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The Cost of Quality definition
- The Cost of Quality includes all the costs that occur beyond the cost of producing the product “right the first time.” Does not include development costs.- Used to quantify the total cost of prevention and appraisal, and costs associated with the production of software.- Includes all costs associated with the prevention, identification, and correction of product defects.
What are the Costs Associated with Producing Quality Products?
Prevention CostsAppraisal Costs
Failure Costs
Prevention Costs definition
Money required to prevent errors and to do the job right the first time. Normally requires up-front costs for benefits that will be derived months or even years later. Includes money spent on establishing methods and procedures, training workers, acquiring tools, and planning for quality. Prevention money is all spent before the product is actually built.
Appraisal Costs definition
Money spent to review completed products against requirements. Includes the cost of inspections, testing, and reviews. Appraisal money is spent after the product is built but before it is shipped to the user or moved into production.
Failure Costs definition
All costs associated with defective products that have been delivered to the user or moved into production. Some failure costs involve repairing products to make them meet requirements.
Others are costs generated by failures such as the cost of operating faulty products, damage incurred by using them, and the costs associated with operating a Help Desk.
Applying the concepts of continuous testing (Lifecycle testing) to the systems development process can do what?
reduce the cost of quality.
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