When preparing the report to analyze a proposed quality improvement program,which of the following are included in the costs to continue without the quality improvement program?
A)prevention and appraisal
B)prevention and internal failure
C)internal and external failure
D)appraisal and external failure

Question

Quizplus · Accepted Answer

The costs to continue without the quality improvement program include both internal and external failure costs. Internal failure costs refer to the costs incurred due to defects discovered before the product or service is delivered to the customer, such as rework, scrap, and reinspection. External failure costs refer to the costs incurred as a result of quality problems that are discovered by the customer, such as warranty claims, product returns, and lost sales due to a damaged reputation. Prevention and appraisal costs are involved in implementing the quality improvement program, not in continuing without it.

When Preparing the Report to Analyze a Proposed Quality Improvement