Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Cost of Quality

8,908 views

Published on

Published in: Business

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

×