Cost reductions, Cost savings, Cost management and “Cost benefit” are all frequently used mantras used alongside quality, in most of the organizations that strive to remain both competitive and profitable in today's fast changing business environment.


It is a key challenge to craft a formal strategy capable of achieving quality and cost reduction that achieves customer satisfaction and expectations.


viable products +  competitive price = customer satisfaction


Costs which are related to Quality must be identified and factored into the price factor. These Quality related costs, (COQ) are then measured and analyzed to ensure a product not only meets the required quality level but also satisfies customers in term of cost.


By having a regard for COQ, mangement has a way to gage effectiveness and indicate the extent of the quality management system. Knowing such costs enables managers to make improvements and/or modifications to processes and products.



Some commonly used COQ:


  • quality costs
  • cost of poor quality
  • price of non conformanc
  • poor quality cost
  • economics of quality