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Tools and techniques of operations management
7.3 Quality related costs
Four types of quality
cost
Conformance costs Non-conformance costs
Prevention: Appraisal: Internal failure: External
Cost of Cost of quality Costs arising failure:
preventing inspection and from a failure Costs arising
defects before testing. to meet quality from a failure
they occur. standards. to meet quality
Occurs before standards.
product has Occurs after
reached product has
customer. reached
customer.
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