NAME OF TOPIC:-QUALITY COST, QUALITY SYSTEM. Q.NO.1-Explain the quality cost.

Ans- The costs of carrying out the companys quality functions (meeting the quality needs of the customers) are known as costs of quality. These include: 1) Market research costs of discovering the quality needs of the customers. 2) The product research and development costs of creating a product concept which will meet these quality needs. 3) The design cost of translating the product concept into information which permits planning for manufacture. 4) The cost of manufacturing planning in order to meet required quality specifications. 5) Cost of inspection and test. 6) Cost of defect prevention. 7) Cost of scrap quality failures. 8) Cost of quality assurance. 9) Field service and such other factors attributes to the quality improvement and maintenance. A quality cost committee of the American Society for Quality Control has recommended that quality costs be defined in four categories: 1) 2) 3) 4) Cost of prevention. Cost of appraisal. Cost of internal failure. Cost of external failure.

Cost of Prevention It consists of the costs associated with the personnel engaged in designing, implementing and maintaining the quality system. These costs are incurred to keep failure and appraisal costs to minimum. Maintaining the quality system includes auditing the system. Cost of Appraisal The costs associated with the measuring, evaluating or auditing of products, components and purchased materials to assure conformance with quality standards and performance requirements are called cost of appraisal. In other words the costs of evaluating quality and of identifying and segregating non-conforming parts and assemblies. Cost of Internal Failure The costs associated with defective products, components and materials that fail to meet quality requirements and results in manufacturing losses are called as costs of internal failures Cost of External Failures It consists of the costs which are generated because of defective products being shipped to customers.