The Four Accepted Categories of a Cost of Quality (COQ)

question 108

Essay

The four accepted categories of a Cost of Quality (COQ) Report are: prevention, appraisal, internal failure, and external failure. Assume your cost management instructor has given you an assignment related to COQ. You are to relate each of the cost categories above to the preparation of a class project, which is a study of an actual firm's cost management system. The typical student spends 16 hours researching an identified firm, five hours writing the report, and three hours in revising and presenting the report to the class.
Required:
1. Give an example of prevention, appraisal, internal failure, and external failure costs you might encounter in writing and presenting your report. (Example: "Draw up a time budget with necessary deadlines before starting the report" is an example of a prevention cost.)
2. Which of the four category examples you gave for Requirement (1) above has the greatest cost? What has the least cost? What has the greatest benefit? What has the least benefit? (Example: "Not saving word processing on a hard drive or jump drive" is an example of greatest cost in terms of time.)

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Definitions:

Philosophy

The study of the fundamental nature of knowledge, reality, and existence.

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The process of discussing and coming to mutual agreements on the terms of a formal written agreement between two or more parties, typically countries.

Government Intentions

The planned or proposed objectives and goals of a governing body, often outlined in policy documents, speeches, or legislative actions.

Land And Resources

The natural assets of a geographical area, including its land, water, minerals, and biological resources.