Reliability and cost are related, as costs occur if products fail quality standards before or after reaching consumers. Specifying reliability too low results in high consumer costs for repairs and maintenance, while reliability above optimum incurs greater costs due to stricter component and assembly requirements.

1. Relation between Cost and Reliability

3. These costs occur when
products or services fail to
reach designed standards and
are detected before transfer
to the consumer takes place

4. These costs occur when
products or services fail to
reach design quality standards
and are not detected until after
transfer to the consumer.

8. If specified reliability is lower
than optimum, the actual
costs to the consumer may
be high due to excessive
rapairs and maintenance.
If specified reliability is higher
then optimum, the actual costs
rises due to greater and stricter
requirements for components and
assemblies.