Quality costing: An efficient tool for quality improvement measurement

Sound economy and assured profitability of an organization entirely depend upon effective control of non-quality costs generated in the organization. Through simple economic model with parato and cause effect analysis of different elements of quality costs, e.g. prevention, Appraisal costs conformance costs and internal and external failure costs - non conformance costs, total quality costs can be controlled resulting considerable savings. This paper discusses how quality has an impact on the costs of goods and services in an organization and "return on investment (ROI)" is linked with "return on quality (ROQ)".