Cost of Quality Analysis and Reporting using Microsoft Excel

Name: Cost of Quality Analysis and Reporting using Microsoft Excel
Rating: 4.6 (808 reviews)

Expertly collect, analyze and present quality cost data (using Microsoft Excel) to help drive continual improvement

Created byRay Harkins, The Manufacturing Academy

Last updated 5/2026

English

What you'll learn

The major quality cost "buckets": Preventive, Appraisal, Internal, and External
How to collect and correctly analyze cost of quality data
How to build a cost of quality report
How to format a COQ report for maximum effectiveness
How to use an Excel Pivot Table to summarize your internal Scrap data
How to apply pareto analysis to your COQ report as a mean of kickstarting your continual improvement initiatives
Where payroll, purchases, training costs, internal scrap, return product freight, an all other quality related costs fit into your analysis
Key concepts of Quality Engineering and Quality Management

Course content

1 section • 28 lectures • 2h 39m total length

Introduction to the Course8:25
Introduction to this video series. Accurately, completely, and consistently measuring your organization's cost of quality is a cornerstone to improving your process.
Cost of Quality Categories7:44
The four major categories of quality costs used throughout the manufacturing and service industries.
Downloadable Resources4:32
Gathering Your Quality Cost Information5:37
Establish the routes to collect pertinent accounting and quality rejection data month after month.
Quality Purchases4:15
Essential purchasing data and logical sub-group for reporting.
Quality Payroll6:04
Interpreting and summarizing quality department payroll data.
Payroll Summary1:53
Useful summary statistics for payroll data.
External Quality Costs4:56
Setting up the External Quality Cost page of your report.
Internal Scrap Data5:11
The key items needed for an internal quality rejection report.
Summarizing Internal Rework Hours3:52
Building the foundation of an accurate internal quality scrap log.
Training Cost Data4:47
Collecting and summarizing training data.
Introduction to Product Costing13:23
Product costing for non-finance professionals.
Calculating Internal Scrap Cost, Part 14:20
Calculatingg the cost of your internal rework labor.
Calculating Internal Scrap Cost (VLOOKUP), Part 28:50
Merging the unit costs for your scrap and salvage into your Internal Scrap Log.
Calculating Internal Scrap Cost, Part 34:11
Finalizing your Internal Scrap Costs.
Summarizing External Quality Costs3:45
Build out your External Quality Costs page.
Total External Quality Costs9:14
Integrating your External Quality Costs into your final report.
Total Internal Quality Costs6:13
Integrating your Internal Quality Costs into your final report.
Total Appraisal Quality Costs3:23

Integrating your Appraisal Quality Costs into your final report.
Total Preventive Quality Costs3:27
Integrating your Preventive Quality Costs into your final report.
Total Cost of Quality5:52
Finalizing your Cost of Quality report and calculating your costs as a percentage of Sales.
Formatting and Distribution the COQ Report4:58
Formatting and distribution of your report for maximum effectiveness.
Month over Month Summary5:52
Tracking your monthly quality costs for the long term.
Cost of Quality Quiz
More Analysis Methods5:01
Run charts and control charts for the major COQ categories.
Estimating Defect Costs in a Process Series7:34
Conclusion3:30
Additional Resources in Quality Engineering8:33
Bonus Lecture4:17

Requirements

Basic understanding of manufacturing practices
Basic math and Excel skills
Backround in process quality and problem solving

Description

A complete plan of attack for molding your quality cost information into an informative report that will grab the attention of anyone who cares about the bottom line of your company. Learn the four standard cost of quality categories. Learn how to gather the essential building blocks of your report. Then learn to analyze and summarize this data to DRIVE IMPROVEMENT within your company.

In this course, you will learn:

What raw data to collect and how to collect it
The four cost buckets: Prevention, Appraisal, Internal and External
Sources of Quality Costs like payroll, scrap data, training data, customer complaints, returned product freight, etc.
How to use Excel formulas like VLOOKUP to speed up your data summary
Formatting and distributing your COQ report for maximum impact
How products are costed from raw material through finished goods
Trends and patterns in COQ data
Estimating defect costs in a process series
How to effectively use the provided Excel templates
And MUCH MORE!!

Cost of Quality is the business foundation for your quality engineering, management and continuous improvement initiatives. By learning the skills provided in this class, you will effectively connect your knowledge and activities as a quality professional to the larger objectives of your company. Sign up today to start learning this critical skill!!

Who this course is for:

Quality Technicians, Quality Engineers, Manufacturing Engineers, Process Improvement Specialists
Continuous Improvement Managers, Production Supervisors, Operations Managers, Supplier Quality Engineers
Lean Six Sigma Green Belts, Lean Six Sigma Black Belts, Industrial Engineers, Cost Analysts
Plant Managers, Business Analysts working in manufacturing, Quality Managers, Reliability Engineers
Supply Chain Managers, Supply Chain Analysts, Manufacturing Managers, Operations Managers