Cost of Quality

Cost of Quality refers to the total expenses associated with ensuring a product or service meets quality standards. It includes costs to prevent defects (like training and quality planning), costs to identify issues through inspections and testing, and costs resulting from defects that reach customers, such as returns and warranty claims. Managing these costs helps organizations improve products, satisfy customers, and reduce expenses related to errors and rework. Essentially, it’s an investment in delivering consistent, reliable quality while minimizing mistakes and associated costs.