The total costs incurred to ensure good quality or rectify poor quality. By enhancing quality, managers can reduce costs and boost profits. These costs are categorized into prevention, appraisal, internal failure, and external failure costs.
Cycle Time refers to the length of time required from the placing of an order by a customer to the delivery of the product or service. It is a crucial metric, particularly significant in companies employing just-in-time techniques.
External Failure Costs are all costs associated with defects found after a product or service is delivered to the customer. These costs are crucial for understanding a company's approach to quality management and customer satisfaction.
Internal Failure Costs are expenses associated with defects that are detected before a product or service is delivered to the customer. They are part of the broader category known as the Cost of Quality.
Expenditures incurred by an organization to prevent defects in its products or services, which form an integral part of the Cost of Quality and are sometimes related to Environmental Costs.
Quality Engineering is a portion of quality management concerned with prevention planning and the correction of nonconformance in the production or service cycle.
Total Quality Management (TQM) is a comprehensive management approach that focuses on long-term success through customer satisfaction. This strategy involves all members of an organization participating in improving processes, products, services, and the organizational culture in which they work.
