COQ (Cost of quality)
Is a financial measure of the quality performance of an organisation.
It is essentially a measure of lack of quality & can also be termed as cost of bad quality.
Why is COQ required?
Understanding cost of quality helps organisations to develop quality conformance as a useful strategic business tool that improves their products, services & brand image.
This is vital in achieving the objectives of a successful organisation.
When should COQ be applied?
COQ is primarily used to understand, analyse & improve the quality performance.
It can be used by shop floor personnel as well as a management measure.
It can also be used as a standard measure to study an organisation’s performance vis-à-vis another similar organisation and can be used as a benchmarking indices.
How to check COQ?
read more What is Cost of Quality * TQM + Lean
From India, Delhi
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4Is a financial measure of the quality performance of an organisation.
It is essentially a measure of lack of quality & can also be termed as cost of bad quality.
Why is COQ required?
Understanding cost of quality helps organisations to develop quality conformance as a useful strategic business tool that improves their products, services & brand image.
This is vital in achieving the objectives of a successful organisation.
When should COQ be applied?
COQ is primarily used to understand, analyse & improve the quality performance.
It can be used by shop floor personnel as well as a management measure.
It can also be used as a standard measure to study an organisation’s performance vis-à-vis another similar organisation and can be used as a benchmarking indices.
How to check COQ?
read more What is Cost of Quality * TQM + Lean
From India, Delhi
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Dear Ashima,
Thanks for sharing important information on Cost of Quality (COQ). Along with COQ goes measurement of Cost of Poor Quality (COPQ). Measurement of both the costs should go hand in hand.
All HR interventions, be it employee training or any other, should be focused towards the reduction of COPQ. Many times, HR professionals launch some HR intervention but are unable to give a definitive reply on whether COPQ was reduced or not.
You have asked a question in your post "Why is COQ required?" This question needs to be rephrased as "Why Measurement of COQ is Required?"
The reply to this question is given as "Understanding the cost of quality helps organizations to develop quality conformance as a useful strategic business tool that improves their products, services & brand image." Your reply also merits revision as the measurement of COQ is purely an operational tool. Far from being a strategic tool, it cannot even be considered a tactical tool.
Your second question is "When Should COQ be Applied?". This question also merits revision as it is not the application of COQ but the measurement of COQ. Secondly, measuring COQ is part and parcel of operational activity; therefore, the question of "when to measure" does not arise. Measurement must start after a few months of the commencement of the operational activity. The reply to this question does not cover service organizations. It may be noted that the measurement of COQ and COPQ applies to both manufacturing and service organizations.
Anyway, for suggestions apart, thanks for bringing out this important subject for discussion.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Thanks for sharing important information on Cost of Quality (COQ). Along with COQ goes measurement of Cost of Poor Quality (COPQ). Measurement of both the costs should go hand in hand.
All HR interventions, be it employee training or any other, should be focused towards the reduction of COPQ. Many times, HR professionals launch some HR intervention but are unable to give a definitive reply on whether COPQ was reduced or not.
You have asked a question in your post "Why is COQ required?" This question needs to be rephrased as "Why Measurement of COQ is Required?"
The reply to this question is given as "Understanding the cost of quality helps organizations to develop quality conformance as a useful strategic business tool that improves their products, services & brand image." Your reply also merits revision as the measurement of COQ is purely an operational tool. Far from being a strategic tool, it cannot even be considered a tactical tool.
Your second question is "When Should COQ be Applied?". This question also merits revision as it is not the application of COQ but the measurement of COQ. Secondly, measuring COQ is part and parcel of operational activity; therefore, the question of "when to measure" does not arise. Measurement must start after a few months of the commencement of the operational activity. The reply to this question does not cover service organizations. It may be noted that the measurement of COQ and COPQ applies to both manufacturing and service organizations.
Anyway, for suggestions apart, thanks for bringing out this important subject for discussion.
Thanks,
Dinesh Divekar
From India, Bangalore
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