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What's the concept of Return on Quality (ROQ)?

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George Lewis Program/Project Manager| DXC Technology Company Heredia, Costa Rica
What's the concept of Return on Quality (ROQ)?
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Ghahreman Abouzar Commissioning specialist| Protech Engineering.Inc Port Coquetlam,, British Columbia, Canada
Hi George, It means to stay on the line of project scope and prevent unplanned changes.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
George -

Similar to ROI, ROQ is an attempt to quantify the financial benefits of investments in quality. as you know, cost of conformance and cost of non-conformance both are considered when planning quality for a given project. ROQ would look at the reduction in cost of non-conformance as a function of the total spend on quality.

Kiron
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George Lewis Program/Project Manager| DXC Technology Company Heredia, Costa Rica
Seems it is not a very common subject!
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Bala Sripada Hyderabad, Ap, India
Yes Goerge, for me it appears as not a very common subject.

May be depending on the organization, the wording may differ.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
George -

my assumption is that its a KPI tracked by those organizations which are very mature from a quality perspective as it will help them ensure that their ongoing investments in continuous improvement are worthwhile.

Kiron
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Rafael Emiro Pirela Salas Ingeniero Geodesta /Estimación de Costos | ARECAR CORPORACIÓN, C.A. Barcelona, Anzoátegui, Venezuela (Bolivarian Republic of)
En esencia, el retorno de la calidad es implícitamente:
1.- Satisfacción total del Cliente y de los Usuarios del Producto resultado del Proyecto.
2.- Obtención de mayor y mejor prestigio, y renombre para el Gerente del Proyecto y el Contratista ejecutor del mismo.
3.- Mayores ingresos para el cliente, provenientes de la operación de un producto de comprobada calidad.
4.- Contratista, Gerente de Proyecto, Cliente y Usuarios felices al disponer de un producto de calidad y menor costo de mantenimiento.
Y bajo de este concepto podemos escribir muchos puntos relacionados con el retorno de la calidad.
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1 reply by George Lewis
Jun 15, 2018 11:21 PM
George Lewis
...
Rafael - gracias!
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Arvind Kumar Delivery Manager| IT Organization Chicago, Il, United States
I agree with Kiron;
To measure Quality efforts must be financially accountable
Cost of non-conformance is the money that needs to be spent for not conforming to the quality requirements. Reduction in cost of non-conformance improves ROQ.
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George Lewis Program/Project Manager| DXC Technology Company Heredia, Costa Rica
So, far I have not seen a calculation just a definition :)
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George Lewis Program/Project Manager| DXC Technology Company Heredia, Costa Rica
Jun 14, 2018 3:56 PM
Replying to Rafael Emiro Pirela Salas
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En esencia, el retorno de la calidad es implícitamente:
1.- Satisfacción total del Cliente y de los Usuarios del Producto resultado del Proyecto.
2.- Obtención de mayor y mejor prestigio, y renombre para el Gerente del Proyecto y el Contratista ejecutor del mismo.
3.- Mayores ingresos para el cliente, provenientes de la operación de un producto de comprobada calidad.
4.- Contratista, Gerente de Proyecto, Cliente y Usuarios felices al disponer de un producto de calidad y menor costo de mantenimiento.
Y bajo de este concepto podemos escribir muchos puntos relacionados con el retorno de la calidad.
Rafael - gracias!
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Shivanjali Bhutkar Bringing Technology and Business together Na, Ca, United States
yes, it's not a commonly used concept. agree with Kiron's comments. It's the KPI used by org to track the ROI from quality side. to prevent gold plating too

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