Measuring the Cost of Quality for Management

Abstract:Over the years, few organizations have adopted a reliable method for measuring and reporting cost of quality (COQ) and used it to improve operations. Since the avoidance of reduced profits from quality initiatives is seldom measured or reported by organizational financial accounting systems, the magnitude of benefits in financial terms cannot easily be quantified. Activity based cost/management systems can be used to accurately report the cost of poor quality by replacing broadly allocated indirect expenses with cost drivers having cause and effect relationships. The addition of valid costing data will give the quality movement additional …

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would it be that difficult to calculate unit costs; at least approximately

Aylin N. Sener
--Aylin N. Sener, 06-26-2015

great article about quality costs I find the graph of levels and scope of quality costs interesting; are there enough software paclkages to track COQ to mention about.

Aylin N. Sener
--Aylin N. Sener, 06-26-2015

--Charlotte Layton, 09-21-2014

Great article. Clearly points out every single aspect of how to make the management understand and get involved in ensuring quality.
--Tejaswi, 09-02-2014

The understanding for the Quality Cost,can be futher improved and used to improve the organizational profitability.
--Jayant Shaligram, 05-28-2014

--Measuring the Cost of Quality for Management, 11-26-2010

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