What is the Cost of
Poor Quality?
The cost of poor quality is reflected in internal and external failure costs.
- Internal failure costs
(anything that is discovered before the product/service reaches a
customer). For example:
- Redesigning
- Delays
- Shortages
- Retesting
- Failure Analysis
- Downtime
- External failure costs (costs
that accrue after a faulty product or service is delivered to a customer).
For example:
- Time spent handling customer
complaints
- Product recalls
- Product returns
- Warranty claims
- Lawsuits
What is the Cost of
Good Quality?
The cost of good quality impacts costs for the
prevention of nonconformance and appraisal costs.
- Prevention of nonconformance
(any activity that is designed to prevent poor quality). For example:
- Education and training
- Quality planning
- Supplier evaluation
- Product reviews
- Cost of appraising products and
services to meet requirements (costs associated with controlling quality
at all stages in order to maintain conformance to standards and
requirements). For example:
- Product tests/checks
- Field testing
- Calibration of equipment
- Inspections
User questions & answers