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Cost of Quality is all costs incurred over the life of a product to achieve product or service quality. The Cost of Quality is a concept of what it costs a company for creating the wrong product or service. Cost of Conformance is the money spent during the project to avoid failures. Prevention costs to build a quality product includes cost for education and training, Document processes, equipment, design costs and time spent to do the job right the first time. Internal failure costs are cost found by the team. Costs on project and processes increase exponentially with rework, recalls, retesting, law suites and lost reputation. Managers believed in the past high quality resulted in higher costs. Juran and Feigenbaum studied the economics of quality and concluded the benefits out weighed the cost. Feigenbaum developed the concept of Total Quality Control. Quality Control monitors and records results of executing quality activities, identify causes of poor quality process or product quality. The Project team or Quality Control departments normally performs quality control.
Suppliers can deliver components on time by practicing total cost of quality. Companies partnering up with suppliers who qualify and provide suppliers with accurate specifications and schedules will benefit from on time deliver. Suppliers can cut their storage cost by keeping minimal stocks on hand.
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