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Quality Assurance

Prevention costs

Appraisal Costs

Failure costs

Quality planning Training personnel

Process appraisal Final product appraisal

Internal failure External failure

Research, design and development

Prevention costs

Appraisal Costs

Failure costs

Setting specifications (incl. services, materials, processes and products) Pre-production/ operation and prototype trials

Inspection equipment - Maintenance - Design & specifications

Rework & rectification Downgrading of products & services Product or service complaints & warranty claims

Production/operations

Prevention costs

Appraisal Costs

Failure costs

Training - including supervisor training Pre-production/ operation and prototype trials Special handling & storage during production or operations Supervision of quality at all stages

Line or process inspection (by production/operations personnel) Finished product inspection or service checking (by production/operations personnel)

Full cost of scrap or wasted effort Rework & rectification Replacement of rejected product or repeating service Downgrading of products, materials and services

Marketing and sales

Prevention costs

Appraisal Costs

Failure costs

Market research Correct forecasts Setting of correct product or service specifications as per the requirement of customers

Analysis of degree of Downgrading of products acceptance of goods and and services services Customer complaints, liaison & compensation Warranty claims & replacements or refunds

Purchasing

Prevention costs

Appraisal Costs

Failure costs

Supplier evaluation Supplier training

Vendor rating Receiving inspection

Downtime because of part shortages.

Service department

Prevention costs

Appraisal Costs

Failure costs

Product or service specification evaluation Pre-production/ operations and prototype trials Planning of in-process control procedures

Finished product or Customer complaints service performance Product or customer service evaluation Returned material investigations and repairs

Personnel

Prevention costs

Appraisal Costs

Failure costs

Recruitment of appropriate personnel Good compensation Competencies analysis Training

Operation of appraisal systems

staff Dealing with results of poor recruitment process Disciplinary procedures Strikes/Union problems High employee turnover

Stores, transport and distribution

Prevention costs

Appraisal Costs

Failure costs

Special storage

handling

and

Receiving and checking materials bought-out items or services Checking and despatching finished product and/ or services

Sorting of reject finished goods in stock Receiving and checking returned reject goods Checking and despatching replacement goods

Material control

Prevention costs

Appraisal Costs

Failure costs

Ordering correct materials Inventory systems

Checking stock levels

Excess inventory Scrap material control Ordering of material or services for replacement.

Maintenance

Prevention costs

Appraisal Costs

Failure costs

Prototype processes and equipment Planning and maintenance of plant equipment and inspection equipment

Equipment monitoring

reliability Downtime of plant & machinery Trouble shooting and investigation of defects

Finance

Prevention costs

Appraisal Costs

Failure costs

Establishment of good financial systems with proper controls in place. Proper assessment of customers on credit facility. Feasibility studies

Auditing accounts Investigations following Determination of quality failure in the system related costs Chasing recoveries from the customers Bad debts Losses

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