Explaining the Cost of Quality, the 4 Cost Categories and Juran’s Quality Cost Curve

Fully explaining the Cost of Quality along with a breakdown of the 4 cost of quality categories, and a list of Quality related activities that call into each of these categories.
0:38 - Intro to the Cost of Quality
2:06 - Prevention Costs
5:08- Appraisal Costs
6:37- Internal Failure Costs
9:00 - External Failure Costs
10:05 - Juran’s Quality Cost Curve
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[@rrboyd10]

This has to be one of the most relevant explanations I have seen. well done.

[@CQEAcademy]

Thanks so much!!

[@irfanali361]

Very Comprehensive and easy to connect with the dots ,Thanks andy you are number 1

[@CQEAcademy]

Wow thank you so much!! I appreciate that!

[@juliecongress6278]

I enjoy all of the explanations and the relatable examples. Thank you!

[@CQEAcademy]

Awesome, thanks Julie!!

[@yashodhauswetakeiyawa8126]

Great explanation.Very clear and informative.Thanks

[@greenbeltacademy]

Thanks so much, I appreciate that!!!!

[@IamJeffPrime]

I have learned so much from your videos. Thank you so much!

[@CQEAcademy]

Awesome, thanks so much for the great feedback, that's what it is all about!

[@ravindrajoshi78]

Excellent as always!! Thank you!!!

[@donpuneetsingh5123]

Cleared my concept, thanks mate

[@CQEAcademy]

You're welcome Donpuneet!!!

[@abdulmohsenalabdulkareem3638]

Amazing and valuable video. Thank you so much

[@andyrobertson566]

You're welcome, I'm glad you liked it!!!

[@arvinderbirsingh8225]

Very Informative video. The concept is nicely explained.

[@CQEAcademy]

Thanks a lot!

[@kaizhang5811]

Thank you so much!

[@tubakzgn1102]

Many thanks !

[@raad9043]

Great explanation!!Thanks

[@CQEAcademy]

Glad it was helpful!

[@innercharm909]

Thanks So helpful 💚 Greetings from Egypt

[@CQEAcademy]

You're welcome, glad you liked it!

[@ihabyousif8776]

That was an amazing explanation!!, Keep it up

[@andyrobertson566]

Will do, thanks Ihab!

[@mikajulin]

Great explanation!

[@CQEAcademy]

Thanks!

[@user-pb1bl9rz2u]

Hi Andy, What a professional you are! Your voice is so clear and easy to understand, the title reflects the information you provide, no annoying background music, you don't make those weird noises (err, mmm, slapping lips...). I'm working in my credentials/requirements to register in your CQE classes. Thank you for sharing your knowledge. God bless.

[@andyrobertson566]

Oh wow, thanks so much Maribel!!! I'm excited to work with you personally and help you pass the CQE exam!!

[@queenejoy]

well explained, thank you engr :)

[@CQEAcademy]

You are welcome! Glad you liked it!

[@clashon141]

Good work 👏. Please keep going 👍

[@CQEAcademy]

Thanks, and will do!!! -Andy

[@monimoyna9864]

Very Nice video..... thanks 🙏

[@CQEAcademy]

You're welcome Moni!!!!

[@a.h.m.shakilaktar6781]

Thank you sir ❤️

[@CQEAcademy]

You're absolutely welcome, it is my pleasure!

[@garaya96]

Great video, I appreciate such a clear explanation. There was another curve (the tradicional curve) that minimized the total quality costs, by combining both of the curves, but the lowest point was in the middle of both. Why is this approach different coming from the same theory?

[@CQEAcademy]

Hey Gabo, that image you're referring to was the original version of this same graph. Juran later revised it so that the lowest cost point was at 100% quality. This reflected the changing attitude towards quality that Juran and other guru's had around that time.

[@zDoubleE23]

How are these costs accounted for? I can understand accounting for scrapped material, but how would you account for all the labor costs associated with reworking, training, and received inspections?

[@saikiranrathod9022]

Great Presentation! I would like to know the quality cost types(4 types) behavior over time...do they increase or decrease or remain the same? Thankyou!

[@CQEAcademy]

Thanks Saikiran, Okay so the answer to that question depends on you. If you're solving problems, and eliminating waste and variation, the cost of poor quality should decrease over time. The cost of good quality might increase slightly, but the total cost of quality should decrease.

[@saikiranrathod9022]

@@CQEAcademy Thankyou

[@CQEAcademy]

@@saikiranrathod9022 You're welcome!!

[@kaizhang5811]

Great video, what is, in your opinion, the advantages and disadvantages of COQ?

[@greenbeltacademy]

Great question - I'm honestly not sure there are any disadvantages, as it's an important mindset/concept to know and use. In terms of advantages, it helps quality professionals talk about quality from a monetary (cost) perspective. This is important because many folks outside of quality only speak the language of money.

[@kaizhang5811]

@@greenbeltacademy Thank you for responding! How about "It does not provide a clear guidance of how to calculate/measure the Cost of Quality and the methods vary from company to company." ?

[@greenbeltacademy]

@@kaizhang5811 That's a great point, I honestly don't think about CoQ as an official financial system because most companies have to legally comply with GAAP and they rarely want to maintain two different perspectives on cost accounting. But you're absolutely right, a lack of standardization is a big downside of the CoQ accounting method.

[@mayrarivera8394]

The graph I couldn’t understand the graph your explanation I understand but not the graph. :/

[@CQEAcademy]

Oh no, sorry about that! I'll have to try and improve the way I explain that curve. I'm assuming here you mean Juran's Quality Cost Curve starting at 10:05. Essentially, Juran took those Quality Cost Concepts (Cost of Poor Quality, Cost of Good quality, and Total Cost of Quality) and created a curve to help folks visualize how those costs would change (increase or decrease) as your overall quality level changed (increased or decreased). -Andy

[@Saffron_Kid]

What about cost of Supervisor. Will it be a Preventive or Appraisal Cost

[@CQEAcademy]

Hey Vikas, that's a great question!! So I think it's impossible to categorize an entire role into one category. Because supervisors do perform activities that fall into the appraisal bucket (confirming work has been done correctly), but they also engage in activities that fall into prevention (continuous improvement).

[@Saffron_Kid]

@@CQEAcademy Thankyou Sir 🙏🏻. Really appreciate you replied to my question. I personally think it would be an Appraisal Cost, as mostly they are involved in supervising the work of labour (i.e. ensuring they are performing as per the required standards). However it was one of my friend who said it will be a Preventive Cost. So just wanted a clarification from an expert like you

[@CQEAcademy]

@@Saffron_Kid Glad I could help!