Cost of Quality calculation

[CaliperJim]

Hi Quality People, I work for a company that forms and machines metal pipe and I have been tasked with determining our company's Cost of Quality amount. I searched for an existing thread on this topic but was unable to find one. I would appreciate suggestions on costs to include in this metric.
There are two categories of costs: Cost of Good Quality (CoGQ) and Cost of Bad Quality (CoBQ). For CoGQ I have calibration, measuring tool purchase and replacement, 1st piece inspection, Contract/WO review, and Final Inspection. For CoBQ I have rework, customer returns, VIRs (Vendor Information Request i.e. determine if the customer will accept), CPARs, MRBs, scrap, and customer rejects. What am I missing? Thank you very much.

 

[Johnny Quality]

CaliperJim,

Your CoGQ metrics centre around inspection. I would add:

-Training
-Support staff (Team leaders, supervisory staff, QA, process engineers, designers)
-Maintenance (buildings, tools, machines)
-Company perks
-Machine
-Tools
-Jigs & Fixtures
-Packaging

 

[RoxaneB]

Hello, CaliperJim...if you scroll down to the bottom of this thread, you will see several previous threads on this topic. You may find some guidance in those threads to help you focus your energies and work.

 

[Miner]

Keep it manageable as well. Some costs that legitimately belong in CoQ are extremely difficult to quantify and may be a very small percentage of the total. It's better to include the big ticket items for your organization and not get too concerned about the dribs and drabs just because ASQ or some book says to include them. The main purpose of CoQ is to motivate your leadership to take action and to direct that action toward the right areas.

 

[CaliperJim]

Great point. Thank you.