Cost of Nonconformance
Cost of nonconformance refers to the costs associated with failures found during and after the project due to poor quality in products, deliverables, or services. This includes the following:
- Internal failure costs: Costs related to failures found by the project team, such as rework and scrap. - External failure costs: Costs related to failures found by the customer, such as liabilities, warranty work, and lost business. - The cost of nonconformance is a part of the cost of quality, which also includes the cost of conformance. The cost of conformance includes prevention and appraisal costs, while the cost of nonconformance includes waste and rework. Measuring the cost of quality is important for minimizing quality losses and achieving optimal quality costs for projects.
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