How Does Your Organization Measure Cost of Quality?



Why do people in the quality profession continue to perpertrate the view that quality costs money by talking in terms of calculating 'the cost of quality.'

In my view, its only poor quality that costs money. Does not building good quality in, save money??

Most organisations inspect poor quality out so is not all the costs associated with inspecting poor quality out the cost of poor quality?

Why the inference that good qualkity costs money??
I think your missing the point. The cost of quality is reduced by creating efforts from the costlier tier to the less costly.

In other words, strive to shift costs from External Failure -> Internal Failure -> Appraisal -> Prevention.

Prevention costs money, but it is way cheaper than the cost of failures or appraisal (inspection).


I found this article useful. LSS mindset and is a good read nonetheless.

See attached
Thanks for the article, but like a bunch of other articles, it explains WHAT CoQ is,and WHAT to do with CoQ data.

It does not discuss the HOW to measure and collect CoQ, which is what this thread is for.

I would love to see how people went about COLLECTING CoQ in a successful manner.

John Broomfield

Staff member
Super Moderator
Your process-based management system should be reducing the amount of time spent firefighting. It should replace firefighting with more time to add value for customers.

...or to allow employees to spend more time with their loved ones.

From the world of Work Study, Activity Sampling is the tool. Random timers may be available as Apps these days so enable a diagonal cross-section (sample) of the system to sample and record exactly what they were doing twice an hour for two weeks.

At first this often shows 40% wasted time due to failures of the system to prevent problems. Corrective actions can remove the vital few causes until you are wasting no more than half a day a week.

Repeated cycles enable the organization to devote more time to helping its potential and current customers.

BTW, when training 20 students on public courses for a week we could tell which students came from organizations with excellent management systems; rarely were they disturbed by emergencies.


I shall now look for the App and report back.

John Broomfield

Staff member
Super Moderator
Here is the work Sampling App.

Combine it with your knowledge of PONC activities to determine the time spent firefighting.

PONC = Price of Nonconformity, yes our management system's failure to prevent problems is a price too many of us choose to pay.

Top Bottom