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PPT: Cost of Quality Training Presentation
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Aspect Ratio: 4:3 Standard Screen


File Size: 11.5 MB


Number of Slides: 131


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Training Presentation/Powerpoint:

Reducing the Cost of Quality (COQ)



As a key factor of competitiveness, you must manage cost all the time, not only in times of pandemic outbreak or economic downturn. Reducing the Cost Of Quality (COQ) program helps achieve this. 

This training fits well into any cost reduction or process improvement initiative, including Lean, Six Sigma and TQM. The COQ methodology instills a practical approach to quantifying the financial impact of the Cost Of Non-Conformance (CONC) and the Cost Of Conformance (COC). The COQ calculation methods are also used in quantifying the impact of Lean and Six Sigma programs.

This COQ PPT presentation covers four essential steps for setting up a measurement system to track COQ. These steps are identification, collection, reporting and analysis, and reduction of quality costs.

By teaching this presentation, you can improve the company culture and improve the bottom line. This presentation changes employees problem solving focus from quick fix solutions to preventing issues before they occur. This course teaches the skills to prioritize quality improvement opportunities based on the expected financial return.

Note: This training package includes:

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

2. The Inspection Exercise (PowerPoint format) - FREE

Learning Objectives

  1. Understand the principles and basic concepts of the Cost of Quality (COQ)

  2. Understand how quality improvement reduces costs

  3. Calculate COQ and conduct COQ assessments

  4. Identify COQ cost drivers within your organization

  5. Develop a COQ strategy

  6. Use COQ to drive prevention in your organization

  7. Apply COQ to manage improvement projects in your organization


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

You may also be interested in the following training presentations and frameworks (sold separately):

  1. Introduction to Quality

  2. Total Quality Management

  3. Total Quality Process

  4. PDCA Problem Solving Technique & Tools

  5. Root Cause Analysis

  6. Seven Basic Quality Tools

  7. Seven Advanced Quality Tools

  8. 8D Problem Solving Process

  9. 8D Report Template

  10. Advanced Product Quality Planning (APQP)

  11. Failure Mode & Effects Analysis (FMEA)

  12. Mistake-Proofing

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