Cost of quality analyzer

Skill a5c-ai/babysitter/library/specializations/domains/business/operations/skills/cost-of-quality-analyzer

Cost of Quality analysis skill with prevention, appraisal, internal failure, and external failure cost trackingFrom its SKILL.md

Install

npx -y skills add a5c-ai/babysitter --skill cost-of-quality-analyzer

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SKILL.md

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Cost of Quality Analyzer

Overview

The Cost of Quality Analyzer skill provides comprehensive capabilities for analyzing and tracking quality costs. It supports PAF (Prevention, Appraisal, Failure) model analysis, hidden factory cost identification, and quality investment ROI calculation.

Capabilities

Prevention cost identification
Appraisal cost tracking
Internal failure cost calculation
External failure cost estimation
COQ ratio analysis
Hidden factory costs
Quality investment ROI
Improvement prioritization

Used By Processes

QMS-004: Cost of Quality Analysis
QMS-002: TQM Program Development
CI-001: Operational Excellence Program Design

Tools and Libraries

Cost accounting systems
Quality cost databases
Financial analysis tools
Reporting dashboards

Usage

skill: cost-of-quality-analyzer
inputs:
  period: "2025-Q4"
  revenue: 10000000
  cost_data:
    prevention:
      - category: "Training"
        amount: 50000
      - category: "Quality planning"
        amount: 30000
      - category: "Process control"
        amount: 40000
    appraisal:
      - category: "Inspection"
        amount: 80000
      - category: "Testing"
        amount: 60000
      - category: "Audits"
        amount: 20000
    internal_failure:
      - category: "Scrap"
        amount: 100000
      - category: "Rework"
        amount: 75000
      - category: "Downtime"
        amount: 50000
    external_failure:
      - category: "Warranty"
        amount: 120000
      - category: "Returns"
        amount: 40000
      - category: "Complaints"
        amount: 25000
outputs:
  - coq_summary
  - coq_ratios
  - trend_analysis
  - pareto_analysis
  - improvement_opportunities
  - roi_projections

Cost of Quality Categories

Prevention Costs (Investing to prevent defects)

Quality planning
Training and education
Process control
Supplier evaluation
Design reviews
Preventive maintenance

Appraisal Costs (Detecting defects)

Incoming inspection
In-process inspection
Final inspection
Testing and calibration
Quality audits
Supplier monitoring

Internal Failure Costs (Defects found before shipping)

Scrap
Rework
Re-inspection
Downtime
Failure analysis
Yield losses

External Failure Costs (Defects found by customers)

Warranty claims
Returns and replacements
Complaint handling
Product liability
Recalls
Lost sales/reputation

COQ Benchmarks

Metric	World Class	Average	Poor
COQ as % of Revenue	2-4%	10-15%	20-25%
Prevention % of COQ	20-30%	10-15%	< 5%
Failure % of COQ	30-40%	60-70%	> 80%

Optimal COQ Model

Total COQ = Prevention + Appraisal + Failure

As Prevention increases:
- Appraisal stays relatively flat
- Failure costs decrease significantly
- Total COQ decreases until optimal point

Hidden Factory Costs

Often unmeasured costs:

Expediting
Sorting
Engineering changes
Excess inventory
Extended cycle times
Customer service escalations

Integration Points

ERP financial modules
Quality Management Systems
Cost accounting systems
Business intelligence tools

What ships with it

Read from the repository

Just SKILL.md. No reference files, no scripts.