Cost of quality
Cost of quality (also known by its acronym, COQ, as well as as costs of quality and quality costs; hereinafter, the Costs) is two parts of all the costs incurred to ensure quality. These two parts are:
- Cost of good quality (also known as costs of conformance), which are costs of keeping produced marketables defect-free. They include prevention and appraisal costs.
- Cost of poor quality (also known as failure cost, costs of non-conformance, or costs of failure of conformance), which are costs of failure of keeping produced marketables defect-free. They include tangible and intangible internal (i.e. before the marketable reaches the customer) and external (i.e. after the marketable reaches the customer costs.
The PAF paradigm addresses the same concept; PAF is the acronym for prevention, appraisal, failure.
Definition
According to Managing Quality by Foster (6th edition),
- PAF paradigm. Refers to prevention, appraisal, and failure costs of quality.
Rework. Action taken to bring a defective or nonconforming item into compliance with requirements or specifications. Total quality management (TQM). A philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations.