Quality cost analysis report

Quality cost analysis report


What is quality cost?


What is definition of quality cost?



Quality cost is calculation of the total cost of quality improvement concern financially effort in a process improvement to engage high quality product.


What is quality cost analysis?


Quality cost analysis is identify treats that reflects quality cost to concentrate on cost that assist for improve quality product.

Quality Cost Analysis Report Format

Quality cost analysis, is basically a data collection from the various sites for calculation of the each amounting used for quality concern there two types of the costs are identified that to quality concern


  1. Cost of poor quality
  2. Cost of quality


What is cost of poor quality?


Cost of poor quality is the total cost of the used to re-arrange product to meet the quality criteria, poor quality that should be count on below situations:

  1. internal failures
  2. external failures


In the internal failures is the in-house processing cost happen after the product failure to met quality standards criteria, for the internal failures basically happen as below:

  1. Over heads
  2. Rework
  3. Scrap
  4. inspection on rework


As same of the internal failures, external failures are cost of the done by out side of company premises as below:


  1. Customer return scrap
  2. Customer return rework
  3. Transportation
  4. packing cost
  5. overheads


For the calculation of the cost of poor quality is simple system that plus all amounts in single line under both above heads.


A second part of analysis calculation is the cost of quality is real used of the money behind the improvement of quality product that is also defined in two deferent titles:

1. Evaluation cost

2. Preventive cost


Evaluation cost, major costs are used as follows:

  1. inspection cost
  2. material testing cost
  3. product quality
  4. calibration


Preventive Cost

  1. System cost
  2. Trainings
  3. maintaining quality
  4. internal quality audit
  5. supplier evaluation


quality costing calculation is very important for the improvement in quality that help to focus on part that real improvement can be possible, waste behind of poor quality cost that is really affect the financially.


To understand full format of quality cost analysis report format is available for download, after download you can edit, remove fields as your company requirements.


Download Quality cost analysis report Format in excel sheet


Quality cost analysis report Format | Quality cost analysis report samples | Quality cost analysis report definition | Quality cost analysis report template


Orbit is a expert in solutions of industrial problems viz quality, production, planning, inspection etc. Orbit is writes about manufacturing's problems and its state solutions for quality lovers..