Quality Cost Definition

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In order to better comprehend the topic of this research which is the assessment of quality costs and how to measure the quality costs, it is necessary that the reader firmly grasps some of the concepts which are related to the topic of this research. The concepts which will be discussed initially in order to provide a deeper insight on the topic are quality, costs of quality, classification of quality costs and lastly how the quality is measured(Barfield, Raiborn, & Kinney, 2002). The concept of the term quality is a wide one and to understand it, the individuals needs to understand what quality is. Quality is defined as the pragmatic approach of identifying a product for its superiority or inferiority when compared to the other products,…show more content…
Quality cannot be defined as it is not any rigid, formal or quantitative entity(Ishikawa, 1985). The quality of a product is very important if the company is to meet the expectations of the customers of the company. The most effective definition of quality after taking into consideration all of the above statements about the definitions of quality by different researchers is that quality is the characteristic of a product which enables it to meet the expectations of the customers and fulfill their demands in the most efficient manner. Quality is also defined as the ability of a product to be without any sort of deformity (Jaju & Lakhe, 2008). Quality cost is defined as the cost incurred on the organization to correct the products with low quality. Quality costs exist due to the products which have lower quality as compared to the intended product. Quality costs are the costs spent by the organization to conform the products of the company to higher quality or the demands and needs of the customer. It is defined as the sum of the cost of appraising the products and the costs incurred on preventing the defective or low quality products of the company (Juran & Godfrey,…show more content…
Prevention costs are the costs spent by the company in planning, implementing and managing the quality system of the organization. Appraisal costs are the costs incurred by the organization in order to measure the effectiveness of the products. These costs are usually spent in the later stages of operations and helps the organization in measuring which phase of production or product may require prevention measures and the products are accessed for any deformities which might not satisfy the customer and to check that the products conform to the standards set by the customers (M. & C., 2000). Internal failure costs are the costs incurred by the low quality products before the products are sold to the customers. The internal failure costs include final inspections of the products which may inform the organization of the inability of the product to conform to the required
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