How does quality affect the bottom line of your organization?
Organizations have used the Cost of Quality methodology to answer that question to determine the costs incurred in creating quality products and the costs of creating a product that fails certain quality standards.
We’d like to know more about the most common factors contributing to the Cost of Quality in different organizations. This survey will ask questions related to external failure costs.
External failure costs involve correcting defects or errors discovered by customers themselves. These costs arise when products and services fail to meet certain quality standards but are unknown to the organization until the customer detects them.
About the Cost of Quality
In its simplest form, the Cost of Quality is measured as the sum of the Cost of Good Quality and the Cost of Poor Quality.
Cost of Quality = Cost of Good Quality + Cost of Poor Quality
With a better understanding of the costs of quality, organizations have an opportunity to improve their operations, reducing costs and maintaining quality in the process.
If you’d rather skip to the full survey covering all cost of quality categories and gain access to the full report, click here.