Cost of Quality

Cost is always a constraint in any project. For some people, it is considered the most important constraint. In order for a project to succeed, there is always a certain cost to achieve quality, which is the most important goal that must be guaranteed. This cost of quality can be direct costs resulting from quality-related efforts, as well as some indirect, secondary costs.

Some quality costs may occur because you comply with targeted quality requirements, while some costs may occur because quality requirements are not met.

Cost of quality is among data gathering and analysis methods and it is recommended to be used in the following performance domains.

The cost of quality notion is a vital part of the delivery performance domain. It also should be taken into consideration for estimating costs and preparing the quality management plan.

There are four cost categories of quality. These:

Cost of Prevention

These are the activities carried out within the scope of the project to prevent the occurrence of these costs and to prevent the quality deficiencies before the costs that may arise from the lack of quality are realized. These activities are planned before actual operations related to quality are carried out. Within the organization of project-specific quality management system for the implementation of prevention costs and actual costs for the implementation of this system is the most important example of conceptual, training, implementation costs and cost for preventive maintenance activities are examples of such items. It is a type of cost arising from compliance with quality principles.

Appraisal costs

Unlike prevention costs, these are monitoring and measurement costs resulting from activities to detect existing quality deficiencies before delivery is completed and delivered to the customer.

Activities to confirm the accuracy of deliveries, processes, materials, inspections, inspections and inspections of processes, and cost items to examine the activities of suppliers can be shown decoupled between valuation costs. Valuation costs are also the types of costs resulting from compliance with quality principles.

Internal Error Costs

Such costs are caused by activities aimed at correcting errors detected in deliveries before delivery to the customer. Such costs usually arise if the planned quality level is not reached and the situation is noticed before delivery is communicated to the customer.

Examples of cost items included in this group include wasted labor, products that become unusable and cannot be brought to the correct quality standard, activities aimed at correcting the product, and activities such as analyzing where the quality problem arises.

External Error Costs

Such costs, on the other hand, are costs caused by quality errors detected by the customer after deliveries reach the customer. Correction of these errors, Warranty Services, Compensation, legal processes that may arise from the contract are examples of cost items that fall under this coverage.

When analyzing the cost of quality, you should only consider the quality costs specific to your project. For example, the cost of a general quality assurance system owned by your organization should not be evaluated in the cost of quality analysis.

1- uyhi 19.01.2022
Thanks a lot.

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