What is the COQ (cost of quality) framework?

What is the COQ (cost of quality) framework?

• A. Classification: development, production, disposal, support.
• B. Classification: direct, indirect, overhead, discretionary.
• C. Classification: supplier, customer, channel, product.
• D. Classification: prevention, appraisal, internal failure, external failure.

Answer: (D)

Cost of quality divides quality-related costs into four kinds: prevention, appraisal, internal failure, and external failure. Prevention costs are the investments made to stop defects from occurring in the first place, like training, process improvement, and quality planning. Appraisal costs cover activities that identify defects through inspection and testing, such as supplier audits and product testing. Internal failure costs are the defects found before the product reaches the customer, including scrap, rework, and downtime. External failure costs occur after the product has reached the customer, such as warranties, returns, recalls, and field service. These four categories sum to the total cost of quality, and focusing on preventing defects and improving appraisal can reduce internal and external failures, lowering overall costs. The other options describe different, non-COQ classifications (general cost types or stakeholder/product groupings) and don’t reflect the four-part COQ structure.

Cost of quality divides quality-related costs into four kinds: prevention, appraisal, internal failure, and external failure. Prevention costs are the investments made to stop defects from occurring in the first place, like training, process improvement, and quality planning. Appraisal costs cover activities that identify defects through inspection and testing, such as supplier audits and product testing. Internal failure costs are the defects found before the product reaches the customer, including scrap, rework, and downtime. External failure costs occur after the product has reached the customer, such as warranties, returns, recalls, and field service. These four categories sum to the total cost of quality, and focusing on preventing defects and improving appraisal can reduce internal and external failures, lowering overall costs. The other options describe different, non-COQ classifications (general cost types or stakeholder/product groupings) and don’t reflect the four-part COQ structure.