Cost of Quality

From the system dashboard, click the "Cost of Quality" link. The CoQ dashboard opens showing proxy metrics (Tier 1) for all systems, even those without cost tracking enabled.

• Click the "Cost of Quality" button or card on the system dashboard
• Alternatively, navigate directly to /lite/5s-system/{id}/cost-of-quality

The proxy metrics section shows four indicators derived automatically from your existing 5S data. These are always visible, even before you enable cost tracking.

• Non-compliance rate: percentage of checklist items that fail (lower is better)
• Action closure rate: percentage of corrective actions completed on time
• Open red tags: count of unresolved critical items
• Submission streak: consecutive days with at least one submission

When cost tracking is enabled, the dashboard shows a prominent money banner at the top with your total quality cost or monthly savings amount.

• Total CoQ or monthly savings displayed as the hero number with currency formatting
• Trend arrow comparing this month to the previous month (green down = costs decreasing = good)
• Secondary metrics: CoQ as percentage of revenue, CoQ per production unit, months tracked since baseline

The dual-axis correlation chart plots your 5S score (left axis) against quality cost (right axis) over time. This is the key chart for proving ROI.

• Blue line (left axis): 5S score trend -- should be going up
• Red line (right axis): quality cost trend -- should be going down
• The crossing pattern (score up + cost down) visually demonstrates the return on 5S investment

The area comparison section offers two views for analyzing cost distribution across your plant areas.

• Pareto view: areas ranked by total cost (highest first) with cumulative percentage line -- identifies where 80% of costs originate
• Scatter view: each area plotted by 5S score (x-axis) vs quality cost (y-axis) with regression line
• In the scatter view, areas in the lower-right quadrant (high score, low cost) are your role models

The PAF (Prevention, Appraisal, Failure) breakdown shows how your quality costs are distributed across the four cost categories.

• Prevention (green): costs invested in preventing defects -- training, maintenance, 5S administration
• Appraisal (blue): costs of checking for defects -- inspection, testing, calibration
• Internal Failure (yellow): costs of defects caught before shipping -- scrap, rework, downtime
• External Failure (red): costs of defects reaching customers -- returns, warranties, penalties

When you configure a baseline in the setup page, the dashboard shows cumulative savings since your 5S implementation started.

• Cumulative savings: total money saved since the baseline start date
• Projected annual savings: extrapolated from the current trend
• Months tracked: how long the tracking period has been active

Click "Generate Insights" to get AI-powered analysis of your cost data. The AI evaluates correlations, identifies cost drivers, projects savings, and compares your plant to industry benchmarks.

• Correlation card: statistical relationship between 5S scores and quality costs (with r-value)
• Root causes: which areas and cost categories are driving the highest costs
• Projection: estimated annual savings if the current improvement trend continues
• Recommendations: prioritized actions with estimated financial impact
• Benchmark: how your CoQ as a percentage of revenue compares to industry standards