SAB_#83_Quality_Costs_OK

SAB_#83_Quality_Costs_OK

1. You will need to figure the cost of all of your quality-related activities into the overall budget, too. Since it`s cheaper to find bugs earlier in the project than later, there are always quality costs associated with everything your project produces. Cost of quality is just a way of tracking the cost those activities.

2. Cost of quality is how much money it takes to do the project right

3. is what you get when you add up the cost of all of the prevention and inspection activities you are going to do on your project. It doesn't just include the testing. It includes any time spent writing standards, reviewing documents, meeting to analyze the root causes of defects, doing rework to fix the defects once the team finds them_ absolutely everything you do to ensure quality on the project.

4. Looking at the cost of quality means making sure the project is not spending too much to achieve a particular level of quality

   • Cost of Conformance
     • Prevention Costs (Build a quality product)
       • Training
       • Document processes
       • Equipment
       • Time to do it right
     • Appraisal Costs (Assess the Quality)
       • Testing
       • Destructive testing loss
       • Inspections
     • Money spent during the project to avoid failures
   • Cost of Nonconformance
     • Internal Failures Costs (Failures found by the project)
       • Rework
       • Scrap
     • External Failure Costs (Failures found by the customer)
       • Liabilities
       • Warranty costs
       • Lost business
     • Money spent during and after the project because of failures