---
name: cost-of-quality-analyzer-6e1af9f952d4
description: Cost of Quality analysis skill with prevention, appraisal, internal failure, and external failure cost tracking
allowed-tools:
  - Read
  - Write
  - Glob
  - Grep
  - Edit
metadata:
  specialization: operations
  domain: business
  category: quality-management
graph:
  domains: [domain:operations]
  skillAreas: [skill-area:financial-planning, skill-area:data-analytics, skill-area:business-analysis]
  workflows: [workflow:vendor-onboarding, workflow:vendor-evaluation]
  roles: [role:operations-analyst, role:financial-analyst, role:business-analyst]
---

# Cost of Quality Analyzer

## Overview

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.

## Capabilities

- Prevention cost identification
- Appraisal cost tracking
- Internal failure cost calculation
- External failure cost estimation
- COQ ratio analysis
- Hidden factory costs
- Quality investment ROI
- Improvement prioritization

## Used By Processes

- QMS-004: Cost of Quality Analysis
- QMS-002: TQM Program Development
- CI-001: Operational Excellence Program Design

## Tools and Libraries

- Cost accounting systems
- Quality cost databases
- Financial analysis tools
- Reporting dashboards

## Usage

```yaml
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
```

## Cost of Quality Categories

### Prevention Costs (Investing to prevent defects)
- Quality planning
- Training and education
- Process control
- Supplier evaluation
- Design reviews
- Preventive maintenance

### Appraisal Costs (Detecting defects)
- Incoming inspection
- In-process inspection
- Final inspection
- Testing and calibration
- Quality audits
- Supplier monitoring

### Internal Failure Costs (Defects found before shipping)
- Scrap
- Rework
- Re-inspection
- Downtime
- Failure analysis
- Yield losses

### External Failure Costs (Defects found by customers)
- Warranty claims
- Returns and replacements
- Complaint handling
- Product liability
- Recalls
- Lost sales/reputation

## COQ Benchmarks

| 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% |

## Optimal COQ Model

```
Total COQ = Prevention + Appraisal + Failure

As Prevention increases:
- Appraisal stays relatively flat
- Failure costs decrease significantly
- Total COQ decreases until optimal point
```

## Hidden Factory Costs

Often unmeasured costs:
- Expediting
- Sorting
- Engineering changes
- Excess inventory
- Extended cycle times
- Customer service escalations

## Integration Points

- ERP financial modules
- Quality Management Systems
- Cost accounting systems
- Business intelligence tools


---
Source attribution: a5c-ai
Original project: https://github.com/a5c-ai/babysitter
License: MIT
License information: https://opensource.org/license/mit
Original upstream instructions; downloaded from Dave AI.

## Upstream license notice

MIT License

Copyright (c) 2026 Gabriel Moreira

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all
copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.



# Dave AI resource metadata

Creator / publisher: a5c-ai
Original project: https://github.com/a5c-ai/babysitter
Attribution basis: Upstream repository explicitly recorded in package mirror path

Fields of work: Finance & Accounting, Marketing, Operations, Product Management, Sales
Roles: Business Development, Financial Analyst, Marketing Analyst, Operations Manager, Product Manager
Specialties: Specialty not specified
Tools: Cost Accounting Systems, Financial Analysis Tools, Quality Cost Databases, Reporting Dashboards
Country applicability: Country not specified
Classification basis: Source catalog labels
Instruction SHA-256: c6307689845280e0a12c8f22751e0fa17033e9e047ee0f8277d36449cdf9f36f