By: Sarah Abdallah
The Definition
 Wikipedia says: “The concept of quality costs is a
means to quantify the total cost of quality-related
efforts and deficiencies.”
 “The cost of quality planning, control, assurance and
rework.”
cio.osu.edu/projects/framework/glossary.html
 “The cost of quality is the expense of all the activities
within a project to meet quality objectives.”
pmpbank.googlepages.com/glossary
The Father of Quality Revolution
Philip B. Crosby (known as the Father of Quality
Revolution) has written various essays and books on
the topic of Quality. He was a local businessman,
author, and teacher. His philosophies and concepts
helped change the ways business is conducted
worldwide.
Examples of his books
Quality is Free…
As told by Philip. B Crosby, the cost of quality has two
main components: The cost of good quality (or the
cost of conformance) and The cost of poor quality (or
the cost of non-conformance)
The Quality Triangle
Quality Triangle Rules
If you want something fast and cheap, it won’t be of
good quality. If you want something of good quality
and in good timing, it won’t be cheap. If you want
something with good quality and cheap it won’t be
fast.
The cost of Poor Quality affects
The cost of poor quality affects Internal and External
costs resulting from failing to meet requirements.
Cost of Good Quality affects
Costs for investing in the prevention of nonconformance to requirements. Costs for appraising a
product or service for conformance to requirements.
Cost of Poor Quality: Internal Failure
Costs
“Internal failure costs are costs that are caused by products or services not
conforming to requirements or customer/user needs and are found
before delivery of products and services to external customers.”
Examples would be:
-Rework
-Delays
-Re-designing
-Shortages
-Failure analysis
-Re-testing
-Downgrading
-Downtime
-Lack of flexibility and adaptability
Cost of Good Quality: Prevention Costs
Prevention costs are costs of all activities that are
designed to prevent poor quality from arising in
products or services.
-Quality planning
-Supplier evaluation
-New product review
-Error proofing
-Capability evaluations
-Quality improvement team meetings
-Quality improvement projects
-Quality education and training
Measurement of quality
Reliability
Validity
Measurement errors
Correlation
Causality
SIGMA
What is Six Sigma?
A statistics-driven approach to quality control.
Six steps to Six Sigma
Identify the product you create or the service you provide in
other words
Identify the customer(s) for your product or service, and
determine what they consider important
Identify your needs
Define the process for doing your work
Mistake-proof the process and eliminate wasted efforts
Ensure continuous improvement by measuring, analyzing
and controlling the process using “DMAIC”
(Define, Measure, Analyze, Improve, Control)