Cost of Quality Worksheet
Purpose: To evaluate the true costs of a defect or error. This is the foundation of making a business case for the change.
QI Macros Cost of Quality Worksheet Template for Excel
To Complete the Cost of Quality Worksheet
- Identify each step in the Fix-it process.
- Assign a time in minutes to each task and a loaded rate.
- Identify any material costs associated with each step.
- Identify any external costs of this failure.
- Identify any lost opportunity, asset, or business costs.
- Set a target for reducing the error (e.g., 50%).
- Estimate the total cost of achieving this level of prevention.
- Evaluate ROI and payback period.