Question

What are the four general categories of quality costs?

Short answer

Answer

The four general categories of quality costs

1. Appraisal cost
2. Prevention cost
3. Internal failure cost
4. External failure cost

Step-by-step solution

Appraisal cost

Appraisal costis the costs associated with the examination, monitoring, as well as other operations performed to guarantee that the item, as well as procedure, is appropriate.

Prevention cost

The whole cost of preventive defects includes the expenses of identifying the source of the problem, implementing remedial action to remove the reason, training staff, redesigning the item as well as process, including purchasing new equipment as well as making adjustments.

Internal failure cost

Internal failure cost is the expenses incurred as a result of systems faults: trash, repair, as well as replacement.

External failure cost

Client warranty replacement, damage to clients as well as reputation, processing grievances, as well as item repairs are all expenses for problems that move through the system and is referred to as external failure costs.