Cost of Quality - How Do You Reduce the Impact of Quality on Your Manufacturing Costs?
The Cost of Quality isn't the cost to manufacture a good product, it is the cost associated with reworking parts and products that didn't meet engineering specifications.
What is the Cost of Quality (CoQ):
Many definitions and models define CoQ. The most straightforward is the one identified by the American Society of Quality (ASQ), as follows:
An organization’s CoQ is actually the cost of NOT creating a quality product or service.
Every time work is redone, the cost of quality increases. Obvious examples include:
- The reworking of a manufactured item.
- The retesting of a fastening or assembly.
- The rebuilding of a tool.
As stated by Jim Smith in the June issue of Quality Magazine, "Quality is measured by the price of nonconformance (PONC)."
In short, any cost that would not have been expended if quality were perfect (zero defects) contributes to the cost of quality.