Difference between revisions of "Cost of quality"
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| − | [[Cost of poor quality]] (also known by its acronym, [[COPQ]], as well as [[failure cost]], [[costs of non-conformance]], or [[costs of failure of conformance]]) is money spent because of failures or, in other words, of failure of keeping produced [[marketable]]s defect-free. According to [[Juran's Quality Handbook by Defeo (7th edition)]],<blockquote> | + | [[Cost of poor quality]] (also known by its acronym, [[COPQ]], as well as [[failure cost]], [[costs of non-conformance]], or [[costs of failure of conformance]]) is money spent because of failures or, in other words, of failure of keeping produced [[marketable]]s defect-free. According to [[Juran's Quality Handbook by Defeo (7th edition)]],<blockquote>[[Cost of poor quality]] ([[COPQ]]). The costs that would disappear in the organization if all failures were removed from a product, service, or process; typically measures of a percent of sales or total costs.</blockquote>These costs include tangible and intangible internal (i.e. before the marketable reaches the [[customer]]) and external (i.e. after the ''marketable'' reaches the ''customer'') expenses. |
[[Category: Quality Management]][[Category: Articles]] | [[Category: Quality Management]][[Category: Articles]] | ||
Revision as of 00:48, 8 July 2020
Cost of quality (also known by its acronym, COQ, as well as as costs of quality and quality costs; hereinafter, the Costs) is two parts of all the costs incurred to ensure quality. These two parts are:
- Cost of good quality (also known as costs of conformance), which are money spent to avoid failures or, in other words, to keep produced marketables defect-free. They include prevention and appraisal costs.
- Cost of poor quality (also known by its acronym, COPQ, as well as failure cost, costs of non-conformance, or costs of failure of conformance), which are money spent because of failures or, in other words, of failure of keeping produced marketables defect-free. They include tangible and intangible internal (i.e. before the marketable reaches the customer) and external (i.e. after the marketable reaches the customer) costs.
The PAF paradigm addresses the same concept; PAF is the acronym for prevention, appraisal, failure. Economically, the cost of good quality and cost of poor quality should tend to be about equal.
Contents
Definitions
According to Managing Quality by Foster (6th edition),
- PAF paradigm. Refers to prevention, appraisal, and failure costs of quality.
Cost of good quality
Cost of good quality or costs of conformance are money spent to avoid failures or, in other words, to keep the produced marketables defect-free. These costs include prevention and appraisal costs.
Appraisal costs
- Main wikipage: Appraisal cost
Prevention costs
- Main wikipage: Prevention cost
Cost of poor quality
- Main wikipage: Cost of poor quality
Cost of poor quality (also known by its acronym, COPQ, as well as failure cost, costs of non-conformance, or costs of failure of conformance) is money spent because of failures or, in other words, of failure of keeping produced marketables defect-free. According to Juran's Quality Handbook by Defeo (7th edition),
Cost of poor quality (COPQ). The costs that would disappear in the organization if all failures were removed from a product, service, or process; typically measures of a percent of sales or total costs.
These costs include tangible and intangible internal (i.e. before the marketable reaches the customer) and external (i.e. after the marketable reaches the customer) expenses.
