Quality, ISO and AuditingCost of Quality and Quality Improvement Economics
Scrap, rework, warranty claims and overtime spent firefighting rarely appear on one line of the management accounts, so the true price of poor quality stays hidden. Delegates learn to find it and put a figure on it. The course works through the prevention, appraisal, internal failure and external failure model, then the hidden costs that sit in lost capacity, expediting, penalties and customer goodwill. Delegates build a cost of quality ledger with the finance function, choose allocation rules, set up monthly reporting and use Pareto analysis to rank where the money leaks. Business cases for improvement projects follow, with payback, net present value and the trade off between prevention spend and failure cost. Delegates leave able to measure and report quality costs in currency that executives act on, and to justify improvement budgets with evidence rather than opinion.
Course objectives
- Classify quality costs into prevention, appraisal, internal failure and external failure
- Identify hidden failure costs in capacity, expediting and lost customers
- Design a cost of quality ledger with the finance function
- Select allocation rules that make reported figures credible
- Calculate quality cost ratios against sales, output and value added
- Interpret Pareto analysis to rank the largest sources of loss
- Evaluate improvement projects using payback and net present value
- Present quality cost reports that drive executive decisions
Who should attend
- Quality managers and engineers
- Management accountants and cost controllers
- Operations and plant managers
- Improvement project leaders who need to justify budgets
- General managers reviewing quality performance
Course outline
- 01The hidden price of poor quality
- 02The prevention, appraisal and failure model
- 03Hidden and intangible failure costs
- 04Building the ledger with finance
- 05Allocation rules and data sources
- 06Ratios, trends and monthly reporting
- 07Pareto ranking of losses
- 08Business cases for improvement projects
- 09Reporting to executives
Scheduled sessions
| Dates | Venue | Format | Price | Register |
|---|---|---|---|---|
| 19 to 23 October 2026 | Kampala, Uganda | Classroom | USD 1,325 per delegate | |
| 16 to 20 November 2026 | Lusaka, Zambia | Classroom | USD 1,325 per delegate | |
| 28 December 2026 to 1 January 2027 | Harare, Zimbabwe | Classroom | USD 1,325 per delegate | |
| 4 to 8 January 2027 | Johannesburg, South Africa | Classroom | R19,950 per delegate | |
| 8 to 12 February 2027 | Online | Online | R8,500 per delegate |
Cost of Quality and Quality Improvement Economics
From R8,500