{"id":9291,"date":"2023-09-05T12:15:41","date_gmt":"2023-09-05T10:15:41","guid":{"rendered":"https:\/\/wats.com\/?p=9291"},"modified":"2023-09-05T15:44:09","modified_gmt":"2023-09-05T13:44:09","slug":"understanding-the-cost-of-good-quality-cogq-in-manufacturing","status":"publish","type":"post","link":"https:\/\/wats.com\/understanding-the-cost-of-good-quality-cogq-in-manufacturing\/","title":{"rendered":"Understanding the Cost of Good Quality (CoGQ) In Manufacturing"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]When there are so many providers of almost every product, manufacturers are under significant pressure to stay not just price-competitive but also to ensure that their products are of the highest quality. This got us thinking about the Cost of Quality (CoQ), a principle that underscores the significance of preventive measures over costly fixes after the fact. Today, we\u2019re getting into the Cost of Good Quality CoGQ, ready to get started?<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]\n

Challenges of Overlooking Quality<\/h2>\n

In an attempt to keep up with demand, there are some manufacturers that opt to cut costs and compromise on quality, only to later face huge post-production costs in the form of returns and repairs. This is where the CoQ saying, “Pay Me Now or Pay Me Later”, fits perfectly. In the long run, these organizations encounter increased warranty costs, potential product recalls, and a loss of brand reputation, the last of which is perhaps the hardest to fix.<\/p>\n

Goodbye, profit margins\u2026<\/p>\n

Understanding Cost of Quality (CoQ)<\/h2>\n

At its core, CoQ is a methodology that helps organizations understand how their resources are allocated towards preventive measures and maintaining product quality versus the costs stemming from failures. CoQ can be broken down into:<\/p>\n

CoQ = CoGQ (Cost of Good Quality) + CoPQ (Cost of Poor Quality)<\/p>\n

Though the equation is very straightforward, the underpinnings of CoQ are unsurprisingly very complicated, particularly at the scale many manufacturers operate at. It encompasses costs linked to preventive measures, process controls, and costs related to both internal and external failures \u2013 so its information is held deep within organizations and often siloed, making it hard to collate.<\/p>\n

We\u2019re going to cover the Cost of Poor Quality (CoPQ) in another blog, so be sure to check that out too.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]\n

Measuring the Cost of Good Quality (CoGQ)<\/h2>\n

CoGQ focuses on two key areas: Prevention Costs and Appraisal Costs.<\/p>\n

Prevention Costs: These are costs incurred from minimizing failures and can include:[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”]

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