Question

Identify the four types of quality cost, explain briefly in writing how they interact and list two examples each of the four types of quality costs. Provide an example of an organization using these in their operations.

Answer 1

1.prevention costs:-these are the costs specifically designed to prevent the poor quality in product or services.in other words,these are the costs to avoid or reduce the defect or poor quality at initial stage itself.

eg:workers training , quality engineering.

2.appraisal costs:-these are costs for identify the defective product before they delivered to customers.

3.internal failure costs:- these are the costs arise for emoving defective products before shipping to customers.

eg:-cost of rework,cost of scrap

4.external failure costs:- if defective product is supplied to customers,then external failure costs will incure.

eg:- warranties , replacement costs.

a manufacturing company will incure these costs if they supplying product to customers.