Cost of Quality

Project name: Wilmonts` pharmacy and Dron Tech Engineering`s joint venture for delivery using Revision date: 02/12/2024
fron technology Revision no.: 0
Current Cost Estimate (Before using Quality Assurance Planing) Future Cost Estimate (After using Quality Assurance Planing) Comparison of cost Estimate
Type of cost Amount in US $ % of COPQ Type of cost Amount in US $ % of COPQ Comparison of Cost Estimate
Cost ComparisonConclusion
Prevention Cost Prevention Cost
Research and design $70,000.00 13.80% Research and design $110,000.00 28.08% $40,000.00 Investment
Machine Cost $74,600.00 14.71% Machine Cost $47,580.00 12.15% -$27,020.00 Cost Saving
Training $8,225.00 1.62% Training $18,650.00 4.76% $10,425.00 Investment
Quality Control Administration $16,700.00 3.29% Quality Control Administration $26,954.00 6.88% $10,254.00 Investment
Quality Planing $15,500.00 3.06% Quality Planing $33,419.00 8.53% $17,919.00 Investment
Total Prevention Cost $185,025.00 36.49% Total Prevention Cost $236,603.00 60.40% $51,578.00 Increase in Cost

Aprassial Cost Aprassial Cost

Incoming Inspection $18,000.00 3.55% Incoming Inspection $26,500.00 6.76% $8,500.00 Investment
Inprocess Inspection $10,000.00 1.97% Inprocess Inspection $14,605.00 3.73% $4,605.00 Investment
Pre-Dispatch Inspection $14,600.00 2.88% Pre-Dispatch Inspection $21,023.00 5.37% $6,423.00 Investment
Vendor Control $12,000.00 2.37% Vendor Control $5,142.00 1.31% -$6,858.00 Cost Saving
Testing $33,060.00 6.52% Testing $43,654.00 11.14% $10,594.00 Investment
Materials Consumed $29,800.00 5.88% Materials Consumed $14,695.00 3.75% -$15,105.00 Cost Saving
Total Aprassial Cost $117,460.00 23.16% Total Aprassial Cost $125,619.00 32.07% $8,159.00 Increase in Cost

Internal Failure Cost Internal Failure Cost

Spare Parts Consumption $26,250.00 5.18% Spare Parts Consumption $3,846.00 0.98% -$22,404.00 Cost Saving
Repairs $54,102.00 10.67% Repairs $6,574.00 1.68% -$47,528.00 Cost Saving
Failure Analysis $14,694.00 2.90% Failure Analysis $3,548.00 0.91% -$11,146.00 Cost Saving
Total internal Failure Cost $95,046.00 18.74% Total internal Failure Cost $13,968.00 3.57% -$81,078.00 Reduction in Cost

External Failure Cost External Failure Cost

Penalties $40,000.00 7.89% Penalties $3,482.00 0.89% -$36,518.00 Cost Saving
Customer Complaints $26,000.00 5.13% Customer Complaints $1,469.00 0.37% -$24,531.00 Cost Saving
Replacement Cost $36,068.00 7.11% Replacement Cost $8,633.00 2.20% -$27,435.00 Cost Saving
Waranty Failure Cost $7,500.00 1.48% Waranty Failure Cost $1,970.00 0.50% -$5,530.00 Cost Saving
Total External Failure Cost $109,568.00 21.61% Total External Failure Cost $15,554.00 3.97% -$94,014.00 Reduction in Cost

Total COQ before QA Planing $507,099.00 Total COQ before QA Planing $391,744.00 100.00% -$115,355.00 Final Cost Saving

Results:
1 The total savings in cost after implementation of quality assurance Planing are $115,355
2 The investments made in certain areas have proved to be extremly fruitful in terms of reduction of total cost quality
3 By increasing the investment in R&D, it resulted in a direct effect on various other aspects like design, machine cost, etc,
4 The negative cost in the comparison table indicates where cost savings has been made possible by increasing the amount of onvestments in other areas
5 This cost of quality report provides enough evidence that there will be a huge amount of cost saving if quality assurance planing in implemented