Question: (a) Provide an example for each for the FIVE (5) types of cost of quality that affects such decisions. Internal failures Rework, scrap, inventory, inspections,
(a) Provide an example for each for the FIVE (5) types of cost of quality that affects such decisions.
Internal failures Rework, scrap, inventory, inspections, down time, retest, process losses. External failures Warranty costs, recalls, returns, loss of goodwill, loss of market share. Appraisal costs The cost of setting up additional inspections, process audit, inspection equipment such as visual inspection machines etc. Prevention costs Cost of preventing the quality issues. Procedures or additional investment that need to put in place to prevent quality issues. Personal costs Loss of opportunity, frustration, anger, depression and other feelings.
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