Answer to Question #266132 in Marketing for Saif

Question

Analyzing and understanding the significance of quality cost in production enables an organization in developing quality conformance in a competitive business environment. Explain how you will implement cost of quality in your organization. In your opinion should the organization spend more on cost of good quality or cost of poor quality? Explain with reasons/examples.

Answer 1

Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services, and that result from internal and external failures. Having such information allows an organization to determine the potential savings to be gained by implementing process improvements.