Cost of Quality and Cost of Poor Quality

Programme Summary

Make the financial consequences of quality visible without confusing activity costs with verified savings. Participants classify prevention, appraisal and failure costs, design reliable data collection and identify the drivers of avoidable loss. A business case develops a cost profile and improvement justification, helping quality and finance teams agree priorities and track benefits against credible baselines.

Training Objectives

1 Connect quality performance with financial consequences; 2 Classify quality costs consistently and transparently; 3 Build practical cost data collection arrangements; 4 Identify material drivers of avoidable loss; 5 Strengthen improvement business cases and benefit verification.

Learning Outcomes

1 Prepare a quality cost classification model; 2 Calculate a supported cost of poor quality; 3 Identify major failure cost drivers; 4 Develop a quantified improvement business case; 5 Define credible benefit tracking and review controls.

Target Audience

Quality Managers; Continuous Improvement Managers; Cost Analysts; Operations Managers; Finance Business Partners.

Target Industries

Automotive Manufacturing; Electronics Manufacturing; Industrial Equipment Manufacturing; Medical Device Manufacturing; Consumer Goods Manufacturing; Industrial Services.

Course Contents

• Module 1 Quality Cost Framework: Prevention appraisal and failure cost categories; Visible hidden and opportunity cost distinctions; Purpose boundaries and reporting users.
• Module 2 Defining Data and Ownership: Consistent categories and operational definitions; Sources owners frequency and validation; Avoiding duplication and unsupported estimates.
• Module 3 Internal Failure Costs: Scrap rework retesting and downtime; Material labour and capacity consequences; Linking costs to processes and defects.
• Module 4 External Failure Costs: Returns warranty complaints and field corrections; Customer disruption and contractual consequences; Handling uncertain reputational and opportunity estimates.
• Module 5 Prevention and Appraisal Decisions: Cost of controls and evaluation activities; Tradeoffs between prevention and detection; Risk consequences beyond immediate expenditure.
• Module 6 Analysis and Prioritisation: Pareto analysis and recurring cost drivers; Normalising costs against suitable business measures; Selecting improvement opportunities with evidence.
• Module 7 Business Cases and Benefits: Baseline assumptions and investment estimates; Cash savings capacity benefits and avoidance; Finance validation and sustained benefit tracking.
• Module 8 Quality Cost Workshop: Building a cost profile from records; Preparing an improvement financial justification; Presenting assumptions risks and benefit measures.

Assessment

• 40 single best answer questions, including applied scenarios; one mark per question.
• 60 minute invigilated digital examination with identity verification. Approved accessibility adjustments preserve the assessed competence.
• Supplied reference pack and calculator permitted; external internet and AI prohibited.
• Individual applied assessment (30 minutes): Analyse a supplied quality cost dataset, identify a priority loss and prepare an improvement business case with transparent assumptions and benefit verification.
• Assessment criteria: Consistent cost classification and calculations; Evidence based prioritisation; Credible benefit assumptions and tracking.
• Pass each component separately: 30/40 written marks (75%) and at least 70% on the applied task.
• Individual results and feedback are provided. One reassessment may follow coaching under the published enrolment terms.

Certification

• Successful learners receive a TQCSI Arabia digital Certificate of Successful Completion.
• The certificate records the learner name, exact programme title, teaching hours, completion date and unique verification reference.
• Verified identity, full attendance and separate written and applied passes are required; all mandatory critical criteria must be met.
• Proposed issue target: within 30 calendar days of approved results and settlement of applicable fees.
• Records quality cost analysis skills; financial forecasts and investment approvals remain the organisation’s authorised responsibilities.
• Attendance confirmation may record completed hours for unsuccessful learners; it does not certify successful completion.

Programme Profile

Number of daysNumber of daysNumber of days

222

Total teaching hoursTotal teaching hoursTotal teaching hours

12 hours; breaks, pre course work and formal final assessments excluded.12 hours; breaks, pre course work and formal final assessments excluded.12 hours; breaks, pre course work and formal final assessments excluded.

Delegates allowedDelegates allowedDelegates allowed

Maximum 16 delegates.Maximum 16 delegates.Maximum 16 delegates.

Training prerequisitesTraining prerequisitesTraining prerequisites

Basic financial numeracy and familiarity with quality performance data are required. Experience with cost reporting is recommended.Basic financial numeracy and familiarity with quality performance data are required. Experience with cost reporting is recommended.Basic financial numeracy and familiarity with quality performance data are required. Experience with cost reporting is recommended.

Pre course assignment and assessmentPre course assignment and assessmentPre course assignment and assessment

Review a fictional cost ledger for 25 minutes and classify examples of prevention, appraisal and failure expenditure.Review a fictional cost ledger for 25 minutes and classify examples of prevention, appraisal and failure expenditure.Review a fictional cost ledger for 25 minutes and classify examples of prevention, appraisal and failure expenditure.

End of course assessmentEnd of course assessmentEnd of course assessment

40 question written exam (60 minutes) and individual applied task (30 minutes).40 question written exam (60 minutes) and individual applied task (30 minutes).40 question written exam (60 minutes) and individual applied task (30 minutes).

Passing criteriaPassing criteriaPassing criteria

75% written and 70% applied, passed separately; full attendance.75% written and 70% applied, passed separately; full attendance.75% written and 70% applied, passed separately; full attendance.