The Costs of Quality
There are three cost of quality. those are
- Appraisal costs
- Prevention costs
- Failure costs
Appraisal costs
Costs of activities designed to ensure quality or uncover defects
- Measuring, evaluating, & auditing materials, parts, products, & services
Prevention costs
Costs of preventing defects from occurring
- Planning & admin system, work with vendor, training, control procedure etc.
Failure costs
Costs caused by defective parts or products or by faulty services
- Internal failures
- Failures discovered during production
- External failures
- Failures discovered after delivery to the customer
Return on quality (ROQ): Approach to evaluate
financial return of investment in quality.
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