Section: Volume E

Section: Volume B
Explanation:
Cost of quality (COQ). Cost of quality refers to the total cost of the conformance work and the nonconformance work that should be done as a compensatory effort because, on the first attempt to perform that work, the potential exists that some portion of the required work effort may be done or has been done incorrectly. The costs for quality work may be incurred throughout the deliverable's life cycle.
For example, decisions made by the project team can impact the operational costs associated with using a completed deliverable. Post-project quality costs may be incurred because of product returns, warranty claims, and recall campaigns. Therefore, because of the temporary nature of projects and the potential benefits that may be derived from reducing the post-project cost of quality, sponsoring organizations may choose to invest in product quality improvement. These investments generally are made in the areas of conformance work that act to prevent defects or act to mitigate the costs of defects by inspecting out nonconforming units.