The Challenge of Measuring the Cost of Quality

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    Good quality leads to increased productivity and reduced costs, which eventually, through increased customer satisfaction, lead to increased sales, profits and survival in today’s highly competitive market. Some people say quality is free. Others claim it requires an investment. A more accurate assessment is that quality does require an investment but it pays dividends that far outweigh that investment. Early investment in quality avoids excessive costs downstream in the process. One such investment in a quality cost measurement system is considered essential, especially for companies that have no such a system and are continuously looking for means of improving the overall quality process within their operations. This paper discuses three alternative quality cost measurement systems, presents the results of a real case from Greece and explains the benefits and associated risks.
    Original languageEnglish
    Title of host publication4th Annual Quality Congress Middle East
    Place of PublicationDubai, UAE
    Publication statusPublished - 22 Mar 2010


    • Quality Costs, Cost Models, Prevention-Appraisal-Failure Costs


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