This document discusses quality costs and quality control tools. It defines four types of quality costs: prevention costs, appraisal costs, internal failure costs, and external failure costs. It also explains seven common quality control tools: cause-and-effect diagrams, check sheets, control charts, histograms, Pareto charts, scatter diagrams, and flow/run charts. Histograms show frequency distributions of data values. Pareto charts arrange costs or problems in order of significance. Scatter diagrams show relationships between two variables. Flow charts depict processes and run charts track metrics over time.

1. By:
Rahul khatri
Rohit Rupam
Yashwant Singh Rathore

2.  These are the costs associated with
resources and efforts used to provide quality
to a product.
 Quality costs do not involve simply upgrading
the perceived value of a product to a higher
standard.
 Instead, quality involves creating and
delivering a product that meets the
expectations of a customer.

3. Feigenbaum defined the following four
quality cost areas:
Prevention
Cost
Appraisal
Cost
Internal
Failure Cost
External
Failure Cost
Cost of control / Cost of
conformance
Cost of failure / Cost of non-
conformance

4.  Arise from efforts to prevent defects from
occurring at all
 Examples:
• Quality planning
• Statistical process control
• Investment in quality-related information systems
• Quality training and workforce development
• Product-design verification
• Systems development and management

5.  Arise from detecting defects via inspection, test,
audit
 Examples:
• Test and inspection of purchased materials
• Acceptance testing
• Inspection
• Testing
• Checking labor
• Setup for test or inspection
• Test and inspection equipment
• Quality audits
• Field testing

7. Arise from defects caught internally and
dealt with by discarding or repairing the
defective items
Examples:
• Scrap
• Rework
• Material procurement costs

8. Arise from defects that actually reach
customers
Examples:
• Complaints in warranty
• Complaints out of warranty
• Product service
• Product liability
• Product recall
• Loss of reputation

10.  Described by Joseph M. Juran
 Cost due to production of poor quality
products:
• Tangible costs—factory accounts
• Tangible costs—sales accounts
• Intangible costs
 Delays and stoppages caused by defectives
 Customer good will
 Loss in morale due to friction between departments

11.  First emphasized by Kaoru Ishikawa, Father
of Quality Circles.
1. Cause-and-effect diagram (also known as the
"fishbone" or Ishikawa diagram)
2. Check sheet
3. Control chart
4. Histogram
5. Pareto chart
6. Scatter diagram
7. Stratification (alternately, flow chart or run chart)

15. The most
commonly used
graph for
showing
frequency
distributions, or
how often each
different value
in a set of data
occurs.

16. • A Pareto chart is a bar
graph.
• The lengths of the
bars represent
frequency or cost (time
or money), and are
arranged with longest
bars on the left and the
shortest to the right.
• In this way the chart
visually depicts which
situations are more
significant.

17. The scatter diagram
graphs pairs of
numerical data, with one
variable on each axis, to
look for a relationship
between them.
If the variables are
correlated, the points will
fall along a line or curve.
The better the
correlation, the more the
points will be close to
the line.

18. Flow chart
Run chart

19. Flow line
Terminal
Decision
Input/
Output
Predefined
process