¶ … Quality Relationship Memo
John Smith
John D. Mitch, Department Supervisor
FROM: John Smith, Quality Assurance
Costs of Quality
COPQ or Cost of poor quality are costs related to providing poor quality services or products. There are four categories for COPQ.
Internal failure costs: Costs related to defect found prior to customer receipt of service or product.
External failure costs: Costs related to defects located after customer receipt of service or product.
Appraisal costs: Costs sustained to decide the level of conformance to quality guidelines.
Prevention costs: Costs sustained to maintain appraisal and failure costs to a desired minimum.
The costs are part of cost of quality which is a: "methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures" (ASQ, 2016). Cost of quality allows businesses to assess and prevent actions that reduce quality or assess and maintain actions that promote quality. With the data collected from cost of quality analysis, a business/organization can properly assess and decide the potential savings to be garnered via implementation of process improvements. "Quality-related activities that incur costs may be divided into prevention costs, appraisal costs, and internal and external failure costs" (ASQ, 2016).
To begin, the first cost are prevention costs. Businesses and organizations incur prevention costs in order to avoid or prevent quality problems. These costs are related with the "the design, implementation, and maintenance of the quality management system" (ASQ, 2016). Businesses/organizations plan and incur prior to actual operations possibly...
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