Quantify the real cost of quality with the Juran/Crosby PAF model. Enter your internal-failure, external-failure, appraisal and prevention line items to get the total Cost of Quality, your COPQ as a percentage of revenue and the failure-vs-prevention split — the business case for investing in prevention. Exports to Word and CSV.
📐 Method: the four categories follow the classic Prevention–Appraisal–Failure (PAF) / Cost of Quality model formalised by J.M. Juran and popularised by Philip Crosby. Cost of Quality (COQ) = Prevention + Appraisal + Internal failure + External failure. Cost of Poor Quality (COPQ) = Internal + External failure (Crosby's "price of non-conformance"); Prevention + Appraisal are the "price of conformance". Many organisations carry a COQ of 15–25% of sales, the bulk of it hidden failure cost; world-class programmes drive it toward ~2–4% by shifting spend from failure to prevention. This is a management estimate, not an accounting or audit figure — use your own cost data and verify with finance.