All-Time Order

All-time order is the final purchase order for a product that’s supposedly in the fagging end of its life cycle. In other words, it’s the final purchase a company makes for a specific product that is about to be discontinued. The buying company must ascertain the number of units to be bought when placing the […]

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Prevention Cost

Prevention cost is the cost of incorporating good quality into a process or product. In other words, it’s designing products and processes in a manner that the possibility of faults being detected during internal product inspection is minimal to none. The objective is to make sure products are made exactly to prescribed design and hardware […]

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Appraisal Cost

A component of cost of quality, appraisal or inspection cost is the cost incurred by an organization on product quality inspection and testing. It’s the cost that a company pays to create quality consistently and which ensures defective products aren’t shipped out to the customer. Generally, quality testing teams are in place to ensure adherence […]

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Cost of Quality

Cost of quality is the cost a company bears for manufacturing products not meeting quality standards/specifications. In other words, it’s quantifying the wastages and defective units churned out by a firm. The wastage can be attributed to a machine, plant, production line, department, firm, etc. Product quality inspection costs, defective products’ manufacturing costs, etc. comprise […]

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External Failure Cost

External failure cost is a cost of quality related to acknowledging and remedying the defects a consumer detects post product usage. In other words, the costs associated with warranty and repair, customer support, returned products, penalties for poor product quality, etc. are external failure costs. The costs also account certain other costs such as loss […]

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