Cost of Quality analysis skill with prevention, appraisal, internal failure, and external failure cost tracking
Analyzes and tracks prevention, appraisal, internal, and external failure costs to calculate quality investment ROI.
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The Cost of Quality Analyzer skill provides comprehensive capabilities for analyzing and tracking quality costs. It supports PAF (Prevention, Appraisal, Failure) model analysis, hidden factory cost identification, and quality investment ROI calculation.
skill: cost-of-quality-analyzer
inputs:
period: "2025-Q4"
revenue: 10000000
cost_data:
prevention:
- category: "Training"
amount: 50000
- category: "Quality planning"
amount: 30000
- category: "Process control"
amount: 40000
appraisal:
- category: "Inspection"
amount: 80000
- category: "Testing"
amount: 60000
- category: "Audits"
amount: 20000
internal_failure:
- category: "Scrap"
amount: 100000
- category: "Rework"
amount: 75000
- category: "Downtime"
amount: 50000
external_failure:
- category: "Warranty"
amount: 120000
- category: "Returns"
amount: 40000
- category: "Complaints"
amount: 25000
outputs:
- coq_summary
- coq_ratios
- trend_analysis
- pareto_analysis
- improvement_opportunities
- roi_projections
| Metric | World Class | Average | Poor |
|---|---|---|---|
| COQ as % of Revenue | 2-4% | 10-15% | 20-25% |
| Prevention % of COQ | 20-30% | 10-15% | < 5% |
| Failure % of COQ | 30-40% | 60-70% | > 80% |
Total COQ = Prevention + Appraisal + Failure
As Prevention increases:
- Appraisal stays relatively flat
- Failure costs decrease significantly
- Total COQ decreases until optimal point
Often unmeasured costs:
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