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Supplier Cost of Quality & Poor Quality Calculator
Build a supplier-related cost-of-quality view with a clear conformance-versus-failure split and an optional comparable revenue denominator.
Supplier quality cost calculator
Build a supplier-related cost-of-quality view with a clear conformance-versus-failure split and an optional comparable revenue denominator.
YOUR RESULT LIVE CALCULATION
Total supplier-related quality cost
$55,000quality cost
CONFORMANCE AND FAILURE COSTSPreventionAppraisalInternal failureExternal failure
- Conformance: prevention + appraisal
- $25,000
- Poor quality: internal + external failure
- $30,000
- Failure share of quality cost
- 54.55%
- Quality cost / comparable revenue
- 5.5%
One period, supplier-quality scope, and currency. Classify each cost once; this is not an optimal-spend recommendation.
BEHIND THE NUMBER
How the calculation works
Prevention avoids quality problems, appraisal checks conformity, internal failures are detected before customer delivery, and external failures are found afterward. Assign each cost once within a consistent supplier-quality scope and period. The default $55,000 total includes $30,000 of failure costs and is 5.5% of the entered $1 million revenue.
Conformance = prevention + appraisal; poor quality = internal + external failures; total quality cost = conformance + poor quality
When this calculation helps
Separate inspection, scrap, rework, and other entered quality costs over a consistent receipt cohort. Count each cost once and identify whether it is incurred internally or charged by a supplier.
Check the interpretation
A calculated quality burden does not establish who is contractually responsible or what is recoverable. Avoid valuing scrapped stock at retail revenue and then adding the same lost contribution again. Retain the defect and disposition evidence behind the estimate.
Keep cost categories mutually exclusive and the revenue denominator comparable. Include only documented or explicitly estimated amounts. This does not prescribe an optimum quality-spend ratio or establish that prevention spending caused savings. Revenue-based percentage is N/A at zero revenue.
ASQ cost-of-quality categoriesWorked example: Returns Cost: Separate Processing, Recovery, and Lost Inventory Value
Good to know
Which costs count as poor quality here?
Internal and external failure costs. Prevention and appraisal remain visible as conformance costs rather than being labeled failures.
Can I omit a revenue comparison?
Yes. Set revenue to zero to retain the dollar breakdown and display the revenue percentage as N/A.