Chapter 2.B, Problem 1E

To determine

Cost of quality: The costs that are incurred to avoid, prevent, detect or removes defects from a product are called cost of quality or quality costs. The cost of quality is divided into appraisal costs, prevention costs, external failure costs, and internal failure costs.

Prevention cost: Prevention costs are the costs that are incurred to prevent or avoid defects in the product.

Appraisal Cost: Appraisal costs are the costs that are incurred for testing and inspecting the products to identify any defects before delivering them.

Internal failure cost: Internal failure costs are the costs that are incurred to remove identified defects from products before delivering them.

External failure cost: External failure costs are the costs that are incurred to remove defects from products that have already been delivered to the customers.

Quality cost report: The report which details the cost of appraisal costs, prevention costs, external failure costs and internal failure costs is called quality cost report.

Quality circles: It refers to a group of the management or employees who interact among themselves regularly to identify ways of resolving problems and improving the quality of products.

Quality of conformance: Quality of conformance is the level which a process, product or service must meet to be in accordance to its design specifications and free from defects or other issues.

The cost terms those most appropriately complete the blank statements given.