Monday, 5 May 2014

What are the Three Quality Costs?

There are three quality costs that are associated with finding, making, repairing and avoiding defects. These costs are as follows:

Failure Costs – There are internal and external failure costs. These are the costs that could vanish if there are no defect exits set up before the product is shipped to the consumer. The costs include the reworking, retesting, scrap and yield losses.

Appraisal Costs – These are the costs that are caused by the inspections that are carried out in order to discover the conditions of the products. They include incoming material inspections, inspection and testing along with the costs involved in maintaining accuracy of the test equipment, materials and services used and the evaluation of stock.

Prevention Costs – Prevention costs are designed to keep the costs of future appraisals to a minimum.  The costs included the new product reviews, quality planning, training, process control and the improvement projects and quality reporting.

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