Cost of Quality Calculator

A cheaper display does not always lead to a lower cost product.

Unit price is what you see. These four costs are what you pay. Estimates only; use your own numbers.

1. 1. Cost of obsolescence

   $15,000 / yr

   Redesign and re-qualification when a part ends.

   Redesign + re-qualification cost (USD)Example value. Enter yours.Years between forced changesExample value. Enter yours.

2. 2. Cost of delivery

   $75,000 / yr

   Line-down days: the assembly line stopped.

   Line-down days per yearCost of one line-down day (USD)

3. 3. Cost of performance

   $0 / yr

   A product line that undersells because the display underperforms.

   Products not sold per yearMargin per product (USD)Example value. Enter yours.

4. 4. Cost of failures

   $25,000 / yr

   Field returns, recalls and out-of-box failures.

   Failure rate (%)Cost per failure (USD)

Unit price

$30.00

Cost of quality per unit

$23.00

Total cost of quality per year

$115,000

Cost of quality adds $23.00 to every $30.00 display.