Cost of quality is the process of correcting errors, if a company’s products or services has not met the expected requirements. These costs can be tangible or intangible and are divided in to three, prevention cost, appraisal cost, and failure cost. Building quality during production process itself is all about prevention costs. In appraisal costs, the manufactured product is evaluated again and ensures whether it meets the required specifications. Failure cost can be internal or external. Costs for clearing faults before sale is referred to as internal failure cost where as cost incurred for fixing problems after the product reaches customers is called external failure costs.
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