Prevention Costs

Costs of all activities that are designed to prevent poor quality in products or services from arising. E.g. costs of Quality planningQuality educationTraining,Capability studiesStatistical Process Control (SPC)Error proofing (Poka Yoke)etc. Read also: Appraisal...

External Failure Costs

Costs caused by deficiencies found after delivery of products and services to external customers, which leads to customer dissatisfaction. E.g. costs for ComplaintsRepairing goods and redoing servicesWarrantiesCustomers‘ bad willLosses due to sales...

Non-Value Added Costs

Costs of using resources beyond what is needed to meet customer requirements. E.g. costs of OverproductionWaitingTransportOverprocessingInventoryMotionetc. Read also: Types of...

Appraisal Costs

Costs that occur because of the need to control products and services to ensure a high quality level in all stages, conformance to quality standards, and performance requirements. E.g. costs for checking and testing purchased goods and servicesquality control and...