Classification of Quality Costs

• Quality Engineering
  • Quality control/engineering  

1. Quality control engineers, 
2. Quality control systems engineers (includes procedures, standards and manual writers ), 
3. Quality planning engineers, 
4. Assembly inspection and test planning personnel, 
5. Final inspection and test planning personnel, 
6. Special process engineers, 
7. Reliability engineers, 
8. Engineering statisticians, and 
9. Formal design review and reliability committee activities. 

• Process control/engineering 

1. Process control engineers, 
2. Process control testing engineers, 
3. Reliability testing engineers, 
4. Defect analysis engineers, and 
5. Process or capability study engineers. 

• Design and Development of Quality Measurement and Control Equipment

1. Test equipment engineers, 
2. Test equipment planners and designers, 
3.  Inspection equipment engineers, and 
4. Gauge engineers and designers.  

• Quality Planning by Functions other than Quality Assurance

1. Laboratory engineers who plan the testing of incoming, inprocess and final products; 
2. Manufacturing engineerings who plan inspection and/or test equipment; 
3. Manufacturing or industrial engineers who develop inspection and test procedures for quality measurements as required by the quality plan; 
4. Engineering personnel who plan and direct initial product qualification; 
5. Sales personnel who develop visual quality standards; and 
6. Engineering personnel who develop acceptance standards. 

• Calibration and Maintenance of Production Equipment Used to Evaluate Quality

(costs of calibration and maintenance of templates, jigs, fixtures and similar items)

• Maintenance and Calibration of Test and Inspection Equipment Used in Control of Quality 
• Supplier Assurance

a) Evaluation: 

1) supplier surveys, audits and ratings; 

2) identifying new sources of supply; 

3) design evaluation and testing of alternative products; and 

4) purchase order review before placement. 

b) Planning: 

1) determining and documenting methods of supplier control; 

2) planning incoming inspection and test requirements; and 

3) carrying out supplier process capability exercises. 

• Quality Training 

developing, implementing, operating and maintaining formal quality training programmes.

• Administration, Audit and Improvement 

1. expenses associated with planning, implementing and maintaining a quality system not specifically included elsewhere, such as secretaries, telephone, rent and travelling.
2. Audit represents the costs of personnel engaged in planning documentinmg, implementing and maintaining audits on the quality system. 
3.  Improvement represents the costs of formal quality improvement programmes and motivational activities.

• Laboratory Acceptance Testing. 
• Inspection and Test 
• In-process Inspection
• Set-Up for Inspection and Test 
• Inspection and Test Materials 
• Product Quality Audits 
• Review of Test and Inspection Data 
• Field ( on-Site ) Performance Testing
• Internal Testing and Release
• Evaluation of Site Material ( Field Stock ) and Spare Parts -
• Data Processing Inspection and Test Reports

• Scrap
• Rework and Repair
• Troubleshooting or Defect/Failure Analysis 
• Reinspect, Retest 
• Scrap and Rework; Fault of Supplier; Downtime
• Modifications Permits and Concessions
• Downgrading

• Complaints Administration
• Product or Customer Service; Product Liability 
• Products Rejected and Returned; Recall; Retrofit 
• Returned Material Repair
• Warranty Replacement

1. Marketing errors 
2. Design specification errors 
3. Factory or installation errors