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306 Part IV: Quality Assurance
2. Appraisal. Costs associated with validating that errors have not occurred
(for example, measurement and inspection)
3. Internal failure. Costs associated with correcting errors detected prior
to customer receipt of products or services (for example, correction of
errors found during inspection and test)
4. External failure. Costs associated with correcting errors detected
after customers have received products or services (for example,
warranty costs)
The true cost of quality is recognized to be misunderstood and understated. A
common analogy associated with the cost of quality is an iceberg wherein the
tip of the iceberg, roughly 10 percent to 15 percent, is what we typically can identify.
In accordance with the analogy, some 85 percent to 90 percent of the true cost
of quality lies beneath the surface of the water and is thus misunderstood and
understated.
Juran and Godfrey (1999) have continued a common use of the cost of quality
concept to refer to the topic as the cost of poor quality. The cost of poor quality,
Juran and Godfrey note, applies differently to different people, but it does refer to
the costs associated with ensuring customer satisfaction. In addition to the costs
associated with the “cost of quality” as identified above, the “cost of poor quality”
generally refers to costs associated with lost goodwill when customers are
dissatisfied with products or services. This lost goodwill influences customer perceptions,
which, as explained above, influences a customer’s willingness to buy
products and services from any given vendor, and also influences the potential
recommendations given by any customer to other customers. These costs are difficult
to quantify, but very real costs nonetheless.
Part IV.C.2
2. PRODUCTS VERSUS PROCESSES
Define and distinguish between
products and processes. Describe the
interrelationships of product design,
materials used, manufacturing processes, and
final output. Describe how individual steps in
a process can affect the final product or the
system as a whole. (Comprehension)
Body of Knowledge IV.C.2
Product
For purposes of this book, and for the Certified Quality Inspector Body of Knowledge,
a product is any tangible item intended for use by a customer. A product
may be a physical item such as a unit of production, or a product may be the delivery
of a service. Whether a physical item or the delivery of a service, some form of
a process is required to produce a product.