Problem-Solving Resource Center

Cost of Quality

What It Is Used For

  • To quantify the impact of POOR quality.

When to Use It

  • As a monitoring tool to track costs for inspection, internal errors, external errors, and prevention.

Important Notes

  • Plot this on a stacked line graph or bar graph to capture all four components as well as the total COQ.
  • As you increase your prevention efforts, the costs for inspection, internal failures, and external failures should drop.

Calculating the Cost of Quality