PMP® Exam Tip: Cost of Nonconformance
There are two separate components within Cost of
Quality (COQ). We looked at the Cost of Conformance in
our last tip and this time we’ll focus on the Cost of
Nonconformance. The Cost of Conformance is focused
on avoiding potential failures and the Cost of
Nonconformance is the cost incurred as a result of any
failures because the quality expectations were not met.
This “failure” is really easy to understand: You built a
product, service or result through your product and it
failed to meet quality expectations. Now you have to fix
it, which is going to cost you.
There are both internal and external costs related to
failure. Internal costs are those identified within the
scope of the project. This includes things like the time
and money it will take to rework part of the project. It
also includes any cost involved if you have to throw
away parts of your project work, which is officially called
External failure costs are those identified after the product or service has been delivered to the
customer. This includes things like warranty fulfillment, liability costs and the potential of a loss
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