Cost of Quality

The measurement of Cost of Quality (COQ) has been around for a long time. Its use has not been widely spread due to limited resources on knowledge and application skills. This book analyses the cost elements and explains on how to measure them.The elements used in its Quality Cost System are reviewed and the application of the elements are analysed. The overall COQ was then compared to present-day standards and studies. It was found that there are several elements of COQ that were not measured in Company ABC's quality cost system. Some elements, for example absenteeism, calibration, labour inefficiencies and labour turnover are not included in the calculation of quality cost. These elements have great impact to the quality cost measurement system. This is due to the present-day economic situation, escalating cost of raw materials and skill labor shortages. These elements, together with several others are listed and discussed in some detail. A case study (Chapter 3 and 4) is included to assist readers for better clarity and understanding to implement COQ at their organisation. A proposed COQ measurement system was developed with additional elements and a comparison study was carried out between the proposed and present practices. A proposed COQ measurement system was compared to studies conducted by other researchers.