ABSTRACT
Cost of quality (COQ) is defined as tangible costs, which are accounted for based on the actual transaction costs of production processes. These costs involve the commonly used conventional Prevention–Appraisal–Failure (PAF) model projected by Feigenbaum. The theory of COQ has been executed effectively in manufacturing and service organisations. However, COQ has focused on inter-firm quality, but not on the complete supply chain. COQ acts as an accounting method that conveys the effects of bad quality and the activities of quality programmes and efforts into a common language for managers. COQ is a language that each member of the supply chain can understand, which is essential as it affects processing costs, and consumers’ needs. Thus, it is critical to extend COQ as a peripheral measure and combine these costs into SC modelling.
