The cost of quality is comprised of both the costs to improve or ensure quality measures and the costs
associated with a lack of quality. More specifically, the cost of quality might represent the amount of
money a business could lose from a products or services not being done well the first time around. These
costs can include anything from rework to lawsuits resulting from poor quality.
The costs of quality are divided into two major categories: conformance and nonconformance. The cost of
conformance is the amount spent on achieving high–quality products. This category of quality costs is
further divided into prevention and appraisal costs. Prevention costs are those associated with
preventing any defects before they happen, whereas appraisal costs are those incurred in assuring
conformance to quality standards. The cost of nonconformance includes all the expenses that result when
things go wrong. This category of quality costs is also further divided into two subcategories, internal
failure costs and external failure costs. Internal failure costs occur before the product is sent to the
customer, whereas external failure costs arise from product failure at the customer’s location.
The best strategy to decrease the costs associated with software quality involves:
·Avoiding any failure costs by driving defects to zero
·Investing in prevention activities to improve quality
·Reducing appraisal costs as quality improves
·Continuously evaluating and altering preventive efforts for more improvement
W. Edwards Deming, who received a PhD in mathematics from Yale University in 1928, is probably best
known for his 14 points of quality. In addition to his academic appointments as a statistician and quality
expert, as well as his numerous books, Deming achieved worldwide prominence and became known as
the “prophet of quality.” He played a significant role in the economic resurgence in Japan following
World War II, where he served as a consultant to Japanese industry. This role is particularly noteworthy
because Deming‘s management philosophies had a significant impact on Japanese business thinking
and, as a result, on global trade as corporations competed on quality.
Dr. Joseph Juran is often credited with adding the human element to what was previously a statistical
view of project quality. Dr. Juran is further credited with the Pareto Principle, or the 80/20 rule, a quality
tool. Juran authored both the Quality Control Handbook and the Juran Trilogy. The Juran Trilogy was
accepted worldwide as a model for quality management; it focused on the three areas of quality
planning, quality improvement, and quality control.
Philip B. Crosby dedicated his career to convincing managers that preventing problems was cheaper
than fixing them. In his groundbreaking work Quality is Free (1979), Crosby defined quality in an
absolute way so that companies could readily see whether or not quality existed in the workplace using
four absolutes of quality management.
Kaoru Ishikawa is best known for his cause–and–effect diagram, also called a fishbone diagram, a
diagramming technique used to explore potential and real causes of problems. The fishbone diagram
typically organizes problems into categories relevant to the industry. Ishikawa was also known for his
insistence that quality could always be taken one step farther. Ishikawa expanded on Deming’s
plan–do–check–act model to create an actionable list of six items.