Q4Quality Management
Question
2 marks
Define Cost of Quality (CoQ).
Answer
Cost of Quality (CoQ) is the absolute mathematical sum of all financial expenses incurred by an organization to prevent defects, plus the catastrophic costs resulting from actual failures.
CoQ is mathematically divided into the Cost of Good Quality (Prevention and Appraisal costs, like employee training and software testing) and the Cost of Poor Quality (Internal and External Failure costs, like catastrophic product recalls and legal lawsuits).