Measuring Cost of Quality in the Development Process

17 March 1987

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This paper first identifies Cost of Quality (COQ) categories, and defines COQ activities in the development process. Guidelines are provided for developing a COQ measurement plan. Second, a COQ measurement plan is presented which emphasizes failure cost or "Cost of Waste" using existing data sources. Finally, a data analysis and reporting format are described. This plan is presently being used to collect and report Cost of Quality data from several development projects in the AT&T Bell Laboratories Transmission Systems Division.