of
    failure to maintain that level. Cost of Quality will
    not incur if the quality is free from faults.
     The "cost of quality" isn't the price of creating a
    quality product or service. It's the cost of NOT
    creating a quality product or service.
    Total Cost of Quality
     Cost of Poor Quality (COPQ)
     Internal Failure Costs: Services or products not meeting
    the requirements of the consumers or users and is
    found before the time of the release of services and
    products to the external customers.
     External Failure Costs: When customers are dissatisfied
    due to deficiency found at post delivery period of
    products

     Cost of Good Quality (COGQ)


     Appraisal Costs: The necessity to control services as
    well as the products to make certain a high excellence
    level in all the stages
     Prevention Costs: Costs that are designed to prevent
    poor quality from arising in products or services
    Cost of Poor Quality (COPQ)

    Internal Failure Costs:


     Scrap or product waste
     Rework
     Re-inspection of the process (what went wrong?)
     Material review and revision
     Retraining

    External Failure Costs:


     Processing customer complaints
     Bad customer reviews
     Lose in customer loyalty
     Lose in sales
    Cost of Good Quality (COGQ)
    Prevention Costs:
     New product review
     Quality planning
     Supplier capability
     Process capability evaluations
     Quality improvement team meetings and projects
     Quality education and training

    Appraisal Costs :
     Incoming and source inspection/test of
    purchased material
     In-process and final inspection/test
     Product, process or service audits
     Calibration of measuring and test equipment
    Cost of Quality Map
    Conclusion

     The sum of the costs represents the difference


    between the actual cost of a product or service
    and what the reduced cost would be if there
    were no possibility of substandard service, failure
    of products or defects in the process.
     The way to reduce the cost of quality to a minimal
    level is by building the quality as part of the
    processes.
     Do it perfectly right from the beginning.
    Reference:

     Sixsigmabasics.com
     Costofquality.org
     Asq.org

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