This is the third decade that the cost-of-quality approach has been considered the central theme leading quality management away from the conservative production environment perspective to a more advanced perspective penetrating the offices of senior management. There isn't an organization today that does not consider the various costs of quality management in one way or another.Peter Drucker (1946) defined productivity as“the yield from the resources”of the organization, the intention being all resources in all fields. Furthermore, by the termyield,Drucker meant the desired achievements and not the total outputs, wanted and unwanted, by which their efficiency is often erroneously measured. During the past few decades, a large number of methodologies have been developed to measure productivity. No fewer in number have been the approaches developed for measuring quality.Therefore, it is surprising that very few approaches deal with quality and productivity measurement as one entity despite the one-on-one relationship between them. This has brought about the necessity to rethink the approach to cost of quality, and it is with this issue that we shall concern ourselves.