Cost of quality (COQ) - Revision history

Designing Buildings at 07:19, 16 December 2020

2020-12-16T07:19:37Z

← Older revision		Revision as of 07:19, 16 December 2020
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	* Structural steelwork: a quality perspective		* Structural steelwork: a quality perspective

−	[[Category:~~Definitions~~]] [[Category:~~DCN_Definition~~]] [[Category:~~Organisations~~]] [[Category:~~DCN_Organisation~~]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

Designing Buildings: Reverted edits by 185.201.60.220 (talk) to last revision by Designing Buildings

2020-01-27T13:21:06Z

Reverted edits by 185.201.60.220 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 13:21, 27 January 2020
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	* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.		* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.
−	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing ~~(FAT = Factory Acceptance Test; use FAT for Off-site fabricated elements and UAT = User Acceptance Tests for the whole systems when installed)~~ and internal audits (checking that processes and systems are still working), verifying and validating.	+	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing and internal audits (checking that processes and systems are still working), verifying and validating.
	* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.		* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.
	* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.		* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.
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	* Structural steelwork: a quality perspective		* Structural steelwork: a quality perspective

−	[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]	+	[[Category:Definitions]] [[Category:DCN_Definition]] [[Category:Organisations]] [[Category:DCN_Organisation]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

185.201.60.220 at 18:55, 26 January 2020

2020-01-26T18:55:11Z

← Older revision		Revision as of 18:55, 26 January 2020
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	* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.		* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.
−	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing (FAT = Factory Acceptance Test; ~~it might be more appropriate in construction to~~ use FAT for Off-site fabricated elements and UAT = User Acceptance Tests for the whole systems when installed) and internal audits (checking that processes and systems are still working), verifying and validating.	+	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing (FAT = Factory Acceptance Test; use FAT for Off-site fabricated elements and UAT = User Acceptance Tests for the whole systems when installed) and internal audits (checking that processes and systems are still working), verifying and validating.
	* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.		* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.
	* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.		* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.

185.201.60.220 at 18:53, 26 January 2020

2020-01-26T18:53:54Z

← Older revision		Revision as of 18:53, 26 January 2020
Line 24:		Line 24:

	* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.		* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.
−	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing and internal audits (checking that processes and systems are still working), verifying and validating.	+	* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing (FAT = Factory Acceptance Test; it might be more appropriate in construction to use FAT for Off-site fabricated elements and UAT = User Acceptance Tests for the whole systems when installed) and internal audits (checking that processes and systems are still working), verifying and validating.
	* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.		* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.
	* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.		* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.

Designing Buildings at 06:48, 24 January 2020

2020-01-24T06:48:31Z

← Older revision		Revision as of 06:48, 24 January 2020
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	-----		-----
−	This article was originally written by Alan Grogan on behalf of the CQI ~~[https://www.designingbuildings.co.uk/wiki/~~Construction ~~Construction]~~ Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.	+	This article was originally written by Alan Grogan on behalf of the CQI Construction Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.

	--[[User:ConSIG_CWG\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)		--[[User:ConSIG_CWG\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)
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	* Stakeholder management: a quality perspective		* Stakeholder management: a quality perspective
	* Structural steelwork: a quality perspective		* Structural steelwork: a quality perspective
−	* Why should quality be important to the construction industry

	[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]		[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

Designing Buildings at 06:47, 24 January 2020

2020-01-24T06:47:22Z

← Older revision		Revision as of 06:47, 24 January 2020
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	The PAF(F) model stands for prevention, appraisal & failure (internal & external - hence the extra `F`) which are the main elements of breaking down COQ. Figure 1 attempts to identify some of the potential costs and categorises them in the PAF(F) model.		The PAF(F) model stands for prevention, appraisal & failure (internal & external - hence the extra `F`) which are the main elements of breaking down COQ. Figure 1 attempts to identify some of the potential costs and categorises them in the PAF(F) model.

−	~~===~~ Figure 1 - Examples of PAF(F) costs ~~===~~	+	Figure 1 - Examples of PAF(F) costs

	[[File:Cost_of_quality_Figure_1.png\|link=File:Cost_of_quality_Figure_1.png]]		[[File:Cost_of_quality_Figure_1.png\|link=File:Cost_of_quality_Figure_1.png]]
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	The real aim of measuring these costs whether at project or business level is that you can identify what the main costs are and to determine opportunities for improvement. Figure 2 shows the model as to how the PAF(F) elements make up the total cost of quality, and that more is spent on failure costs than on prevention & appraisal.		The real aim of measuring these costs whether at project or business level is that you can identify what the main costs are and to determine opportunities for improvement. Figure 2 shows the model as to how the PAF(F) elements make up the total cost of quality, and that more is spent on failure costs than on prevention & appraisal.

−	~~===~~ Figure 2 – Model of current and future costs ~~===~~	+	Figure 2 – Model of current and future costs

	CURRENT COSTS ------------------- FUTURE COSTS		CURRENT COSTS ------------------- FUTURE COSTS
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	= Useful Links =		= Useful Links =

−	[https://asq.org/quality-resources/cost-of-quality https://asq.org/quality-resources/cost-of-quality] - a couple of good videos on this page	+	* [https://asq.org/quality-resources/cost-of-quality https://asq.org/quality-resources/cost-of-quality] - a couple of good videos on this page
−		+	* [https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/ https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/]
−	[https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/ https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/]	+

		+	-----
	This article was originally written by Alan Grogan on behalf of the CQI [https://www.designingbuildings.co.uk/wiki/Construction Construction] Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.		This article was originally written by Alan Grogan on behalf of the CQI [https://www.designingbuildings.co.uk/wiki/Construction Construction] Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.

	--[[User:ConSIG_CWG\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)		--[[User:ConSIG_CWG\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)
		+
		+	= Related articles on Designing Buildings Wiki =
		+
		+	* CDM Regulations: a quality perspective
		+	* Change control: a quality perspective
		+	* Collaboration: a quality management perspective
		+	* Design freeze: a quality perspective
		+	* Design: a quality management perspective
		+	* Digital quality management in construction
		+	* Lifts and Escalators: A Quality Perspective
		+	* Mobilisation to site: a quality perspective
		+	* Quality culture and behaviours
		+	* Quality manuals and quality plans
		+	* Quality tools: fishbone diagram
		+	* Stakeholder management: a quality perspective
		+	* Structural steelwork: a quality perspective
		+	* Why should quality be important to the construction industry

	[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]		[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

ConSIG CWG at 13:01, 15 January 2020

2020-01-15T13:01:01Z

← Older revision		Revision as of 13:01, 15 January 2020
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	=== Figure 2 – Model of current and future costs ===		=== Figure 2 – Model of current and future costs ===

−	CURRENT COSTS FUTURE COSTS	+	CURRENT COSTS ------------------- FUTURE COSTS

	[[File:Cost_of_quality_Figure_2.png\|link=File:Cost_of_quality_Figure_2.png]]		[[File:Cost_of_quality_Figure_2.png\|link=File:Cost_of_quality_Figure_2.png]]

ConSIG CWG at 12:59, 15 January 2020

2020-01-15T12:59:24Z

← Older revision		Revision as of 12:59, 15 January 2020
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−	== What is cost of quality (COQ)? ==	+	= What is cost of quality (COQ)? =

	More accurately the question should be `What is the cost of poor quality?` or even `What is the cost of not getting it right first time?`. The principle of COQ is quite simple as it is often described by using the PAF(F) model (see below), ie the total cost of getting it right plus the additional costs of getting it wrong. The three main areas of the PAF model are:		More accurately the question should be `What is the cost of poor quality?` or even `What is the cost of not getting it right first time?`. The principle of COQ is quite simple as it is often described by using the PAF(F) model (see below), ie the total cost of getting it right plus the additional costs of getting it wrong. The three main areas of the PAF model are:
Line 11:		Line 11:
	Measuring these costs is not so easy to do and requires a lot of effort but the benefits are considerable as this is the language of money - the language that the boardroom understands!		Measuring these costs is not so easy to do and requires a lot of effort but the benefits are considerable as this is the language of money - the language that the boardroom understands!

−	== History of COQ ==	+	= History of COQ =

	Dr Joseph Juran (one of the eminent quality management Gurus) introduced the concept of COQ in his `Quality Control Handbook` in the 1950s which has been developed over the years and was incorporated in the US MIL standards (Department of Defence) in 1963. Dr Armand Feigenbaum introduced the concept of the `hidden plant` in his book `Total Quality Control` in 1951 quoting a figure of 40% of the plant is wasted by not getting it right first time. The American Society for Quality (ASQ) published `Quality Costs - What and How` in 1967 and over the years ASQ has become the recognised authority for the use of quality cost systems.		Dr Joseph Juran (one of the eminent quality management Gurus) introduced the concept of COQ in his `Quality Control Handbook` in the 1950s which has been developed over the years and was incorporated in the US MIL standards (Department of Defence) in 1963. Dr Armand Feigenbaum introduced the concept of the `hidden plant` in his book `Total Quality Control` in 1951 quoting a figure of 40% of the plant is wasted by not getting it right first time. The American Society for Quality (ASQ) published `Quality Costs - What and How` in 1967 and over the years ASQ has become the recognised authority for the use of quality cost systems.

−	== PAF(F) model ==	+	= PAF(F) model =

	The PAF(F) model stands for prevention, appraisal & failure (internal & external - hence the extra `F`) which are the main elements of breaking down COQ. Figure 1 attempts to identify some of the potential costs and categorises them in the PAF(F) model.		The PAF(F) model stands for prevention, appraisal & failure (internal & external - hence the extra `F`) which are the main elements of breaking down COQ. Figure 1 attempts to identify some of the potential costs and categorises them in the PAF(F) model.
Line 21:		Line 21:
	=== Figure 1 - Examples of PAF(F) costs ===		=== Figure 1 - Examples of PAF(F) costs ===

−	[[File:~~Cost of quality Figure 1~~.png]]	+	[[File:Cost_of_quality_Figure_1.png\|link=File:Cost_of_quality_Figure_1.png]]

	* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.		* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.
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	* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.		* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.

−	== Benefits ==	+	= Benefits =

	The real aim of measuring these costs whether at project or business level is that you can identify what the main costs are and to determine opportunities for improvement. Figure 2 shows the model as to how the PAF(F) elements make up the total cost of quality, and that more is spent on failure costs than on prevention & appraisal.		The real aim of measuring these costs whether at project or business level is that you can identify what the main costs are and to determine opportunities for improvement. Figure 2 shows the model as to how the PAF(F) elements make up the total cost of quality, and that more is spent on failure costs than on prevention & appraisal.
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	CURRENT COSTS FUTURE COSTS		CURRENT COSTS FUTURE COSTS

−	[[File:~~Cost of quality Figure 2~~.png]]	+	[[File:Cost_of_quality_Figure_2.png\|link=File:Cost_of_quality_Figure_2.png]]

	Ideally the business wants to be able to spend more money on prevention to reduce the level of failure costs which will ultimately mean cost savings. This is a great opportunity for the quality team to `add value` to the business.		Ideally the business wants to be able to spend more money on prevention to reduce the level of failure costs which will ultimately mean cost savings. This is a great opportunity for the quality team to `add value` to the business.

−	== Practical Tips ==	+	= Practical Tips =

	* Measuring COQ for the whole business is not for the faint-hearted as determining all the costs requires input from many departments in the business		* Measuring COQ for the whole business is not for the faint-hearted as determining all the costs requires input from many departments in the business
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	* Concentrate on measuring specific repeatable activities rather than `one-off` failures as these will generate long term savings that will last forever.		* Concentrate on measuring specific repeatable activities rather than `one-off` failures as these will generate long term savings that will last forever.

−	== Useful Links ==	+	= Useful Links =

	[https://asq.org/quality-resources/cost-of-quality https://asq.org/quality-resources/cost-of-quality] - a couple of good videos on this page		[https://asq.org/quality-resources/cost-of-quality https://asq.org/quality-resources/cost-of-quality] - a couple of good videos on this page
Line 55:		Line 55:
	This article was originally written by Alan Grogan on behalf of the CQI [https://www.designingbuildings.co.uk/wiki/Construction Construction] Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.		This article was originally written by Alan Grogan on behalf of the CQI [https://www.designingbuildings.co.uk/wiki/Construction Construction] Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.

−	--[[User:~~ConSIG CWG~~\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)	+	--[[User:ConSIG_CWG\|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)

	[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]		[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]

ConSIG CWG: Created page with "== What is cost of quality (COQ)? == More accurately the question should be `What is the cost of poor quality?` or even `What is the cost of not getting it right first time?`. T..."

2020-01-15T12:56:29Z

Created page with "== What is cost of quality (COQ)? == More accurately the question should be `What is the cost of poor quality?` or even `What is the cost of not getting it right first time?`. T..."

New page

== What is cost of quality (COQ)? ==

More accurately the question should be `What is the cost of poor quality?` or even `What is the cost of not getting it right first time?`. The principle of COQ is quite simple as it is often described by using the PAF(F) model (see below), ie the total cost of getting it right plus the additional costs of getting it wrong. The three main areas of the PAF model are:

# Failure: costs of defects whether we see them internally (eg cost of any reject products we make that we find ourselves) or externally (eg rejects that we have missed but has ended up with the customer)
# Appraisal: cost of measuring or monitoring (eg inspection of the product, auditing the process to make sure the system performs correctly)
# Prevention: cost of preventing defects (eg designing or planning to make it difficult to create defects); note: this is a positive cost which if implemented correctly will reduce the failure-cost reducing the total COQ.

Note: this is a very generic and simplified explanation of the costs required to be measured but it is important to get a visualisation of the process.

Measuring these costs is not so easy to do and requires a lot of effort but the benefits are considerable as this is the language of money - the language that the boardroom understands!

== History of COQ ==

Dr Joseph Juran (one of the eminent quality management Gurus) introduced the concept of COQ in his `Quality Control Handbook` in the 1950s which has been developed over the years and was incorporated in the US MIL standards (Department of Defence) in 1963. Dr Armand Feigenbaum introduced the concept of the `hidden plant` in his book `Total Quality Control` in 1951 quoting a figure of 40% of the plant is wasted by not getting it right first time. The American Society for Quality (ASQ) published `Quality Costs - What and How` in 1967 and over the years ASQ has become the recognised authority for the use of quality cost systems.

== PAF(F) model ==

The PAF(F) model stands for prevention, appraisal & failure (internal & external - hence the extra `F`) which are the main elements of breaking down COQ. Figure 1 attempts to identify some of the potential costs and categorises them in the PAF(F) model.

=== Figure 1 - Examples of PAF(F) costs ===

[[File:Cost of quality Figure 1.png]]

* Prevention costs are activities that are designed to prevent poor quality from arising in products (and services) so as you can imagine often these costs are realised early in the lifecycle of a project. These can include elements of risk management (FMEA, risk assessments, internal audits etc), planning activities, design (designing to reduce the potential for failure), supplier evaluation, ensuring suppliers have the capabilities to carry out the tasks and even internal audits used to identify concerns ready for mitigation before the process starts.
* Appraisal costs are activities that will be put in place to check or control the products and services, such as inspection, testing and internal audits (checking that processes and systems are still working), verifying and validating.
* Internal failure costs are caused by products (or services) not conforming to requirements before the customer receives delivery. Any process which does not achieve `right first time` can be deemed an internal failure cost such as the requirement to re-design, products that are scrapped or re-worked, downtime for machinery etc.
* External Failure costs are caused by issues caused internally that end up with external customer. These can include the cost of rework, replacement, time spent on customer complaints, reputation costs etc.

== Benefits ==

The real aim of measuring these costs whether at project or business level is that you can identify what the main costs are and to determine opportunities for improvement. Figure 2 shows the model as to how the PAF(F) elements make up the total cost of quality, and that more is spent on failure costs than on prevention & appraisal.

=== Figure 2 – Model of current and future costs ===

CURRENT COSTS FUTURE COSTS

[[File:Cost of quality Figure 2.png]]

Ideally the business wants to be able to spend more money on prevention to reduce the level of failure costs which will ultimately mean cost savings. This is a great opportunity for the quality team to `add value` to the business.

== Practical Tips ==

* Measuring COQ for the whole business is not for the faint-hearted as determining all the costs requires input from many departments in the business
* Measuring COQ within a project is slightly easier but will need the whole team to be bought into the concept. Ideally the costs to measure will need to be identified before the project has started
* Don`t try to measure everything but choose costs which are likely to have an impact, but it is hugely important to measure the costs in a consistent way; eg measuring the cost of customer complaints using the same method at regular intervals
* Concentrate on measuring specific repeatable activities rather than `one-off` failures as these will generate long term savings that will last forever.

== Useful Links ==

[https://asq.org/quality-resources/cost-of-quality https://asq.org/quality-resources/cost-of-quality] - a couple of good videos on this page

[https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/ https://www.isixsigma.com/implementation/financial-analysis/cost-quality-not-only-failure-costs/]

This article was originally written by Alan Grogan on behalf of the CQI [https://www.designingbuildings.co.uk/wiki/Construction Construction] Special Interest Group, reviewed by Luca Fiderio and members of the Competency Working Group and approved for publication by the Steering Committee on 23 November 2019.

--[[User:ConSIG CWG|ConSIG CWG]] 12:56, 15 Jan 2020 (BST)

[[Category:Definitions]] [[Category:Organisations]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]]