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CoGQ vs. CoPQ

Discussion in 'Other Quality and Business Related Topics' started by Colin Pitman, Oct 12, 2021.

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  1. Colin Pitman

    Colin Pitman Member

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    Hi all, I have been working on a project that calculates both Cost of Good Quality and Cost of Bad Quality. My MD then asked if there is a natural/ideal ratio between CoGQ and CoPQ across wider industry (specifically manufacturing).

    I wasn't able to answer.

    Thinking about it since, I know that you can draw two hypothetical curves and the ideal CoQ is simply the lowest point of the sums. But I imagine that from company to company, the CoGQ and CoPQ curves will each be different, which will make for different ratios where the CoQ is lowest.

    I haven't found any studies done specifically on the ratio. Is it simply because there is no natural ideal?

    I appreciate your thoughts
     
  2. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Colin, I've never seen - in 40+ years in Quality - anyone calculate the COGQ. Classically, Quality Costs are categorized as Prevention, Appraisal and Failure (Failure aka COPQ)
     
    Last edited: Oct 18, 2021
  3. Bev D

    Bev D Moderator Staff Member

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    Correction: prevention, appraisal and failure = COQ
    Appraisal and failure costs = COPQ.

    Prevention is considered ‘the cost of doing things right’ or good quality. However be careful: prevention includes actions taken before and after failures and are quite extensive. From training operators to adhering to science to maintenance, FMEA, error proofing, etc.