“The cost of quality is the expense of doing things wrong.

Philip B. Crosby

Training program:

Reducing the Cost of Quality (COQ)



As a key factor of competitiveness, cost has to be managed all the time, not only in times of economic downturn.  The Cost Of Quality (COQ) program fits well into any operational excellence initiative, including Lean, Six Sigma and TQM. 


The COQ methodology covered in this workshop is a practical approach to quantifying the financial impact of the Cost Of Non-Conformance (CONC) and Cost Of Conformance (COC), shifting the problem-solving focus from quick fix to prevention, and prioritizing quality improvement opportunities based on the expected financial return.

 Recommended Audience  



  • Lectures, individual exercises, group activities and discussions and Q&A.

Learning Objectives

By the end of the program, you should be able to:

  • Understand the principles and basic concepts of COQ

  • Calculate COQ and conduct COQ assessments

  • Identify COQ cost drivers within your organization

  • Develop a COQ strategy

  • Use COQ to drive prevention in your organization

  • Apply COQ to manage improvement projects in your company


  • Introduction & Basic Concepts of COQ

–       Business case for quality
–       Impact of quality improvement program
–       Link between quality costing and profits
–       Why measure COQ?
–       What is COQ?
–       COQ iceberg model
–       COQ and Lean & Six Sigma
–       Key steps in setting up a COQ system
–       Preparation
–       Four phases of a COQ system

  • Phase 1: Identifying COQ Items

–       PAF model
–       Prevention costs
–       Appraisal costs
–       Failure costs
–       Internal & External failure costs
–       Seven types of waste
–       CONC checklists
–       Guidelines for identifying COQ items

  • Phase 2: Collecting COQ Data

–       Matching accounts with CONC items
–       COQ data source
–       Quality costing

–       Example calculations of Failure cost, Appraisal cost and Prevention cost
–       COQ scorecard and indices
–       Process flow for COQ reporting
–       Collecting and reporting COQ data
–       Role of Finance and line managers/supervisors
–       Practical guidelines

  • Phase 3: Analyzing COQ Data

–       Selecting quality cost bases
–       Trends analysis

–       Pareto analysis
–       Variance analysis
–       SMART criteria
–       Set targets for improvement
–       Case study

  • Phase 4: Reducing COQ & Improving Quality

–       Reduce COQ through quality improvement programs
–       Tools and techniques

–       PDCA problem solving
–       System for quality is prevention
–       Some results from industries
–       Sustaining COQ

Award of Certificate

  • Certificate of Attendance will be issued to participants who have attended at least 75% of the workshop



  • 1 day