Cost of Quality (COQ) Work Sheet or template

Hello Friends:
I am working on my quality cost template. I would really appreciate if anybody can share any template or a spreadsheet to calculate the quality costs.
Please let me know or PM me the file.
thanks
Siva

sxbalasu said:

Hello Friends:
I am working on my quality cost template. I would really appreciate if anybody can share any template or a spreadsheet to calculate the quality costs.
Please let me know or PM me the file.
thanks
Siva

Click to expand...

Assuming you are following the approach of Preventive/Appraisal/Internal Failures/External Failures, we simply put a team together with representatives from around the company to develop our initial chart.

We selected the main items, which are unique to us...just as the items you measure will be unique to you.

We assigned responsibilities - i.e., WHO is responsible to ensure the data is entered in on a monthly basis.

We provided definitions of the items being evaluated, including formulas for the calculations.

We enter in data on a monthly basis.

We show Year-to-Date totals and Pace totals. We show benchmark values and calculate the gap between us and the benchmark (if we aren't the benchmark...if we are, the benchmark is our own internal best-ever value).

We do all of this in Excel.

Siva,
RCB has listed good practical approach.
Here are some of my points to add:
I consider
http://qualitypress.asq.org/perl/catalog.cgi?item=H1013
Principles of Quality Costs: Principles, Implementation, and Use, Third Edition
Campanella, Jack, editor

as an authoritative reference on cost of Quality. This book has details on various cost
components, measurement methods, sample calculations etc. You may want to review this book before starting up this exercise.

Luckily, the same publication has also released recently:
http://qualitypress.asq.org/perl/catalog.cgi?item=SW1108

Principles of Quality Costs: Interactive CD-ROM
ASQ Quality Costs Committee

The abstract says that there is a

"simple quality cost calculator that can be used to simulate the financial impact of improved quality in organizations".


Hope this helps,
Govind.

sxbalasu said:

Hello Friends:
I am working on my quality cost template. I would really appreciate if anybody can share any template or a spreadsheet to calculate the quality costs.
Please let me know or PM me the file.
thanks
Siva

Click to expand...

Have look at this template.

cost of quality

i am just confused which of our activities i am going to include on our cost of quality monitoring, if i am going to include preventive cost and appraisal cost. Or just focused on failure cost...badly need your help...i am working on this for several days now and still confused.

shirly

shirly said:

i am just confused which of our activities i am going to include on our cost of quality monitoring, if i am going to include preventive cost and appraisal cost. Or just focused on failure cost...badly need your help...i am working on this for several days now and still confused.

shirly

Click to expand...

Hi Shirly,

Here is an article that covers the subject in some detail: http://www.bisrg.uwaterloo.ca/archive/RR-01-08.pdf

This article describes types of tasks and the mathematic theory for calculating costs and ROI: www.baldrigeplus.com/Exhibits/Exhibit - Cost of quality.pdf

I have made a free quality costs calculator that captures costs of employee time along with material costs. You are free to use its formulas and/or alter it in whatever way suits your needs: for example, if you want to show the cost categories separately. The calculator is in this thread: QA Inspection Gate - QA caught defect in the buy-off stage?

I hope this helps!

Re: Seeking: Cost of Quality work sheet or template

Al Rosen said:

Have look at this template.

Click to expand...

Hi can you please tell me if know what is the acceptable COQ or COPQ ratio?

Prana

Re: Seeking: Cost of Quality work sheet or template

rajandraj said:

Hi can you please tell me if know what is the acceptable COQ or COPQ ratio?

Prana

Click to expand...

It depends but less than 5% of sales $ should be good.

Re: Seeking: Cost of Quality work sheet or template

Al Rosen said:

It depends but less than 5% of sales $ should be good.

Click to expand...

It depends on what and how it is measured/calculated. There is no universally accepted description/definition of contributors to the COQ. So, any comparison between organizations is flawed.

Stijloor.

Re: Seeking: Cost of Quality work sheet or template

How can I show that 5% os sales is acceptable?

I calculated cost of quality for our company and it happened to be 32% of sales. How should I say it is high or acceptable? Are there any measures to compare it with a standard COQ based in research? If you could you please send me the reference links?

Thanks
Prana