How can the value of a human life be included in the cost of quality control?

First, I agree with the other answers that it is sad that we have to consider this in the calculation and a person鈥檚 life should be priceless.





The business and economics portion of the question is what is being asked here and yes, there are a lot of different ways to calculate the value of human life! Does anyone out there buy life insurance? That entire industry is based on what and how we calculate the value of someone鈥檚 life. So a company that want to calculate COQ (Cost of Quality) actually has many ways of doing this.





Note: the common terms today for Cost of Quality Control are: Cost of Quality (COQ), Cost of Poor Quality (COPQ) or a new one Cost of Current Quality (COCQ).








To do this calculation, remember that the formula for figuring cost involves four different phases:


- prevention


- appraisal


- internal failure


- external failure








If we were talking about a human life, then the negative costs would be in one of the failure categories, as it would indicate some financial loss to the organization. Which only makes sense if we lose someone in our company, what will be the cost to replace that person (recruiting, hiring, training, etc.). Also, if the lose of life is due to some negligence on the part of the company, then there will be any number of legal issues that will have to be address at great cost to the company.





If the person is injured in some way, then there will be the other costs of medical care and any legal actions by the individual or government units who will start auditing the company.








So yes, there should be some calculation or allotment made in the COQ calculations if a company has the unfortunate occurrence of someone being injured or worse while working in the organization or even a customer using the products or services that are offered. So one good area to look for examples would be in litigation law to see what type of things people/companies are being sued for.How can the value of a human life be included in the cost of quality control?
It seems morally wrong, but I have learned about many times where a company looks at the cost of lawsuits due to death and the cost of fixing the problem.... and go with whichever is cheaperHow can the value of a human life be included in the cost of quality control?
It should be considered TOP value in my opinion but it would be hard to figure that in because each case is different. My guess would be by how much your costs are from accidents you have had in the past.
Because, sadly, money rules the world

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