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Internal failure cost

Updated: 12/19/2022
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9y ago

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Internal failure cost are quality costs that are associated with defects that have been discovered before delivery to customers. This internal failure cost is detected through inspection and appraisal activities.

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Related questions

What is the Difference between External Failure Costs and internal failure costs?

External failure cost is the cost incurred to fix the defects given by customer. Internal failure cost is the cost associated with internal verification activities like fixing the review comments or fixing the internal testing bugs.


Does high internal failure cost mean high external failure costs in a cost of quality analysis?

No. If internal quality failures such as defective component production are caught before shipping and current stock levels are high enough there can be no external failure costs. This is obviously a bit optimistic but it shows there is no necessary correlation.


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yes Sort of: Total cost of quality is the sum of: - Prevention costs (doing what you can to reduce failures prior to production) - Appraisal costs (testing completed products prior to shipping) - Internal failure costs (reworking or scrapping defective items no shipped) - External failure costs (customer support and warranty, etc. Costs incurred for defects discovered after shipment)


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