---
title: "Quality; cost of quality; assuring quality"
subject: "Project Engineering"
chapter: 4
key: "semester_7/project_engineering:quality-cost-of-quality-assured"
source: https://www.bctengineer.com/q/semester_7/project_engineering/quality-cost-of-quality-assured
site: BCT Engineering
---

# Quality; cost of quality; assuring quality

Project Engineering · Chapter 4: Project Implementation and Controlling

- Asked in: 2082 Bhadra, 1+3+4 marks
- Video: [Explaining the Cost of Quality, the 4 Cost Categories and Juran’s Quality Cost Curve](https://www.youtube.com/watch?v=LA5B5g1kLkM) — CQE Academy
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/project_engineering/quality-cost-of-quality-assured
- Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-4

## Question

Define quality. Explain the importance of cost of quality. How can the quality of a product be assured?

## Short answer

Quality is meeting requirements. Cost of quality includes prevention, appraisal, and failure costs; investing in prevention reduces larger failure costs, boosting profit and reputation. Quality is assured through clear specs, quality plans, material testing, inspections, audits, corrective actions, and continuous improvement.

## Answer

#### Quality

**Quality** is the degree to which a set of inherent characteristics of a product or service meets the requirements: the specified standards, the client's needs and fitness for use. In construction, quality means the work follows the drawings, specifications and codes and is safe, durable and functional.

#### Importance of cost of quality

Cost of quality (COQ) is the total cost spent to achieve quality and the cost of the failure to achieve it.

| Type | Meaning | Example |
|---|---|---|
| Prevention cost | Cost of preventing defects | Training, planning, design review |
| Appraisal cost | Cost of checking quality | Inspection, testing, audits |
| Internal failure cost | Defects found before delivery | Rework, scrap, delay |
| External failure cost | Defects found after delivery | Repair, warranty, claims, bad reputation |

Importance:

- Shows how much money is lost by poor quality, so management can act.
- A small extra cost on prevention and appraisal reduces much larger failure costs.
- Helps to choose the best level of quality and to justify quality budgets.
- Improves profit, client satisfaction and company reputation.
- Is used to compare projects and to find the areas for improvement.

#### How quality is assured

1. Clear requirements: complete drawings, specifications and standards.
2. A quality plan, with responsibilities, procedures and checklists.
3. Selecting competent contractors and trained staff.
4. Approval and testing of materials and equipment.
5. Inspection at hold points and testing during the work.
6. Quality audits, documentation and traceability.
7. Corrective and preventive action for non-conformities.
8. Continuous improvement (PDCA cycle) and feedback from the client.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which is an appraisal cost?
   A. Training and planning
   B. Inspection and testing
   C. Rework of defects found before delivery
   D. Warranty repair after delivery
   Answer: B. Appraisal cost is the cost of checking quality, such as inspection, testing and audits. (Key point: Cost of quality types)

2. Which is an external failure cost?
   A. Rework found during construction
   B. Scrap of bad bricks on site
   C. Repair and warranty claims after handover
   D. Design review
   Answer: C. External failure is when defects are found after delivery: repair, warranty, claims and bad reputation. (Key point: Internal vs external failure)

3. Why is cost of quality important?
   A. Because prevention spending should be zero
   B. Because a small prevention and appraisal cost reduces much larger failure costs
   C. Because failure costs are always small
   D. Because it removes the need for inspection
   Answer: B. COQ shows the money lost to poor quality and justifies spending on prevention and appraisal. (Key point: Importance of COQ)

4. Which set of actions assures product quality?
   A. Quality plan, material testing, hold-point inspection, audits and corrective action
   B. Lowest bid selection only
   C. Skipping documentation
   D. Final inspection only
   Answer: A. Quality is assured through plans, competent staff, testing, inspection, audits, corrective action and PDCA improvement. (Key point: Assuring quality)

## Related in Project Engineering

- [QA vs QC; types of cost of quality](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aqa-vs-qc-cost-of-quality) — Project Engineering, chapter 4, asked 2×
- [Monitoring and quality, cost, schedule control](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Amonitoring-quality-cost-schedule-control) — Project Engineering, chapter 4
- [Closed and open control; quality cost](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aclosed-open-control-quality-cost) — Project Engineering, chapter 4
- [Quality costs more, lack costs even more](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Atotal-quality-cost-justify) — Project Engineering, chapter 4, asked 2×

## Related in other subjects

- [Project cost versus product cost](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-vs-product-cost) — ICT Project Management, chapter 9
- [How CM helps with delay, quality and cost](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acm-course-delay-cost) — Construction Management, chapter 1
- [Cost of quality](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acost-of-quality) — ICT Project Management, chapter 10
- [ER diagram: product and components](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Aer-product-component) — Database Management System, chapter 2
