Cost of Quality (COQ) – Reducing Costs the Smart Way (7 hrs)

Course Code: TM-COQR-I-01

In-Company Training

Cost is a key factor that drives an organisation’s competitiveness. It is crucial for companies to manage their operations efficiently and minimise costs. Organisations must look into ways to implement quality improvement and cost reduction programmes to sustain business success at all times, be it during downturns or during market growth.

The primary objective of measuring Cost of Quality (COQ) is to quantify the financial impact of quality at every stage of operations from start to end. Implementing a COQ system would enable organisations to link their quality improvement efforts to cost reductions.

  • Identify major cost components related to the Cost Of Non-Conformance (CONC) and Cost Of Conformance (COC)
  • Acquire skills to identify and collect cost and COQ information
  • Analyse the COQ information and relate the data to performance metrics
  • Implement COQ to reduce costs

Introduction

  • Cost of quality
  • Quality and conformance
  • The consequences of non-conformance
  • Components of COQ
  • Quality measures

Phase 1: Identifying COQ items

  • The cost of poor quality
  • Internal and external failure
  • The cost of achieving good quality
  • Prevention and appraisal costs
  • The 7 wastes

Phase 2: Collecting COQ information

  • COQ and financial analysis
  • Collecting COQ data
  • Quality costs and quality indices
  • Computing COQ
  • 4 methods of quality costing
    – Whole account
    – Unit pricing
    – Whole person
    – Resource claim

Phase 3: Analysing Cost of Quality data

  • Trend analysis
  • Pareto analysis
  • Setting targets for improvement

Phase 4: Improving quality and reducing costs

  • Tools and techniques
  • Preventive systems
  • The cost of quality scorecard
  • Resource claim

Various interactive activities, group discussions, class exercise and case studies are used to enable participants to learn the concepts, tools and techniques.

This course is suitable for managers, supervisors and executives who are interested and / or involved in the implementation and management of the Cost of Quality process in their organisations.

Duration : 1 day (7 hrs)
Time : 9:00am – 5:00pm

Course Fee : $320.00
Nett Fee Incl. 7% GST : $342.40

 for more information.

Key Benefits
  • Identify major cost components related to the Cost Of Non-Conformance (CONC) and Cost Of Conformance (COC)
  • Acquire skills to identify and collect cost and COQ information
  • Analyse the COQ information and relate the data to performance metrics
  • Implement COQ to reduce costs
Course Contents

Introduction

  • Cost of quality
  • Quality and conformance
  • The consequences of non-conformance
  • Components of COQ
  • Quality measures

Phase 1: Identifying COQ items

  • The cost of poor quality
  • Internal and external failure
  • The cost of achieving good quality
  • Prevention and appraisal costs
  • The 7 wastes

Phase 2: Collecting COQ information

  • COQ and financial analysis
  • Collecting COQ data
  • Quality costs and quality indices
  • Computing COQ
  • 4 methods of quality costing
    – Whole account
    – Unit pricing
    – Whole person
    – Resource claim

Phase 3: Analysing Cost of Quality data

  • Trend analysis
  • Pareto analysis
  • Setting targets for improvement

Phase 4: Improving quality and reducing costs

  • Tools and techniques
  • Preventive systems
  • The cost of quality scorecard
  • Resource claim
Learning Methodology

Various interactive activities, group discussions, class exercise and case studies are used to enable participants to learn the concepts, tools and techniques.

Who Should Attend

This course is suitable for managers, supervisors and executives who are interested and / or involved in the implementation and management of the Cost of Quality process in their organisations.

Course Details

Duration : 1 day (7 hrs)
Time : 9:00am – 5:00pm

Course Fee : $320.00
Nett Fee Incl. 7% GST : $342.40

 for more information.