Difference between revisions of "Internal failure costs"

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'''[[Internal failure costs]]''' are one of the four types of [[quality]] costs among '''prevention''' '''costs''', '''appraisal''' '''costs''' and  '''internal''' '''failure''' '''costs'''. Together with external failure costs they are called '''failure costs''' (in PAF typology). Internal failure cost happens when ready [[product]] or [[service]] does not meet quality standards and [[customer]] requirements. In opposite to external failure cost, it is found '''before''' '''delivery''' '''to''' '''the''' '''customer'''.
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'''[[Internal failure costs]]''' are one of the four types of [[quality]] costs among '''prevention''' '''costs''', '''appraisal''' '''costs''' and  '''external''' '''failure''' '''costs'''. Together with external failure costs they are called '''failure costs''' (in PAF typology). Internal failure cost happens when ready [[product]] or [[service]] does not meet quality standards (because of inefficient [[process]]) and [[customer]] requirements. In opposite to external failure cost, it is found '''before''' '''delivery''' '''to''' '''the''' '''customer'''.
Internal failure costs are cost of<ref> Neyestani B. (2017), p. 35 - 37 </ref>:
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Internal failure costs are cost of<ref> Neyestani B. (2017), p. 35 - 37, Vysochynska O. (2016), p. 14 - 20 </ref>:
 
* Scrap,
 
* Scrap,
 
* Rework,
 
* Rework,
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* Defect [[evaluation]],
 
* Defect [[evaluation]],
 
* Evaluation of scrap,
 
* Evaluation of scrap,
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* Design changes during [[production]],
 
* [[Corrective actions]],
 
* [[Corrective actions]],
* [[Reengineering]].
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* [[Reengineering]],
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* Other costs of internal inefficiencies.  
  
 
== How quality costs impact internal failure costs ==
 
== How quality costs impact internal failure costs ==

Revision as of 18:30, 22 April 2019

Internal failure costs
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Methods and techniques

Internal failure costs are one of the four types of quality costs among prevention costs, appraisal costs and external failure costs. Together with external failure costs they are called failure costs (in PAF typology). Internal failure cost happens when ready product or service does not meet quality standards (because of inefficient process) and customer requirements. In opposite to external failure cost, it is found before delivery to the customer. Internal failure costs are cost of[1]:

How quality costs impact internal failure costs

It is assumed that higher costs are spent on prevention costs and appraisal costs, failure costs will decrease (including internal failure costs). It is coming from the fact that more products should be produced with good quality. Optimal level is reached when prevention and appraisal costs are balanced against failure costs[2].

Footnotes

  1. Neyestani B. (2017), p. 35 - 37, Vysochynska O. (2016), p. 14 - 20
  2. Warren C. S., Reeve J. M., Duchac J. (2008), p.1232

References

Author: Katarzyna Żurek