Internal failure costs:- There are the costs which are incurred because of defects in the product before its shipment to a customer.
These include:
–Â Â Â Â Â Â Â Â Â Scrap and rework.
–Â Â Â Â Â Â Â Â Â Downtime costs,
Â
b)Â Â Â Â Â Â Â External Failure Costs:- There represent all costs incurred on defective products after it is deliberated to a customer.
–Â Â Â Â Â Â Â Â Â Investigating and solve problem
–Â Â Â Â Â Â Â Â Â Liability and penalties costs.
5 Comments