Total Cost of Quality

(TCQ)

TCQ is the total cost of three classes of quality processes – Prevention, Inspection, and Failure. Prevention largely happens in design and manufacturing process design. Inspection (or appraisal) covers all checks between raw material inspection and finished goods delivery. Failure costs can be quantified through warranty costs, but many businesses see reputation damage as the larger cost. Quality initiatives are justified on the basis that TCQ is less than the Cost of Poor Quality.