(costs associated with defects found before the customer receives the product or service).
External failure costs
(costs associated with defects found after the customer receives the product or service)
(costs incurred to determine the degree of conformance to quality requirements)
(costs incurred to keep failure and appraisal costs to a minimum). The failure costs contribute major expenses whereas appraisal cost is the second level when compared for expenses. Prevention costs have least expenses. The costs of activities specifically designed to prevent poor quality in products or services. The following table indicates elements that may be included in the four major cost categories:
Time and motion studies
Fixture design and fabrication
The costs, associated with measuring, evaluating, or auditing products/services to ensure conformance to quality standards and performance requirements.