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In process improvement efforts, quality costs tite or cost of quality (sometimes abbreviated CoQ or COQ [1]) is a means to quantify the total cost of quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in a 1956 Harvard Business Review article.
Cost of poor quality (COPQ) or poor quality costs (PQC) or cost of nonquality, are costs that would disappear if systems, processes, and products were perfect. COPQ was popularized by IBM quality expert H. James Harrington in his 1987 book Poor-Quality Cost. [1] COPQ is a refinement of the concept of quality costs.
Quality, cost, delivery (QCD), sometimes expanded to quality, cost, delivery, morale, safety (QCDMS), [1] is a management approach originally developed by the British automotive industry. [2] QCD assess different components of the production process and provides feedback in the form of facts and figures that help managers make logical decisions.
[2] [3] Martin Barnes (1968) proposed a project cost model based on cost, time and resources (CTR) in his PhD thesis and in 1969, he designed a course entitled "Time and Cost in Contract Control" in which he drew a triangle with each apex representing cost, time and quality (CTQ). [4] Later, he expanded quality with performance, becoming CTP.
In much conventional industrial engineering, the quality costs are simply represented by the number of items outside specification multiplied by the cost of rework or scrap. However, Taguchi insisted that manufacturers broaden their horizons to consider cost to society. Though the short-term costs may simply be those of non-conformance, any ...
The quality improvement program incorporated ideas developed or popularized by others (for example, cost of quality (step 4), employee education (step 8), and quality councils (step 13)) with the core motivation techniques of booklets, films, posters, speeches, and the "ZD Day" centerpiece. [12]
Examples of fixed costs include the depreciation of plant and equipment, and the cost of departments such as maintenance, tooling, production control, purchasing, quality control, storage and handling, plant supervision and engineering. [4] In the early nineteenth century, these costs were of little importance to most businesses.
W. Edwards Deming: concentrating on "the efficient production of the quality that the market expects," [13] and he linked quality and management: "Costs go down and productivity goes up as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes." [14]