What is the cost of quality
The cost of quality is a business term that relates to the financial loss to business because of defects
The source of costs can vary from excess production time due to reworking through to loss of revenues due to customer returns.
Cost of quality can be categorized into three broad groups
• Failure costs – examples include rework, warranty,
• Appraisal costs – audit, inspection and cost of compliance
• Prevention costs – business improvement programs, training,
Leave a Reply
