Explain the Different costs related to quality

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sourav108555 • 550

Prevention costs: Prevention costs are the up-front costs oriented toward the satisfaction of customer’s requirements with the first and all succeeding units of product produced without defects. Included in this are typically such costs as design review, training, quality planning, surveys of vendors, suppliers, and subcontractors, process stud- ies, and related preventive activities.
- Appraisal costs: Appraisal costs are costs associated with evaluation of product or process to ascer- tain how well all of the requirements of the customer have been met. Included in this are typically such costs as inspection of product, lab test, vendor control, in- process testing, and internal–external design reviews.
- Internal failure costs: These costs are those costs associated with the failure of the processes to make products acceptable to the customer, before leaving the control of the organi- zation. Included in this area are scrap, rework, repair, downtime, defect evaluation, evaluation of scrap, and corrective actions for these internal failures.
- External failure costs: External failure costs are those costs associated with the determination by the cus- tomer that his requirements have not been satisfied. Included are customer returns and allowances, evaluation of customer complaints, inspection at the customer, and customer visits to resolve quality complaints and necessary corrective action.

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