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E-Training WHAT ARE SUB-CATEGORIES OF COST OF POOR

session QUALITY?
Cost of Poor Quality is sub-categorized in following heads

Principle Sub-category Definition


Cost of Control Prevention These are the costs incurred towards defects and
non-conformities from occurring and include
quality expenditures to keep unsatisfactory
products from coming about in the first place.
These include cost areas like quality planning,
Engineering, employee training and meaningful
meetings etc.
Appraisal These are the costs for maintaining quality levels
by means of formal evaluations of product
quality. These include cost areas like inspection,
test, quality audits and similar expenses.
Cost of Failure Internal failure These are the costs of unsatisfactory quality
within the company. These include cost areas like
scrap, spoilage, reworked material etc.
External failure These are the costs of unsatisfactory quality
outside the company. These include cost areas
like product performance failure, customer
complaints etc.

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