Guide to Cost of Quality (CoQ) - PMBOK 7th Edition

What is Cost of Quality?
Cost of Quality (CoQ) is an important concept in Project Quality Management. It is a methodology used to identify, measure, and analyze the costs related to the quality of a project's products and processes. It includes prevention costs, appraisal costs, and the costs of non-conformance (failure costs).

Why is Cost of Quality Important?
Understanding the Cost of Quality is crucial because it helps in determining the amount allocated to prevention and appraisal to avoid high failure costs. It allows companies to understand the complete financial impact of quality performance on their project or operations.

How Does Cost of Quality Work?
It works by calculating the costs related to quality in three aspects i.e., Prevention Costs, Appraisal Costs, and Failures Costs. Accumulating these costs provides the total cost of quality.

Exam Tips: Answering Questions on Cost of Quality
When answering questions on Cost of Quality in PMP exam:
- Understand the definitions of prevention, appraisal, and failure costs- Remember that high quality generally means high cost- High costs in the short term (associated with prevention and appraisal) can result in lower total quality costs in the long run.
- Actual questions might be case scenarios where you'll need to categorize the given costs- Understand and remember the details of what falls under each cost category (e.g., training falls under prevention costs).
Remember, it is more cost-effective to prevent defects than to detect and correct them later.

Following the PMBOK 7th Edition while preparing for the PMP Exam is important as it covers the updated strategies and methodologies of Project Management, including Cost of Quality.