chp5 - Cost of Quality Quality is free Cost of Quality Cost...

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Cost of Quality Cost of Quality FScN 4131 Food Quality September 18, 2000 Cost of Quality Cost of Quality • “Quality is free” •C r o s b y • “Defects are not free. Somebody makes them and gets paid for making them” •D em i n g Cost of Quality Cost of Quality • “In the U.S.A., about a third of what we do consist of redoing work previously ‘done’” •J u r a n Cost of Quality Cost of Quality • According to the ISO 8402: Quality costs are:
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Quality Costs: Benefits of Quantifying Quality Costs: Benefits of Quantifying 1. Contribute to business’ decision-making 2. Identification of quality improvement areas 3. Comparison of departmental performance 4. Comparison of company’s performance 5. Improved quality in budgeting 6. Focus on quality improvement management Quality Costs Categories Quality Costs Categories • Failure costs: related to failing to meet requirements • Appraisal costs: incurred by assessing the level of quality • Prevention costs: generated by any measure aimed to prevent failures Quality Costs Categories Quality Costs Categories • Opportunity costs: loss of business due to defects • Exceeding requirements costs: unnecessary costs Quality Costs Quality Costs Lost of Opportunity Prevention and
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This note was uploaded on 01/06/2011 for the course FDE 510 taught by Professor Prof.hamialpas during the Spring '09 term at Middle East Technical University.

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chp5 - Cost of Quality Quality is free Cost of Quality Cost...

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