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Quality : It is a measure of goodness to understand how a product meets its specifications.
Quality Cost : Cost of performing the activities to check failure in meeting the quality specification.
Costs of Quality are of four types –
i) Prevention costs
- Quality Engineering
- Quality training
- Quality Audits
- Design Review
- Quality circles etc
ii) Appraisal costs
- Inspection
- Field testing
- Continuing supplier verification etc
iii) Internal failure costs
- Re-testing
- Scrap
- Rework
- Repair
iv) External failure costs.
- Discount due to defects
- Product liability
- Revenue loss
- Warranties
- Stock-out
Quality Control (QC) It is concerned with the past, and deals with data obtained from previous production which allow action to be taken to stop the production of defective units.
Quality Assurance (QA) It deals with the present, and concerns the putting in place of systems to prevent defects from occurring.
Quality Management (QM) It is concerned with the future, and manages people in a process of continuous improvement to the products and services offered by the organization.
Total Quality Management (TQM) It is also concerned with the future, and manages people in a process of continuous improvement to the products and services offered by the organization. Quality is assured at every stage of value chain, from production to distribution.
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