Quality Concepts: What is quality, difference between qualitycontrol and quality assurance, Role of TQM/BE Deptt in NTPC, Cost

of Quality

Cost of Quality
Cost of nonconformance Cost of inefficient processes Cost of lost opportunities

Quality and Cost are coplementary

Economics of Quality
Every time work is redone, the cost of quality increases. Repurchasing of defective material

Quality Costs Concepts

Prevention Costs:- the costs of activities specially
designed to prevent poor quality in products or services

Appraisal Costs:- the costs associated with measuring,

evaluating or auditing products or services to assure conformance to quality standards and performance requirements.

Failure Costs:- the costs resulting from products or services

not conforming to requirements or customer/user needs

- Internal Failure Costs

- External Failure Costs

Quality Costs Concepts

For each failure there is a root cause Causes are preventable Prevention is always cheaper
The Strategy : Direct attack on failure costs Invest in right prevention activities Reduce in appraisal costs