Cost of Quality measures total quality-related expenses. Categories include:
Prevention Costs:
- Training
- Process improvement
- Quality planning
Appraisal Costs:
- Inspections
- Testing
- Quality audits
Internal Failure Costs:
- Rework
- Scrap
- Retesting
External Failure Costs:
- Warranty claims
- Customer support
- Reputation damage
Analysis:
- Calculate total quality costs
- Identify cost-reduction opportunities
- Balance prevention vs. failure costs
Understanding the cost of quality helps optimise quality management investments.