Cost of Quality - Internal Failure Costs

 

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Cost of Quality - Internal Failure Costs

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Internal Failures

Defects caught internally usually require rework, repair or scrapping parts or goods.

  • COQ inputs for Internal Failures can be summarized under the following 4 categories:

    • Rework, scrap or yield loss

    • Extra operations

    • Defect investigation

    • Yield loss

  • Internal Failures include:

    • Scrap

    • Rework

    • Expediting costs

    • Excess labor

    • Excess inventory

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