1. Cost of Quality An overview of non-value added costs and what to do with them

3. Cost of Quality Concepts As the concept of measuring quality costs evolved and practiced, several findings became evident. The most notable are as follows:

9. The Quality-Productivity Model Quality and productivity are connected as described in the following relationship that was presented by W. Edwards Deming

11. WORKSHOP Value Added (VA) or Non-Value Added (N)

14. COQ-1 Quality and Productivity The Three Sources of Cost Reduction Opportunities

19. Brainstorming with Cross-Functional Teams “Silent” Brainstorming

23. Activity-Based Costing Traditional cost systems use a two-stage process to allocate costs.

24. Activity-Based Costing

26. Developing an Activity-Based Cost System

30. Formalize the Information Gathering Strategy Central Information System:

32. The COQ Report

34. Improvement Opportunities Pareto charts or pie charts are excellent tools for identifying the most important improvement opportunities . September Quality Costs $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Secondary Quality Reviews Machine room Damage Contaminated filters Dropped Elements Poor resistance Low wafer yield No Customer Filters Stock Out Poor Bond Derbies Too much glue Cracked Cans Bad filters

35. COQ-6: Problem Solving Strategies

37. Summaries for each Individual Measurement

38. Individual Measurements