Cost of quality

Cost of quality includes the project and the product life cycle cost which are attributed because of the quality. There are two parameters under Cost of Quality. One is Cost of Conformance and second is Cost of non-conformance. Cost of conformance is to prevent the defects and cost of non- conformance is because of the defects. Cost of non-conformance is also called as cost of poor quality.

Examples for cost of conformance are training, testing, documentation, reviews, etc.. which help in preventing the defects.

Examples for cost of non-conformance are rework, wastages or scrapping of materials, warranty cost, business loss.

Cost of Quality technique is used under the processes Estimate Costs and Plan Quality Management.