In: Operations Management
Which cost of quality would most likely involve setting up a continuous improvement process during the execution phase of a major project?
Prevention cost
Appraisal cost
Internal failure cost
External failure cost
Correct answer is (a) prevention cost.
Explation :- Contineous improvement process is adopted to prevent the defects in the process , hence it is a prevention cost for the company.
Appraisa cost is the cost incurred during the detection of a defect like inspection cost.
Internal and external failure costs are the costs incurred due to failure of the product to satisfy the quality parameters either in manufacturing fascility or at customer’s end .