List of cost classified as cost of non conformance to of total quality management
Answers
Cost of Conformance vs Cost of Non-Conformance
Cost of Conformance: this is the costs incurred by carrying out activities to ensure the project and deliverables conform to the quality requirements and avoid failure (i.e. building quality into the project processes).
Cost of Conformance can be broadly divided into two categories:
Prevention Costs — money spent on activities/equipment to prevent defects from arising in the first place, e.g. :
Equipment update and maintenance
Training provided to staff
Documentation
Following quality standards
Time and human resources involved
Quality Assurance activities
Appraisal Costs — money spent on those activities to inspect and dig out defects to prevent these defects from getting into the hands of the customers, e.g.:
Testing and inspection
Destructive testing loss
Quality Control activities
Cost of Non-Conformance: this is the money that needs to be spent for not conforming to the quality requirements.
Cost of Non-Conformance can also be broadly divided into two categories:
Internal Failure Costs — the costs incurred when defects in the deliverables are detected internally (i.e. not yet presented to the customers)
Defect Repair
Rework
External Failure Costs — the costs incurred when defects are found the deliverables have been delivered to customers and in actual use (this is the worst kind of quality costs)
Warranty work
Liabilities
Loss of business goodwill
Both the Cost of Conformance and the Cost of Non-Conformance can be collectively referred to as the Cost of Quality. Cost of Conformance is considered much lower than the Cost of Non-Conformance. Therefore in the PMP® Exam, quality management advocates “prevention over inspection”.
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