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Cost of Quality

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Publicada em: Negócios

Cost of Quality

  1. 1. PREPARED BY, ASHOK.M
  2. 2. The “cost of quality” isn’t the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service.
  3. 3. Every time work is redone, the cost of quality increases. Obvious examples include:  The reworking of a manufactured item.  The retesting of an assembly.  The rebuilding of a tool.  The correction of a bank statement.
  4. 4. The cost of quality is generally classified into four categories: 1.External Failure Cost 2. Internal Failure Cost 3. Inspection (appraisal) Cost 4. Prevention Cost
  5. 5. Cost associated with defects found after the customer receives the product or service. Example: complaints, claims. Processing customer returns, customer warranty
  6. 6. Cost associated with defects found before the customer receives the product or service. Example: inspection, downgrades. Scrap, material rework, review, rematerial
  7. 7. Cost incurred to determine the degree of conformance to quality requirements (measuring, evaluating or auditing). Example: Inspection, service audits. testing, process or
  8. 8. Cost incurred to prevent poor quality. Example: planning, reviews, New product supplier review, surveys, quality teams, education and training. quality process improvement

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