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The Cost of Quality is any cost that would not be incurred if the quality were perfect. The costs are categorized into:
| Internal Failure Costs |
scrap, rework, re-inspection redesign, process changes etc. |
| External Failure Costs |
returns, warranty, penalties, revenue loss etc. |
| Appraisal |
inspection, audits, test equipment etc. |
| Prevention |
quality planning, process control, quality audits etc, |
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