Examples of cost of non-conformance
Sherry is working for a pharmaceutical company. And she is reporting to the PMO. She was involved in all the 3 processes in project quality management. She was technical lead for the quality control department. She was involved in calculating the money spent during and after the project because of the failures. The cost of nonconformance includes internal failure costs and external failure costs. Examples of cost of non-conformance are?
A. Rework.
B. Scrap.
C. Warranty costs.
D. All of the above.
Answer: Option D is correct.
Some of the examples of cost of non-conformance
- Rework,
- repairs,
- complaints,
- scrap,
- liabilities,
- warranty work,
- lost business are examples of cost of nonconformance .
Cost of quality is as categorized below:
- Cost of conformance to requirements (e.g., investing in prevention of nonconformance requirements).
- Cost of non-conformance to requirements (e.g.: rework due to nonconformance of requirements).