I have thought of cost of quality in two parts, cot of poor quality and cost of good quality. Poor quality costs are internal and external failure costs, good quality costs are prevention and appraisal. To make this more confusing, the older terms might be better described for today's managers as:
- Prevention - now investment
- Appraisal- now monitoring
- Internal failure- now waste
- External failure - now downstream consequences
Any comments on this?