Project Management Professional (PMP)® Examination Content OutlineProcessHard
A project manager is developing an annual budget for a portfolio of projects. One of the key inputs for this budget is the 'cost of quality' for past projects. To accurately estimate this, the project manager needs to consider both the costs of conformance and non-conformance. Which of the following is an example of a 'cost of conformance'?
- AScrap and waste generated during production.
- BTraining employees on quality assurance procedures.
- CRework due to defects identified by customers.
- DWarranty claims and product recalls.
Show answer & explanationAnswer & explanation
Correct answer: B. Training employees on quality assurance procedures.
Costs of conformance are expenses incurred to prevent defects and ensure the product or service meets quality requirements. Training employees on quality assurance procedures is a proactive measure to prevent defects, making it a cost of conformance. The other options are costs of non-conformance, incurred when quality fails.
Why the other options are wrong
- A. Scrap and waste are internal failure costs, which are costs of non-conformance.
- C. Rework is a cost of non-conformance (failure cost), as it results from defects.
- D. Warranty claims and product recalls are external failure costs, which are costs of non-conformance.
Cost of Quality (COQ)
The total cost incurred by an organization to ensure quality and address failures to meet quality requirements, categorized into costs of conformance and costs of non-conformance.
- Costs of Conformance: Prevention costs (e.g., training, process control) and Appraisal costs (e.g., testing, inspection).
- Costs of Non-Conformance: Internal failure costs (e.g., rework, scrap) and External failure costs (e.g., warranty, recalls).
- Optimizing COQ aims to balance prevention/appraisal costs with failure costs.
Memory trick: Pay to prevent, pay to check, or pay for what you wreck.