There are four major types of quality costs:

1. Prevention

This category includes costs like statistical process control, supervision of prevention steps, quality improvement projects, technical support to suppliers, audits, analysis and reporting and other activities related to proactive activities to prevent problems.

2. Appraisal

These are the costs associated with activities such as test and inspection of incoming materials, testing and inspection plans, supplies used in testing and inspection, supervision of testing and inspecting activitiess, maintenance of test equipment.

3. Internal Failures

You’ve already experienced things like cost of scrap, spoilage, rework, re-inspection of reworked products, disposal of defective products, down time, root cause analysis, retesting

4. External Failures

Some of the costs include warranty work and returns, lawsuits from customers, lost goodwill and customer confidence, shipping back to the customer, redesign of products and packaging and in extreme cases like the VW diesel fraud, loss of organizational market value.

Good planning can reduce some of these costs – a mitigation plan can lower the negative effects of many of these drains on your budget!

Join us on September 28th, 2020 at 12:00 noon EDT for our free webinar: ‘Cost of Quality Decision Making’. You can reserve your spot here: https://simplifyiso.com/free-cost-of-quality-webinar-mc/

 

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