Skip to end of metadata
Go to start of metadata


Cost of Quality = Cost of Poor Quality + Cost of Good Quality

Cost of Poor Quality = Failure Costs

Example: Rework, Delays, Re-designing, Failure analysis, Re-testing, Complaints, Repairing goods and redoing services, Warranties, Customers' bad will



Cost of Good Quality = Prevention Cost + Appraisal Cost

Prevention Costs : Prevention costs are costs of all activities that are designed to prevent poor quality from arising in products or services

Examples : Quality planning, Supplier evaluation, New product review, Capability evaluations, Quality improvement team meetings, Quality improvement projects, Quality education and training


Appraisal Costs : Appraisal costs are costs that occur because of the conformance to quality standards and performance requirements.

Examples: Checking and testing purchased goods and services, In-process and final inspection/test, Field testing
Product, process or service audits



Reference:
http://www.qualitygurus.com/courses/mod/forum/discuss.php?d=2102(external link)

  • No labels