Cost of Quality: A Survey of Models and Best Practices

The objective of this article is to provide a better understanding of cost of quality (CoQ) methods by presenting a survey of published literature with specific emphasis on CoQ models and best practices, and by contributing four examples of company best practices in the area of quality management. Even though the survey shows an interest by the academic community, a CoQ approach is not utilized in most quality management programs. The outcome of a study of best practices at four Canadian companies agrees. The companies use systematic quality initiatives; however, a formal CoQ methodology was only used at one company. Companies that did adopt a CoQ approach were successful in reducing CoQ and improving product quality for the customer.