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p:\fcs\oc\00tool\material\graphics\a-f\costqua1.doc DATE \l 5/9/95
EXAMPLES OF TYPICAL COST OF QUALITY ELEMENTS
Definition
According to the definition published by the American Society of Quality Control (ASQC) Quality Costs Committee, COQ consists of the following types of costs:
- Prevention Costs
- Appraisal (Detection) Costs
- Internal Failure Costs
- External Failure Costs
Prevention Costs
Prevention costs are defined by the ASQC as “the costs of all activities specifically designed to prevent defects in deliverable products or services.” In other words, this is the cost of building quality into products. Prevention costs include the following:
- Customer requirements determination
- Process control development
- Vendor training and cooperation
- Design and specification reviews
- Preventive maintenance
- Training
- Continuous quality improvement planning and projects
- Quality reporting
- Personnel retention
- Quality Process Evaluations
Prevention costs have the greatest and most cost-effective impact on the final product quality.
Appraisal (Detection) Costs
As defined by the ASQC, appraisal costs are “the costs associated with measuring, evaluating or auditing products or services to assure conformance with quality standards and performance requirements.”
These are the costs usually associated with the classic quality control department and the practice of quality by inspection. Appraisal costs include the following:
- Raw material inspection and testing
- In-process measurements and inspections
- Customer surveys
- Prototype inspection and testing
- Status measurements and reporting
- Product acceptance
- Inspection and testing equipment
- Product audits
Compared to prevention costs, appraisal costs are more expensive and less effective. Appraisal costs should decrease as ac company adopts TQM.
Internal and External Failure Costs
Also known as the cons of nonconformance, failure costs are defined by the ASQC as “the costs required to evaluate and eith
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