Diagnose · Economics of quality

Economics of quality

What it is

What it shows

Each month as a dot at its conformance cost (prevention plus appraisal) and its failure cost (internal plus external), joined in time order. The dashed lines connect equal total cost.

Why it matters in manufacturing

Quality cost is a trade-off: spending on conformance should bring failure cost down by more. This view shows whether that is happening, month by month.

How to read it

Moving down and to the right means extra conformance spending buys a larger drop in failure cost. Crossing the dashed lines towards the origin means the total falls.

What good looks like

The path moves down over time and crosses the dashed lines towards the origin: failure cost falls by more than conformance cost rises.

Expert view

The expert is reading the figures…

Mixed

Some figures move the right way, some deserve a closer look.

What we observe

Good: Failure cost per unit of conformance cost fell from 1.65 to 1.05 (−37%).
Fact: Failures cost more than conformance in 1 of the last 6 months.
Watch: Sep 2025 stands out at $2.03M, 2.6 times a normal month (1 such months).

Keep in mind

One set has a record count that differs from AlisQI.
The token cannot read 5 sets, so the total may be partial.

Computed by the app from the figures in this view. Data as of 9 Nov 2026 02:14.