TQM1 PART 3 Flashcards
Quality related activities that incur costs
Prevention costs
Appraisal costs
Internal failure costs
External Failure costs
These are incurred to prevent or avoid failure problems.
Prevention costs
These costs are associated with measuring and monitoring activities related to quality standards and performance requirements.
Appraisal Costs
These costs are acquired to treat defects revealed earlier when the product or service is delivered to the customer.
Internal Failure Costs
These costs are obtained to treat defects exposed by customers.
External Failure Costs
Two main components of the cost of quality
Cost of conformance
Cost of non-conformance
is the cost of making available products or services based on required standards.
Cost of conformance
Means failure costs linked with a process not functioning based on required standards.
Cost of non-conformance
Cost of conformance
Prevention costs
Appraisal costs
Cost of non-conformance
Internal failure costs
External Failure costs