Costs caused by deficiencies found before delivery of products and services to external customers which otherwise would have led to the customer not being satisfied. Deficiencies are caused both by errors in products and inefficiencies in processes. E.g. cost for

  • rework
  • delays
  • redesign
  • shortages
  • failure analysis
  • retest
  • downgrading
  • downtime
  • lack of flexibility and adaptability
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