In: Operations Management
List and define some of the costs of quality.
We can say that there are four basic types of cost of quality which are:
1. Appraisal cost
Which represents the cost incurred in order to test, inspect as well as verify a product in order for it to be deemed satisfactory.
2. Prevention cost
Which represent the cost incurred in order to prevent any defects, identify the defects as well as implement the corrective measure in order to mature it to a better product. We can say that includes training, redesigning as well as making new purchases to replace it.
3. Internal failure cost
Which represents the cost incurred when we consider the costs that are paid for defects that are incurred before the product is sent off from the system. It includes rework, repair and the wastages incurred to repair it.
4. External failure cost
Which represents the cost incurred when we consider the costs which are spent after the product has left the system, it represents the cost incurred in the customer warranty process such as replacements, customer goodwill, repairs as well as handling the complaints such as having a dedicated customer support team.
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