Cost of Quality (COQ)

Marc Helmold
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Marc Helmold: IU International University of Applied Sciences

Chapter 9 in Virtual and Innovative Quality Management Across the Value Chain, 2023, pp 99-112 from Springer

Abstract: Abstract 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. The cost of quality consists of four categories such as prevention cost, appraisal cost, internal failure, and external failure (see Fig. 9.1). The cost of quality consists of two categories of cost of conformance and cost of nonconformance and four subcategories such as prevention cost, appraisal cost, internal failure, and external failure. Another purpose the cost of quality information can serve is to help management evaluate the relative importance of quality problems and identify opportunities for cost reduction. They can also aid in budgeting and cost control activities.

Date: 2023
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DOI: 10.1007/978-3-031-30089-9_9

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