Monday, 24 July 2017

MT - 84 - Cost of conformance and cost of non-conformance !

Cost of conformance and cost of non-conformance are components of Cost of quality.

Cost of conformance is the total cost of ensuring that a product is of good Quality. It includes costs of Quality Assurance activities such as standards, training, and processes; and costs of Quality Control activities such as reviews, audits, inspections, and testing.This is money spent to avoid failures.These activities each consume resource hours and thus need to be included in your project schedule, resource assignments, and cost estimates.

Costs of non-conformance can include things such as payments made out on warranties, re-work or scrap, and/or damage to reputation.This is money spent because of failures.

No comments:

Post a Comment