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Quest Training

Cost of Quality & Quality Performance Measurement Training Course

Shows how to measure prevention, appraisal and failure costs, expose hidden costs of poor quality and link quality performance to financial results.

QMC · Quality Management & Continuous ImprovementAll Levels#2544ClassroomEnglish , Arabic
Duration
5 Days
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Free substitution at any time · 30+ days' notice: full refund minus 10%. Cancellation policy

Sectors:Quality Management & Operational ExcellenceCategories:Quality Management & Continuous Improvement

Course Overview

This advanced practical course focuses on measuring the financial and operational impact of quality and using performance data to improve organizational results. It provides a structured approach to understanding the Cost of Quality, identifying hidden quality-related costs, and connecting quality performance with business and financial outcomes. The programme examines prevention, appraisal, internal failure, and external failure costs, together with methods for collecting, classifying, analysing, and reporting quality cost data. Participants will learn how to identify the financial consequences of defects, rework, waste, complaints, returns, downtime, and process failures. The course also develops practical capabilities in quality performance measurement, KPI design, dashboards, trend analysis, benchmarking, and management reporting. Emphasis is placed on converting quality data into actionable insights that support resource allocation, improvement priorities, and management decisions.

Learning Objectives

  • Analyse the concept and structure of the Cost of Quality.
  • Identify and classify prevention, appraisal, internal failure, and external failure costs.
  • Evaluate direct and hidden costs associated with poor quality.
  • Develop practical methods for collecting and categorizing quality cost data.
  • Analyse quality cost trends and their impact on organizational performance.
  • Design meaningful quality performance indicators aligned with business objectives.
  • Establish effective methods for monitoring quality performance.
  • Develop quality dashboards and management reporting frameworks.
  • Apply data analysis to identify performance gaps and improvement priorities.
  • Evaluate the financial impact of quality improvement initiatives.
  • Use quality performance data to support management decisions and resource allocation.
  • Develop an integrated framework for managing quality costs and performance.

Who Should Attend

Quality Managers, Quality Assurance and Quality Control Managers, Quality Engineers, Quality Systems professionals, Continuous Improvement specialists, and Operational Excellence teams. The course is also suitable for Operations Managers, Production Managers, Process Improvement professionals, Finance and Cost Management professionals, Internal Auditors, Business Performance teams, and managers responsible for quality-related costs and operational performance. It is particularly relevant to organizations seeking to quantify the financial impact of quality problems, reduce the Cost of Poor Quality, strengthen performance measurement, and demonstrate the business value of quality improvement.

Learning Outcomes

  • Explain the relationship between quality performance and organizational financial results.
  • Calculate and classify the main categories of quality costs.
  • Identify hidden and indirect costs resulting from poor quality.
  • Analyse quality cost data to determine major sources of financial loss.
  • Develop appropriate data collection and reporting methods for quality costs.
  • Design quality KPIs that reflect operational and business priorities.
  • Build quality performance dashboards for management review.
  • Interpret quality trends, variations, and performance gaps.
  • Link quality indicators with financial, operational, customer, and process outcomes.
  • Evaluate the return and business impact of quality improvement initiatives.
  • Develop evidence-based recommendations for reducing quality-related costs.
  • Establish a sustainable quality cost and performance measurement framework.

Course Outline

Day 1

Cost of Quality Principles & Quality Cost Structure

  • Understanding the Cost of Quality concept
  • Quality costs and their relationship with business performance
  • Prevention costs
  • Appraisal costs
  • Internal failure costs
  • External failure costs
  • Cost of Poor Quality
  • Visible and hidden quality costs
  • Quality cost classification and accounting considerations
  • Identifying major sources of quality-related financial loss
  • Practical Application: Classifying quality-related costs and developing a Cost of Quality structure
Day 2

Quality Cost Data Collection, Analysis & Financial Impact

  • Establishing quality cost data requirements
  • Data sources and collection methods
  • Cost allocation and classification
  • Analysing rework, scrap, defects, returns, complaints, and warranty costs
  • Failure cost analysis
  • Trend and variance analysis
  • Identifying hidden and opportunity costs
  • Linking quality failures with operational losses
  • Prioritizing high-cost quality problems
  • Translating quality data into financial insights
  • Practical Application: Analysing a quality cost dataset and identifying the largest sources of financial loss
Day 3

Quality Performance Measurement & KPI Design

  • Principles of effective quality performance measurement
  • Leading and lagging quality indicators
  • Selecting KPIs aligned with organizational objectives
  • Process, product, customer, and compliance indicators
  • Defect, rework, rejection, complaint, and first-pass yield measures
  • Quality productivity and process efficiency indicators
  • Setting targets and performance thresholds
  • KPI ownership and accountability
  • Performance trends and variance interpretation
  • Practical Application: Designing a balanced quality KPI framework for an organization
Day 4

Quality Dashboards, Reporting & Improvement Decisions

  • Designing effective quality dashboards
  • Visualizing quality and Cost of Quality performance
  • Management reporting and performance reviews
  • Trend, variance, and root cause analysis
  • Benchmarking quality performance
  • Identifying performance gaps and improvement priorities
  • Linking quality KPIs with operational and financial indicators
  • Evaluating improvement initiatives and financial benefits
  • Communicating quality performance to senior management
  • Data-driven resource allocation and decision-making
  • Practical Application: Building a management-level quality performance dashboard and improvement report
Day 5

Cost Reduction, Quality Strategy & Performance Governance

  • Strategies for reducing the Cost of Poor Quality
  • Shifting investment from failure correction to prevention
  • Prioritizing quality improvement initiatives
  • Building the business case for quality investments
  • Measuring financial returns from quality improvements
  • Integrating quality and financial performance management
  • Quality performance governance and accountability
  • Establishing review cycles and escalation mechanisms
  • Continuous improvement of quality measurement systems
  • Developing an integrated Cost of Quality management framework
  • Final Workshop: Developing a Cost of Quality reduction and quality performance improvement roadmap

Upcoming Dates

Selected date

Manama · 1 – 5 Mar 2027 · Classroom

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CityDatesPrice per ParticipantEarly Bird
SalalahScheduled
2 – 6 Nov 2026€5,300—
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ViennaScheduled
9 – 13 Nov 2026€5,700—
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AmmanScheduled
15 – 19 Nov 2026€3,100—
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ParisScheduled
16 – 20 Nov 2026€5,700—
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AmsterdamScheduled
23 – 27 Nov 2026€5,400€4,860until 2 Nov
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BarcelonaScheduled
30 Nov – 4 Dec 2026€5,400€4,860until 9 Nov
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BerlinScheduled
30 Nov – 4 Dec 2026€5,800€5,220until 9 Nov
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SingaporeScheduled
7 – 11 Dec 2026€6,700€6,030until 16 Nov
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CairoScheduled
7 – 11 Dec 2026€3,300€2,970until 16 Nov
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CasablancaScheduled
14 – 18 Dec 2026€4,300€3,870until 23 Nov
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DammamScheduled
21 – 25 Dec 2026€4,200€3,780until 30 Nov
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DohaScheduled
28 Dec 2026 – 1 Jan 2027€4,400€3,960until 7 Dec
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AbujaScheduled
28 Dec 2026 – 1 Jan 2027€5,100€4,590until 7 Dec
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DubaiScheduled
3 – 7 Jan 2027€4,400€3,960until 14 Dec
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FrankfurtScheduled
11 – 15 Jan 2027€5,800€5,220until 21 Dec
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GenevaScheduled
11 – 15 Jan 2027€6,300€5,670until 21 Dec
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IstanbulScheduled
18 – 22 Jan 2027€4,700€4,230until 28 Dec
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AccraScheduled
18 – 22 Jan 2027€5,100€4,590until 28 Dec
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Kuala LumpurScheduled
25 – 29 Jan 2027€4,400€3,960until 4 Jan
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LisbonScheduled
1 – 5 Feb 2027€5,400€4,860until 11 Jan
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BakuScheduled
8 – 12 Feb 2027€4,800€4,320until 18 Jan
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LondonScheduled
8 – 12 Feb 2027€5,600€5,040until 18 Jan
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MadinahScheduled
15 – 19 Feb 2027€4,200€3,780until 25 Jan
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MadridScheduled
22 – 26 Feb 2027€5,400€4,860until 1 Feb
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BeirutScheduled
28 Feb – 4 Mar 2027€4,000€3,600until 8 Feb
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MakkahScheduled
1 – 5 Mar 2027€4,200€3,780until 8 Feb
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ManamaScheduled
1 – 5 Mar 2027€4,700€4,230until 8 Feb
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MarbellaScheduled
8 – 12 Mar 2027€5,400€4,860until 15 Feb
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MarrakeshScheduled
15 – 19 Mar 2027€4,300€3,870until 22 Feb
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Cape TownScheduled
22 – 26 Mar 2027€5,100€4,590until 1 Mar
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Available in: Istanbul · Dubai · London · Riyadh · Doha · Amsterdam

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