Cost of Quality
Technically speaking, cost of quality includes the costs of both conformance and nonconformance. However, people often think of this as being the costs of achieving quality. This can include:Customer advocacy process costs | Inspection costs |
Market research costs | Material inspection costs |
Process improvement costs | Quality audits costs |
Quality consulting costs | Quality improvement costs |
Quality inspection costs | Quality planning costs |
Quality related design costs | Quality related partner costs |
Quality related production costs | Quality related redesign and redevelopment costs |
Quality related software costs | Quality reporting costs |
Quality standards compliance cost | Supplier quality evaluation costs |
Testing costs | Training costs |
Cost of Poor Quality
The costs of nonconformance to quality requirements or a failure to meet the quality expectations of customers.Bad publicity | Cost of poor product ratings and reviews |
Customer compensation costs | Customer complaints |
Customer returns | Customer support costs |
Damage to brand | Failure analysis costs |
Field service costs | Legal costs related to quality issues |
Lost sales costs | Negative coverage by media and influencers |
Negative work of mouth | Product liability costs |
Product recalls | Public relations costs related to negative publicity |
Regulatory actions | Retesting |
Rework due to inspection failure | Scraped due to inspection failure |
Warranty claims |
