Cost of Quality

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tvn
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Cost of Quality

Post by tvn » Wed 01 Apr, 2015 5:45 pm

DEFINITION

Cost of Quality (COQ) is a measure that quantifies the cost of control/conformance and the cost of failure of control/non-conformance. In other words, it sums up the costs related to prevention and detection of defects and the costs due to occurrences of defects.

Definition by ISTQB:
  • cost of quality: The total costs incurred on quality activities and issues and often split into prevention costs, appraisal costs, internal failure costs and external failure costs.

EXPLANATION
  • Cost of Control (Also known as Cost of Conformance)
    • Prevention Cost
      • The cost arises from efforts to prevent defects.
        Example: Quality Assurance costs
      Appraisal Cost
      • The cost arises from efforts to detect defects.
        Example: Quality Control costs
    Cost of Failure of Control (Also known as Cost of Non-Conformance)
    • Internal Failure Cost
      • The cost arises from defects identified internally and efforts to correct them.
        Example: Cost of Rework (Fixing of internal defects and re-testing)
      External Failure Cost
      • The cost arises from defects identified by the client or end-users and efforts to correct them.
        Example: Cost of Rework (Fixing of external defects and re-testing) and any other costs due to external defects (Product service/liability/recall, etc)
FORMULA / CALCULATION
  • Cost of Quality (COQ) = Cost of Control + Cost of Failure of Control
where
  • Cost of Control = Prevention Cost + Appraisal Cost
and
  • Cost of Failure of Control = Internal Failure Cost + External Failure Cost
Nguon: http://softwaretestingfundamentals.com/cost-of-quality/



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