Quality costs

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Last updated 10:24 PM on 6/19/26
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11 Terms

1
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What are quality costs?

costs connected with attaining and missing the level of quality in a service/product

2
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What are the four types of quality costs?

  1. prevention

  2. appraisal

  3. internal failure

  4. external failure

3
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What are prevention costs?

costs designed to prevent poor quality

4
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What are examples of preventative costs?

  1. planning

  2. calibration

  3. maintenance

  4. management systems

  5. improvement activities

5
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What are appraisal costs?

costs associated with measuring, evaluating, auditing services

6
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What are examples of appraisal costs?

competency assessments, calibration, quality control, proficiency

7
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What are internal failure costs?

costs incurred before delivery of a product or service

8
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What are examples of internal failure costs?

unacceptable specimens, retesting, wasted blood products, downtime

9
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What is external failure costs?

costs that occur after the release of a product or service

10
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What are examples of external failure costs?

customer complaints, report recalls, misdiagnoses, lawsuits

11
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What is the best way to reduce the cost of failure?

devote resources to prevention and appraisal