Cost of Quality Notes: Definitions & Explanations PDF | Download eBooks
Study Cost of Quality lecture notes PDF with project management definitions and explanation to study What is Cost of Quality?. Study cost of quality explanation with project management terms to review project management course for online MBA programs.
Cost of Quality Definition:
Cost of Quality involves evaluating the cost impact of additional investment in conformance versus the cost of nonconformance.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Cost of Quality Notes:
In a project, just as important it is to complete the project on time and within budget, it is also important to meet the quality standards associated with the project. Traditionally, costs only referred to the cost of the product/deliverable alone, however, today it includes the maintenance cost, service cost, operating cost of the product in addition to the product's price. This altogether is termed as cost of quality. In project management, the assumptions regarding cost of quality are to be taken into consideration while estimating project's costs. The cost of quality includes three types of costs; prevention cost (related to preventing the poor quality or non-conformance in project deliverables), appraisal cost (related to testing the deliverables for any non-conformity), and failure cost (related to poor quality deliverables provided to the customer).
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