Internal failure costs

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 internal failure costs they are called failure costs (in PAF typology) [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
  2. Warren C. S., Reeve J. M., Duchac J. (2008), p.1232

References

Author: Katarzyna Żurek