The Cost of Quality
No matter what the definition of cost of quality (CoQ) is, it should be well-defined and measured because of its potential impact on the financial structure of organizations.
It's not right to associate CoQ with only the product or service being offered to customers. Considering the fact that the costs which arise in the supporting units are a substantial part of the total quality cost, this CoQ method can be implemented in all departments. The principles—that prevention and appraisal activities will reduce failure costs and that increasing the focus on the preventive activities will reduce appraisal costs—lie behind the idea of reducing total CoQ.
Methods and parameters—or their combination—that can be used by organizations may vary depending on their own strategic goals, needs, and priorities. Values obtained as a result of the calculation need to be analyzed to prepare plans for improvement and set goals for reducing the cost of quality.
Today, many organizations consider quality improvement as a critical factor of success for competitiveness. The goal of continuous improvement attempts to not only meet customer requirements, but to also do it at the lowest cost.
The definition of cost of quality (CoQ) may vary for each organization. Although CoQ is usually understood as the cost of poor quality by some
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