Quality Manager wants a Cost of quality (COQ) procedure in our QMS

[bobsedon]

Our Quality Manager wants a procedure for CoQ in our QMS. I know a CoQ procedure is not required by ISO9000:2000. It is referenced in 9004 8.2.1.4. I told him I've never seen a CoQ procedure in a quality manual. I agree we should reference the CoQ report in our management review procedure as one of the inputs.

What are others' opinions?

What would a CoQ procedure contain?
I can see outlining responsibilities for collecting data and publishing the report, explaining how to create the CoQ report, and noting that the report is an input to mgt review and corrective/preventive action.

Thanks in advance for your help.

[BadgerMan]

Nothing wrong with generating a procedure for the creation/maintenance of a COQ metric, IMO.

It looks like you've covered the content pretty well. By all means, specify the use of the PA process in reaction to trends. What about detailing the inputs to the calculation...........prevention, appraisal, internal/external failure costs, etc?

[CarolX]

In Reply to Parent Post by BadgerMan

prevention, appraisal, internal/external failure costs, etc?

BadgerMan pretty much summed it up...these are the "standard" items used in a CoQ program.

But I urge you to do what works for you, and perhaps start in an area that you know is problematic and easy to capture data, i.e. internal failures (aka scrap and rework costs). This is usually a great place to start, then continue to build your system to include the other areas.

[Randy Stewart]

Good info all, I would suggest that you spell out the formula for computing rework, scrap, etc. because some people do not recognize "Lost Opportunity" as a cost. Our rule of thumb is to triple our expense - once for time and material, second time because the operator could be producing saleable items, and the third to capture customer issues.

[CarolX]

In Reply to Parent Post by Randy Stewart

once for time and material, second time because the operator could be producing saleable items, and the third to capture customer issues.

Lost opportunity is an excellent point that most folks miss. I have always said that scrap costs 3x’s the original. Time and material is lost in

1st run that failed

2nd run to replace

3rd or lost run – what would the machine/manpower be working on that was saleable item.

[Jennifer Kirley]

See the formulas for calculating cost of time in The Reading Room. My article is about training, but once one knows how to cost time, applications for this skill are nearly endless.

[marvinhilton]

I also need qualtiy cost procedure. anybody who has it can send me his email.
my msn is

[Stijloor]

In Reply to Parent Post by marvinhilton

I also need qualtiy cost procedure. anybody who has it can send me his email.
my msn is

Posting the same request twice is not necessary.

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Stijloor.