Cost of quality can be categorized into?

Cost of quality example

The cost of quality covers the cost of additional work in the project to accommodate quality related activities. Cost of quality can be categorized into?

A. Cost of conformance to requirements (Prevention Costs, Appraisal Costs).
B. Cost of non-conformance to requirements (Internal Failure costs, External Failure Costs).
C. Both A& B.
D. None of the above.

Answer: Option C is correct.

Cost of quality can be categorized into:

  • Cost of conformance to requirements.
  • Cost of non-conformance to requirements.
  1. Cost of quality: It covers the cost of additional work in the project to accommodate the 76 quality-related activities. E.g.: training employees, follow the standards to ensure quality and quality control activities.
  2. Cost of conformance: Includes Prevention costs, Appraisal costs.
  3. Cost of nonconformance: Internal failure costs, External failure costs.
  4. Prevention costs (Build a quality product): Training, equipment, documentation, timings
  5. Appraisal costs: Testing, inspection.
  6. Internal Failure cost: Rework, Scrap (Failures found by the project).
  7. External Failure cost: Warranty work, lost business (Failures found by the customer).