Cost Of Quality
The cost of quality is one important factor. It refers to the costs that the company can incur because the products or services it produces don't have enough quality.
The cost of quality can be divided into 4 different categories:
- Prevention Cost: This is the cost that companies have to prevent that the quality of the product or service is affected. It can include process control, quality planning, quality audits, among others.
- Appraisal Cost: This is the cost that concerns with equipment testings, audits, inspections, among others.
- Internal Failure Cost: This cost refers to the process changes, reworks, scraps, re-inspections redesigns, among others.
- External Failure Cost: This cost refers to the returns, revenue loss, warranties, penalties, among others.
The cost of quality can be divided into 4 different categories:
- Prevention Cost: This is the cost that companies have to prevent that the quality of the product or service is affected. It can include process control, quality planning, quality audits, among others.
- Appraisal Cost: This is the cost that concerns with equipment testings, audits, inspections, among others.
- Internal Failure Cost: This cost refers to the process changes, reworks, scraps, re-inspections redesigns, among others.
- External Failure Cost: This cost refers to the returns, revenue loss, warranties, penalties, among others.