After reading and watching this week’s material, engage in an active discussion regarding cost quality. Answer the following questions:

What is the cost of quality and who determines when there is enough quality in the project?

Please find an additional reference source and cite the source in your discussion post. Sources must be used to enhance the learning experience. By finding a referenced source, you are enhancing the learning experience by searching for another source of information on the topic. Also, please ensure you are using a source that is peer reviewed to ensure accuracy of information (select peer-reviewed journal articles in the Park Library search engine)

Your original post should be in the format of an executive summary (must contain verbiage and bullet points to name the key points). Use APA formatting.

Student 1

Belinda is her name

After reading and watching this week’s material, engage in an active discussion regarding cost quality. Answer the following questions: What is the cost of quality and who determines when there is enough quality in the project?

As a project manager you want to be known to produce a quality product. The cost of quality, or COQ, is the accumulated cost of not creating a quality product. These costs can include reworking a product, testing it, field service to make corrections after a product has been installed, and replacing a faulty product. This aggregate cost is reported to management to give them a basis for ensuring that processes always produce to customer expectations (n.a, 2021). The entire project team from the Stakeholders down to the customer determine if the end product is quality deliverable. In the end, the customers are satisfied with the quality of a product if it conforms to their expectations at delivery.
There are several types of costs that are impacted by the quality of a product.
1. Prevention costs – These are costs incurred to prevent product failure. Examples include equipment and maintenance, planning, staff training, documentation, human resources, quality assurance, process control(Goodwin, 2017)

2. Appraisal costs – These are the costs of inspection needed to reduce the risk of sending defective products to customers (n.a, 2021). In other words, any testing related to making sure the product is quality and safe product. Examples include evaluating products and services, completing inspections, field testing, implementing quality control, identifying, and fixing defects before products get to market(Goodwin, 2017).

3. Internal failure costs- These are the costs the company accrue from identifying product defects before it is reaches to the customer. These costs include lost revenue from customers who will not buy from the company again, the processing of returned goods, administering warranty claims, field service costs, liability lawsuits, and possibly even a comprehensive product recall( na.,2021)

4. External failure costs- these are costs that are incurred after the delivery of the product to the customer. These costs include the legal fees related to customer lawsuits, the loss of future sales from dissatisfied customers, product recalls, product return costs, and warranty costs. These costs can be substantial if the result is the loss of customers – and especially when customers tend to buy a company’s products many times (n.a, 2021).

As a project manager it is crucial to pay for failure cost that are internal rather than external after delivery to the customer. The reason is that external costs can not only hurt your pocket, but they can also kill a reputation.

Project quality management is all the processes and activities needed to determine and
achieve project quality. At its most basic level, quality means meeting the needs of customers (Project Management Skills, 2019).

There are three key quality management concepts that will help you deliver a high-quality project:
1. Customer Satisfaction – Ensuring that all the requirements are met within the project is part of the quality aspects but also ensuring the customer is satisfied is also equally important to a project.

2. Prevention over inspection – It is less costly and time consuming to spend money during the project then when the project is complete and have failures externally like stated above.
3. Continuous improvement – this is of utmost importance in any project to ensure quality the entire project duration and to use approaches such as Six Sigma and Total Quality Management (TQM). The ongoing effort to improve your products, services, or processes over time. These improvements can be small, incremental changes or major, breakthrough type changes (Project Management Skills, 2019).

As a project manager the most important tool is prevention and customer satisfaction. If you can detect problems early on, it’s going to save you time and money.

Goodwin, J. (September, 14,2017)Cost of Quality: PMP Topics to Learn for the Exam https://magoosh.com/pmp/cost-of-quality-pmp/

Project Management Skills. (2021) Project Quality Management Retrieved 4/12/2022 from https://www.project-management-skills.com/project-quality-management.htmlLinks to an external site.

Project Management Skills. (2019). Project Quality Management: What is quality? Retrieved 4/12/2022 from https://www.project-management-skills.com/project-quality-Links to an external site. management.html

n.a.(May 30,2021)What is the Cost of Quality?, ttps://www.accountingtools.com/articles/2017/5/14/the-cos…

Student 2

Will is his name

Hello,

The level of quality that a project will produce is determined during the early planning stages of the project and are adjusted as needed throughout the project through the use of change control measures. PMBOK describes Cost of Quality as; “All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraisal of the product or service for conformance to requirements, and failure to meet requirements.” (Project Management Institute, 2021, p. 81) Project sponsors, owners, and senior level managers are responsible for establishing the expected level of quality for the project. This expectation is reflected in the project’s requirements documentation, statement of work, definition of done, and or completion criteria.

The cost of quality methodology uses four cost categories to strike a balance with a project’s overall cost and the quality of the product the project produces. These categories include prevention, appraisal, internal failure, and external failure. The amount of costs related to a project’s quality is decided on by project sponsors, owners, and senior level managers. As such they must consider how much of that cost should be spent on each of the four categories.

Prevention costs are associated with actions taken to prevent defects and failures out of the project. Prevention costs are applied to the design, implementation, and maintenance of the project’s quality management system.

Appraisal costs “…are incurred to determine the degree of conformance to quality requirements.” (Project Management Institute, 2021, p. 88) These are the same requirements that are established in the project’s requirements documentation, statement of work, definition of done, and or completion criteria. Project managers must be able to balance the capabilities the project’s product provides the end user with the project’s budget and scope.

Internal failure occurs when internal actions, policies of procedures cause a dilution of the project’s efficacy. Internal failures include wasted time and materials, defective products produced, rework, and failure analysis.

External failures are costs associated with fixing or rectifying defects found in products after they have been deployed. These defects often involve recalls or sending out updates to patch or replace defects. Projects can consider these costs and budget them into the project accordingly. Accepting external failures is frequently done when being the first to the market is more important than producing the best quality product.

Will,

References

Larson, E. W., & Gray, C. F. (2021). Project Management: The Managerial Process. New York: McGraw-Hill.

Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (17th ed.). Pennsylvania: Project Management Institute.

Student 3

Marjan is her name

Department of Business, Park university

PM691DLS2P2022 Time and Cost Management

Professor Lashawn Johnson

Apr 12, 2022

Week 5 Discussion

Cost of Quality refers to the costs incurred in ensuring high-quality products and the costs of incomplete delivery. In other words, the COQ measures the total cost required to prevent, identify, and deal with defective results in project deliverables. Calculating COQ can help make decisions; Because there is a balance between investing in quality during the project and dealing with future costs due to failure to prevent or detect errors. These costs are known as compliance costs and non-compliance costs. Compliance costs include the prevention and evaluation of defects to ensure quality throughout the project. The cost of non-compliance covers the costs of external and internal failures to achieve quality. When added together, the result is the total COQ.

Quality costs after project completion may be imposed due to product return and warranty; Therefore, due to the temporary nature of the projects and the potential benefits of reducing post-project quality costs, the sponsoring organization may choose to invest in improving product quality. These investments are usually made in the field of matching work. Work performed to prevent defects or to reduce the costs of defects or inspections of nonconforming units.

The purpose of the Quality Cost System (COQ) system is to increase customer satisfaction by reducing downtime and adapting products and services to specified requirements.

Features of the quality cost management system

The COQ technique has unique properties. Some features of the quality cost system are listed below:

Estimate and analyze the set of costs associated with ensuring the quality of products and services.

A criterion for measuring the extent to which an organization turns to quality and examines its effect on profit and loss.

Inform employees of the costs of poor quality.

Grounding to ensure the reduction of business costs and increase the competitiveness of the organization.

Benefits of quality cost system

Facilitate the set of efforts made to improve quality.

Evaluate the performance of the organization and set goals for improvement.

Many quality experts believe that 25 to 40 percent of the cost of each operation leads to losses, which can be minimized by implementing a COQ system.

Improving quality by eliminating waste immediately leads to increased capacity without additional investment and appears directly in the form of profits in the financial balances.

In general, the project manager has overall responsibility for the quality management process. In fact, the quality of the project is not the responsibility of one or two people. It is the responsibility of all team members. These tasks include:

Project Manager – Responsible for developing the quality management process and ensuring accurate delivery.

Team members – responsible for quality assurance and quality control for each of the tasks and activities assigned to them.

Organization – Responsible for standardizing quality controls and standards in all projects.

Stakeholders – are responsible for transferring their expectations from quality products and services to the project and organization and are responsible for accepting and confirming the delivery of all goods and services.

Finally, quality is achieved by product users, customers, or clients, not the community. The quality of any project cannot be ideal. However, project managers must anticipate the potential costs of failure and be prepared to deal with them. Early detection problems save time and money.

References

Larson, E. W., & Gray, C. F. (2021). Project Management: The Managerial Process. New York: McGraw-Hill.

Sandra F. Rowe. (2020). Project Management for Small Projects, Third Edition. (Park University Library).

Robin A. Buser, Miriam Pollack. (2014). Project Management for Libraries: A Practical Approach. (Park University Library).

Obi, Lovelin Ifeoma, Arif, Mohammed, Awuzie, Bankole, Islam, Rubina, Gupta, Aman Deep, Walton, Robert. (2021). Critical success factors for cost management in public-housing projects. (Park University Library).

• Asfoor H.M.A. AL-Jandeel A.A.T. Igorevich K.K. Ivanovna L.A. (2022). Control of Time, Cost, and Quality of Construction Project Management. (Park University Library).
• Dedy Achmad Kurniady, Nurochim, Aan Komariah, Turwelis, Huynh Tan Hoi, Vo Hoang Ca. (2022). Construction project progress evaluation using a quantitative approach by considering time, cost, and quality. (Park University Library).
• Rodolfo Siles, PMP. Who is Responsible for Project Quality? https://www.pm4dev.com/pm4dev-blog/entry/who-is-re…