Program Management

Cost of Quality

Cost of Quality

 Cost of Quality is money spent during and after the project to avoid failures or because of failures.

Cost of Quality consists of two part

  1. Cost of Conformance
  2. Cost of Nonconformance

Cost of Conformance

Money spent during project to avoid failures. Cost of Conformance are listed below :

  1. Prevention costs – to build quality product . Example : Training , Document processes etc
  2. Appraisal costs – to access the quality. Example :Testing , Inspections

Cost of Nonconformance

Money spent during and after project because of failures. Cost of Nononformance are listed below :

  1. Internal Failure Costs – Cost due to failures found by project. Example : Rework , Scrap
  2. External Failure Costs -Cost due to failures found by customer. Example : Liabilities , Warranty work , Lost business

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