Cost of Quality has 3 types of costs associated with it:
-
Prevention Costs
- Appraisal Costs
- Failure Costs
Prevention Costs
This category includes money required to prevent errors such as money
spent on establishing methods and procedures, training to workers,
acquiring tools, and planning for quality.
Appraisal Costs
Appraisal cost includes the
cost of inspections, testing, and reviews. This money is spent when the
product is developing or when build is ready but before it is released
to client
Failure Costs
All costs associated with
defective products that have been delivered to the client. The failure
costs involve cost of repairing products to make them to meet
requirements.