cost of quality
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external costs
defects are discovered after shipment
internal costs
defects are discovered before shipment
detection costs
for inspection of purchased materials and during manufacture
prevention costs
for keeping defects from occurring in the first place
cost of quality
the cost-of-quality accounting system was created by Joseph Juran to convince top management of the need to address quality issues. he identified four categories of costs, and that external and internal failure costs account for 50-80 percent of the total cost of quality. to minimize the total cost, Juran advocated more attention be paid to prevention.
