The cost of quality includes both the cost of conformance and the cost of nonconformance. An example of the cost of conformance is employee training. That is employees are trained to do the work right the first time; thus, mistakes are avoided.
Please discuss example of the cost of nonconformance? Why does it create quality problems for the organization?
Expert Answer
Cost of non-conformance can come from multiple heads including:
Cost associated with rejection or rework:
Cost of material that got rejected.
Manpower cost, transportation cost, utility cost and overhead cost associated with rejection and rework.
Lost business due to delivery not made on
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