Cost of Quality Calculation Method in Garment

The Cost of Quality (CoQ) in Garment Manufacturing refers to the total cost associated with ensuring that products meet quality standards, as well as the costs incurred when products fail to meet these standards. 

Cost of Quality  Calculation Method in Garment Manufacturing  can be divided into four main categories: prevention costs, appraisal costs, internal failure costs, and external failure costs.

1. Prevention Costs: Costs incurred to prevent defects in the products. This includes costs related to training, quality planning, process control, and maintenance.
2. Appraisal Costs: Costs associated with measuring and monitoring activities to ensure quality. This includes inspection, testing, and audits.
3. Internal Failure Costs: Costs resulting from defects found before the product reaches the customer. This includes rework, scrap, and material losses.
4. External Failure Costs: Costs resulting from defects found after the product has reached the customer. This includes returns, repairs, warranty claims, and loss of reputation.

Calculation Method for Cost of Quality

1. Identify and Categorize Costs: List all activities related to prevention, appraisal, and failures (both internal and external). For each activity, determine the associated costs.
2. Data Collection: Collect data on costs from various departments involved in quality management, such as production, quality control, and customer service.
3. Quantify Costs:
• Prevention Costs: Sum up costs for quality training, process design, preventive maintenance, etc.
• Appraisal Costs: Sum up costs for inspections, testing, audits, etc.
• Internal Failure Costs: Sum up costs for rework, scrap, and re-inspections.
• External Failure Costs: Sum up costs for returns, warranty claims, customer complaints handling, etc.
4. Total Cost of Quality: Add up the total costs from all four categories to get the overall CoQ.

Example Calculation:

Let's consider a hypothetical garment manufacturing company with the following costs:

• Prevention Costs: Training (5,000), Process Control (3,000)
• Appraisal Costs: Inspections (4,000), Testing (2,000)
• Internal Failure Costs: Rework (6,000), Scrap (2,000)
• External Failure Costs: Returns (5,000), Warranty Claims (3,000)

Total Prevention Costs: 5,000 + 3,000 = 8,000
Total Appraisal Costs: 4,000 + 2,000 = 6,000
Total Internal Failure Costs: 6,000 + 2,000 = 8,000
Total External Failure Costs: 5,000 + 3,000 = 8,000

Total Cost of Quality (CoQ): 8,000 + 6,000 + 8,000 + 8,000 = 30,000

Benefits of Calculating CoQ:

1. Identify Areas for Improvement: Helps in identifying the most significant quality-related costs and areas that need improvement.
2. Cost Reduction: By understanding and reducing failure costs, overall production costs can be reduced.
3. Enhanced Quality: Investing in prevention and appraisal activities can lead to higher quality products and customer satisfaction.
4. Decision Making: Provides a basis for making informed decisions regarding quality investments.

Cost of Quality  Calculation Method in Garment Manufacturing By Calculating and analyzing the Cost of Quality, Garment Manufacturers can better manage their resources, improve product quality, and increase profitability.