Wednesday, October 28, 2009

Cost of Quality

Prevention Costs
Costs for all activities are as specifically designed to prevent the bad quality of service or product.
  • Re-study of New Product
  • Quality Planning
  • Survey Ability of Supplier
  • Evaluation Ability of Process
  • Meeting of Quality Improvement Team
  • Quality Improvement Projects
  • Training and Education of Quality
Appraisal Costs
Costs related to measurement, evaluation or make an audit of to product or service to ascertain as according to clauses of standard quality of and performance. Including among are:
  • Inspection/ examination of material
  • Examination during process
  • Final Audit service, process and product
  • Calibrate from equipment of examination and measurement
Failure Costs
The costs yielded from product or the service disagrees with clauses of customer. Failure cost divided by 2 that is external and internal category.

Internal Failure Costs
Failure costs emerging before delivery of product to customer. The example is costs:
  • Scrap
  • Rework
  • Re-inspection
  • Re-testing
  • Material review
  • Downgrading
External Failure Costs
The costs emerging after delivery of product to customer. The example is expense- expense:
  • Processing customer complaints
  • Customer returns
  • Warranty claims
  • Product recalls

Related Articles by Categories


Grab this Widget ~ Blogger Accessories