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There are four types of product quality costs: Prevention costs: the costs of preventing defects Appraisal costs: the costs of determining whether defects exist Internal
There are four types of product quality costs: Prevention costs: the costs of preventing defects Appraisal costs: the costs of determining whether defects exist Internal failure costs: the costs of repairing defects found prior to product sale External failure costs: the cost incurred when defective products have been sold Costs were incurred by Home Master, a company that makes washing machines. Classify each of these costs (1-4) to the appropriate product quality cost defined above. The company sent The company Cost of rewiring the The company replaced switches on 10% of machines sold last year. its machine requires each machines that failed inspectors to a two- week training machine to the 5-spin cycle complete 5 spin cycles before it is boxed and shipped. test. program on the new model that is to be released this year. It is hoped that this will lower the defect rate on the new model
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