Cost of Quality (COQ) is a concept used in quality assurance that refers to the total cost associated with producing a product or service that meets the required quality standards.
It includes both the costs of preventing quality problems and the costs of dealing with them when they occur.
The goal of COQ is to reduce the overall cost of quality by minimizing the costs of prevention and detection, while maximizing the quality of the product or service.
COQ includes both the costs of conformance (preventing quality problems) and the costs of non-conformance (dealing with quality problems).
The costs of conformance include the costs of quality control, quality assurance, and quality improvement activities.
The costs of non-conformance include the costs of rework, scrap, and warranty claims.
The goal of COQ is to reduce the overall cost of quality by minimizing the costs of prevention and detection, while maximizing the quality of the product or service.
COQ is an important concept in quality assurance because it helps organizations identify areas where they can reduce costs while still maintaining quality.
By understanding the costs associated with producing a quality product or service, organizations can make informed decisions about how to allocate resources to ensure the highest quality product or service at the lowest cost.