costs of qualityproductivityandquality.yolasite.com/resources/costs of quality.pdf · quality costs...
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![Page 1: Costs of Qualityproductivityandquality.yolasite.com/resources/Costs of Quality.pdf · Quality costs are the total of the cost incurred by: Investing in the prevention of nonconformance](https://reader035.vdocuments.net/reader035/viewer/2022071218/604fa02e353d80735d2794d6/html5/thumbnails/1.jpg)
By Kartikeya Bolar
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� The price of creating a quality product or service?
� It's the cost of NOT creating a quality product or service.
� Cost of Poor Quality� Cost of Poor Quality
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� The reworking of a manufactured item.
� The retesting of an assembly.
� The rebuilding of a tool.
� The correction of a bank statement.
The reworking of a service, such as the � The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant.
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Quality costs are the total of the cost incurred by:
� Investing in the prevention of nonconformance to requirements.requirements.
� Appraising a product or service for conformance to requirements.
� Failing to meet requirements.
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� Prevention Costs
� Appraisal Costs
� Internal Failure Costs
� External Failure Costs
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The costs of all activities specifically designed to prevent poor quality in products or services
ExamplesExamplesExamplesExamples
� New product review
� Quality planning� Quality planning
� Supplier capability surveys
� Process capability evaluations
� Quality improvement team meetings
� Quality improvement projects
� Quality education and training
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The costs associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements.
ExamplesExamplesExamplesExamples
� Incoming and source inspection/test of � Incoming and source inspection/test of purchased material
� In-process and final inspection/test
� Product, process or service audits
� Calibration of measuring and test equipment
� Associated supplies and materials
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Failure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer
ExamplesExamplesExamplesExamples� ScrapScrap� Rework� Re-inspection� Re-testing� Material review� Downgrading
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Failure costs occurring after delivery or shipment of the product — and during or after furnishing of a service — to the customer.
ExamplesExamplesExamplesExamplesExamplesExamplesExamplesExamples
� Processing customer complaints
� Customer returns
� Warranty claims
� Product recalls
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� Sporadic problems are temporary, once in a while occuring problems, which are not usual.
� Chronic problems occur more than once and are persisting problems
Examples for Sporadic problemExamples for Sporadic problem-Sudden failure of machine-Wrong assembly of partsExample of Chronic problem-Periodic power cut problems-Inability to meet deadlines on many occasions
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