The cost of quality (COQ) refers to the cumulative costs required to ensure a project meets defined standards, and includes prevention costs to stop errors proactively, appraisal costs to check for errors, and failure costs associated with errors that actually occur. Prevention costs relate to activities that prevent poor quality, appraisal costs cover evaluation and testing, and failure costs stem from nonconformance to stakeholder needs.

1. Project Management
Key Concepts

2. Cost of Quality

3. What is it?
Cost of Quality is the cumulative cost required to bring
poor quality service or products up to the standards
defined by the project.
Cost of Quality

4. The cost of quality (COQ) associated with a project
can consist of one or more costs:
1. Prevention costs
2. Appraisal costs
3. Failure costs
Cost of Quality

5. Cost of Quality
Prevention costs
Costs related to the prevention of poor quality in
the products, deliverables, or services of the
specific project.
We are wanting to stop an error before it
happens.

6. Cost of Quality
Appraisal costs
Costs related to evaluating, measuring, auditing, and testing
the products, deliverables, or services of the specific project.
We are checking to see if errors are made.

7. Cost of Quality
Failure costs
Costs related to nonconformance of the products,
deliverables, or services to the needs or expectations of the
stakeholders.
This is the cost of when an error actually happens.