Explain Cost of quality in a company. How would you justify the implementation of cost of quality in a company? The company should follow one of the standards (ISO). Please justify your answer in a matter that you relate the company to what you learned in class. Any cost that would not have been expended if quality were perfect contributes to the cost of quality.

Justification of cost of quality implementation:

There are many justifications given in the book at different places, here are some.

1) Real quality cost will give management in its pursuit of quality improvement and profit contribution because several projects are not done due to poor return on investment. If total quality costs were identified at least some of those projects will make sense.

2) To enhance the ability to manage quality by identifying the hidden costs, may be using Taguchi quality loss function

3) To understand quality related financials better

4) Continuously evaluate and redirect prevention efforts to gain further improvement

5) Direct attack on failure cost to drive then down to zero by doing root cause analysis of all the problems that occur,

6) Reduce appraisal costs,

7) Social responsibility,

8) Health of management performance in several departments of the company,

9) There are many other ISO related justification given in the text book, from page number 23 all the way to page number 30.