PPT: Reducing the Cost of Quality (COQ) Training Presentation

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Aspect Ratio: 4:3 Standard Screen

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Number of Slides: 131

Training Presentation/Powerpoint:

Reducing the Cost of Quality (COQ)

DESCRIPTION

Successful companies know it’s far cheaper to prevent problems than to fix them—especially after customers notice. Poor quality increases costs and erodes competitive advantage, while good quality reduces costs and strengthens market position. The key question is: How can a company measure and improve quality performance?

The answer lies in implementing a Cost of Quality (COQ) system.

COQ is a business measurement approach that quantifies the financial impact of delivering—or failing to deliver—quality products and services. It includes both the Cost of Conformance (COC)—the cost of doing things right (e.g., prevention and appraisal), and the Cost of Non-Conformance (CONC)—the cost of doing things wrong (e.g., internal and external failures). Together, these form the PAF model: Prevention, Appraisal, and Failure.

The goal of measuring COQ is to support quality improvement, reduce waste, boost customer satisfaction, and ultimately grow revenue. A key performance indicator is Total COQ as a percentage of Sales Turnover, which allows organizations to track performance and set improvement targets.

The “Reducing the Cost of Quality” training presentation guides you through four essential steps to implement a COQ measurement system:
Identification, Collection, Reporting & Analysis, and Cost Reduction.

By using this approach, organizations can prioritize high-impact quality improvements, focus on prevention over correction, and ensure long-term value creation.

Note: This training package includes:

1. Reducing the Cost of Quality PPT training presentation (PowerPoint format)

2. COQ poster (PDF format, in color and monochrome, printable in A3 size)

3. The Inspection Exercise (PowerPoint format)

LEARNING OBJECTIVES

Understand the principles and basic concepts of the Cost of Quality (COQ).
Understand how quality improvement reduces costs.
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 organization.

CONTENTS

1. Introduction & Basic Concepts of COQ

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

2. Step 1: Identifying COQ Items

PAF model
Prevention costs
Appraisal costs
Failure costs
Internal and External failure costs
Eight types of waste
CONC checklists
Guidelines for identifying COQ items

3. Step 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

4. Step 3: Analyzing COQ Data

Selecting quality cost bases
Trends analysis
Pareto analysis
Variance analysis
SMART criteria
Set targets for improvement
Case study

5. Step 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
Summary

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Reducing the Cost of Quality (COQ)