Question

Discuss the costs of conformance versus non conformance and how they both factor into the overall cost of quality. How would you budget for conformance-related tasks compared to non conformance-related tasks? Why?

Answer 1

Cost of conformance are those cost which are incurred by carrying out activities to ensure that project and deliverables are conforming to the quality requirements and they are also ensuring to avoid any kind of failure so these will be leading to prevention cost and appraisal cost which will be generally including all the money which are spent upon activities or equipment in order to prevent defect and which are spent in order to inspect and take out the defect to prevent this defect from getting into the hands of customer.

Cost of non conformance are those cost which are needed to be spent for not confirming to the quality requirement and they are generally affecting the cost of the quality of the product because these are not following the quality standard maintained by the company and this could be attributed to internal failure costs and external failure cost so these will be taking inconsideration like rework or defecting repairs at this will also be including loss of business goodwill and warranties.

This both cost of conformance and non conformance are included into the cost of overall quality in order to improve the quality of the product and consumer satisfaction and cost of conformance is generally considered very lower than the cost of non conformance because cost of non conformance can lead to decrease in the market share through loss of business reputation by continuous internal failures and external failures.

I will be budgeting for performance related task through looking into various factors which are of regular in nature like prevention cost which will be including equipment update and maintenance and documentation along with training to staff and quality assurance activities which would also be looked to various kind of appraisal cost which will be including testing and inspection on the regular basis and quality control activities.

Budgeting for non conformance would be quite different because budgeting for non-conformance will be not easy to detect because they are generally detected internally and if they are not deducted they are leading to external failures so we can be proactively manage various kinds of external failures which can provide the consumer with warranties and external repairs along with guarantees and internal failure cost & they can be managed through reworking and defecting repairs.

These both cost are budgeted in advance in order to improve the overall customer satisfaction and cost of quality and retain the customer for longer period of time by providing quality oriented product.