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Cost of Quality

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The Cost of Quality, or not getting it right first time, Juran maintained, should be recorded and analysed and classified into failure costs, appraisal costs and prevention costs.

Failure Costs - Scrap, rework, corrective actions, warranty claims, customer complaints and loss of customers
Appraisal Costs - Inspection, compliance auditing and investigations
Prevention Costs - Training, preventive auditing and process improvement implementation

Also see Juran