Mass Customization

Mass customization is a company’s ability to mass-produce goods and also address customization needs. In other words, it’s producing unique products at scale. For example, buyers looking to buy jeans may have their preferences. A particular group of buyers may like bell-bottoms; a few others may prefer slim-fit jeans. Some may also find carpenter jeans […]

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Acceptable Quality Level (AQL)

Also called acceptable quality limit, acceptable quality level (AQL) is the percentage of defective goods that a client or buyer considers satisfactory or acceptable within a production sample representative of total output. In other words, AQL is the maximum faulty units a sample could have. If the sample has defects higher than the determined AQL, […]

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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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