C.O.

Q
(Cost Of Quality)

Conventional COQ Components

Cost of Quality
Cost of conformance
Prevnetion
* Planning & writing of procedures &
instructions
* Vendor assurance
* Process capability studies
* Quality training
* QIPs
* Collection, analysis & reporting of
quality data

Quality Strategy

Cost of Non-conformance
Appraisal

Internal Failures

External Failures

* Incoming inspection

* Rework

* Complaints

* In-process inspection
* Final testing & inspection
* Production trials
* Materials consumed during inspection
& testing
* Analysis & reporting of inspection
results
* Field performance testing

* Scrap
* Obsolescence
* Downtime
* Subcontractor faults

* Warranty claims
* Bad debt
* Returned products
* Concessions

* Replacement

* Loss of sales

* Defect/failure analysis
* Re-inspection & re-testing
* Downgrading
* ECN/ECO

* Product liability
* Extened warranty
* Product recall
* Overdue accounts receivables

* Accidents
* Improper invoicing

Quality Costs

1.(1935)

2.(1935-1970)

3.(1970-1988)
1970

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TQC(Total Quality Control)

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Juran

50%-80%
1100

10,000

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