FMEA & Cost of

Quality
(COQ) Analysis Tool TM
This tool is designed to help you map out current
failure, prevention and appraisal costs, and connect
your FMEA to the Cost of Quality (COQ) allowing you to
identify the effectiveness of your current budget
allocation and quality management activities, as well
Calculate and
Calculate and
as plan for future improvement.
list the total list the total
cost of the
List all failure effects cost of the List the root
grouped by the root internal external cause of the
cause of the failure. failure effects. failure effects. failure.

What CAUSED the

Internal Failure External Failure
Failure Effects (Direct from the FMEA) failure? (Direct from the
Effect Cost Effect Cost
FMEA)

Example:
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 Tool wear
diameter and 2) sorting at customer facility

Example:
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 Wrong Tool Hung
diameter and 2) sorting at customer facility

Example: Operator loaded up the

1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00 wrong recipe during
diameter and 2) sorting at customer facility startup
Example:
Technician adjusted tip
1) Cup requires 100% offline rework of the cup $ 5,335.00 $ 5,000.00
temperature
diameter and 2) sorting at customer facility

Total:
 M
nt
nnect
g you to
et
as well Identify and enter Column Column Column automatically
the number of automatically automatically calculates the total
times the root calculates the total calculates the % of cost of external
t cause of the cost of internal overall COQ for failure effects
e failure has failure effects which the current multiplied by the
occurred. multiplied by the internal failure number of
number of costs account. occurrences.
occurrences.
EXAMPLE: Current

# of times the failure Total Internal Failure Total External Failure

Internal Failure % of COQ
CAUSE occurred? Cost (cost X occurrence) Cost (cost X occurrence)

3 $ 16,005.00 46.37% $ 15,000.00

0 $ - 0.00% $ -

1 $ 5,335.00 34.73% $ 5,000.00

2 $ 10,670.00 48.61% $ 10,000.00

$ 32,010.00 43.97% $ 30,000.00

 Copyright © 2019 Plexus International

atically Column Enter the Calculate and Column

otal automatically current enter the automatically
calculates the % of prevention current spend calculates the
overall COQ for activity that for the of overall COQ
e which the current addresses the prevention for which
internal failure costs root cause of activity. current
account. the failure. prevention
spend
accounts.
EXAMPLE: Current State

External Failure % of What is the current Current prevention

Prevention % of COQ
COQ prevention activity? activity spend

Preventative
43.46% $ 3,120.00 9.04%
Maintenace checks

0.00% Set-up Checks $ 780.00 80.00%

Automated system
that picks the recipe
32.55% $ 4,500.00 29.30%
based on part
number
 In process checks of
45.55% the process $ 958.00 4.36%
parameters in shift

41.21% $ 9,358.00 12.85%

 Column
Enter the Calculate and Column Column automatically
cally current enter the automatically automatically calculates your
s the appraisal current total calculates the % calculates the organization's
COQ activity for the cost of appraisal of overall COQ current total curent total
root cause of activity. for which amount that control spend on
the failure. current apprisal Poor Quality is prevention and
n activity costs costing your appraisal
account. organization. activities.

Total Cost of Good

What is the current Current Appraisal/ Total Cost of Poor
Quality (control spend
appraisal/detection appraisal/detection detection % of Quality (internal &
on prevention and
activity? activity spend COQ external failures)
appraisal)

First and last piece

checks using go-no-go $ 390.00 1.13% $ 31,005.00 $ 3,510.00
gauges

First piece check $ 195.00 20.00% $ - $ 975.00

Visual check at shift

$ 525.32 3.42% $ 10,335.00 $ 5,025.32
change
End of shift visual
$ 324.00 1.48% $ 20,670.00 $ 1,282.00
checks

$ 1,434.32 1.97% $ 62,010.00 $ 10,792.32

 The External
The Internal failure failure effect cost The failure cause is
Column Column is automatically automatically
automatically effect cost is
ally automatically automatically populated based populated based
your calculates the calculates the % on the information on the information
of overall COQ populated based on
on's total current Cost the information you you entered in the you entered in the
al of Quality (COQ). that your "Current State" "Current State"
organization entered in the
end on "Current State" section of the section of the
n and spends on Poor form. form.
Quality. section of the form.

% Spent on Poor What caused the

Internal failure External failure
Total COQ Quality (failure failure? (Direct from
effect cost effect cost
costs) the FMEA)

$ 34,515.00 89.83% $ 5,335.00 $ 5,000.00 Tool wear

$ 975.00 0.00% $ 5,335.00 $ 7,000.00 Wrong Tool Hung

Operator loaded up
$ 15,360.32 67.28% $ 5,335.00 $ - the wrong recipe
during startup
 Technician adjusted tip
$ 21,952.00 94.16% $ 5,335.00 $ -
temperature

$ 72,802.32 85.18%
 Column
Estimate and enter Column Column Column automatically
the target number automatically automatically automatically calculates the
of failure cause calculates the calculates the % calculates the target for the
occurences if you target for the of total Cost of change in total Cost of
were to change your total Cost of Poor Quality for which internal failure Poor Quality
prevention and Quality (internal the target internal cost from the (internal and
appraisal activities. and external failure cost will current to the external failure
failure costs). account. target state. costs).

Total target Total target

internal failure Target internal external failure
# of times the failure Change in Internal
effect cost failure cost % of effect cost (ext.
cause occurred? Failure Cost (+/-)
(internal failure COQ failure cost X
cost X occurance) occurance)

1 $ 5,335.00 35.72% $ (10,670.00) $ 5,000.00

0 $ - 0.00% $ - $ -

0 $ - 0.00% $ (5,335.00) $ -
1 $ 5,335.00 75.57% $ (5,335.00) $ -

$ 10,670.00 37.72% $ (21,340.00) $ 5,000.00

Column Column Enter the target Calculate and Column Column
automatically automatically prevention enter the target automatically automatically
calculates the % calculates the activity to prevention calculates the % calculates the
of total Cost of change in external address the activity spend. of overall the change in
Quality for which failure cost from the root cause of COQ for which prevention spend
the target current to the target the failure. the target from the current
external failure state. prevention to the target state.
cost will account. spend will
account.

EXAMPLE: Target State

Target external
Change in External What is the target Target prevention Target prevention
failure cost % of
Failure Cost (+/-) prevention activity? Activity Cost spend % of COQ
COQ

Increase number of
33.48% $ (10,000.00) preventative $ 4,000.00 26.78%
Maintenace checks

Reduce set-up
0.00% $ - $ 400.00 67.23%
checks by 50%

Add in recipe
control to the
0.00% $ (5,000.00) document system $ 5,000.00 87.72%
instead of the
control cards
 Add in locking
feature to the
0.00% $ (10,000.00) $ 1,200.00 17.00%
recipe for key
variables

17.67% $ (25,000.00) $ 10,600.00 37.47%

Column Column Column
automatically automatically automatically
calculates the calculates the calculates the
Enter the target Calculate and % of the change in
change in appraisal activity enter the
prevention spend overall COQ appraisal spend
for the failure target total for which the from the current
from the current cause. cost of
to the target state. target to the target
appraisal appraisal costs state.
activity. will account.

Change in What is the Target Target Target Change in

Prevention Cost Appraisal/detection Appraisal/detection appraisal/detection Appraisal/detection
(+/-) activity? activity cost spend % of COQ Cost (+/-)

First and last piece

$ 880.00 checks using go-no-go $ 600.00 4.02% $ 210.00
gages on all shirts

$ (380.00) First piece check $ 195.00 32.77% $ -

Add in visual
$ 500.00 detection for first $ 700.00 12.28% $ 174.68
piece per start-up
 Add in continuous
$ 242.00 monitoring for key $ 525.00 7.44% $ 201.00
variables

$ 1,242.00 $ 2,020.00 7.14% $ 585.68

 Column Column Column
Column Column automatically
automatically automatically automatically automatically
calculates the calculates the % calculates potential
calculates the total calculates the total ROI your
target cost your target control spend total target COQ. of the overall
COQ that target organization could
organization will your organization see if the proposed
spend on internal will allocate to cost your
organization will target prevention
and external improved and appraisal
failure. prevention and incur due to
internal and activities are
appraisal activities. implemented.
external failure.

Total Cost of Good

Total Target Cost of
Quality (control
Poor Quality % Spent on Poor
spend on prevention Total Target COQ Potential ROI ($)
(internal & external Quality
and
failure costs)
appraisal/detection)

$ 10,335.00 $ 4,600.00 $ 14,935.00 69.20% $ 19,580.00

$ - $ 595.00 $ 595.00 0.00% $ 380.00

$ - $ 5,700.00 $ 5,700.00 0.00% $ 9,660.32

$ 5,335.00 $ 1,725.00 $ 7,060.00 75.57% $ 14,892.00

$ 15,670.00 $ 12,620.00 $ 28,290.00 55.39% $ 44,512.32

tically
es potential
r
ation could
e proposed
revention
raisal
s are
ented.
 Current Target
Internal Failure Cost
$ 32,010.00 $ 10,670.00
$80,000.00
External Failure Cost
$ 30,000.00 $ 5,000.00 $70,000.00

Prevention activity cost $60,000.00

$ 9,358.00 $ 10,600.00
$50,000.00
Appraisal/detection
activity cost $ 1,434.32 $ 2,020.00 $40,000.00
Total Cost of Poor $30,000.00
Quality (internal +
external failures) $ 62,010.00 $ 15,670.00 $20,000.00
Cost of Good Quality $10,000.00
(Appraisal/detection &
Prevention) $ 10,792.32 $ 12,620.00 $-
st st
Total Overall COQ $ 72,802.32 $ 28,290.00 Co Co
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Current COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
 Appraisal/detection activity cost

Current Cost of Poor and Good Quality

Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection & Prevention)
 Cost of Quality

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Target Cost of Poor and Good Quality

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 FMEA & Cost of Quality

(COQ) Analysis ToolTM

This tool is designed to help you map out current failure,
prevention and appraisal costs, and connect your FMEA
to the Cost of Quality (COQ) allowing you to identify the
effectiveness of your current budget allocation and
activities, as well as plan for future improvement.

What CAUSED the

Internal Failure External Failure
Failure Effects (Direct from the FMEA) failure mode? (Direct
Effect Cost Effect Cost
from the FMEA)
Total:
uality

ol TM
urrent failure,
t your FMEA
identify the
ion and
ment.

Current State

Total Internal Failure Total External Failure

# of times the failure
Cost (int. failure cost X Internal Failure % of COQ Cost (ext. failure cost X
CAUSE occurred?
occurance) occurance)

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$ - #DIV/0! $ -

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Current State

What is the
Current What is the current
External Failure % of current Prevention % of
prevention Appraisal/detection
COQ prevention COQ
activity cost activity?
activity?

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 Total Cost of Good
Current Total Cost of Poor Quality (control
Appraisal/detection
Appraisal/detection Quality (internal & spend on prevention Total COQ
% of COQ
activity cost external failures) and
appraisal/detection)

#DIV/0! $ - $ - $ -

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#DIV/0! $ - $ - $ -

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#DIV/0! $ - $ - $ -

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 #DIV/0! $ - $ - $ -

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$ - #DIV/0! $ - $ - $ -
% Spent on Poor What caused the
Internal failure External failure
Quality (failure failure? (Direct from
effect cost effect cost
costs) the FMEA)

#DIV/0! $ - $ -

#DIV/0! $ - $ -

#DIV/0! $ - $ -

#DIV/0! $ - $ -

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 Total target
Total target internal
Target internal external failure
# of times the failure failure effect cost Change in Internal
failure cost % of effect cost (ext.
cause occurred? (internal failure cost Failure Cost (+/-)
COQ failure cost X
X occurance)
occurance)

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -
$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -

$ - #DIV/0! $ - $ -
 Target State

Target external
Change in External What is the target Target prevention Target prevention
failure cost % of
Failure Cost (+/-) prevention activity? Activity Cost spend % of COQ
COQ

#DIV/0! $ - #DIV/0!

#DIV/0! $ - #DIV/0!

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#DIV/0! $ - #DIV/0!

#DIV/0! $ - #DIV/0!

#DIV/0! $ - $ - #DIV/0!
 Change in What is the Target Target Target Change in
Prevention Cost Appraisal/detection Appraisal/detection Appraisal/detection Appraisal/detection
(+/-) activity? activity cost spend % of COQ Cost (+/-)

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - #DIV/0! $ -
$ - #DIV/0! $ -

$ - #DIV/0! $ -

$ - $ - #DIV/0! $ -
Total Target Cost of Total Cost of Good
Poor Quality Quality (control % Spent on Poor
Target Total COQ Potential ROI ($)
(internal & external spend on prevention Quality
failure costs) and appraisal)

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -
$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -

$ - $ - $ - #DIV/0! $ -
 Current Target
Internal Failure Cost $ - $ -
$1.00
External Failure Cost
$ - $ - $0.90
$0.80
Prevention activity cost
$ - $ - $0.70
Appraisal/detection $0.60
activity cost $ - $ -
$0.50
Total Cost of Poor $0.40
Quality (internal +
external failures) $0.30
$ - $ -
$0.20
Cost of Good Quality $0.10
(Appraisal/detection $-
and Prevention) $ - $ - st st
Co Co
Total Overall COQ $ - $ - re re i
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Current COQ

Internal Failure Cost

External Failure Cost
Prevention activity cost
Appraisal/detection activity cost
 Current Cost of Poor and Good Quality

Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection and Prevention)
 Cost of Quality

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rnal Failure Cost Internal Failure Cost

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raisal/detection activity cost Appraisal/detection a
 Target Cost of Poor and Good Quality

nd Prevention) Total Cost of Poor Quality (internal + external failures) Cost of Good Quality (Appraisal/detection and Prevention)
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