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Cost of Quality

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Maxine Rubia
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23 views1 page

Cost of Quality

Uploaded by

Maxine Rubia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Cost of Quality - Juran defined the Cost of Quality as tangible and intangible costs.

The cost of quality, or not getting it right the first time, Juran maintained should be
recorded and analyzed and classified into failure costs, appraisal costs and
prevention costs.
The Total Quality Cost then is simply the sum of all these cost categories;
Prevention, Appraisal, & Failure Costs (Internal & External).
The Total Quality Cost can be summarized as all investments in the prevention of
defects, the testing of product to assure Quality, or the failure of a product to meet
a customer requirement.
Prevention Cost – costs associated with activities specifically designed to prevent
poor quality in products. Example: Training, preventive auditing, and process
improvement implementation.
Appraisal Cost – costs associated with activities specifically designed to measure,
inspect, evaluate or audit products to assure conformance to quality requirements.
Examples: Inspection, compliance auditing, and investigations.
Internal Failure Cost – costs incurred when a product fails to conform to a quality
specification before shipment to a customer.
External Failure Cost – costs incurred when a product fails to conform to a quality
specification after shipment to a customer.
Example: Scrap, rework, corrective actions, warranty claims, customer complaints
and loss of custom

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