Costs associated with problems found after the product reaches the customer.

$--$

Costs of things that go wrong before the product reaches the customer. These include rework, scrap, downgrades, retesting, and so forth.

$--$

Costs for the proactive activities that focus on the reduction of process failures including education, training, and supplier certification.

$--$

Costs associated with the formal evaluation of quality in the firm, including inspection, quality audits, testing, calibration and checking time.

$--$

These costs fall into four categories: $(1)$ internal failure costs, $(2)$ external failure costs, $(3)$ appraisal costs, and $(4)$ prevention costs.

$1.$

External Failure Costs

$2.$

Internal Failure Costs

$3.$

Prevention Costs

$4.$

Cost of Poor Quality

$5.$

Appraisal Costs