KC 1.3.2.2 - Cost of Quality (Contd..)

Just came across this S/W Quality Icerberg - showing the importance of internal Quality maintenance which is invisible to the external agent. Looking at this iceberg, the amount by which the Orgnanisation spends towards reducing the Cost of Poor Quality should idealy be more compared to the cost incurred in meeting the external defects identified.

Read more on this Quality Icerberg here:
http://www.asq.org/pub/qualityprogress/past/0501/qp0501defeo.pdf

The Total Quality View is given in the figure below. Realize from the figure that as the emphasis on Prevention & Appraisal Cost is increasing, the failure cost is reducing at a linear slope. Also see the slope of the Prevention & Appraisal Cost is less than that of the Cost of Failure which clearly indicates the cost reduction because of the difference in slope gives you the net profit. Also shown below is the ideal divisions among the different Costs of Quality.
















Interested ones can go to this to find out why more organisations cannot use it effectively.
http://www.asq.org/ed/conferences/aqc/public_proceedings/57_2003/19384.pdf