Cost of Quality (COQ) Calculator
Project Information
Prevention Costs
Costs to prevent defects from occurring
Appraisal Costs
Costs to measure and monitor activities
Internal Failure Costs
Costs for defects found before delivery
External Failure Costs
Costs for defects found after delivery
Total COQ
$319,000
21.3% of total costs
Conformance Costs
$111,000
34.8% of COQ
Failure Costs
$208,000
65.2% of COQ
COQ per Unit
$31.90
per 10000 units
COQ Breakdown
Cost Comparison
Cost Category Breakdown
Quality Maturity Assessment
Reactive
Quality issues costing significantly
COQ vs Revenue
16.0%
Conformance Ratio
34.8%
Failure Ratio
65.2%
Cost Analysis Summary
Cost Distribution
Financial Impact
Cost Component Analysis
Quality Risk Assessment
High External Failure Costs
External failures are 1.4x higher than prevention costs. Invest in prevention to reduce customer impact.
High Failure Cost Ratio
Failure costs represent 65.2% of total quality costs. Focus on improving quality processes and prevention.
Excessive Quality Costs
Quality costs exceed 15% of revenue. Implement immediate quality improvement initiatives.
Industry Benchmarks
Compare your quality costs with industry standards
COQ as % of Sales - Industry Standards
World Class
2-4%
16.0%
Average
5-10%
16.0%
Poor
>15%
16.0%
Optimal COQ Distribution
Ideal Distribution
Your Distribution
Quality Improvement Recommendations
Failure Costs
High PriorityHigh failure costs indicate poor quality control. Invest in prevention activities.
Prevention Investment
Medium PriorityIncrease prevention investment to reduce expensive failure costs.
Overall COQ
High PriorityQuality costs are too high. Implement comprehensive quality improvement program.
Investment Priority Matrix
High Impact Investments
Quality Training Programs
ROI: 3-5x through reduced rework and improved productivity
Process Automation
ROI: 2-4x through consistent quality and reduced inspection
Supplier Quality Management
ROI: 4-6x through reduced material defects
Quick Wins
Standardize Inspection Procedures
Reduce appraisal costs by 10-15%
Implement Root Cause Analysis
Reduce internal failures by 20-30%
Customer Feedback Integration
Reduce external failures by 25-35%
Implementation Roadmap
Short Term (0-3 months)
- • Establish quality metrics and baseline measurements
- • Train team on quality cost awareness
- • Implement quick wins identified above
Medium Term (3-12 months)
- • Invest in prevention and appraisal activities
- • Implement quality management system
- • Develop supplier quality program
Long Term (1-3 years)
- • Achieve world class quality metrics
- • Implement continuous improvement culture
- • Integrate quality into strategic planning