Cost of Quality

Cost of Quality:

The Cost of Quality (COQ) includes money spent during the project to avoid failures and money spent during and after the project because of failures. These are known as the Cost of Conformance and the Cost of Non-conformance.

Cost of Conformance	Cost of Non-conformance
Prevention Costs Training Document Processes Equipment Time To Do It Right	Internal Failure Costs Rework Scrap
Appraisal Costs Testing Destructive Testing Loss Inspections	External Failure Costs Liabilities Warranty Work Lost Business