Cost of Quality
The cost of quality has been defined as.
Prevention Costs: Prevention Costs occur from efforts to keep defects from occurring at all. These are costs incurred in preventing mistakes from happening such as, the implementation of standards, staff training and the costs involved in setting up quality management programs.
Appraisal Costs: Appraisal Costs occur from detecting defects. These are the costs incurred in looking for mistakes before a product is released including, program/system/acceptance testing, walkthroughs, inspections and project reviews.
Failure Costs: These are the costs incurred because a product doesn’t conform to requirements such as re-work, overtime, loss of business and maintenance.