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Cost of Quality: Why More Organizations Do Not Use It Effectively

Summary: A cost of quality (COQ) system enables an organization to measure the impact of quality systems on business performance. Yet, in a study of 393 quality managers, fewer than 35% reported that they systematically tracked COQ. Reasons cited include lack of management support for QC, time and cost of tracking such information, lack of knowledge of how to track data, and lack of basic cost data. Suggestions are offered to address perceived obstacles, stemming from the recognition that better information is fundamental to better quality results.

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