Calculating the Cost of Quality – Post #3 of 3

Abstract business background.

So what if we know about this ‘Cost of Quality’ concept? What’s in it for me? Well, if we can figure out what it is, maybe we can find ways to reduce it. Let’s see…

Deborah Kacera, Regulatory & Industry Strategist, Pilgrim Quality Solutions, has created a formula:

Cost of Quality = Cost of Poor Quality + Cost of Good Quality

So this means that we need to be able to measure the cost of non-conformances accurately and balance that against the investments we make in preventing them.

Why bother? Because quality guru Philip Crosby, and the FDA ‘Case for Quality’ have shown that the COQ for an organization can range from 3 to 25% of a company’s revenue. This is worth looking at to see if we can make some improvements. What’s your revenue? How much is at stake at 25%? Hmmm…might be a way to make some improvements and drive some $ to the bottom line!

We’d like to invite you to our FREE WEBINAR on September 28th, 2020 at 12:00 noon EDT. Sign up here and bring your comments:


Formula source:


Trying this list to see if the bullets behave:

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