in a competitive environment every company must capable to deliver quality product and service to
customer. Total Quality Management (TQM) should be a solution since it is a management .system that
has orientation to customer satisfaction. TQM implementation needs a significant cost known as Cost of
Quality. This cost is needed to conduct a series of action plan to improve quality of product and service.
This research objectives is to calculate cost of quality in hospital which may different with the calculation
of cost of quality in manufacturing industry The calculation of cost of quality in hospital with regard to
quality improvement program. Measurement of hospital quality service given by a hospital is 0
qualitative measurement that can be subjective. TQM implementation in hospital needs not only technical
approach but also human approach. It has a effect to quality cost since there are hidden Cost that can be
calculated earlier. By measuring and analysis of cost of quality in hospital, important variables to
improve product and service quality can be found This research found that there is a relationship
between cost of prevention and cost of internal failure in hospital "X".
