5. The cost of poor quality
Price rework, rejects, re-inspection and claims, and compare prevention cost with failure cost.
Separate prevention, appraisal, internal failure and external failure costs for one order. Price rework minutes, seconds and rejects, re-inspection, airfreight recovery and buyer claims, then compare the total with what prevention would have cost.
By the end of this module: Price rework, rejects, re-inspection and claims, and compare prevention cost with failure cost.
Prerequisite: Complete module 4 and its readings first.
1. Read these chapters
2. Then work through these stages
Module quiz
5 questions on 5. The cost of poor quality. Answer them all, then check your score before moving on. 4 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.
1. Which of these is an external failure cost?
2. Rework takes 6 extra minutes per garment on 2,000 garments at 0.06 per minute. What does the rework cost?
3. Why do rejects cost more than the labour to remake them?
4. Airfreight is used because production ran late. Where does that cost belong?
5. What justifies spending more on prevention?