Traditional Cost of Quality
Quality costs programs started in the early 1950's. At that time only visible categories were included as shown below:
- Rejects
- Inspection Costs
- Reworks
- Customer Returns
- Quality Control Department Expenses
The hidden part of the iceberg came into the picture as broader definition of cost of quality was seen by companies:
- Rejects
- Inspection Costs
- Reworks
- Customer Returns
- Quality Control Department Expenses
- Complaint Handling
- Customer Allowances, provision
- Excessive Inventory
- Excessive Field Service Expenses
- Excessive overtime