Joseph M. Juran identified internal failure costs, external failure costs, detection costs, and prevention costs.

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Joseph M. Juran identified these four types of costs as part of his quality management philosophy. Internal failure costs are incurred when defects are found before the product or service is delivered to the customer, external failure costs occur when defects are found after the product or service is delivered to the customer, detection costs are associated with finding defects before they reach the customer, and prevention costs are associated with preventing defects from occurring in the first place.

Joseph M Juran Identified Internal Failure Costs, External Failure Costs, Detection