Uploaded by Nokuthula Ngwenya

Cost of quality

advertisement
Cost of quality(COQ)
Avasilaic (2001) opines that COQ represent the main indicators on the basis of which the
performance of the quality management systems can be evaluated. Cost of quality can there be
looked at as any cost incurred due to neither bad quality or efforts to ensure good quality product
or service. The major goal of a COQ approach is to improve the bottom-line by eliminating poor
quality (Mohandas and Raman, 2008).
Cost of poor quality(COPQ)
Harrington (1989) asserts that Cost of poor quality (COPQ) is all cost incurred by a company or
customer because the output did not meet product specifications or customer expectations. COPQ
is associated with providing poor quality product or service.
Prevention costs
The costs a company expends through upfronts efforts to prevent quality problems from occurring
in the first place.These are proactive costs associated with quality product or service.
Appraisal Costs
These are costs associated with ensuring that the product of service meet quality standards.
Quadrant 1:Doing right things wrong




Printing a document to edit it on hard copy instead of soft copy
Receipting manual instead of using Qalisa system to capture and print receipt
Logging in for a colleague
Giving change to a client with my own cash mixing company funds with mine.
Quadrant 2:Doing wrong things wrong




Asking a colleague to log in and out for me
Reporting to work late
Doing personal business during working hours
Getting one quote for procurement form one supplier instead of 3 suppliers
Quadrant 3:Doing wrong things right




Requesting for petty cash reimbursement using bank statement before reconciliation
Issuing a receipt for payment without confirmation with bank statement
Logging off before signing in the next day
Updating members of subscription increment when they have come to pay for their medical
aid
Quadrant 4:Doing right things right
 Raising requisition forms before making payments
 Reconciliation of petty cash and bank statement before request for
reimbursement
 Checking all proof of payments against bank statement before issuing a receipt
 Capturing all payments using the Qalisa system not manual receipting for
receipt issuing
Download