Cost of Quality
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