Chapter 8

Cost of Quality

Abstract

The cost of quality is a direct result of doing things wrong and by nonconformance and this is an indication of the level of quality achieved by an organization. This chapter details several categories and concepts involved in quality costs, and their computations by presenting cost models. The role of management in sustaining quality levels by controlling quality costs is emphasized. The significant relationship between safety and quality is illustrated by a case study.

Keywords

Cost of quality (COQ); “Life behind the dykes”; PAF (Prevention, Appraisal, and Failure) costs; External and internal failure costs; Hidden quality costs; Cost of lost opportunities; Service costs; Tangible and intangible costs; ...

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